FIRST Capital Bank Limited has announced plans to delist from the Zimbabwe Stock Exchange

VFEX great trek continues despite the recent adjustment to the export retention incentive

The waterfall bourse offers better incentives and prospects for local firms

Harare - FIRST Capital Bank Limited has announced plans to delist from the Zimbabwe Stock Exchange with the intention to list at the Victoria Falls Stock Exchange (VFEX). The recent removal of the 100% incentive in 2023 was seen as a key policy change that could hamper the great migration to VFEX but the great trek continues. The 2023 MPS standardised all export retentions at 75% across all sectors including firms that are listed on VFEX.

VFEX has continued to gain momentum as it continues to lure top-performing companies, injecting the much-needed confidence for Zimbabwean firms as a safe investment destination regardless of removing the 100% export retention incentive for firms listed on the waterfall bourse, VFEX. First Capital Bank looks to be set as the first Zimbabwean bank to list its shares on the Victoria Falls Stock Exchange.

“The directors of First Capital Bank Limited (the “company’) wish to advise all shareholders and the investing public that the board has approved the delisting of the company from Zimbabwe Stock Exchange, to be immediately followed by its listing on the Victoria Fall Stock Exchange (the “Transaction”), said First Capital Bank company secretary Sarudzai Binha in a recent cautionary statement.

“Further details of the transaction will be provided to shareholders once all regulatory processes have been finished.

“Shareholders are, therefore, advised to exercise caution and consult their professional advisors when trading in the company’s shares.”

The USD-denominated VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) launched in 2020 as an off-shore financial services center.

VFEX has enjoyed remarkable expansion in recent months, and in addition to the concomitant value potential, policy arbitrage has been critical in attracting migrations. The VFEX platform provides several benefits, such as tax exemptions on capital gains and the possibility to repatriate funds, which has been difficult in the past. Free capital and dividend transfers, cheap transaction costs, tax incentives, and less currency risk are all attractive to investors.

At the start of the year Ronald Joma a financial analyst at Equity Axis said:

“At Equity Axis, we anticipate more listings on the VFEX in the current year as more companies' capacity to generate foreign currency grows, particularly those engaged in consumer staples, travel and hospitality, agricultural exporting, and mining companies (2023).”

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