What VFEX is seeking
Zimbabwe is aiming to have the Victoria Falls Stock Exchange's dollar-board listings included in the MSCI Frontier Markets Index to draw global capital and boost liquidity. VFEX chief Justin Bgoni said from Bulawayo that the bourse has written to MSCI several times, without naming which securities are up for consideration. MSCI failed to answer an email seeking comment.
The index they want to join
There are 246 members in the MSCI Frontier Markets Index, which comprises large- and mid-cap firms from frontier markets. MSCI says it covers about 85 percent of each country's free float adjusted market value.
Where VFEX stands now
Established in 2020, VFEX surpassed the primary Harare bourse this year, a venue where stocks are traded in local currency. The dollar board has a market capitalization of $8.96 billion, though trading remains light at roughly $2.8 million in daily turnover. New listings this year include Old Mutual Ltd., alongside Econet InfraCo, the biggest telecommunications infrastructure firm in the country.
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The bar and potential candidates
Shelton Sibanda, CEO at Imara Asset Management, noted the index applies numerous measures, with liquidity being a crucial factor. He said this ties into another condition: making it straightforward for foreign investors to enter the market. Sibanda noted Zimbabwe has never been in MSCI's frontier index and that, in MSCI's taxonomy, Zimbabwean equities sit in a standalone category. Regarding potential candidates that would clear some hurdles, he cited Innscor Africa Ltd., Padenga Holdings Ltd., Simbisa Brands Ltd., and, to a certain extent, AXIA Corp.
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