VFEX jumped 34% in 2025. The dollar-denominated Victoria Falls Stock Exchange now sits on a market value of about US$1.65 billion.

Fast growth on a hard-currency platform

The Victoria Falls Stock Exchange has surged this year, delivering a 34% return so far in 2025 after a 15% payoff in 2024. The numbers are clear: market capitalization climbed about 28.7%, adding roughly US$200 million since late August and bringing the bourse to around US$1.65 billion.

The gains come on the back of a deliberate design. VFEX trades in U.S. Dollars inside Zimbabwe’s international financial centre, a setup meant to attract investors who want hard-currency exposure without leaving the country.

It’s helped push miners and foreign issuers to VFEX — they want to raise dollars without trading in volatile local cash. Since it launched in 2020, VFEX has hosted a string of listings and fundraisings that fed investor interest.

Caledonia raised US$12 million, Karo Resources did a US$36 million round — including about US$25 million from local investors — and both Eagle Reit and Invictus pulled in US$19.5 million apiece through the platform.

Mining money and the listings pipeline

Mining stocks have been a major engine for VFEX's rally. The bourse's structure lets miners tap international capital while keeping their operations registered in Zimbabwe.

Kavango Resources became one of the headline debuts this year, helping to lift trading and sentiment. That issuance — and others like it — is part of why market capitalisation jumped so quickly.

Mining firms often need big infusions of cash to develop projects. VFEX offers a route to dollars without the currency conversion headaches that have dogged Zimbabwe’s market for decades. For smaller local investors, the listings also created a chance to take stakes in mining plays that would have otherwise raised money abroad.

Trust bolstered by settlement reliability

Investor trust wasn't automatic. According to Robert Mubaiwa, Head of Markets at the Victoria Falls Stock Exchange, "every single trade since VFEX's inception has been settled on time."

Timely settlement matters — it builds credibility with both institutions and retail investors. VFEX's tidy track record on settlement reduces one obvious friction for both institutional and retail players considering dollar-denominated exposure.

That said, reliability on back-office processes is only part of the story. Liquidity still lags bigger African markets. Trading volumes can spike around new listings and then settle back, which makes short-term price swings more likely than on deeper exchanges.

Where VFEX sits in Zimbabwe’s financial picture

VFEX is part of a broader effort to reboot Zimbabwe’s capital markets after years of extreme currency volatility. The country's economy went through a long slump and hyperinflation from the late 1990s into the 2000s. Allowing other currencies to circulate again gave policymakers a tool to stabilize prices and restore some investor interest.

Emmerson Mnangagwa, President of Zimbabwe, has overseen policies aiming to re-engage international capital since taking office in 2017. The international-dollar bourse fits that strategy: it signals an openness to foreign money while keeping listings on local soil.

Still, macro risks remain. Basic economic indicators show a nation recovering but not yet fully healed. Population estimates put Zimbabwe's people at roughly 16–17 million, and growth statistics are volatile year to year. That background makes VFEX's dollar feature all the more attractive; investors often see hard-currency instruments as a hedge against local currency weakness.

How VFEX’s model compares with regional peers

VFEX's dollar trading sets it apart from many African exchanges that operate in local currencies. That difference can be decisive for international investors who price assets in dollars and want to avoid conversion and repatriation hurdles.

But bigger regional exchanges still offer scale VFEX lacks. Larger bourses have deeper pools of buyers and sellers, which tends to lower volatility and boost long-term institutional participation. VFEX is young by comparison — launched in 2020 — and its climb to US$1.65 billion shows momentum, not permanence.

The reality is VFEX is carving a niche; it's growing fast but not yet a replacement for bigger regional exchanges. It’s a specialized market where certain sectors — mining above all — find a natural home.

Risks and roadblocks for investors

Investors have to weigh a handful of risks when they look at VFEX listings. Political uncertainty, regulatory shifts and the broader health of Zimbabwe’s economy all play a role.

Robert Mugabe, former president, and the long era of policy volatility under his rule remain part of the country's institutional memory; reforms after his 2017 resignation under Emmerson Mnangagwa sought to restore confidence but haven't erased those memories.

Currency policy will be a headline risk. If authorities alter dollar access or change rules around hard-currency listings, VFEX could face new challenges. For now, the platform’s performance looks like proof to some investors that the model can work in practice.

What VFEX’s rise means for local investors

For Zimbabwean savers, the exchange offers a new way to hold assets in dollars without moving funds offshore. Local participation in some of the recent raises — Karo Resources' US$25 million from domestic buyers, for example — shows there’s appetite at home.

But access isn't universal. Brokerage networks, fees and minimum investment sizes still limit who can buy directly. If the exchange wants more retail depth, it'll need to push on distribution and education in local markets.

Expanding retail participation is about infrastructure and distribution as much as it is about good headline returns. Infrastructure, financial literacy and transparent regulation all matter if VFEX is going to stay more than a niche venue.

Next steps and the outlook

VFEX's immediate future will depend on fresh listings and continued settlement performance. New mining flotations and further capital raises would help deepen liquidity and smooth price action.

Investors will also watch policy signals from Harare. Stable rules on currency use and cross-border capital flows are key to keeping both foreign and local investors engaged.

For now, VFEX’s 34% run and US$1.65 billion market value are tangible markers of progress — and a reminder that a small, dollar-denominated exchange can move fast when conditions line up.

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“Every single trade since VFEX's inception has been settled on time,” said Robert Mubaiwa, Head of Markets at the Victoria Falls Stock Exchange.