Why Zimbabwe's Dollar-Based Exchange Deserves a Place on Every Frontier Markets Investor's Radar
By Rainer Michael Preiss
Global Markets Commentary | June 2026
Executive Summary
The Victoria Falls Stock Exchange (VFEX) is one of Africa's most innovative capital market initiatives. Established in October 2020, it trades securities in US dollars, aiming to attract international capital, reduce currency risk, and position Victoria Falls as an international financial centre.
Why VFEX was Created
VFEX was created to improve access to foreign capital by offering US dollar trading, settlement, dividends and capital raising, addressing concerns around exchange-rate volatility and capital repatriation.
Strategic Importance
The exchange supports foreign investment, helps Zimbabwean companies raise US dollar funding, and underpins the Victoria Falls Special Economic Zone strategy.
Why the US Dollar Matters
Unlike most African exchanges that trade in local currencies, VFEX operates entirely in US dollars, reducing foreign exchange risk and improving transparency for international investors.
Investor Incentives
Key incentives include no capital gains tax on listed securities, reduced withholding tax for qualifying foreign investors, and more flexible repatriation arrangements.
Market Development
Since launch, VFEX has expanded steadily with growing market capitalisation, new listings, REITs and exchange-traded products. Large infrastructure listings have further strengthened the market.
Investment Themes
Major themes include mining, lithium, gold, platinum, agriculture, financial services, telecommunications, infrastructure and real estate.
Advantages
US dollar exposure, attractive valuations, dividend potential, diversification benefits and access to critical minerals make VFEX distinctive among African frontier markets.
Risks
Investors should consider political and regulatory risk, liquidity constraints, market concentration and frontier-market volatility.
Portfolio Construction
VFEX is best viewed as part of a diversified frontier-market allocation alongside markets such as Zambia, Namibia, Rwanda, Kenya, Morocco, Kazakhstan, Uzbekistan and Vietnam.
Conclusion
VFEX represents a unique gateway to Zimbabwe through a US dollar-denominated market. While risks remain, continued reform and market development could establish it as one of Africa's most distinctive frontier exchanges.
Rainer Michael Preiss, Partner & Portfolio Strategist, DAS family Office Singapore
