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Padenga Lists On VFEX

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Matabeleland North Correspondent

ZIIMBABWE-parented multinational, Padenga Holdings Ltd has officially listed on the Victoria Falls Stock Exchange (VFEX).

One of the world’s largest suppliers of crocodile skins for luxury handbags and shoes, Padenga said the decision was made after it got attracted by incentives dangled by Government on the new bourse.

VFEX was established last year in October as a means of attracting
foreign investment and capital, especially in the mining sector.

Seed Co International has been the only listing so far.

Launching Padenga’s listing on the VFEX, Finance and Economic
Development Minister Professor Mthuli Ncube said the VFEX had made a
milestone achievement by getting two listings within nine months of
opening.

“We convened here just nine months ago to launch the Victoria Falls
Stock Exchange. I am delighted to witness the growth of VFEX in terms
of listings. Those who are familiar with capital markets will
understand that ordinarily a new listing takes time, typically
anything from six months to 18 months or even longer and for VFEX to
have achieved two listings in nine months is certainly commendable,”
said Ncube.

He said the development is one of many initiatives being implemented
by the government to stabilise and grow the economy and to make it
attractive to foreign direct as well as domestic investors.

Ncube said capital markets such as VFEX complement government
policy initiatives.

He said ever since the concept to create a globally competitive
platform for the trading of stocks in hard currency was put in place,
the government has been working tirelessly together with the Zimbabwe
Stock Exchange (ZSE) in promoting VFEX.

This is the government way of revitalizing domestic and foreign
investments which are critical to growing the economy, guided by the
National Development Strategy 1 (NDS1).

“Let me reiterate that our Government’s vision for a middle income
economy by 2030 remains on course and having a vibrant capital market
is a major milestone towards that. Government has put in place various
incentives to stimulate listings including the recent announcement on
the increased export retention for issuers that list on the VFEX.

“The incremental export incentive scheme that the Government, through
the Reserve Bank of Zimbabwe put in place seeks to boost productivity
and generate sustainable growth in export revenue and ultimately
encourage listing and participation of firms on VFEX,” said Ncube.

He said vibrancy is key while calling on more companies to list as the
government will continue to pursue Vision 2030 and create an enabling
environment.

Padenga board chair Thembinkosi Sibanda said the company’s listing is
reinforcement of its longstanding commitment to Zimbabwe and support
for Government vision 2030, adding that the company is excited by the
incentives and opportunities represented on the VFEX.

While the bourse offers incentives such as tax breaks and assures the
unfettered repatriation of funds from the country, where
foreign-exchange is in short supply, no tourism company has shown
interest despite the strategic location

Zimbabwe’s biggest bank, CBZ Holdings Ltd, Caledonia have indicated
interest and the Finance Minister said there could be two listings
before year end.