The Victoria Falls Stock Exchange (VFEX), a subsidiary of the Zimbabwe Stock Exchange (ZSE) has signed a Memorandum of Understanding (MoU) with the Dubai Gold and Commodities Exchange (DGCX), the region’s leading derivatives exchange, to strengthen bilateral cooperation as well as exchange knowledge around commodities trading.
As part of the agreement, the DGCX will extend technical support, knowledge and skills to VFEX, with the ultimate aim of establishing an international commodities exchange in Zimbabwe.
Additionally, VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework. The collaboration will also pave the way for possible investments by DGCX into the VFEX Commodities Exchange.
The one-year agreement was signed in Dubai by the chief executive of DGCX, Les Male, and the VFEX CEO, Justin Bgoni, during the visit of a high-level Zimbabwean ministerial delegation, which also included the Minister of Finance and Economic Development Professor Mthuli Ncube.
Les Male said: “We are delighted to forge a partnership with the Victoria Falls Stock Exchange, as part of our wider strategy to strengthen commodities trading across Africa. We are confident that our deep knowledge and expertise will help bring value to VFEX as they kick start the Offshore Financial Services Centre (OFSC) for the special economic zone in Victoria Falls.
“The partnership also builds on our expanding international footprint and represents another opportunity for us to build stronger inroads into Africa, a rapidly growing market with enormous potential.”
Mr Bgoni said: “On behalf of the Victoria Falls Stock Exchange, I am pleased to be part of this momentous occasion of the signing of the Memorandum of Understanding between our exchange and the Dubai Gold and Commodities Exchange.
“We are looking forward to a fruitful exchange of ideas and technical know-how that should culminate in us being able to replicate the success of the Dubai Gold and Commodities Exchange in our own country and under the proposed Victoria Falls Stock Exchange-driven commodities exchange.”