Economic Updates - Featured - Finance - Top Stories - October 20, 2021

Zim’s esteemed commodities exchange to address macroeconomic woes

Government of Zimbabwe is  exploring the setting up of an Offshore Financial Services Centre in Victoria Falls of which the envisaged Commodities Exchange will be a key component.

This was revealed at the ongoing workshop organized by the Victoria Falls Stock Exchange in partnership with Dubai Gold and Commodities Exchange (DGCX) where key stakeholders are learning from DGCX through exchange of ideas on the establishment of a local commodities exchange.

Officiating at the opening of the workshop, the Minister of Finance and Economic Development, Professor Mthuli Ncube indicated that the Offshore Financial Services Centre will help develop the financial service sector, through provision of opportunities for global investment.

“…establishment of a local commodity exchange will aid in creating jobs and increasing foreign currency earnings for the country, through provision of a transparent market where price discovery and hedging instruments can be established,” Ncube said.

The ultimate goal of the workshop is to provide a roadmap for the establishment of a commodity exchange under the Victoria Falls Stock Exchange.

Speaking at the workshop, Minister of Mines and Mining Development, Winston Chitando pointed out that, the mining sector holds the potential to turn around the economy as envisioned by His Excellency, President E. D. Mnangagwa through the launch of the USD12 billion Mining Industry Strategy in 2019.

“Under this policy document, priority is given to investments in exploration, opening of new mines, beneficiation and value addition of minerals as well as expansion of projects.

“A commodity exchange would complement this strategy as it represents an organized market for the finished or semi processed product from the mining sector. A transparent market may help curb smuggling in the sector and also assist miners in planning,” Chitando said.

The workshop is meant to discuss how commodity exchanges work and how such an exchange can be used to address some of the challenges facing Zimbabwe mining sector.

The Victoria Falls Stock Exchange signed a strategic Memorandum of Understanding (MOU) between the Dubai Gold and Commodities Exchange (DGCX) and the Victoria Falls Stock Exchange (VFEX) in September 2021.

The MOU provides for extension of technical support from DGCX to VFEX with the ultimate aim of establishing an international commodities exchange in Zimbabwe.

 

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