Rainer Michael Preiss — Global Markets Commentary | June 2026
Why Zimbabwe’s dollar-based exchange deserves a place on every frontier-markets investor’s radar.
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 exclusively 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 — directly addressing long-standing investor concerns around exchange-rate volatility and the repatriation of capital.
Strategic Importance
The exchange supports foreign investment, helps Zimbabwean companies raise US dollar funding, and underpins the broader Victoria Falls Special Economic Zone strategy.
Why the US Dollar Matters
Unlike most African exchanges, which trade in local currencies, VFEX operates entirely in US dollars. For international investors, that removes a layer of foreign-exchange risk and materially improves transparency and comparability across holdings.
Investor Incentives
VFEX has been deliberately structured to compete for international capital. The headline incentives are:
| Incentive | What it means for investors |
|---|---|
| No capital gains tax | Gains on listed securities are not taxed, improving net returns. |
| Reduced withholding tax | Lower withholding on dividends for qualifying foreign investors. |
| Flexible repatriation | More straightforward arrangements for moving capital and income offshore. |
Market Development
Since launch, VFEX has expanded steadily — growing market capitalisation, a widening roster of new listings, and the introduction of REITs and exchange-traded products. Several large infrastructure listings have further deepened the market.
Investment Themes
The opportunity set spans mining, lithium, gold and platinum, agriculture, financial services, telecommunications, infrastructure and real estate — with critical minerals a particular point of strategic interest for global investors.
Advantages
US dollar exposure, attractive valuations, dividend potential, diversification benefits and access to critical minerals together make VFEX distinctive among African frontier markets.
Risks
The case is not without caveats. Investors should weigh political and regulatory risk, liquidity constraints, market concentration, and the volatility inherent to any frontier market.
Portfolio Construction
VFEX is best viewed not as a standalone bet but as one component of a diversified frontier-market allocation — held 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 the risks remain real, continued reform and market development could yet establish it as one of Africa’s most distinctive frontier exchanges.
Rainer Michael Preiss is a German national and an investment advisor based in Singapore. He has over 25 years of experience in global private banking and multi-family office business across Europe, Middle East, Africa and Asia. Michael was previously the Chief Equity Strategist at Standard Chartered Bank (SCB) where he was one of seven voting members on the Global Investment Council which decided on SCB's global investment policy. He is also a prolific and renowned contributor to the financial media world where he is a columnist for Forbes and is frequently featured on Bloomberg, CNA and CNBC.
