Economic analysts have welcomed the Victoria Falls Stock Exchange (VFEX) financial service centre saying investors will have greater protection than they presently have This comes after the Minister of Finance and Economic development, Mthuli Ncube said the government was setting up an offshore financial service centre in Victoria Falls Speaking in separate interviews, economists said the offshore financial centre will attract more investors into the country since they will be granted better protection towards their investments “The whole idea is to re-in fence the foreign investments so that there is an ease of coming in and out of investors” said Farai Mutambanengwe
Asked whether the centre would, in anyway, also help small-scale miners, he said that would depend upon what was allowed on the commodity exchange “The offshore and the small scale miners are not necessarily linked; that is where the commodity exchange comes in and specify on what commodities are allowed on the exchange It’s not everything that will be allowed to trade on the exchange” said Mutambanengwe
He, however, said the inclusion of gold on the exchange could help small scale miners to have a proper price for their commodities “It could help if that is the intention of setting up the commodity exchange.” Said Mutambanengwe
Another economist, Prosper Chitambara said the offshore trading centre was a great initiative which sought to attract greater capital inflows into the economy He, however, noted that the success or failure of the offshore trading centre depended on the stability and consistency of the policy environment, adding there was need for a liberal regulatory framework especially around exchange rate management as well as capital controls Source: The Anchor
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Source: Theanchor
