HARARE — This week’s trading results on Zimbabwe’s equity markets show renewed activity and marked divergence between the local-currency Zimbabwe Stock Exchange (ZSE) and the dollar-denominated Victoria Falls Stock Exchange (VFEX), reflecting shifting investor preferences in a volatile macro-economic environment.
According to the latest update from ZSE Holdings Limited for the third quarter of 2025, overall trading activity across its exchanges picked up significantly. On VFEX, market capitalisation has surpassed the US$2 billion milestone for the first time, a landmark achievement that underscores rising investor confidence.
Trading turnover reached roughly US$16.7 million — more than double the amount recorded in the same quarter last year — and the VFEX All Share Index hit a high of 150.83 points, amounting to a near-45 percent year-to-date gain.
The VFEX momentum is being bolstered by a wave of interest from resource-based firms and miners seeking hard-currency capital, along with a growing appetite among investors for dollar-asset exposure as a hedge against local currency instability. The recent listing of Kavango Resources Plc on 8 September 2025 is among the catalysts cited for this surge.
At the same time, the Zimbabwe Stock Exchange (ZSE) appears to be recovering from a weak start earlier in the year. While trading on ZSE had suffered from tight liquidity and subdued demand — factors that dragged down many mid-cap stocks — the exchange nonetheless witnessed a surge in overall turnover, indicating renewed investor interest, albeit concentrated in a few heavyweights.
ZSE Holdings reported strong internal financial results for Q3 2025: profit before tax nearly doubled compared to the prior year, driven by cost controls and increased trading volumes. Total group income rose significantly, reflecting improved exchange-wide activity.
Even so, market breadth remains limited. On the ZSE, liquidity is mostly confined to a handful of large firms, while many smaller and mid-cap companies continue to see little trading. Analysts warn that until participation widens, ZSE’s recovery remains fragile.
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For investors, the contrasting fortunes of ZSE and VFEX illustrate a broader shift in Zimbabwe’s capital markets — from local-currency equities toward dollar-denominated, hard-currency instruments. As VFEX cements its status as a viable refuge from currency volatility, ZSE may continue to struggle until macroeconomic headwinds ease and confidence returns more broadly.
