VICTORIA FALLS — Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has called for deeper and more diversified capital markets to help Zimbabwe mobilise long-term investment, finance business expansion and support sustainable economic growth.
Speaking at the listing of Old Mutual Limited on the Victoria Falls Stock Exchange (VFEX), Ncube said Zimbabwe could not rely solely on commercial bank lending and conventional debt financing to meet the economy’s long-term capital requirements.
He said a stronger capital market was necessary to connect domestic savings and international capital with productive investment opportunities.
“Deeper and more diversified capital markets are essential to provide businesses with long-term growth capital, expand investment opportunities and mobilise savings towards productive investment,” Ncube said.
He said stronger capital markets would support enterprise growth, employment creation and sustainable economic development by providing businesses with alternative sources of long-term financing.
Ncube described Old Mutual’s listing on VFEX as more than a corporate milestone, saying it represented an important development in the evolution of Zimbabwe’s financial markets and demonstrated the growing capacity of the US dollar-denominated exchange to connect Zimbabwe with regional and international capital.
He congratulated VFEX on its progress in establishing itself as a credible and competitive investment platform.
The Minister also highlighted Old Mutual’s longstanding contribution to Zimbabwe’s economy through the mobilisation of long-term savings and investment in productive sectors, including agriculture, mining, manufacturing and services.
He said the company’s investments illustrated the important role institutional capital could play in supporting employment, economic resilience and national development.
The migration of Old Mutual Limited’s secondary listing from the Zimbabwe Stock Exchange to VFEX, he said, was also a sign of confidence in the evolution of the exchange as a platform for investment mobilisation and capital formation.
Ncube said the development was consistent with Zimbabwe’s broader objective of building stronger and more interconnected African capital markets.
The return of Old Mutual to trading on the local market is expected to broaden investment opportunities, improve market visibility and potentially increase investor participation and liquidity on VFEX.
Ncube said Government would continue working with regulators, market institutions and the private sector to create a financial ecosystem based on transparency, innovation, legal certainty, market integrity and investor protection.
He also called on Old Mutual to deepen its partnership with Government through the Infrastructure Fund, arguing that institutional investors could play a greater role in financing the country’s infrastructure requirements.
He said combining public-sector priorities with private capital could help deliver infrastructure projects at scale while creating appropriate investment opportunities for institutional investors.
The Minister said the Old Mutual listing should therefore be viewed within the broader effort to transform Zimbabwe’s capital markets into an important engine of long-term economic development.
He urged continued collaboration between Government, regulators, exchanges, financial institutions and the private sector to deepen Zimbabwe’s financial architecture and strengthen the country’s ability to attract both domestic and international investment.
Ncube officially declared Old Mutual Limited listed on VFEX, marking the company’s return to active trading on a Zimbabwean exchange and another significant development in the country’s efforts to deepen its capital markets.
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