Staff Writer
HARARE – Old Mutual Limited has announced plans to migrate its secondary listing in Zimbabwe from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX), ending a six-year impasse that left its shares suspended from trading and restoring market access for local investors.
The move, which is subject to regulatory approvals, will see one of Zimbabwe’s largest listed companies transfer its secondary listing to the US dollar-denominated VFEX, a development expected to reopen trading opportunities for thousands of Zimbabwean shareholders who have been unable to buy or sell Old Mutual shares since June 2020.
Old Mutual said the migration reflects its confidence in the growth and maturity of the VFEX, which it believes has developed into a sufficiently liquid and credible alternative trading platform.
The company’s shares were suspended in June 2020 after the Government halted trading on the ZSE in an effort to curb the use of the implied exchange rate that authorities said was fuelling exchange rate distortions and market instability.
Although trading on the ZSE resumed two months later, Old Mutual remained suspended, preventing investors from trading the stock despite the company not being responsible for the continued suspension.
Since then, the financial services group said it has engaged extensively with the Government of Zimbabwe, regulators and both stock exchanges in an effort to restore trading or identify an alternative solution.
Old Mutual Group chief executive officer Jurie Strydom said the migration was primarily aimed at restoring investor choice.
“This migration is about restoring choice and visibility of investment exposure to Old Mutual for our Zimbabwean shareholders.
“We are committed to providing a viable, regulated pathway for shareholders to trade their shares, or to continue holding them and receive dividends as and when declared and benefit from exposure to the market value of Old Mutual shares,” he said.
He said the board had concluded that the VFEX had evolved into a viable market capable of supporting the company’s listing.
“The VFEX has come into its own and now developed sufficient scale and liquidity as a viable alternative trading platform to the ZSE. We are confident this move is in the best long-term interests of all our stakeholders.”
Old Mutual Zimbabwe chief executive officer Samuel Matsekete said the decision followed constructive engagements with Government and aligned with efforts to strengthen Zimbabwe’s capital markets.
“This migration has been achieved through constructive dialogue with the Government of Zimbabwe and demonstrates our commitment to contribute to the strengthening of financial and capital markets in Zimbabwe. We are committed to aligning Old Mutual’s corporate strength to drive sustainable economic growth into the future.”
The migration marks a significant milestone for both Old Mutual and Zimbabwe’s capital markets. For shareholders, it provides a long-awaited opportunity to trade shares that have effectively been locked for years while maintaining entitlement to future dividends and exposure to the group’s underlying value.
The development is also a major endorsement of the VFEX, which has been positioning itself as Zimbabwe’s premier foreign currency-denominated exchange since its launch in 2020.
The exchange offers investors incentives including trading, settlement and dividend payments in US dollars, features that have increasingly attracted companies seeking access to international and domestic foreign currency investors.
Old Mutual’s decision is expected to further enhance the VFEX’s standing, adding one of Africa’s leading financial services groups to a market that has steadily expanded its number of listings and market capitalisation over the past few years.
The announcement also comes amid a broader migration of investor activity towards the VFEX. The exchange recently overtook the ZSE in market capitalisation, reflecting growing confidence in the US dollar-based bourse and increasing demand for foreign currency-denominated investment opportunities.
For the ZSE, the departure of one of its most prominent suspended counters underscores the long-term impact of the 2020 trading restrictions and the continuing shift by some issuers towards the VFEX’s foreign currency platform.
Pending regulatory approvals, the migration is expected to restore an active market for Old Mutual shares in Zimbabwe for the first time since 2020, bringing to a close one of the country’s longest-running stock market suspensions and providing renewed liquidity for investors.
