Staff Reporter

Economic Analysts have welcomed the establishment of an International Commodities exchange in Zimbabwe, citing its potential to grow markets for the country’s products as well as create employment. Subsequently, Government has been urged to hasten its plans of setting up an Offshore Financial Services Centre in Victoria Falls as it has a potential to attract Foreign Direct Investment (FDI).

Speaking at the official opening of the Victoria Falls Commodities Exchange Workshop currently underway in Victoria Falls, Minister of Finance and Economic Development, Professor Mthuli Ncube, revealed that the Memorandum of Understanding (MoU) that was signed between Dubai Gold and Commodities Exchange (DGCX) and the Victoria Falls Stock Exchange (VFEX) has an ultimate aim of establishing an international commodities exchange in Zimbabwe.

“The Government of Zimbabwe is exploring the setting up of an Offshore Financial Services Centre in Victoria Falls, of which the envisaged Commodities Exchange will be a key component,” said Minister Ncube.

Economic Analyst Abednego Matsika, said, “Our citizens and potential investors had lost confidence in our financial services sector, of which I commend initiatives by the New Dispensation to restore its sanity back.  The Offshore Financial Commodities Centre will help develop the financial services sector through provision of opportunities for global investment.

“The Commodities Exchange will create markets for our products, the markets strain that was brought about by the imposition of illegal sanctions will be busted through this platform.  Zimbabwe will now be able to market its mining, agriculture and manufactured products without the effect of sanctions,” Matsika said.

While speaking at the same function the Minister of Mines and Mining Development, Winston Chitando applauded the establishment of a Commodity Exchange saying, his Ministry had much use for it following the launch of the US$12 billion Mining Industry Strategy in 2019 by President Emmerson Mnangagwa.

“A commodity exchange would complement this strategy as it represents an organised market for the finished or semi processed products from the mining sector.  A transparent market may help curb smuggling in the sector and also assist miners in planning,” added Chitando.

Meanwhile, the DGCX is a leading derivatives exchange in the Middle East, having played a pioneering role in developing regional markets for derivatives trading, clearing and settlement, it is therefore well placed to mentor VFEX by extending its technical support, knowledge and skills.