VFEX, Dubai based exchange move to establish gold market in Vic Falls

  • The VFEX and DGCX signed an MoU that is ultimately aimed at establishing a commodities exchange
  • DGCX to provide know-how and guidance to VFEX in the process
  • Such a move could go a long way in mitigating gold smuggling

Harare – The Victoria Falls Stock Exchange (VFEX) and the Dubai Gold and Commodities Exchange have signed a Memorandum of Understanding (MoU) with the ultimate aim of establishing an international commodities exchange in Zimbabwe.

The MoU is also said to be aimed at strengthening bilateral cooperation between the two exchanges as well as the sharing of knowledge on commodities and their trading.

“As part of the agreement, the DGCX will extend technical support to, knowledge and skills to VFEX, with the ultimate aim of establishing an international commodities exchange in Zimbabwe. Additionally, VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework. The collaboration will also pave the way for possible investments by DGCX into the VFEX commodities exchange,” said VFEX and ZSE chief executive, Justin Bgoni.

DGCX Chief Executive, Les Male says the understanding is part of their broader strategy of improving commodities trading in Africa as well as expanding their international footprint.

“We are delighted to forge a partnership with the VFEX as part of our wider strategy to strengthen commodities trading across Africa… The partnership also builds on our expanding international footprint and represents another opportunity for us to build stronger inroads into Africa,” he said.

The DGCX boasts of being the Middle East’s leading derivatives exchange and operating the region’s only multi-asset clearinghouse, the Dubai Commodities Clearing Corporation (DCCC) leveraging on Dubai’s strategic position between the Far East, Europe and Africa.

Such a partnership could also be a solution to the problem of gold smuggling that is plaguing Zimbabwe and costing the country more than US$1.5 billion annually ironically mostly to Dubai, by making it easier for local miners to sell the commodity legally, locally and more profitably.

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