• Historic $2B Milestone: VFEX achieved a record market capitalisation exceeding $2 billion in Q3 2025, up from $1.29 billion in Q3 2024
  • Robust Financial Gains: Profit Before Tax surged 22% and EBITDA rose 30%, driven by doubled trading fees, a modest 1% revenue increase, and operational cost reductions
  • Trading Surge: Market turnover hit $16.7 million, an 11.92% quarterly rise and over double Q3 2024's $7.79 million, with the All Share Index reaching a peak of 150.83 points for 44.91% YTD gains

Harare- Zimbabwe's US dollar-denominated bourse, the Victoria Falls Stock Exchange (VFEX), has achieved a landmark milestone in Q3 2025 by surpassing $2 billion in market capitalisation for the first time, reflecting its rapid ascent as a key platform for international investment amid Zimbabwe's push to establish Victoria Falls as a regional financial hub.

This surge, detailed in ZSE Holdings’ Q3 Newsletter, reflects a 44.91% year-to-date gain in the VFEX All Share Index, which hit a record high of 150.83 points, with market cap climbing from $1.29 billion in Q3 2024 to the new peak.

The breakthrough was propelled by “heightened trading activity and a pivotal listing of Kavango Resources Plc on September 8, 2025”, according to the ZSE Holdings circular  signalling VFEX's growing allure for resource-based firms tapping into Zimbabwe's mining potential.

Analytically, this capitalisation threshold not only boosts investor confidence but also positions VFEX as a hedge against local currency volatility, drawing dollar-based liquidity in an economy plagued by inflation and forex constraints.

Financially, VFEX posted robust profitability gains, with Profit Before Tax (PBT) rising 22% and EBITDA increasing 30%, fueled by trading fees more than doubling despite a modest 1% revenue uptick. These improvements stemmed from operational efficiencies, including reduced expenses, mirroring broader cost-discipline trends in Zimbabwe's exchanges. Market turnover reached $16.7 million, an 11.92% quarterly increase and over double the $7.79 million from Q3 2024, highlighting sustained momentum in equities trading.

However, the absence of debt securities trades in the quarter points to liquidity gaps in fixed-income segments, potentially limiting VFEX's depth as a full-spectrum exchange. This performance analytically demonstrates VFEX's resilience in a challenging macro environment, where strategic listings and fee growth have amplified returns, yet underscore the need for diversified instruments to sustain expansion. 

Foreign investor dynamics present a mixed picture, with participation levels not explicitly detailed for VFEX in the newsletter but contextualized by broader ZSE trends showing a sharp decline to 17.04% from 26.53% in Q2, coupled with net selling pressure. For VFEX, the dollar-denominated structure inherently appeals to offshore players seeking stability, as evidenced by the Kavango listing and overall cap growth, yet global caution over Zimbabwe's policy risks and currency instability likely tempered inflows.

Analytically, this foreign hesitancy could cap VFEX's potential despite its VFIFSC designation under S.I 29 of 2025, which formalizes its role in attracting cross-border capital via infrastructure like VFEX Markets, Depository, and Direct. To counter this, enhancing incentives and transparency will be crucial, as foreign buy-in is vital for liquidity and validating VFEX's hub ambitions.

 Looking forward, VFEX's $2 billion cap milestone cements its trajectory, but analytical scrutiny reveals dependencies on international listings and debt market activation to mitigate equity concentration risks. The exchange's integration into the Victoria Falls International Financial Services Centre offers regulatory tailwinds, yet overcoming foreign investor wariness through policy stability could unlock further gains.

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