Zimbabwe, UAE sign pact that may see Victoria Falls gold market
More than $1.5 billion of #gold is smuggled out of #Zimbabwe every year, much of it to #Dubai. A proposed new #exchange could make it easier to sell the metal legally and locally.
“Today in Dubai, I witnessed the signing of a cooperation agreement between the #VICTORIAFALLSSTOCKEXCHANGE(VFEX) represented by Justin Bgoni, and #DGCX, represented by Les Male. This positions #VFEX not just as an #investment window into Zimbabwe but also into #Africa”. Prof. Mthuli Ncube, Minister of Finance.
Zimbabwe wants to open the exchange in a bid to create a reference market that will see #miners offered competitive prices, said Justin Bgoni, chief executive officer of the VFEX.
“It is a holistic approach to the needs of gold miners,” Bgoni said in response to queries from Bloomberg. “They raise capital and we make it easy for them to sell.”
More than $1.5 billion of gold is smuggled out of Zimbabwe every year, much of it to Dubai, according to a report from research organization International Crisis Group last year. An exchange could make it easier to sell the metal legally and locally.
Other #commodities may also be #traded on the exchange, should it be established.
There is an “ultimate aim of establishing an international commodities exchange in Zimbabwe,” the exchanges said in a statement.
Zimbabwe is the second African country to seek an alliance with the DGCX. Earlier this year the Dubai-based exchange signed a memorandum of understanding with the Financial Markets Regulatory Authority in #Sudan to boost gold trading between the two countries. #Bloomberg
Zimbabwe 🇿🇼 is an #AfCFTA member country