HARARE, July 10 (NewsDay Live) – Old Mutual Limited (OML) is set to re-enter Zimbabwe’s capital markets after six years by migrating its listing from the Zimbabwe Stock Exchange (ZSE) to the United States dollar-denominated Victoria Falls Stock Exchange (VFEX), ending a suspension imposed during Zimbabwe’s 2020 exchange rate crisis.
The move marks the resolution of one of the country’s most contentious capital market disputes and restores trading in one of Zimbabwe’s largest and most influential counters.
OML was suspended from the ZSE in June 2020 alongside PPC Limited and Seed Co after authorities argued that the fungibility of the companies’ shares, which were also listed on foreign exchanges, enabled investors to calculate an implied exchange rate that undermined the official Zimbabwe dollar rate.
By comparing prices of the same shares on domestic and offshore exchanges, investors derived an alternative exchange rate that increasingly became the market benchmark for pricing goods and services as confidence in the official rate deteriorated.
Seed Co later returned to Zimbabwe’s capital markets through a VFEX listing in late 2020, leaving Old Mutual and PPC suspended. OML’s return now leaves PPC as the only one of the three companies yet to resume trading on a Zimbabwean exchange.
Announcing the breakthrough, ZSE Holdings chief executive Justin Bgoni said lengthy engagements between the exchange, the VFEX and Old Mutual had culminated in an agreement to migrate the insurer’s listing to the dollar-based bourse.
“Following the suspension of Old Mutual Limited on the Zimbabwe Stock Exchange in 2020, the ZSE and Victoria Falls Stock Exchange have been engaging with OML to resolve the outstanding suspension,” Bgoni said.
“During the suspension, OML has complied with its continuing obligations as an issuer and has also paid dividends to its shareholders.”
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He said listing on the VFEX would allow shareholders to trade their shares in United States dollars, improving liquidity and giving investors access to a hard-currency market.
“Following the migration, OML shareholders will be able to buy and sell their shares through their preferred licensed stockbroker or via the VFEX Direct online trading platform, providing greater flexibility and convenience in accessing the market,” Bgoni said.
The migration also comes as Old Mutual continues to face challenges repatriating funds from Zimbabwe. The South African-headquartered financial services group has previously disclosed that nearly US$84 million in legacy dividends from its Zimbabwean subsidiary remain trapped under the country’s blocked-funds framework.
Bgoni credited the government, the Ministry of Finance, Economic Development and Investment Promotion, and Old Mutual’s board and management for resolving the impasse.
He said the decision represented a vote of confidence in Zimbabwe’s capital markets and the VFEX.
Why the move matters
Old Mutual’s return carries significance beyond the resumption of trading.
The migration strengthens the VFEX’s position as Zimbabwe’s premier hard-currency exchange, supporting government efforts to deepen USD-denominated capital markets and attract foreign investment.
For investors, the move restores trading in one of Zimbabwe’s most liquid blue-chip stocks while eliminating the regulatory uncertainty that has surrounded the counter since 2020.
However, the migration also reflects the continued shift of major companies towards dollar-based capital markets, underscoring the market’s preference for foreign-currency assets amid lingering concerns over local currency stability.
Although trading will resume, Old Mutual’s unresolved blocked dividends illustrate that broader capital repatriation challenges remain, highlighting that confidence in Zimbabwe’s financial markets will ultimately depend not only on exchange reforms but also on the ease with which investors can move capital across borders.
