HARARE, May 12 (NewsDay Live) — Zimbabwe’s financial markets entered new territory on May 8 when First Mutual Wealth Management (FMWM) listed the country’s first gold exchange-traded fund (ETF) on the Victoria Falls Stock Exchange (VFEX), offering investors exposure to gold for as little as 10 U.S. cents a unit.
The launch comes as global gold prices hover near record highs, driven by investor demand for safe-haven assets amid economic uncertainty.
For decades, gold ownership in Zimbabwe was largely limited to buyers of physical bullion — costly to acquire and risky to store — or institutional investors with access to commodity markets. The new FMWG ETF aims to broaden access, allowing ordinary Zimbabweans to buy into a fund backed by physical gold.
But questions remain over how accessible the product really is for retail investors.
What is a Gold ETF?
An ETF pools investor money to buy assets — in this case, physical gold — which are held by the fund on behalf of investors. The fund then issues units representing fractional ownership of the underlying gold holdings.
Investors do not take possession of the metal itself. Instead, they own units whose value rises or falls in line with international gold prices.
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FMWM launched the fund with 100 million units priced at US$0.10 each, making it one of the lowest entry points for a gold-linked investment product in Zimbabwe.
In practice, however, investors must trade through a VFEX-registered stockbroker such as Old Mutual Securities, Imara Edwards Securities or Morgan & Co. While the minimum unit price is 10 cents, brokerage fees and transaction limits mean most retail investors will likely need between US$5 and US$10 to begin trading.
Retail participation is expected to rely heavily on mobile investment platforms such as C-Trade and ZSE Direct, which allow users to open accounts remotely using identification documents, proof of residence and bank statements.
USD Requirement Limits Access
The fund is denominated exclusively in U.S. dollars, creating a hurdle for many Zimbabweans who earn salaries in the local ZiG currency.
Investors must first hold U.S. dollars in a foreign currency account (FCA) before purchasing ETF units. Although authorities have discussed mechanisms that could allow ZiG-to-USD conversion for investment purposes, no such system is currently in place.
That means retail investors must source foreign currency through formal banking channels or existing dollar savings.
Investor Confidence in Focus
The launch also comes against the backdrop of heightened scrutiny of Zimbabwe’s gold sector following international investigations into illicit gold trading and smuggling networks.
FMWM says the ETF’s underlying gold is held offshore by an independent third-party custodian, a structure designed to shield the assets from domestic policy risks.
As a regulated product, the fund is subject to oversight by the Securities and Exchange Commission of Zimbabwe (SECZIM), including periodic audits and disclosure requirements. Investors can also monitor the fund’s net asset value (NAV), which reflects the value of the gold backing each unit.
Strategic Shift for VFEX
The ETF underscores VFEX’s push to position itself as Zimbabwe’s hub for U.S. dollar-denominated investment products.
The exchange, established in the resort city of Victoria Falls, has increasingly attracted major listings and investment flows as investors seek protection from local currency volatility.
Analysts say products such as the gold ETF could appeal to Zimbabweans looking for inflation hedges and alternatives to holding cash in local bank accounts.
For retail investors with access to U.S. dollars and digital trading platforms, the fund offers a relatively low-cost entry point into gold investing — an asset class previously out of reach for many ordinary citizens.
