Zimbabwe is set to launch a mineral commodities exchange on the US dollar-denominated Victoria Falls Stock Exchange (VFEX) this month as part of a broader push to attract investors to the country’s capital markets, The Sunday Mail reports.

“The [VFEX], apart from the already listed counters, is set to launch a minerals commodities exchange in the first quarter of 2024,” Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube is quoted as telling delegates at the Zimbabwe Capital Markets Conference in Shanghai last week.

“This is a welcome development as it will broaden the exchange and the country’s capital markets, as well as expand capital market services for the mining sector, which is projected to grow in excess of the $12bn target this year,” he added.

The government announced plans for a minerals commodities exchange in 2021 after a memorandum of understanding (MoU) was signed between the VFEX and the Dubai Gold and Commodities Exchange (DGCX), a leading derivatives exchange in the Middle East.

The MoU provides for the Dubai exchange to extend technical support to the VFEX with the goal of establishing an international commodities exchange in Zimbabwe.

According to The Sunday Mail, the commodities market ranks third in terms of value traded, following foreign exchange and bonds, while the mining sector accounts for at least 50% of export earnings annually.