By Business Reporter-National Foods Holdings Limited (Natfoods), Zimbabwe’s largest food producer has officially terminated its listing on the Victoria Falls Stock Exchange (VFEX), marking yet another blow to investor confidence in the country’s struggling economy.
The decision, first announced in 2024, was attributed to the company’s reduced need for capital from public equity markets.
However, analysts view the move as symptomatic of broader economic turmoil, reflecting waning confidence in Zimbabwe’s capital markets and the deteriorating business environment.
In a statement issued on February 3, VFEX Head of Markets Robert Mubaiwa confirmed that Natfoods traded on VFEX for the last time on January 31.
“The Victoria Falls Stock Exchange Limited (VFEX) hereby notifies the investing public of the voluntary termination of the listing of ordinary shares of National Foods Holdings Limited (NTFD.vx) with effect from 31 January 2025,” said Mubaiwa.
He further stated that shareholders had met on December 18, 2024, and passed a resolution to voluntarily delist in accordance with Section 11 of the VFEX Listing Requirements.
The Securities and Exchange Commission of Zimbabwe subsequently approved the delisting request under Section 64 (1) (a) (i) of the Securities and Exchange Act [Chapter 24:25].
The delisting of Natfoods comes at a time when Zimbabwe’s economy is reeling from persistent inflation, foreign currency shortages, and declining consumer purchasing power.
The retail and manufacturing sectors have been particularly hard-hit, with major retail chains such as OK Zimbabwe, Spar, and N. Richards either closing stores or scaling back operations due to rising costs, supply chain disruptions, and dwindling sales.
Natfoods’ departure from VFEX underscores a broader crisis in Zimbabwe’s financial markets, which have struggled to attract investment amid an unpredictable policy environment.
The VFEX, established in 2020 to lure investors with incentives such as trading in US dollars, has faced limited success, with several listed companies either struggling or reconsidering their positions.
The company’s decision also raises concerns about the long-term viability of Zimbabwe’s capital markets and the ability of local businesses to secure funding through public listings.
With inflation eroding savings and disposable incomes, many businesses are opting for alternative financing mechanisms or reducing reliance on external capital altogether.
The collapse of major retailers and the exit of a dominant food manufacturer from the stock exchange paint a grim picture of Zimbabwe’s economic trajectory.
If policymakers fail to address underlying issues such as currency instability, high taxation, and inconsistent regulations, more companies may follow Natfoods’ path—either by delisting, downsizing, or shutting down completely.