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Edgars lists on VFEX, sees bright future

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Leading clothing manufacturer and retailer, Edgars successfully listed on the Victoria Falls Stock Exchange (VFEX) last Friday, with the group saying it sees a bright future for its shareholders and operations following the listing.

Edgars group chairman, Mr Thembinkosi Sibanda, said the company was moving to the new bourse for stability and investment purposes.

“The move to the VFEX represents a new chapter in our journey, one that promises enhanced shareholder value, reduced taxation costs, and increased access to foreign capital to support our expansion plans. It also positions us for greater regional prominence and opportunities.”

VFEX has been said to offer several incentives and trading advantages compared to the Zimbabwe Stock Exchange (ZSE), which has been the pull factor for listings on the bourse.

The US dollar-denominated exchange provides extended options for capital raising, including debt listing in foreign currency.

“We have always embraced change and agility to stay ahead of the curve. Whether it was hedging against risks, acquiring strategic assets like Carousel Clothing factory, or introducing new retail brands like Express and Jet Stores, we have continuously adapted to meet the evolving needs of our customers and shareholders.

“Beyond retail, our commitment to local manufacturing through Carousel and providing micro-finance solutions via Club Plus underscores our dedication to empowering communities and driving economic growth,” Mr Sibanda said.

Guest of honour, Industry and Commerce Minister Mangaliso Ndlovu ,said listing developments were indeed important milestones for the Edgars Group and the milestones that also speak volumes about the resilience and recovery of the Zimbabwean economy.

“Migration to the Victoria Falls Stock Exchange is therefore a manifestation of the diligent planning and the hard and dedicated work that the group has implemented over the years. I am informed that Carousel is currently producing 35 000 units of garments per month, from the 7 000 units that they previously produced.

“The figure is set to increase to 100 000 units per month by end of the year 2024, when the envisaged new equipment is installed.

“This clearly demonstrates the achievements of the group over the last few years,” Minister Ndlovu added.

Comprising Edgars Stores, Jet, Carousel and Club-Plus, the Edgars Group has witnessed tremendous growth over the last few years.

Edgars is planning to invest at least US$5 million to fund new plant and machinery, new retail sites, new ERP (enterprise resource planning) system and stores revamp in the current year.

The group’s chief executive officer, Mr Sevious Mushosho, believes that in the short term, Edgars must stabilise its supply chain and improve its merchandise offering to its customers.

“Focus will be on improving the quality of our garment offerings, expanding our product ranges through the acquisition of new suppliers. Medium term, we intend to identify new retail sites and revamp existing stores to give our customers a modern store with great layouts and lighting.

“In the long term, we are planning to expand manufacturing operations in Bulawayo through acquisition of modern plant and machinery as well as partnerships with other local manufacturing companies to boost our capacity,” Mr Mushosho added.

Source: Business Weekly