Story by Stanley James,Business Editor
GOVERNMENT is set to roll out the Zimbabwe Entrepreneurship Exchange (ZEEX) by April, creating a dedicated capital-raising platform for small and emerging companies to participate in the country’s financial markets.
The new exchange, to operate under the Zimbabwe Stock Exchange, is designed to broaden access to funding for small and medium enterprises (SMEs), which authorities say are a key driver of economic growth.
Zimbabwe Stock Exchange Holdings Group Chief Executive Officer, Mr Justin Bgoni, confirmed that consultations are underway ahead of the launch.
“Today we are in talks with the relevant stakeholders on what needs to be done but our timeline states that such an initiative will definitely be rolled out by April. This is being made on the realisation to further come up with an alternative market that suits the needs of the small companies. Further details about the plan will be made available in due course,” he said.
Under current classifications, a medium-sized company in Zimbabwe typically employs between 40 and over 75 people, records annual turnover of between US$1 million and US$2 million, and holds assets of up to US$2 million.
Emerging entrepreneurs have welcomed the proposed platform, saying it could unlock growth capital and improve returns.
Polar Plastics Administration Executive, Mr Josiah Chivandikwa, said small firms are eager to scale up operations.
“We are here to focus on the needs of our growing operations and as such we need to focus on growth as small companies. The thrust is on what can be done to further scale up our operations,” he said.
Guardsmart Director, Mr Loyd Bahera, said the new market could enhance participation in formal investment structures.
“We are eagerly awaiting this market as it will have positive effects in enabling many of us to reap good returns arising from participating in the country’s financial markets,” he said.
Hilmax Engineering Managing Director, Mr Shephard Kembo, said Zimbabwe’s move mirrors regional trends.
“By introducing a market for emerging companies, Zimbabwe is focusing on aspects that provide a favourable environment for small companies, similar to what is done at the JSE in South Africa,” he said, referring to the Johannesburg Stock Exchange.
Authorities say ZEEX will provide an alternative trading platform tailored to the needs of smaller firms, strengthening their capacity to raise capital, expand operations and contribute more significantly to national economic growth.
