Online Reporter
Nqobile Bhebhe Zimpapers Business Hub
THE Zimbabwe Entrepreneurship Exchange (ZEEX), the country’s newest capital market platform targeting small and medium enterprises (SMEs), goes live today following its launch in Bulawayo on Friday, with the Government preparing a package of incentives to encourage participation amid strong market interest from prospective issuers.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube presided over the historic launch, marking a significant milestone in broadening Zimbabwe’s capital markets and improving access to long-term financing for emerging businesses.
Trading on ZEEX will be conducted in Zimbabwe Gold (ZiG), reinforcing Government’s efforts to deepen the use of the local currency within the financial system.
As the platform opens for business, authorities have also made it clear that companies already listed on the Zimbabwe Stock Exchange (ZSE) or the United States dollar-denominated Victoria Falls Stock Exchange (VFEX) will not be allowed to migrate to ZEEX, which has been specifically established as an incubator for growing enterprises seeking development capital and will be backed by incentives from Government.
“Certainly, we want to extend more incentives towards the SME sector, so the more incentives we throw, the better for the economy,” Prof Ncube said.
“We will be announcing some incentives to support the SME sector. Those who then list on the exchange or raise capital through the exchange or use it as a platform get additional benefits, because we want them to access capital,” he added.
“So, if we can then incentivise the project, the providers of capital, but also those who are beneficiaries of that capital, all through the exchange platform, we want to incentivise the process as we go forward.
“We will be making relevant announcements as we go along. But we are also very happy to receive suggestions from the players themselves, including exchanges, on how we can support them. This is the same approach we took when we launched VFEX.”
The incentives are expected to complement the Government’s broader efforts to deepen financial inclusion and unlock long-term funding for enterprises that have traditionally relied on expensive short-term borrowing or informal financing.
Zimbabwe Stock Exchange chief executive officer Mr Justin Bgoni said market appetite for the new bourse had exceeded expectations, with one company already having submitted listing documents while several others were at advanced stages of engagement.
He said beyond attracting individual listings, the exchange’s strategy would focus on bringing large corporates onto the platform to create funding ecosystems for their SME suppliers, a model expected to expand the pipeline of companies accessing capital significantly.
Mr Bgoni said agricultural and industrial equipment manufacturer Zimplow had already committed to the initiative, becoming one of the first major corporates to partner with ZEEX in integrating supplier financing through the exchange.
“We’re working very closely with SMEDCO. In Bulawayo, the one that we want to work with, we sent them a proposal and they are looking closely at it with the City of Bulawayo.
“So, we intend to be financing the suppliers of the City of Bulawayo, so that is the big one that we are working on. The big work that we want to do is get more and more big companies on the platform,” he said.
“The big work that we are going to do over the next few weeks is getting big companies on the platform.”
According to the ZSE, ZEEX has been designed as an entrepreneurship-focused exchange to enable SMEs to raise capital and access investment opportunities within a regulated market environment. The platform will provide efficient, transparent and cost-effective fundraising and trading mechanisms tailored to the needs of emerging businesses while promoting stronger corporate governance and investor confidence.
It will operate through market segments that include ZEEX Private Markets and ZEEX Public Markets. The private market will facilitate structured private placements, allowing businesses seeking pre-public investment to raise capital through a regulated platform before progressing to public listings.
Prof Ncube has said the establishment of ZEEX directly supports the objectives of the National Development Strategy 2 (NDS2) and President Mnangagwa’s Vision 2030, which identify entrepreneurship and private sector-led growth as key drivers of economic transformation.
“The goal is to become an upper-middle-income economy by 2030, and this cannot be realised on the strength of the large enterprises alone.
“It requires a broad and dynamic base of entrepreneurs and small businesses that can also be formalised, that can be financed and also be integrated,” he said.
Surveys suggest that SMEs contribute more than 60 percent of Zimbabwe’s Gross Domestic Product yet continue to face limited access to affordable long-term finance. However, under the Second Republic led by President Mnangagwa, Government continues to refine ease of doing business through deliberate reforms that have opened new opportunities for both small and large-scale businesses.
“The ZEEX comes at an opportune time when SMEs contribute over 60 percent to our national GDP. This launch today now changes the narrative. The ZEEX platform gives these businesses tools to formalise, to scale and to access the kind of patient capital that is historically reserved for large companies,” he said.
“This benefits the businesses themselves and the economy through deepening capital markets. Every new issuer, instrument and investment drawn into this space adds liquidity, depth and credibility to Zimbabwe’s financial sector.”
ZSE chairman Mr Martin Mushambadope also stressed that ZEEX would complement rather than compete with the ZSE and VFEX.
“There is no migration that is going to happen from bigger exchanges such as VFEX and ZSE. The idea is, we want ZEEX to be an incubator and when the entities grow, they can list on VFEX and ZSE. So we won’t allow an entity that currently sits on VFEX or ZSE to migrate to ZEEX. That must be very clear,” he said.
Market analysts have said the introduction of ZEEX fills a long-standing gap in Zimbabwe’s capital markets by creating a dedicated fundraising platform for SMEs while preserving the distinct roles of the ZSE and VFEX in serving larger and more established corporates.
Meanwhile, Bulawayo has welcomed the establishment of the exchange, with Minister of State for Bulawayo Provincial Affairs and Devolution Judith Ncube saying hosting ZEEX advances the Government’s devolution agenda by decentralising investment opportunities.
“Equally important is the fact that this landmark initiative is being launched here in Bulawayo.
“Devolution is not merely about decentralising administrative functions. It is about decentralising opportunities.
“It is about ensuring that investment, innovation, economic participation and prosperity are spreading equitably across all provinces.
“The decision by the Zimbabwe Stock Exchange to establish and launch ZEEX in Bulawayo demonstrates confidence in our province’s economic potential and reinforces Government’s commitment to balanced national development, rehabilitation and resilience,” she said.
