‘Plan to set up SME exchange welcome’

Nelson Gahadza

THE Government has endorsed the establishment of an alternative trading platform for small and medium enterprises (SMEs), the Zimbabwe Entrepreneurship Exchange (ZEEX), as part of addressing the limited opportunities for this sector to access long-term capital.

Plans to launch an SME exchange have been in the pipeline for the past decade. The Zimbabwe Stock Exchange Holdings (ZSEH) earlier this year said the time was ripe for the alternative exchange; hence it was exploring with its exchanges the inclusion of SMEs to access finance through its platforms.

ZSEH owns both the Zimbabwe Stock Exchange (ZSE); and the Victoria Falls Stock Exchange (VFEX), which trades exclusively in hard currency.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube announced in the 2026 National Budget that there were limited opportunities for those in the SME sector to access long-term capital, a gap the Government now intends to close by introducing the SME Exchange.

“Currently, there are limited opportunities for the SME sector to access long-term capital. The Government has, therefore, embraced the idea of establishing an alternative SME trading platform, the Zimbabwe Entrepreneurship Exchange,” he said.

“The exchange will be operated by the Zimbabwe Stock Exchange, serving as a dedicated platform for SMEs listing to raise capital.”

Minister Ncube said to ensure success, the Government will work with regulators to develop a supportive framework with simplified listing requirements tailored for SMEs.

“The ZEEX platform is envisaged to expand MSMEs (micro, small and medium enterprises)’s access to financing and foster innovation, entrepreneurship and inclusive economic growth,” he said.

Over the years, the informal sector in Zimbabwe has been on the rise and now plays a key role in the economy, making significant contributions to gross domestic product.

SMEs believe the setting up of a junior bourse will help companies raise equity funding.

Founder and chief executive officer of the SME Association of Zimbabwe Mr Farai Mutambanengwe, in an interview, said the establishment of the ZEEX is a positive and overdue development that will expand SMEs’ access to long-term capital and broaden their financing options.

He noted that the platform has the potential to enhance the visibility and credibility of many SMEs through improved disclosures, transparency and more formalised reporting structures.

“This could help SMEs attract strategic partners, strengthen governance practices and ultimately drive job creation and business expansion, provided the exchange is efficiently administered with minimal bureaucratic hurdles,” he said.

Mr Mutambanengwe highlighted key challenges that policymakers must address, including the need to ensure that listing requirements and compliance costs are not prohibitive, as this could deter many SMEs from participating.

“Excessive fees, stringent reporting burdens or complicated processes could undermine the platform’s inclusivity,” he said, adding that issues such as market liquidity, investor appetite, financial literacy among SMEs and regulatory alignment with broader capital market reforms will be crucial to the platform’s success.

He said if these challenges are managed effectively, ZEEX could become a transformative tool for SME growth and formalisation.

ZSE chief executive officer Mr Justin Bgoni said more capital-raising initiatives are expected from SMEs.

“This will be supported by integrating informal economic activity into the formal economy through the Zimbabwe Entrepreneurship Exchange, a dedicated SME exchange designed to broaden access to funding and enhance the inclusivity of capital markets,” he said.

He said in 2026, market activity on both the ZSE and the VFEX is expected to increase, driven by heightened participation from both local and foreign investors.

Investment analyst Mr Enock Rukarwa said the SME trading platform is a welcome development within the capital market
space, as it facilitates capital formation for MSMEs.

“The sector has much depth to support the exchange, but this will be determined by how the platform will be structured, the requirements, the business organisations within the SME cluster that we are focusing on, and compliance levels for the SMEs,” he said.

Mr Bgoni said if the exchange is going to have modern systems, it will be robust and all-encompassing, especially in terms of identifying SMEs with vibrant business models that have a lot of potential and some level of compliance.

According to the Zimbabwe National Statistics Agency (ZimStat) Economic Census data, the informal sector dominates the country’s economy.

The data shows 76,1 percent of businesses operating informally, while 76 percent of domestic economic activity is estimated to occur within the sector.

In recognition of the positive and growing contribution of the informal sector to the economy, the Government has also stepped up efforts to formalise players’ operations and assimilate it into the broader national economy.

Economist Mr Tinevimbo Shava said Zimbabwe has the numbers and stressed that the introduction of ZEEX could itself accelerate the formalisation of the sector.

“If ZEEX is paired with proper incubation, financial literacy and incentives, the market can develop the maturity needed over time,” he said.

“The potential is there, especially in agro-processing, ICT (information and communication technology), manufacturing and logistics, but it must be nurtured.”

Mr Shava said the success of ZEEX will largely depend on whether the listing rules strike the right balance between accessibility and investor protection.

“We cannot overload SMEs with Main Board-level requirements, but we also cannot dilute standards to the point where investors lose confidence,” he said.

Mr Shava said incentives will also be key.

“Tax incentives, procurement preferences and easier access to credit for listed SMEs would significantly strengthen the pipeline,” he said.

He added that if policy is aligned, ZEEX can become a powerful catalyst for formalisation and long-term capital mobilisation.

Previously, the ZSE was working to establish the Zimbabwe Emerging Enterprise Market, an over-the-counter trading platform for SMEs.

This platform would initially focus on providing working capital solutions for formalised businesses, with the goal of eventually facilitating the listing of qualifying SMEs on a secondary bourse through training and other support initiatives.