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Bulawayo Bureau
ECONOMIC experts have commended Government’s proposal to establish a small and medium enterprises (SMEs) stock exchange saying this will go a long way in formalising the sector.
In his State of the Nation Address last week, President Mnangagwa said an SMEs stock exchange would soon be established to help unlock the sector’s potential.
SMEs usually face capitalisation challenges, which hinder their growth.
Economic analysts who spoke to our Bulawayo Bureau lauded the bold decision by Government, which is hoped to bring more economic benefits.
Economist and ZNCC past president Mr Luxon Zembe said an SMEs stock exchange would widen opportunities for informal sector to participate in financial markets and boost their operations.
“SMEs exchanges will formalise the sector to start participating in the mainstream economy,” he said.
“They will be considered as a major sector, which is contributing to the GDP as well as access to funding, access to investments and their contribution to the fiscus, which will be very good for the country.”
Another economic analyst, Dr Gift Mugano, said an SMEs bourse would bring massive yields for SMEs.
“Where we have a certain level of structured SMEs, it makes sense to have a local bourse for SMEs because it will help them mobilise capital from their respective stock exchange to fund their operations,” he said.
Empowerment lobbyist Mr Sam Ncube said the idea of SMEs stock exchange was noble and hoped more research will be done to buttress its implementation.
Online Reporter