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Sithandazile Moyo Business Reporter
THE Zimbabwe Stock Exchange (ZSE) is finalising work on the listing of Small and Medium Enterprises (SMEs) to enable them to attract potential local and foreign investors. ZSE chief executive officer Alban Chirume told Business Chronicle in an interview on Wednesday that it was important that the small traders were listed as most business had become informalised.
“One of our main projects we are working on is to make sure that we include the SMEs on the listings because most people have turned to the informal sector and they own companies,” said Chirume.
He said the bourse had started engaging the SMEs so that they could equip them with the knowledge of the stock exchange and the advantages of being listed.
“We have started engaging with the SMEs so that they will make informed decisions whether to get listed or not because most of them do not have enough knowledge on trading and stock exchange matters,” he said.
He, however, indicated that most entreprenuers were reluctant to list as they were used to having full control of their own companies which would change if they got listed.
“Most enterprises are owned and run by families and they are used to having full control but when they enlist, the ZSE will have to monitor the operations according to set standards,” he said.
“We are now finalising on the framework and other legal documents which will have the laws and guidelines on how these enterprises are expected to operate and state who can enlist and who cannot.”
Chirume said protective measures to ensure the trading ground was level to allow for equal opportunities to both bigger, more established companies would be put in place.
He said listing the SMEs would give them an opportunity to be known and attract more investors.
“If an enterprise is listed and is attractive, it will be easy to lure investors. They can form mergers with other companies to create bigger and more viable businesses,” he said.
derick.khumalo