shloboe boe
Nelson Gahadza, Zimpapers Business Hub
THE Zimbabwe Stock Exchange (ZSE) is setting up a dedicated exchange to unlock capital for small and medium enterprises (SMEs).
The bourse has partnered with the Small and Medium Enterprise Development Corporation (SMEDCO),
Red Sphere Microfinance and INVESCI Asset Management to lay the foundations for the Zimbabwe Entrepreneurship Exchange (ZEEX), a digital platform designed to connect entrepreneurs with investors through alternative financing mechanisms.
Rather than waiting for businesses and investors to organically converge on a new platform, the ZSE is proactively assembling an ecosystem that combines enterprise development, institutional investment, digital infrastructure and innovative financing solutions under one umbrella.
While the growing list of partnerships demonstrates ambition, analysts say the real test will begin after ZEEX is officially launched.
“The measure of success will not be the number of memoranda of understanding signed, but whether the initiative can generate investment-ready businesses, attract investor participation and create sufficient liquidity to sustain a viable market,” said economist Mr Walter Mapfumo.
For decades, Zimbabwe’s capital markets have largely catered for established corporates with the financial capacity, governance standards and compliance structures required for public fundraising.
Smaller businesses, despite accounting for a significant share of economic activity and employment, have remained excluded from formal capital markets and have been dependent on expensive bank loans, informal lending arrangements and personal savings.
The ZSE believes ZEEX could help bridge that divide.
Approved earlier this year, ZEEX has been designed as a regulated digital capital markets platform that will facilitate primary market fundraising and secondary market trading within a single ecosystem.
Unlike the traditional stock exchange, the platform specifically targets start-ups, SMEs and alternative investment instruments that often struggle to meet the stringent requirements of conventional listings.
ZSE Holdings Group chief executive officer Mr Justin Bgoni said the exchange was intentionally building an ecosystem rather than a standalone marketplace.
“SMEDCO brings something that no purely commercial partner can replicate: a development mandate that is fundamentally aligned with the inclusive vision of ZEEX.
“This partnership is about more than capital markets; it is about economic transformation. By combining SMEDCO’s reach into Zimbabwe’s grassroots enterprise sector with the regulatory framework and infrastructure of the ZSE, we are constructing a genuine on-ramp for businesses that have long been locked out of formal financing.”
The partnership with SMEDCO is perhaps the most critical component of the strategy, as it addresses the supply side of the equation.
Many SMEs fail to access financing not because viable opportunities do not exist, but because the businesses often operate informally, lack audited financial statements and have weak governance structures that discourage investors.
Under the agreement, the ZSE and SMEDCO will work together to formalise enterprises, strengthen governance frameworks, improve compliance standards and prepare businesses to become investment-ready.
SMEDCO chief executive officer Mr Obert Ngwenya said difficulty in accessing finance remains one of the biggest constraints facing entrepreneurs.
“This partnership with the Zimbabwe Stock Exchange marks an important step towards creating sustainable financing pathways for emerging enterprises that have the potential to drive economic growth, innovation and job creation,” he said.
“Through ZEEX, we are not only expanding access to capital, but also supporting businesses to formalise, strengthen their governance structures and become investment-ready.”
Beyond long-term fundraising, the ZSE is also targeting liquidity challenges.
Its partnership with Red Sphere Microfinance, a subsidiary of CBZ Holdings, will establish a technology-driven trade receivables discounting platform under ZEEX.
The initiative will enable suppliers, particularly SMEs, to convert unpaid invoices into immediate cash through a regulated digital marketplace, reducing payment delays that have historically constrained business growth.
Mr Bgoni said the development represents a significant evolution of the exchange’s traditional role.
“This partnership with Red Sphere Microfinance marks a pivotal moment in our efforts to broaden the utility of ZSE’s infrastructure beyond traditional securities markets,” he said.
“By directing our depository’s capabilities towards trade receivables discounting, we are creating a tangible solution to the liquidity constraints that continue to hold back Zimbabwean SMEs.”
Red Sphere Microfinance general manager Mr Desmund Ali said the platform would accelerate access to working capital.
“We have partnered with ZSE Holdings to deliver a highly automated receivables discounting model that supports faster decision-making and quicker disbursements,” he said.
“This platform will reduce payment delays and help businesses keep their operations running without interruption.”
At the same time, the ZSE is seeking to secure investor confidence ahead of ZEEX’s launch.
Its partnership with INVESCI Asset Management introduces an institutional investment dimension to the ecosystem, a move that could prove crucial in building credibility and ensuring a sustainable flow of capital.
Institutional investors globally have traditionally been reluctant to allocate funds to smaller businesses because of governance concerns, information asymmetry and higher perceived risks.
The ZSE believes involving institutions at the design stage could help overcome these barriers.
“The formalisation of this partnership with INVESCI is a clear demonstration that institutional investors recognise the transformative potential of ZEEX,” Mr Bgoni said.
“By bringing structured capital and institutional rigour into the SME space, we are laying the foundation for a robust and inclusive capital market that serves the full spectrum of Zimbabwe’s entrepreneurial economy.”
INVESCI managing director Mr Thomas Chataika said the partnership would improve the allocation of capital within the economy.
“We are excited by this opportunity to play a role in the deepening of our capital markets and economy,” he said. “A tailor-made platform such as ZEEX will lead to more efficient discovery of investment opportunities and allocation of capital.
“This will be a true win-win for both suppliers of capital and entrepreneurs, with a guaranteed ‘open cards’ treatment for both sides.”
He said the ZSE’s longstanding reputation would be critical in attracting both businesses and investors.
“The history and pedigree of the ZSE, an exchange that has been in successful operation since 1894, is the fundamental building block for the trust necessary for investors to open their wallets and for entrepreneurs to share their opportunities,” he said.
FINSEC, for its part, completed the development and testing of a blockchain platform that will support the issuance, management and trading of tokenised real-world assets, allowing investors to acquire
fractional ownership in assets such as property, infrastructure projects and agricultural ventures.
The infrastructure will integrate with the existing C-TRADE platform and is expected to expand investment opportunities beyond traditional market participants.
FINSEC chief executive officer Mr Collen Tapfumaneyi said the technology could transform Zimbabwe’s capital markets.
“This is more than a technology achievement. It is the foundation for the future of digital capital markets in Zimbabwe,” he said.
“Tokenisation has the potential to unlock new investment opportunities, mobilise capital at scale and transform how investors participate in economic growth.”
Online Reporter