Online Reporter
Nelson Gahadza
Business Reporter
THE Zimbabwe Stock Exchange (ZSE) has signed a partnership agreement with the National Venture Capital Company of Zimbabwe (NVCCZ) to create a pathway for high-potential start-ups and small-to-medium enterprises (SMEs) to raise capital through the planned Zimbabwe Entrepreneurship Exchange (ZEEX).
The parties signed a Memorandum of Understanding (MoU) on Thursday to bridge the long-standing gap between Zimbabwe’s venture capital ecosystem and the country’s capital markets.
Under the agreement, enterprises backed by NVCCZ can progressively graduate to public fundraising through ZEEX.
The agreement comes as the ZSE continues to assemble strategic partners ahead of the launch of ZEEX, a regulated digital marketplace designed to enable SMEs, start-ups and innovative businesses to raise capital through a range of investment instruments.
The MoU provides for the two institutions to jointly identify venture-funded enterprises with the potential to list on ZEEX once they meet prescribed governance, financial reporting and investor-readiness standards.
The collaboration also covers co-financing initiatives, blended finance structures, capacity-building programmes, investor awareness campaigns and the development of innovative financial products tailored to growing businesses.
ZSE Holdings Group chief executive, Mr Justin Bgoni, said the partnership would establish a formal growth pathway for businesses that traditionally struggled to transition from early-stage financing to capital market funding.
“Venture capital and capital markets have historically operated in separate worlds in Zimbabwe, with very little structured dialogue between the two.
“This MoU with NVCCZ is a deliberate effort to change that. By creating a recognised pathway from NVCCZ’s portfolio of early-stage enterprises to ZEEX, we are introducing a degree of capital market planning into the venture space that has simply not existed before,” he said.
He said entrepreneurs receiving venture capital support would now have a clear roadmap from inception to public market participation, improving the prospects of building sustainable businesses capable of attracting long-term investment.
NVCCZ chief executive, Mr Tinotenda Kambasha, said the partnership would strengthen the country’s innovation ecosystem by providing an exit route for venture-backed companies while allowing investors to recycle capital into new enterprises.
“Successful venture investing is not only about providing capital, but it is also about supporting businesses throughout their entire growth journey.
“Our partnership with ZSE creates a clear pathway from early-stage funding to capital market participation, ensuring that promising enterprises have access to long-term growth opportunities,” he said.
He added that ZEEX would provide venture investments with improved liquidity and potential for value realisation while supporting entrepreneurship, employment creation, industrialisation and broader economic growth.
As part of the agreement, ZSE and NVCCZ will jointly deliver training programmes covering corporate governance, financial reporting, investor readiness and ZEEX listing requirements to prepare selected enterprises for participation on the exchange.
The partners also plan to organise investor roadshows, SME financing conferences and awareness campaigns to deepen participation by entrepreneurs and investors.
In addition, the parties to the agreement will explore the introduction of new financing instruments, including SME bond programmes, structured SME funds, green and sustainability-linked instruments, digital securities and alternative listing platforms aimed at expanding financing options for growth-oriented businesses.
The latest agreement adds to a growing list of partnerships signed by the ZSE to build the institutional ecosystem supporting ZEEX.
The ZSE has, in recent weeks, entered into similar collaborations with other strategic organisations, including the Small and Medium Enterprises Development Corporation (SMEDCO), reflecting growing support for the digital capital market platform ahead of its launch.
