© THE Zimbabwe Stock Exchange Limited (ZSE) has signed a memorandum of understanding (MoU) with GetBucks Microfinance Bank (GetBucks) as it seeks to operationalise the Zimbabwe Emerging Enterprise Market (ZEEM). ZEEM is meant to offer smaller enterprises a chance to list on the ZSE, an avenue for raising capital.
Justin Bgoni, the local bourse chief executive, said the ZEEM product will be offered through an over-the-counter platform targeted at initially offering working capital solutions for formalised businesses, including small to medium enterprises (SMEs).
“Over time, the ZSE will facilitate and assist small to medium size enterprises to list on the secondary bourse through training, workshops and other initiatives to educate SMEs on benefits of listing and meeting the requirements. GetBucks will play a critical role in terms of support,” he said.
Bgoni said the local bourse and GetBucks are also working together in establishing a receivables exchange, a precursor to the ZEEM project.
“This collaboration reinforces ZSE’s drive to foster the growth of the capital markets in Zimbabwe and resonates with our vision of facilitating economic development in Zimbabwe and Africa.
“The ZSE is looking forward to a fruitful partnership with GetBucks in ensuring the growth of SMEs under ZEEM,” he said.
The rules for listing on ZEEM require an applicant to have at least $250 000 (but not exceed $9,99 million) in share capital and also provide audited financials for at least one financial period prior to listing.
SME companies wishing to be listed on ZEEM will also be required to have a minimum of 50 public shareholders, achieve at least 26 percent public shareholding and appoint a designated advisor.
Equity capital helps companies, including SMEs to reduce gearing and hence the insolvency risk.
Financial Exchange Securities (Finsec) is the second securities exchange in Zimbabwe and the first alternative trading platform after the ZSE.
Recently, ZSE said it is drafting a green and social bonds framework aimed at reviving a regulated bond market that became dormant over a decade ago. Green and social bonds are debt instruments used to raise capital by entities to fund projects with environmental benefits and positive social developments.
The bourse also adopted the global standards for classifying stocks, which will see it change its current format and introduce 13 indices starting January 2020.
The new indices will include top 15 and top 25 picks, a small caps index, as well as a medium cap index. There will also be seven sector indices, a Top 10 Investable Index as well as an Export and Dual Listed Index.