THE Zimbabwe Stock Exchange (ZSE), which has enjoyed unprecedented success amidst the country’s worsening crisis, has now reached an advanced stage in
its plans to establish a secondary market for small-to-medium scale enterprises (SMEs).
Emmanuel Munyukwi, the ZSE chief executive, told businessdigest: “Plans are at an advanced stage to have a separate listing for small-to-medium firms.”
The SMEs trading floor was supposed to start operating in May last year but the plan was deferred due to lack of resources.
The bourse is meant to create an avenue for cheap capital for the small-scale companies.
Numerous listed blue chip firms have resorted to raising capital on the ZSE through rights issues, evading borrowings from banks where interest rates have risen significantly to over 800% per annum.
The ZSE’s plans to establish the secondary market for SMEs comes against the backdrop of the Johanessburg Securities Exchange (JSE) introducing the Alternative Exchange, aimed at promoting black empowerment and employment creation.
The ZSE provides a platform for raising capital for both Zimbabwean and international companies through the issuance of equity, debentures and depository receipts.
Meanwhile, the ZSE ground to a halt this week following a dispute over the computation of Value Added Tax (VAT).
This is the second stalemate on the bourse after another one soon after the introduction of withholding tax last year.
The 5% withholding tax was introduced by Finance minister Herbert Murerwa.