Receivables exchange on the cards

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THE Zimbabwe Stock Exchange (ZSE) says it is working with a local firm, the Harare Receivables Exchange (HRE), to develop a platform that allows businesses to sell individual unpaid invoices in order to free up cash.
“The ZSE wishes to advise stakeholders on the signing of a Memorandum of Understanding (MOU) between the ZSE and HRE…the signing of the MOU forms a basis for ZSE and HRE to establish a framework in the development of a receivables financing platform,” Justin Bgoni, the ZSE’s chief executive said in a statement.
“As the ZSE, we are delighted to be partnering with HRE, and we envision that over time, the receivables financing platform will grow to offer additional products that will provide the wider market working capital and other forms of financing.
“This collaboration will entail both parties having joint responsibilities in the establishment of a trading platform for receivables,” he said.
Currently, HRE is the only receivables focused, trading company in Zimbabwe.
“Our mandate as the ZSE is to facilitate economic development of Zimbabwe and Africa, and we are excited that such partnerships with HRE, are positive strides in fulfilling our mandate.
“The ZSE is looking forward to a successful partnership with HRE in ensuring the growth of the receivables financing platform,” Bgoni added.
Meanwhile, the exchange has also signed an agreement with GetBucks Microfinance Bank Limited (GetBucks), to operationalise the Zimbabwe Emerging Enterprise Market (ZEEM) to offer working capital solutions to formalised businesses, including small-to-medium enterprises (SMEs).
The ZEEM product will be offered through an over-the-counter platform.
“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,” the exchange said in statement last week.
The ZSE and GetBucks are also working together in establishing the receivables exchange, which the exchange says is 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,” the exchange said.

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