RYAN CHIGOCHE
Capital market regulator, the Securities and Exchange Commission of Zimbabwe (SecZim) says government should provide fiscal incentives to allow small to medium enterprises (SMEs) participate on the local bourses.
SecZim CEO, Anymore Taruvinga, said there was need for more engagements with capital market players to see how best SMEs, who in most cases do not meet listing requirements, can be accommodated.
He said capital markets can help SMEs to raise financial capital to grow.
The SMEs, Taruvinga said, can contribute significantly to the development of the Zimbabwe economy.
“More engagement with capital market players is required and government needs to chip in by providing fiscal incentives,” he told Business Times.
Taruvinga, however, admitted: “Most SMEs do not meet the criteria required to access bank loans (in comparison to larger corporates) and in the same vein most SMEs do not meet the current listings requirements.”
Asked how best he would describe the year 2022, he said it has been a bitter sweet year for the capital markets.
“A tale of two halves – a bullish first four months and a relatively subdued period from May to date. There has been a growth in listings on both ZSE and VFEX and we expect this to continue in 2023 especially from new securities such as exchange traded funds and the real estate investment trust,” Taruvinga said.
He said to grow the capital markets, SecZim was working on a Capital Market Development Masterplan which will synthesise input from all stakeholders in creating common objectives and an implementation plan for the capital market.
