ZEEX to unlock capital for SMEs

LIVINGSTONE MARUFU

The launch of the Zimbabwe Entrepreneurship Exchange (ZEEX), a specialised securities exchange for small and medium enterprises (SMEs), is expected to address the long-standing financing gap confronting emerging businesses, broaden investment opportunities and deepen Zimbabwe’s capital markets, Business Times can report.

ZEEX becomes the latest addition to Zimbabwe’s expanding capital markets ecosystem, alongside the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX).

Speaking at the launch, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the new exchange would accelerate the formalisation of SMEs while integrating them into the mainstream economy.

“ZEEX is not merely a new platform, but a deliberate intervention to correct a long-standing imbalance where the businesses that anchor our economy have had the least access to capital markets to grow,” Professor Ncube said.

He commended the ZSE for its vision in creating a dedicated marketplace for emerging businesses.

Over the past few years, the ZSE has steadily diversified Zimbabwe’s capital markets through the establishment of the Victoria Falls Stock Exchange, the introduction of new investment instruments such as Real Estate Investment Trusts (REITs) and Exchange Traded Funds (ETFs), the self-listing of ZSE Holdings, and now the launch of ZEEX.

Professor Ncube said the exchange aligns with the objectives of the National Development Strategy 2 (NDS2) and Vision 2030, noting that Zimbabwe’s ambition to attain upper-middle-income status cannot be achieved by large corporations alone.

“Entrepreneurs and small businesses that are formalised, financed and integrated into the mainstream economy are essential to this vision. NDS2 is explicit on the need to deepen financial markets, promote financial inclusion and support private sector-led growth. ZEEX is a direct and practical expression of that policy intent,” he said.

The exchange is being launched at a time when SMEs account for more than 60% of Zimbabwe’s Gross Domestic Product (GDP) and employ over 70% of the country’s workforce, yet most remain excluded from formal capital markets.

“This is testament to the fact that while SMEs play a pivotal role in Zimbabwe’s economic activity, they largely operate outside our formal capital markets. This denies them structured access to capital, narrows the tax base and limits the depth of our capital markets,” Professor Ncube said.

“Its establishment changes the narrative by offering entrepreneurs and SMEs a structured, technology-enabled route to raise capital, whether through private placements or public listings.”

He said ZEEX would provide SMEs with access to patient, long-term capital that has traditionally been available only to large corporates.

“ZEEX gives these businesses the tools to formalise, scale and access the kind of patient capital that has long been out of reach.”

Professor Ncube said the benefits would extend beyond individual businesses by strengthening Zimbabwe’s financial system.

“Every new issuer, instrument and investor drawn into this space adds liquidity, depth and credibility to Zimbabwe’s financial sector,” he said.

The launch comes as government intensifies efforts to expand access to financing for SMEs, which are widely recognised as critical drivers of employment creation, innovation and economic growth.

Beyond its economic significance, ZEEX also marks a symbolic return of organised securities trading to Bulawayo, where Zimbabwe’s stock market history began more than 130 years ago.

According to the ZSE, the country’s first stock exchange was established in Bulawayo in 1896, shortly after the arrival of the Pioneer Column. Although it operated for only about six years, it laid the foundation for organised securities trading in Zimbabwe.

Subsequent exchanges were established in Gwelo (now Gweru) and Umtali (now Mutare). The Mutare Exchange initially thrived on mining activity before declining as mineral deposits proved less extensive than expected, eventually closing in 1924.

Organised securities trading returned to Bulawayo after the Second World War when Alfred Mulock Bentley established a new exchange, with trading commencing in January 1946. A second trading floor opened in Salisbury (now Harare) in December 1951, with dealers in the two cities conducting transactions by telephone.

The ZSE said telephone-based trading continued until the enactment of the Rhodesia Stock Exchange Act in January 1974, which established a formal legal framework governing the rights and obligations of exchange members and investors.

Following Zimbabwe’s independence in 1980, the Rhodesia Stock Exchange was renamed the Zimbabwe Stock Exchange.

In 2020, the ZSE expanded the country’s capital markets landscape through the establishment of the Victoria Falls Stock Exchange, operating within the Victoria Falls Special Economic Zone.

The launch of ZEEX represents the latest milestone in that evolution, positioning Bulawayo once again at the forefront of capital market innovation while creating a dedicated platform to connect high-growth enterprises with long-term investment capital.