ZSE seeks tax incentives to unlock SME capital
PHILLIMON MHLANGA IN VICTORIA FALLS
The Zimbabwe Stock Exchange (ZSE) Holdings is in discussions with the Ministry of Finance, Economic Development and Investment Promotion to secure tax incentives that will support the rollout of the Zimbabwe Entrepreneurship Exchange (ZEEX), a specialised platform aimed at unlocking capital for small and medium enterprises.
ZSE Holdings finance executive Yolanda Chanakira disclosed the negotiations at the ongoing Institute of Chartered Accountants of Zimbabwe (ICAZ) Winter School in Victoria Falls, highlighting government support as critical to making the new SME exchange commercially viable.
“We are currently in negotiations with the Minister of Finance for tax incentives,” Chanakira said, adding that ZEEX would initially operate under a regulatory sandbox to test its model before final rules are approved.
The platform is being developed to address Zimbabwe’s long-standing SME financing gap by creating alternative funding channels beyond conventional banking, through private markets, public markets, invoice discounting and a bond holding structure.
The public market component of ZEEX will feature relaxed listing requirements compared with traditional exchanges, allowing SMEs to raise capital while creating a pathway for successful businesses to eventually migrate to larger exchanges.
The exchange, which was recently launched in Bulawayo, will initially operate within a sandbox approved by the regulator, allowing market participants to test the framework.
“A sandbox is where you proof test a concept,” Chanakira said. “Everything will happen in there, including trying to see and assess if the rules work.”
She said the initiative would be reviewed after six and 12 months, after which final rules would be released for public implementation.
