Zim News Blog -NEWS NETWORK

HARARE – The Zimbabwe Stock Exchange (ZSE) and the Small and Medium Enterprises Development Corporation (SMEDCO) have signed a Memorandum of Understanding (MoU) aimed at broadening access to capital for startups and small-to-medium enterprises (SMEs), in a move that could significantly reshape Zimbabwe’s entrepreneurial financing landscape.

The agreement seeks to leverage the institutional strengths of both organisations to create a more structured pathway for emerging businesses to access funding through the recently established Zimbabwe Entrepreneurship Exchange (ZEEX), a digital capital market platform designed to connect SMEs with investors.

The partnership comes at a time when access to affordable and long-term financing remains one of the biggest constraints facing Zimbabwean businesses, particularly startups and growth-stage enterprises that often struggle to meet the requirements of traditional lenders.

Under the agreement, ZSE and SMEDCO will collaborate to enhance access to capital, strengthen enterprise formalisation, improve corporate governance standards and develop innovative financing instruments tailored to the needs of emerging businesses.

The initiative is expected to support SMEs in becoming investment-ready through structured onboarding programmes, compliance support and governance development, while also creating new funding pathways for enterprises that may not yet qualify for conventional stock market participation.

Speaking after the signing ceremony, ZSE Holdings Group Chief Executive Officer Justin Bgoni said the partnership represents more than a conventional financing arrangement and should be viewed as part of a broader economic transformation agenda.

Bgoni said SMEDCO’s developmental mandate aligns closely with ZEEX’s objective of creating an inclusive capital market ecosystem capable of supporting businesses that have historically been excluded from formal financing channels.

“By combining SMEDCO’s reach into Zimbabwe’s grassroots enterprise sector with the regulatory framework and infrastructure of the Zimbabwe Stock Exchange, we are constructing a genuine on-ramp for businesses that have long been locked out of formal financing,” he said.

He added that formalisation, when properly supported, remains one of the most powerful drivers of sustainable economic growth and enterprise development.

The ZSE chief said the collaboration would enable promising businesses to access funding while simultaneously improving governance standards and compliance practices, factors that are increasingly important to investors seeking transparency and accountability.

SMEDCO Chief Executive Officer Obert Ngwenya described the partnership as a critical step towards creating sustainable financing solutions for startups and SMEs, sectors that account for a significant share of employment and economic activity in Zimbabwe.

Ngwenya said many promising enterprises possess the potential to drive innovation, create jobs and contribute to economic growth but remain constrained by limited access to finance.

“Through ZEEX, we are not only expanding access to capital, but also supporting businesses to formalise, strengthen their governance structures and become investment-ready,” he said.

He noted that combining SMEDCO’s development finance expertise and extensive SME network with the ZSE’s capital market infrastructure would help create a stronger entrepreneurial ecosystem capable of supporting business expansion and long-term sustainability.

The agreement highlights growing efforts by policymakers and financial institutions to deepen financial inclusion and diversify sources of business financing beyond traditional bank lending.

For decades, Zimbabwe’s capital markets have primarily served larger, established corporations, while smaller businesses have relied heavily on personal savings, informal financing arrangements and short-term bank facilities.

ZEEX is expected to help address this structural gap by providing a regulated digital marketplace where SMEs can raise capital, access innovative funding instruments and engage a broader investor base.

The platform will facilitate primary market fundraising, asset tokenisation, invoice discounting instruments and secondary market trading within a single integrated ecosystem.

Market analysts believe such innovations could play an important role in unlocking capital for enterprises that are often overlooked by mainstream financial institutions despite their contribution to employment creation and economic output.

The partnership reflects a broader trend across Africa where capital markets are increasingly being leveraged to support entrepreneurship and SME development.

Countries such as South Africa, Kenya, Nigeria and Ghana have introduced alternative market segments aimed at improving access to capital for smaller businesses. These platforms are designed to lower entry barriers while maintaining governance and disclosure standards that protect investors.

Globally, specialised growth exchanges such as London’s AIM market, Canada’s TSX Venture Exchange and China’s ChiNext board have demonstrated how alternative capital market structures can support innovation-driven companies and accelerate enterprise growth.

Zimbabwe’s ZEEX initiative seeks to position itself within this emerging global framework by creating a more accessible and technology-driven financing platform tailored to local market realities.

Economists widely recognise SMEs as the backbone of most developing economies. In Zimbabwe, the sector contributes significantly to employment, income generation and entrepreneurship but continues to face financing constraints that limit productivity and growth.

The ZSE-SMEDCO partnership is expected to strengthen the broader SME ecosystem by helping businesses transition from informality to formal market participation while improving their ability to attract investment.

If successfully implemented, the initiative could expand funding opportunities for thousands of entrepreneurs, deepen Zimbabwe’s capital markets and contribute to the country’s broader economic formalisation agenda.

The agreement marks one of the most significant recent efforts to integrate development finance institutions and capital market infrastructure in support of enterprise growth, potentially creating a new financing model for Zimbabwe’s next generation of businesses.

The post ZSE, SMEDCO Partner to Expand Capital Access for Zimbabwe’s SMEs Through ZEEX appeared first on The Zimbabwe Mail.

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Dairibord Holdings plans to voluntarily move its listing from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX), becoming the latest major company to migrate to the United States dollar-denominated bourse.

In a cautionary statement issued on Thursday, the dairy products manufacturer said its board had approved the proposed delisting, which will see the company exit the ZSE before pursuing a VFEX listing.

“The board has approved the voluntary delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange,” the company said in a statement.

Dairibord indicated that full details of the transaction will be contained in a circular to shareholders, which is currently being finalised.

The company cautioned investors that the proposed move could materially affect the market price of its shares and advised shareholders to exercise caution when dealing in the stock pending further announcements.

The proposed migration comes as several firms increasingly favour the VFEX, citing its US dollar trading environment, foreign currency settlement framework and access to a broader pool of international investors.

Over the past few years, companies such as National Foods and Simbisa Brands have either listed or cross-listed on the VFEX as businesses sought to preserve shareholder value and align their capital structures with foreign currency-denominated operations.

Market analysts say the VFEX offers several attractions, including lower capital gains tax, reduced withholding tax on dividends for foreign investors and the ability to raise capital in hard currency.

The exchange also allows free movement of capital and dividends, a feature viewed as critical by international investors.

The migration trend has gathered momentum as firms increasingly generate significant portions of their revenues in foreign currency and seek a market that better reflects the currency composition of their earnings.

For Dairibord, whose operations involve imported raw materials, packaging and equipment, a VFEX listing could enhance access to foreign capital while providing a valuation benchmark in US dollars.

The move is also expected to strengthen the company’s visibility among regional and international investors, particularly as Zimbabwe seeks to position the VFEX as a gateway for investment into the economy. – Herald

The post Dairibord to delist from ZSE, eyes VFEX listing appeared first on The Zimbabwe Mail.

Clothing retailer Edgars Stores Limited’s revival of its Express stores is paying dividends by capturing cost-conscious shoppers.

The retailer has managed to offset the heavy impact of second-hand clothing markets and drive significant growth.

Dotted around the country in high-traffic locations, the Express stores are part of the group’s expansion strategy, aimed at significantly increasing its retail presence to compete in this space.

Giving an update to the Minister of State for Bulawayo Provincial Affairs and Devolution, Judith Ncube, on Tuesday at Carousel Factory, Carousel managing director Mr Menfree Tanyanyiwa said they were working on introducing affordable clothes that would compete with second-hand clothes, popularly known as amabhele/mabhero.

“We brought back the Express stores specifically to target the lower end of the market. We want to take on that market head-on, where people are going to amabhele/mabhero.

“We want to be able to sell things in the Express stores for US$2 or US$3, and the only difference is that these items will be brand new, as opposed to second-hand clothing. So, we were trying to regain our market share, as it were, by also targeting that end of the spectrum,” he said.

“We rebirthed the Express Chain, which used to be there back then. At some point, what we are now calling Jet was called Express. Then we rebranded to Jet, so then we had two chains, and we are now back to having three chains: Edgars, Jet and Express.”

He said that as Carousel Factory, they currently have 581 employees, of whom 537 are directly linked to production and 353 are female, representing 65,7 percent of their employment levels.

Mr Tanyanyiwa said they were hoping that in summer, around about August, they should go up to over 650 employees as they start preparing for the high summer trade.

“Clothing generally sells much, much more during October, November and December and from a manufacturing perspective, we need to have produced those items around about September and October. This then allows us to have the merchandise in store in time for the high Christmas trade,” he added.

Meanwhile, the Government has gazetted regulations banning second-hand clothing, except in cases where the importer has obtained a valid permit authorising the importation for charitable purposes only.

While the Government has previously made policy pronouncements regarding second-hand clothing, the new measures now have firm legal backing under the Statutory Instrument Statutory Instrument 59 (Control of Goods (Import and Export) (Commerce) (Amendment) Regulations of 2026.

The Government reaffirmed the ban in August last year, following a similar order issued a few years ago. However, the current regulations provide the statutory authority required for full enforcement.

Zimbabwe banned second-hand clothing imports primarily to revive the local textile and clothing industry, which has struggled against cheap, imported alternatives. The ban aims to support local manufacturers and prevent the dumping of foreign waste.

Source: Herald

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