The Zimbabwe Stock Exchange (ZSE) is banking on a platform that provides working capital solutions for Small to Medium Enterprises and established businesses as it moves to diversify its revenue streams The platform, the Zimbabwe Receivables Marketplace (ZRM), was incorporated last year as a joint venture between the ZSE and Harare Receivables Exchange (Private) Limited to offer working capital solutions through receivables discounting and trading The platform exists to facilitate the reallocation of capital from institutional investors to corporations looking for working capital In a statement accompanying the bourse’s 2020 annual report, ZSE chairperson Caroline Sandura said ZRM will provide an alternative investment class for institutions
“We will also focus on growing ZRM in terms of adding financiers and buyers ZRM represents the greatest potential in terms of diversifying the ZSE revenue from trading related business,” Sandura said The ZRM which was launched in August 2020 is expected to provide working capital solutions through receivables discounting This allows ZRM to provide a supplier who delivers goods and services to customers (buyers) by creating invoices with the supplier uploading the invoice onto the ZRM platform
Financiers bid and the winning bidder advances funds to the supplier It is understood that companies providing goods and services on credit terms and wishing to raise working capital based on the outstanding invoices with suppliers should be tax compliant and meet the criteria specified by ZRM Financiers are institutions or high net worth individuals with sufficient funds (as determined occasionally by ZRM) that can compete on bidding for the invoices registered by the sellers Sandura said ZSE would also focus on continuing to lobby for favourable policies for the capital markets, key being the amendment of the Finance (No.2) Act of 2020 in order to remove limitations for pension funds on real estate investment trusts
She said another strategy is to increase the listings on VFEX and also encourage market making on the market Inflation-adjusted revenue was 6% up to ZWL$123.4m from prior year of ZWL$116.5m Group revenue was spurred by increased market outturn and new products launched during the year New products launched during the year included the Training Institute, ATS Market Access fees and data vending.
Source: Businesstimes
