The Zimbabwe Stock Exchange (ZSE) has partnered the Harare Receivables Exchange (HRE), a local startup that provides a market place for trading of outstanding invoices to a wide variety of buyers on an action based system, 263Chat Business can report.
The agreement that will see the two entities work together to establish a sound receivables financing platform is precursor to the Zimbabwe Emerging Enterprises Market (ZEEM) with the aim of expanding financing alternatives available to the growing SME sector.
“The Zimbabwe Stock Exchange Limited (ZSE) wishes to advise stakeholders on the signing of a Memorandum of Understanding (MOU) between the ZSE and Harare Receivables Exchange Limited (HRE). The signing of the MOU forms a basis for ZSE and HRE to establish a framework in the development of a receivables financing platform,” ZSE CEO, Justin Bgoni said in a statement.
The pact is hence expected to spur the growth of the receivables financing platform to offer additional products that will provide the wider market working capital and other forms of financing.
“This collaboration will entail both parties having joint responsibilities in the establishment of a trading platform for receivables. Our mandate as the ZSE is to facilitate Economic Development of Zimbabwe and Africa, and we are excited that such partnerships with HRE, are positive strides in fulfilling our mandate,” Bgoni added.
A receivables exchange platform plays a lifesaving role for most businesses that are contracted by bigger corporates and have to endure the burden of waiting for as long as 90 days or more before their invoices are paid.
The US Receivables Exchange is one platform that has managed to connect businesses selling their invoices to a wider network of buyers.