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(HERALD) Zim ready for SMEs stock exchange

Zim ready for SMEs stock exchange
Friday, 30 December 2011 00:00

Conditions in Zimbabwe are now ripe for setting up a stock exchange for Small and Medium Enterprises (SMEs) since they are major players in economic development, a Cabinet minister has said. Calls to set up an SMEs stock exchange have been growing since the adoption of multiple foreign currencies and formation of the inclusive Government in 2009. Before that, economists had advised against setting up of the bourse arguing that the Zimbabwe Stock Exchange was facing liquidity challenges.

Recently, economic analysts have indicated that an SMEs stock exchange would strengthen the economy as the country has few formal jobs due to lack of capital to resuscitate local industries which were crippled by sanctions that Western countries imposed.

Small and Medium Enterprises and Co-operative Development Minister Sithembiso Nyoni said SMEs make up 60 percent of the Zimbabwean population thus it was prudent to establish a stock exchange for them.

"We are ready for an SMEs stock exchange but the process is taking too long and further suppressing the growth of the sector," she said.

Minister Nyoni said the economy was growing as a result of the contribution of SMEs.
She said her ministry had entered into partnerships with some private players to fund SMEs projects and enhance skills requisite in the informal trade and manufacturing. Zimbabwe plans to set up a second bourse by 2013, mainly for SMEs.

The bourse is expected to position SMEs well on the local and international market due to regulated marketing and free publicity. - New Ziana.

Labels: SITHEMBISO NYONI, SMEs, STOCKMARKETS

posted by MrK @ 4:54 PM