BY MISHMA CHAKANYUKA
The Zimbabwe Stock Exchange Limited (ZSE) has signed a memorandum of understanding (MoU) with Harare Receivable Exchange Limited (HRE) to create a receivables trading platform.
HRE is a receivables focused trading company which improves access to financial markets for a wide spectrum of clients and provides investors with a secure, efficient and transparent way to trade short-term receivables.
“The Zimbabwe Stock Exchange Limited wishes to advise stakeholders on the signing of a Memorandum of Understanding between the ZSE and Harare Receivables Exchange Limited. 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 chief executive officer, Justin Bgoni, said in a statement yesterday.
“As the ZSE, we are delighted to be partnering with HRE, and we envision that over time, the receivables financing platform will grow to offer additional products that will provide the wider market with 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.”
HRE provides clients with a cost-effective way of liquidating receivables to grow their businesses.
“HRE is a flexible alternative finance partner focused on growing trade, improving financial inclusion and creating jobs. Our working capital solutions give businesses timely access to receivables financing solutions in all key sectors of the economy. Our main service offerings include international and domestic receivables financing. We pride ourselves in providing a secure, efficient and transparent way to finance working capital while meeting our client’s unique business needs,” HRE said in an emailed response to NewsDay Business.
“Together with our existing partners and moving forward with the ZSE, we will continue on our journey to further develop the receivable financing market in Zimbabwe.”
Receivables will be traded on the ZSE/HRE platform and provide businesses with early payments, meaning that suppliers will not have to wait 30 to 90 days for payment from customers; they will instead get paid in 48 hours.
Receivables are debts owed to a company by its customers for goods and services that have been delivered or used, but not yet paid for. The most common receivable being an invoice.
The partnership between ZSE and HRE comes a few days after the former signed an MoU with local financial services firm, GetBucks, to operationalise the long dormant SME bourse, the Zimbabwe Emerging Enterprise Market.
“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.
The ZSE is looking forward to a successful partnership with HRE in ensuring the growth of the receivables financing platform,” Bgoni said.