Need funding? Let the market invest in your vision through ZEEX

IF you are an entrepreneur, you have probably experienced this problem.

A growth opportunity comes along, perhaps the chance to invest in new equipment, expand to a new location, ramp up production, or roll out a new product, but the funds just aren’t there to make it happen.

Logically, the next step becomes apparent, almost automatic: approach any one of Zimbabwe's 14 banks, two building societies, one savings bank, or the licensed seven deposit-taking micro-finance institutions or 57 credit-only micro-financiers for a loan.

However, to access that loan, you need collateral in the form of either movable or immovable property or even your salary if you work for an institution while you are doing your side hustle.

In fact, Reserve Bank of Zimbabwe figures show that registrations of household goods pledged as collateral for loans more than doubled to 5 908 in 2025 from 2 549 the previous year, highlighting the lengths households are going to secure financing.

At the same time, the number of active micro-finance loan clients fell sharply to 422 358 from 575 217, suggesting access to traditional credit is becoming more constrained.

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With that in mind, you fail to access the crucial capital needed to expand your business simply because you do not possess the kind of collateral lenders require.

So, what do you do next?

This is where ZSE Holdings (ZSEH) has come up with the Zimbabwe Entrepreneurship Exchange (ZEEX).

Rather than relying solely on loans secured by property, vehicles or even household possessions, businesses with viable growth plans could instead seek funding directly from investors on ZEEX.

ZEEX has been created as a dedicated capital-raising platform for small and medium-sized enterprises (SMEs) and growth-stage companies that have historically found it difficult to access public markets.

Unlike conventional exchanges that largely cater for bigger corporates, ZEEX enables entrepreneurs to raise capital through a range of instruments tailored to their businesses, including equity offerings, private placements and debt securities, within a regulated marketplace.

While ZEEX serves as a dedicated growth platform for SMEs, targeting growth-stage companies and entrepreneurs with credible business models, experienced management teams, and a clear plan for how the money raised will be used, it is equally designed for large corporates seeking supply-chain liquidity solutions (like Invoice Discounting) and structured funding vehicles for their subsidiary operations.

Instead, it targets entrepreneurs, SMEs and growth-stage companies with credible business models, experienced management teams and a clear plan for how the money raised will be used.

Both businesses seeking equity investment and those looking to raise debt capital can use the platform.

The exchange expects participation from businesses operating in agriculture and agro-processing, mining and mineral beneficiation, manufacturing, renewable energy, ICT and fintech, logistics, tourism and hospitality, education, healthcare, real estate and consumer businesses.

Unlike a conventional stock exchange, ZEEX operates through two distinct channels designed to match businesses with investors at different stages of growth.

The first one is the ZEEX Private Markets, where SMEs can register, design the financing instrument that best suits their needs, whether equity, debt or another product, and present it to prospective investors after approval by the ZEEX Management Committee.

Secondly, there is the ZEEX Public Markets, an SME-focused board where securities are traded by both retail and institutional investors, with successful companies able to graduate to the ZSE or VFEX, which has market capitalisations of US$3,92 billion and US$4,03 billion, respectively, as at July 20, 2026.

Consider XYZ Furniture, a fictional growing manufacturer that needs US$250 000 to build a larger workshop, purchase new machinery, increase working capital and hire additional staff.

Before approaching investors, independent advisers assess the business to determine what it is worth. That valuation is not based solely on current profits or the value of its buildings and machinery.

Instead, it also considers factors such as the strength of the business model, quality of management, growth prospects, customer base, market opportunity and future earning potential.

For this example, let us say independent advisers value the business at US$1 million before the capital raise.

Based on a pre-money valuation of US$1 million, XYZ Furniture raises US$250 000 by issuing investors a 20% equity stake in the enlarged company, while the founders retain the remaining 80% ownership.

Through the ZEEX Private Markets, the investment opportunity is presented to potential investors, including pension fund managers seeking SME exposure, high-net-worth individuals, diaspora investors, and development finance institutions. If the company instead chooses to list on the public SME board, retail investors can also participate.

During the fundraising period, investor funds are held securely in the ZEEX Trust Account before being released into XYZ Furniture’s bank account once the capital raise closes through the regulated depository system.

The company then deploys the money exactly as outlined in its offer document — constructing a new workshop, buying machinery, strengthening working capital and expanding its workforce. Should it decide to materially change how the funds are used, it must first disclose those changes to investors.

In return, investors receive 20% ownership of XYZ Furniture, entitling them to a proportional share of future dividends, voting rights and the opportunity to benefit if the company’s value increases.

They can also sell their shares through the ZEEX over-the-counter market while the business remains private or on the ZEEX public board if the company later becomes publicly listed. Alternatively, if the founders wish to increase their ownership in future, they may negotiate to buy back some or all of the shares from investors at an agreed market price, subject to applicable regulations and shareholder agreement.

Thus, ZEEX does not target businesses based on a minimum valuation or market capitalisation. Instead, it is designed for entrepreneurs, SMEs and growth-stage companies with a credible business model, capable management, sound governance, and a clear purpose for raising capital.

Capital raises are tailored to each company’s funding needs, allowing businesses to start small and scale as they grow.

So, do you want to raise capital?