Asset managers and pensions funds are set to benefit from the launch of the Zimbabwe Receivables Marketplace Limited (“ZRM”). The launch follows the signing of a Joint venture agreement between the Zimbabwe Stock Exchange Limited (“ZSE”) and Harare Receivables Exchange Limited in December 2019.
Staff reporter
Announcing the launch today ZSE CEO Justin Bgoni said investors such as Asset Managers and Pension Funds get an opportunity to build their
alternative asset portfolio.
“There are several advantages of TRDS to the Zimbabwean Economy: SMEs get greater access to finance, at competitive rates without providing
any additional collateral. The financing is also without recourse to the SMEs. Corporates save on procurement cost through an improved negotiation of financing terms for their vendors. Investors such as Asset Managers and Pension Funds get an opportunity to build their alternative asset portfolio,” He said.
He said ZRM uses a Trade Receivables Discounting System (TRDS) which is a formal mechanism set up in order to facilitate the financing of trade receivables of Small and Medium Enterprises (“SMEs”) from corporate buyers through invoice financing by multiple financiers.
This step is deemed essential to enhance the trade account receivable management of SMEs. TRDS systems are in use in other countries in Asia
and South America. Bgoni said ZRM holds a strong order book in Zimbabwean Dollars and also has strong financiers in United States Dollars and is inviting
potential corporates and their suppliers to come on board.
