Thursday August 27 2020

News Source: Global Exchanges

Focus: Trading Systems and Technology

Type: General

Country: Zimbabwe

Link: https://bit.ly/3jheOY6




On 19th August 2020, the Zimbabwe Stock Exchange (ZSE) announced the launch of Zimbabwe Receivables Marketplace Limited (ZRM).

ZRM’s mandate is to offer working capital solutions through receivables financing. ZRM uses a Trade Receivables Discounting System (TRDS).

TRDS 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 trading account receivable management of SMEs. TRDS systems are in use in other countries in Asia and South America.

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

Click on the above link for further information.