The Financial Securities Exchange (FINSEC) and the Harare Institute of Technology (HIT) signed a memorandum of understanding earlier today.
The agreement between the two institutions is meant “to develop and expand a framework of cooperation between HIT and FINSEC to develop mutually beneficial projects and activities aimed at raising public awareness of the availability of capital raising and securities exchange facilities” for local companies.
Simply put the two want to show local companies how they can take advantage of exchanges to raise capital. FINSEC has been interested in this field for a while now and previously announced that their Growth Enterprise Market (GEM) would help in regards to that.
FINSEC was interested in establishing an agreement with HIT because they want to promote “use of local solutions to address needs of local companies” and they partnered HIT specifically because they are excited by the quality of graduates being produced by the institution.
The union provides a structured framework to bridge the gap between what is taught in the classroom and what is happening in the capital market. This will ensure that our classrooms benefit from having access to practical securities issuance, trading and settlement while the market enjoys the advantage of latest trends in product development through the skills embedded in the students.
Both organisations are promising the following benefits from this union:
- Setting up, promoting and deploying educational material and facilities for local and diaspora retail investors, institutional investors and other capital markets participants interested in learning more about securities products and services;
- Exposing Harare Institute of Technology students and staff to practical securities issuance, listing, trading and settlement experience through the services provided by the FINSEC;
- Raising Public Awareness of the availability of capital raising and securities exchange facilities for Enterprises in Zimbabwe;
- Proffer research in the modern capital markets dynamics;
- To promote the use of local solutions in addressing the needs of local enterprises;
- Access to the unique specialist knowledge and know-how of FINSEC’s internal expertise
- World-class programmes combining academic rigour with real and practical relevance in today’s capital markets;
- Networking opportunities for students with market practitioners and industry experts
FINSEC has been offering attachment and job opportunities to a growing number of HIT students and this agreement is part of a desire to extend that partnership and continue exposing Harare Institute of Technology students and staff to practical securities issuance, listing, and trading and settlement experience.
Interestingly, FINSEC also mentioned that HIT students played a key role in the pilot test that led to the introduction of C-TRADE a few years ago.