RBZ reg­is­ters 19 MFIs in six months

The Herald (Zimbabwe) - - Business - Africa Moyo

THE Re­serve Bank of Zim­babwe (RBZ) reg­is­tered 19 mi­cro­fi­nance in­sti­tu­tions in the first six months of the year, to take the over­all num­ber of MFIs in the coun­try to 194.

Of the 19 MFIs reg­is­tered, one is a de­posit-tak­ing in­sti­tu­tion while 13 are money lenders, with five of them be­ing credit-only fi­nan­cial in­sti­tu­tions.

Some of the MFIs reg­is­tered be­tween Jan­uary and June this year in­clude Em­pow­erBank Limited (a de­posit tak­ing MFI); Mula Mi­cro­fi­nance (Pri­vate) Limited (credit-only) and Ray­sun Cap­i­tal (Pri­vate) Limited (money lend­ing in­sti­tu­tion).

Em­pow­erBank was launched by Pres­i­dent Em­mer­son Mnan­gagwa on July 5.

The bank is de­signed to ex­tend loans to youths who have been strug­gling to ob­tain loans from main­stream banks due to lack of col­lat­eral.

In a state­ment yes­ter­day, the RBZ said: “Please take note that dur­ing the pe­riod Jan­uary 2018 to 30 June 2018, the Regis­trar of Mi­cro­fi­nanciers reg­is­tered . . . ad­di­tional in­sti­tu­tions.

“This brings the num­ber of in­sti­tu­tions au­tho­rised to con­duct busi­ness of pro­vid­ing loans in terms of the Mi­cro­fi­nance Act (Chap­ter 24: 29) to 194 as at 30 June 2018.”

MFIs have be­come key eco­nomic play­ers in the coun­try, with credit only in­sti­tu­tions ex­tend­ing $115,6 mil­lion in the first quar­ter ended March 2018.

This rep­re­sents a 17,1 per­cent in­crease from the out­reach fig­ures re­ported in De­cem­ber 2017 of $98,7 mil­lion.

How­ever, de­spite the rise in loans ex­tended by MFIs, the num­ber of ac­tive bor­row­ers de­creased in the first quar­ter to 165 450 from 173 348 clients.

A first quar­ter MFIs per­for­mance re­port says the rise in loans vis a vis the num­ber of bor­row­ers, in­di­cates that the fi­nan­cial in­sti­tu­tions have in­creased their av­er­age loans per per­son.

Av­er­age loans per per­son shot up to $682 from $572 recorded as at De­cem­ber 2017.

The credit-only mi­cro­fi­nance sec­tor reg­is­tered a net profit of $2,7 mil­lion for the three months pe­riod to March 31, 2018, com­pared to $5,5 mil­lion recorded in the same pe­riod last year.

How­ever, about 17 MFIs re­ported losses dur­ing the first quar­ter due to de­pressed eco­nomic en­vi­ron­ment.

MFIs have been chal­lenged to cut costs, adopt cut­ting-edge tech­nol­ogy, re-model busi­ness de­liv­ery chan­nels and prod­ucts, among oth­ers, to re­main prof­itable.

From May 17 to 19, the Zim­babwe As­so­ci­a­tion of Mi­cro­fi­nance In­sti­tu­tions (ZAMFI) held a Win­ter School in Nyanga where par­tic­i­pants came up with sev­eral rec­om­men­da­tions in­clud­ing in­creas­ing pro­duc­tive lend­ing by sup­port­ing growth sec­tors such as agribusi­ness and en­ergy; con­sid­er­ing merg­ers and ac­qui­si­tions as a growth strat­egy for their in­sti­tu­tions and to think about of­fer­ing train­ing in busi­ness and tech­ni­cal skills to youths be­fore grant­ing them loans.

Glob­ally, the MFI loan out­reach is re­ported to be around $102 bil­lion, with Africa alone ac­count­ing for $8,7 bil­lion.

The lo­cal loan fig­ures of $115,6 mil­lion rep­re­sent 1,32 per­cent of the global loan out­reach.

Re­serve Bank of Zim­babwe (RBZ) reg­is­tered 19 mi­cro­fi­nance in­sti­tu­tions in the first six months of the year

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.