The party of Zimbabwean President Robert Mugabe recently proposed a law that would require lenders to accept “moveable” assets, such as machinery, vehicles, livestock and accounts receivable, as collateral. Finance Minister, Patrick Chinamasa, said the legislation would “promote financial inclusion to small and medium enterprise, women, youths and other under-banked groups.” Lenders in countries including Nigeria, Ghana and Malawi already accept moveable assets as collateral.
The two Zimbabwean institutions that have listed data since 2015 via the US-based nonprofit Microfinance Information Exchange (MIX) report aggregate total assets of USD 1.9 million, 6,000 borrowers served and no deposits held.
By Phoebe Rorke, Research Associate
Sources and Additional Resources
TFI Daily News:
Zimbabwe to allow goats, cows and sheep as bank collateral
MIX Market:
Zimbabwe Mix Market Profile
World Bank:
Nigeria’s New Collateral Registry Aims to Increase Access to Finance for Small Business
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Light Microfinance, IppoPay Partner to Offer Digital Lending to MSMEs in Rural India
- MICROCAPITAL BRIEF: Equity for Tanzania, New Holland to Lease Tractors to Small-scale Farmers
- MICROCAPITAL BRIEF: Temenos Launches Artificial Intelligence Platform for Mortgage Lenders
- MICROCAPITAL BRIEF: Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire
- MICROCAPITAL BRIEF: Network International Unveils “Networkpay” Tools for SMEs in Egypt to Accept Digital Payments