MICROCAPITAL BRIEF: CBZ Bank of Zimbabwe, Zimbabwe Microfinance Wholesale Trust Issuing Loans of Up to $50k to Microfinance Institutions in Zimbabwe

CBZ Bank of Zimbabwe and the Zimbabwe Microfinance Wholesale Trust, which is affiliated with the Zimbabwe Association of Microfinance Institutions, have begun issuing loans of up to USD 50,000 to microfinance institutions (MFIs) in Zimbabwe. The loans are intended for on-lending to small and medium-sized businesses that have scaled down due to liquidity challenges or have had difficulty accessing loans due to lack of collateral. This agreement comes after Zimbabwe’s Infrastructure Development Bank has secured a USD 30 million facility for small and medium-sized businesses from the Development Bank of China.

The Zimbabwe Microfinance Wholesale Fund has been capitalized by donors including the Netherlands’ Humanist Institute for Development Cooperation (Hivos in Dutch). The target size of the fund is USD 1.9 million.

Since 2006, the US-based Microfinance Information Exchange has received financial data from only one MFI in Zimbabwe: PUNDUTSO, which reports a gross loan portfolio of USD 474,000 and 12,777 borrowers.

About Hivos:
Hivos is a Dutch non-governmental organization that provides grants and technical assistance to organizations in Africa, Asia and Latin America. The work of the organization focuses on nine themes: financial services and business development; sustainable production; human rights and democratisation; HIV/AIDS; gender, women and development; art and culture; information and communication technologies Ampersand (ICT) and media; advocacy and communication; and the “Knowledge Programme”, which is a platform for knowledge development for civil society organizations. The Dutch National Postcode Lottery and the Dutch government are the largest stakeholders in Hivos.

By Ariana Malushi, Research Associate

Sources and Additional Resources

AllAfrica: “Zimbabwe: Wholesale Funding Scheme Launched” http://allafrica.com/stories/201112160451.html

Ayani: “Investment Funds and Related Services” http://www.ayani.nl/investmentfunds.html

MicroCapital.org Brief, April 26, 2011, “MICROCAPITAL BRIEF: ABC Holdings, BancABC to Roll Out Microfinance Services in Zimbabwe”

MICROCAPITAL BRIEF: ABC Holdings, BancABC to Roll Out Microfinance Services in Zimbabwe

MicroCapital.org Brief, September 14, 2010, “BancABC Chief Confident About Outlook of Zimbabwean Economy, Eyes Civil Servants as for Microfinance Clients” https://www.microcapital.org/microcapital-brief-bancabc-chief-confident-about-outlook-of-zimbabwean-economy-eyes-civil-servants-as-for-microfinance-clients/

MicroUniverse Profile: Hivos
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hivos

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