Zimbabwean Reserve Bank Governor Gideon Gono has reportedly cited various problems affecting the Zimbabwe microfinance sector, including the absence of a credit reference bureau for the 157 licensed microfinance institutions (MFIs) in the country. It is reported that a high number of loan defaults have led MFIs to unethical practices to attempt to recover their money.
In response, the Reserve Bank of Zimbabwe (RBZ) is reportedly creating a performance evaluation framework to monitor the impact of MFIs and manage policy intervention. RBZ, the Ministry of Finance and other unnamed microfinance stakeholders have also drafted a microfinance bill that aims to address such issues as the tenure of licenses, consumer protection and transparency within the sector.
Pundutso is the only Zimbabwean MFI that has reported data to the US-based nonprofit Microfinance Information Exchange (MIX) since 2006; it held a gross loan portfolio of USD 474,000 disbursed to approximately 12,800 borrowers as of 2009.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
Daily News: “Microfinance Institutions Face Challenges,” http://www.dailynews.co.zw/index.php/business/35-business/6987-microfinance-institutions-face-challenges.html
MicroCapital.org story, December 28, 2011, “MICROCAPITAL BRIEF: CBZ Bank of Zimbabwe, Zimbabwe Microfinance Wholesale Trust Issuing Loans of Up to $50k to Microfinance Institutions in Zimbabwe,” https://www.microcapital.org/microcapital-brief-cbz-bank-of-zimbabwe-zimbabwe-microfinance-wholesale-trust-issuing-loans-of-up-to-50k-to-microfinance-institutions-in-zimbabwe/
MicroCapital.org story, April 26, 2011, “MICROCAPITAL BRIEF: ABC Holdings, BancABC to Roll Out Microfinance Services in Zimbabwe,” https://www.microcapital.org/microcapital-brief-abc-holdings-bancabc-to-roll-out-microfinance-services-in-zimbabwe/
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