Association of micro-finance institutions to open office in Byo

At the moment, Zamfi is centralised in Harare.

Zamfi executive director Mr Godfrey Chitambo said arrangements had been made to establish a regional office that would attend to issues affecting their members in the region.

“We are working towards the setting up of our office in Bulawayo. We are looking forward to having it operational anytime beginning February.

“We have already secured personnel to man the office,” he said in a recent interview.

Mr Chitambo would not be drawn into revealing further details.

A player in the microfinance sector who preferred not to be named said the opening of a regional office in Bulawayo was a positive development expected to go a long way in decentralising Zamfi operations.

“Microfinance institutions have a critical role in economic development. And taking cognisance of that fact, this is the reason why Zamfi was formed so that as players in the sector we come up with an association that represents our interests.

“As players in Matabeleland, we welcome the setting up of the regional office as it will go a long way in decentralising operations of Zamfi,” said the player.

The Government has recognised the critical role microfinance institutions play in economic development and a draft Micro-finance Bill, under consideration by the Ministry of Finance, the Reserve Bank of Zimbabwe, Zamfi and other stakeholders, is expected to address challenges facing the sector.

Such challenges include the tenure of licences for micro-finance institutions, consumer protection issues and transparent pricing in line with international developments.

Last year, more than 150 licensed micro-finance institutions operated under the supervision of the RBZ.

The sector is, however, facing a number of challenges such as insufficient funding, inadequate infrastructure and the absence of a Credit Reference Bureau.

And as part of the initiatives to improve the availability of funding to the sector, the Zamfi has spearheaded the establishment of a micro-finance wholesale fund that is expected to provide on-lending capital.

Under the facility, Zamfi members secure capital at interest rates ranging between 9 percent and 16 percent per annum.