Micro-finance Bill ready for approval

Speaking at a Zimbabwe Association of Micro-finance Institutions (Zamfi) meeting at a local hotel, the registrar of the banking institutions, Mr Norman Mataruka said there is need for urgency in the passing of the Bill. “We expect the Act to be in place before the end of the second quarter of next year, which will assist in the promotion of financial inclusion through creating community development projects.

“We hope the Act will enable the micro-finance institutions to accept deposits, thereby increasing funding opportunities for the sector,” said Mr Mataruka.

He said in some Sadc countries micro-finance institutions (MFI’s) are playing a more crucial role in the banking sector than they do in Zimbabwe.

“In Botswana the bigger MFI’s are playing the role of banks with more clients in comparison to commercial banks in Zimbabwe while in South Africa small commercial banks are acquiring MFI’s because they have more assets than them,” said Mr Mataruka.

He said the Micro-finance Act will also promote good governance, transparency and disclosure requirements for improved consumer protection with institutions acting like community banks, as is the case in the United States of America. MFI’s would, he said, be permitted to accept deposits and lending money to clients.

“We need to create a situation whereby MFI’s accept deposits from small communities, at the same time being able to lend money to small to medium enterprises in those communities they are based in, hence propelling economic growth in the country,” he said .