adminUnder the facility, micro-lending institutions secure on-lending resources such as rescue loans, stabilisation capital, growth capital, and innovation capital for companies to recapitalise their operations.
In an interview, ZMWF technical fund manager Mr Brian Zimunhu said they had so far disbursed half a million of the approved resources.
“Last year, we approved $1,035 million and so far $500 000 has been disbursed. We are targeting to have moved at least $1 million by the end of the first quarter this year,” he said.
He said the absorption rate of the resources under the facility has been a bit lower due to challenges facing micro-lending institutions.
“The absorption capacity is a bit on the lower side because of the challenges facing micro-finance institutions. For example, some of them have not been able to apply for the resources because they do not have competent data management systems that can capture data for a large clientele base.
“As a result, when an institution applies for $100 000 for instance, the resources end up being disbursed in tranches of $50 000 because of lack of competent management information systems,” said Mr Zimunhu, adding that a number of the institutions were using excel, which captures limited data.
Mr Zimunhu said so far eight institutions had benefited under the facility.
“Of those institutions, two are headquartered in Bulawayo and have branches outside that city while the other six are headquartered in Harare with branches scattered around the country”.
Unlike last year, he said they were now receiving better quality applications from prospective beneficiaries.
In 2012, ZMWF expressed concern over the failure by potential institutions to come up with consistent and accurate information upon submission of on-lending application forms.
In the past, the application forms were characterised by inconsistent and inaccurate information, a major challenge that saw a number of the institutions failing to secure the funds.
A number of microfinance institutions have also in the past been disqualified from funding because of lack of a clear business plan as well as audited financial statements for at least two years.
The ZMWF was mooted a few years ago to assist money lending institutions with seed capital to recapitalise their operations at interest rates ranging between 9 percent and 16 percent per annum.
The target markets for ZMWF are non-bank microfinance institutions, savings and credit co-operatives, and micro-finance banks if established.
Online Reporter