Microfinance firm gives hope to marginalised

micro-credit, group micro-credit, micro-housing loans, building material loans, micro-insurance and micro-health care, Vantage has geared itself to cater for the marginalised people of Zimbabwe which constitutes the majority of the population,” Ms Mutizwa said this week.
A national survey conducted recently showed that 40 percent of adults are financially excluded from the financial services sector and only 24 percent are banked.
The survey also established that there were significant differences between rural and urban levels of financial inclusion — while every second Zimbabwean is banked in urban areas, only 12 percent of adults in rural areas have commercial banking products.
Ms Mutizwa said the company was aiming to reach the marginalised majority, especially in the rural areas through delivering its products on a smartcard passed solution provided by a South African company, Net1 Universal Electronic Payment System, through a Zimbabwean partner, SmartPay Switching Solutions. 
“With this technology on its back, Vantage is able to deliver its products efficiently to the majority of Zimbabweans even those situated in the most remote areas of the country.
“Equipped with the group lending model, Vantage seeks to provide affordable credit facilities to support established and new community and village banks that are owned and managed by the communities themselves,” said Ms Mutizwa.
This would promote transparency as the community has the ability to account for their money.
In addition, Vantage, through its field credit officers at the community or village doorstep would assist with technical expertise, manage and direct operational activities of these communities.
The FCOs will provide assistance for group formations, co-ordinate, educate and enforce the rules and regulations of the community banks and village banks.
Through the income-generating projects department this would go a long way in helping the              unemployed people start their own businesses like manufacturing floor polish, welding, basket weaving and mat making, to mention just but a few.
“Vantage Microfinance does not support loans for consumption but for economic development.
“It aims at sustaining and uplifting the economically active low-income citizens who have the potential to grow into formal businesses through affordable group lending.
“Further, the company aspires to spread economic opportunity to the ordinary Zimbabwean, targeting the informal businesses and the marginalised in remote areas while capitalising on technology thus giving financial inclusion,” Ms Mutizwa added.
She said her company was charging “affordable” lending rates from as low as 9 percent on the basis of a client’s risk profile and nature of the loan.