Chronicle Editor
Oliver Kazunga, Senior Business Reporter
THE micro-finance sector has continued to demonstrate resilience and growth on the back of the relaxation of the Covid-19 restrictions on the economy,
According to the Reserve Bank of Zimbabwe (RBZ), the micro-finance industry registered a 262,69 percent growth in the sector’s loan portfolio to $7,2 billion as of December 31, 2021, compared to $2,01 billion in December 2020.
In the 2022 monetary policy statement issued last week, RBZ Governor Dr John Mangudya said the sector has been implementing a variety of initiatives aimed at strengthening capital base and conforming to the new capitalisation levels of US$5 million or equivalent effective December 31, 2021.
“The micro-finance industry continued to register resilience and growth in key performance indicators following the relaxation of Covid-19 related restrictions on the economy,” he said.
“The number of active clients accessing loans through microfinance institutions increased by 10,66 percent from 288 561 as at 31 December 2020 to 307 673 as at 31 December 2021.”
During the year under review the number of women accessing loans from the micro-finance industry also grew to 146 253 from 116 043 in 2020.
“The micro-finance sector registered a 262,69 percent increase in total loans from $2,01 billion as at 31 December 2020 to $7,29 billion as at 31 December 2021,” said Dr Mangudya.
“The loan portfolio quality deteriorated as evidenced by the deterioration of the portfolio-at-risk.” During the year under review, aggregate net profit for the sector improved by 427,16 percent to $2,03 billion from $384,77 million as of December 31, 2020.
“The increase was largely attributable to improved operational efficiency as reflected by an improvement in the operational self-sufficiency ratio from 111,86 percent to 168,63 percent for year ended 31 December 2021, against the international benchmark of 100 percent,” said Dr Mangudya.
The improvement in operational self-sufficiency indicates an improvement in the income generation capacity of the micro-finance institutions in the wake of relaxation of national Covid-19 lockdown restrictions. – @KazungaOliver
Online Reporter