Chronicle EditorKiyapili Sibanda, Business Reporter
MICROFINANCE institutions in the country have recorded an increase in the uptake of loans by women following injection of more funding by Reserve Bank of Zimbabwe (RBZ) to the sector.
A latest report by the Zimbabwe Association of Microfinance Institutions (Zamfi) indicates performance for the sector has improved.
In March this year, the RBZ set aside $15 million for the revolving Women’s Empowerment Fund that was meant to support projects owned and managed by women. The fund, which attracts an “all-inclusive” interest rate of 10 percent, is a targeted intervention meant to support women as a traditionally financially excluded group.
In the second quarter, active female clients were 69 508 compared to 74 599 in the third quarter, said Zamfi.
“As microfinance institutions are largely associated with giving more access of loans to female clients, it is pleasing to note that at least 40 percent of the active clients in the sector are made up of female clients.
“The ratio is expected to increase in subsequent quarters as Micro Finance Institutions (MFIs) take advantage of accessing funds specifically targeted at women borrowers from the recently unveiled women empowerment facility from central bank amounting to $15 million,” it said.
The report revealed that quarterly loan disbursements have gone up to $4.9 million by June to September 2017, compared to $1.6 million for the previous quarter period of March to June 2017.
Zamfi also said an increase in the uptake of loans from the microfinance sector was expected to increase during the last quarter of the year, owing to the current positive perception with respect to the new government.
“As focus is now being shifted towards growing the economy, creation of jobs and re-engagement with the international community, the MFIs are therefore expected to re-launch themselves towards playing a more prominent role in giving out loans in support of income generating projects across the country,” it said.
The report said the microfinance fund amounting to $10 million, which was recently announced by the RBZ for Zimbabwe Microfinance Fund, would be an alternative source of funding for MFIs with bankable projects from their clients.
Meanwhile, Zamfi said the new positive attitude towards an open economy being adopted by the Government would help the country positively resulting in more competition, higher efficiency and productivity, innovation, better ideas, better growth across all sectors including banks and microfinance.
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derick.khumalo