Online Reporter
The Reserve Bank of Zimbabwe (RBZ) says the First Mutual Microfinance SME (small and medium enterprise) loan product initiative aligns strongly with the bank’s ongoing drive to promote financial inclusion, stimulate entrepreneurship and support sustainable economic growth across the country.
The First Mutual Microfinance SME loan product, which was launched recently, is designed for small and medium enterprises to address their unique needs, such as access to working capital that enables growth.
RBZ registrar Microfinance Division Mr Simbarashe Mashonganyika, who was the guest of honour at the launch, commended First Mutual Microfinance for introducing the timely and much-needed solution targeted at SMEs, the engine room of Zimbabwe’s economy.
“Your commitment to supporting financially excluded and underserved sectors through tailored credit products is truly commendable and fully aligned with our national development priorities.
“Small and medium-sized enterprises continue to play a pivotal role in job creation, innovation and poverty alleviation. Yet many of these businesses face real challenges accessing capital due to limited collateral, informal operating structures or limited credit histories,” he said.
He noted that the First Mutual Microfinance SME loan product is a deliberate move to unlock the potential of local enterprises, offering them the lifeline they need to start, scale or sustain their operations.
“This is not just about funding businesses; it is about transforming lives, households and entire communities.”
Mr Mashonganyika said the RBZ, through the microfinance division, would continue to provide a supportive regulatory environment for the growth and stability of the microfinance sector.
He said some of the ongoing initiatives included the National Financial Inclusion Strategy II (NFIS II), which prioritised access to finance for women, the youth, rural populations, and micro, small and medium enterprises (MSMEs).
What is also given priority are capacity-building programmes to enhance the governance, risk management and financial literacy capabilities of microfinance institutions and their clients.
Other initiatives are monitoring and promoting responsible lending practices, ensuring that credit is not only accessible but also sustainable.
The division is encouraging the adoption of digital financial services and fintech solutions to increase outreach programmes, especially in remote and rural areas.
“Our goal is to build a strong, well-regulated microfinance sector that empowers individuals and drives inclusive economic growth, and today’s launch is an encouraging sign of progress towards that vision,” he said.
Mr Mashonganyika also encouraged all players in the microfinance ecosystem, from banks and non-bank financial institutions to policymakers and other strategic partners, to continue innovating and collaborating in order to close the financing gap and create an enabling environment for SMEs to thrive.
“To the entrepreneurs and SME owners who will benefit from this product, take full advantage of this opportunity, invest wisely and be the champions of the Zimbabwean dream,” he said.
First Mutual Microfinance general manager Mr Max Ncube said the product had been specifically designed for SMEs, the lifeblood of Zimbabwe’s economy.
“It addresses their unique needs: flexibility, speed, low collateral requirements and access to working capital that enables growth.
“Whether it’s a grocery shop right here in Highfield looking to restock, a tailoring business in Gweru expanding into school uniforms, or a transport operator in Mutare needing vehicle repairs, this product is for you,” he said.
He noted that the product is a response to the challenges faced by the microfinance institution’s clients, and it is also a reflection of the firm’s belief in the potential of Zimbabwean entrepreneurs.
“With this loan, we are not just financing businesses; we are backing dreams,” he said.
Mr Ncube said the product strongly aligns with the RBZ Financial Inclusion Strategy, and through collaborative efforts with the central bank, they are building a responsible, resilient and inclusive microfinance sector that supports Vision 2030 and beyond.
“As a strategic arm of First Mutual Holdings Limited, we remain focused on integrating microfinance, insurance and financial services into a single, accessible value proposition.
“Our vision is to be the preferred provider of financial solutions in our chosen communities, and today’s product launch is a bold step towards achieving that,” he said.
Mr Ncube said since 2018, the organisation has built a diverse portfolio, offering salary-based and agricultural loans, value chain financing, pen fattening products and cattle-based SME lending, all tailored to meet the varied needs of its customers.
He said in addition to the branch footprint, the institution operated a network of over 150 agents countrywide.
“Additionally, we have embraced technology, and our clients can reach us via our website, telephone and most impactfully our WhatsApp platform, which simplifies onboarding, queries and loan access, all with ease and speed,” he said.
