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Fatima Bulla-Musakwa
Microfinancing has become the cornerstone of Zimbabwe’s National Financial Inclusion Strategy (NFIS II), playing a crucial role in reaching marginalised communities at the grassroots level.
This was said by Reserve Bank of Zimbabwe Deputy Director for Bank Supervision Ms Susan Kabungaidze at a ceremony to mark First Mutual Microfinance’s 5th anniversary on Friday.
The four-year long strategy was operationalised in 2022.
This strategic focus on microfinance institutions (MFIs) is aimed at driving financial inclusion, reducing poverty, and facilitating economic growth and development.
“In accordance with the National Financial Inclusion Strategy, microfinance institutions are mandated to promote access to and utilisation of financial services by underserved members of our society, including persons with disabilities.
“I encourage First Mutual Microfinance to continue to develop tailored products, services and infrastructure that cater to the unique needs of the underserved members of society,” she said.
Zimbabwe boasts of 253 registered microfinance institutions, comprising 245 credit-only and eight deposit-taking MFIs as at June 30 2024.
The institutions play a pivotal role in promoting sustainable use of financial services and inclusive economic growth.
They support wealth and job creation, entrepreneurship development which is in line with the National Development Strategy 1 (NDS1) goals.
The NFIC’s strategy also advocates for innovative microfinancing models that ensure sustainability while providing convenient, affordable, and appropriate financial solutions to marginalised and vulnerable groups.
First Mutual Microfinance has been providing its services within the beef value chain to farmers for the past three years.
They have done this in districts of Chiredzi, Mwenezi, Buhera, Chipinge, Makoni, Mbire, Mt Darwin, Matobo and Gokwe.
Farmers are supported in their horticulture and animal husbandry initiatives.
“They bring their animals to the feed locks and we provide the feed. We work together to identify sortium feed suppliers, we work together in the fattening process and to identify the market.
“We have done this for the last three years and it’s been successful, the farmers are happy.
“On the horticulture side mainly it’s been on sugar beans in Chipinge where we are giving farmers loans for them to get inputs then we identify an off taker to come and buy from them,” said First Mutual
Microfinance General Manager Mr Max Ncube.
This month the institution is taking its loan services to the informal sector in Mbare where entrepreneurs can get loans spanning for one day, a week , one month or three months.
The loans are between US$100 and US$5 000.
“It’s our view that we must look at the needs of everyone. Once you get between US$100 and US$1 000 we work around in terms of security.
“We know that people don’t have security for us that’s critical and we encourage people to work in groups. In groups you encourage and teach each other,” Mr Ncube.
First Mutual Microfinance, which launched its operations in 2019, coincided with the enactment of the Microfinance Amendment Act. This landmark legislation significantly transformed Zimbabwe’s regulatory framework. Key outcomes of the amendment included the introduction of registration certificates subject to cancellation in the event of violations of the Microfinance Act, replacing the previous annual renewal requirement. This change has fostered an enabling environment, ensuring business continuity without disruption, reinforcing investor confidence, and attracting long-term funding for sustainable sector growth.
Online Reporter