Online Reporter
Michael Tome, Business Writer
The Reserve Bank of Zimbabwe (RBZ) has announced that the value of loans extended to individuals and secured against assets registered in the central bank’s collateral registry reached ZiG47 billion as of February 2025.
This milestone highlights the effectiveness of the collateral registry in promoting financial inclusion and providing individuals and businesses with improved access to credit.
The registry is a publicly available database of interests in or ownership of movable assets pledged to secure loans.
According to the RBZ, there has been a notable improvement in access to and usage of financial services among marginalised segments of the population, as reflected by the total collateral pledged as of February 28 ,2025.
The RBZ noted that the total collateral pledged was diverse, encompassing various asset classes, including intellectual property, accounts receivable, and stocks of raw materials, among others.
A breakdown of the collateral pledged reveals 11 intellectual properties, 13 accounts receivable, 18 stocks of raw materials, and 33 stocks of finished goods.
Other notable assets pledged as security for loans include manufacturing equipment (96), construction equipment (202), industrial equipment (209), livestock (240), buses (411), agricultural equipment (853), trucks (1 246), notarial general covering bonds (1 391), saloon cars (1 923), and household goods (3 199).
The diversity of the collateral pledged indicates a significant shift towards inclusive financing, enabling marginalised groups to access financial services using a wide range of assets. Agriculture dominated the sectoral distribution of loan collateral registered.
As of February 28, 2025, the total collateral pledged towards agriculture comprised notarial general covering bonds (470 pledges), followed by agricultural equipment (242), trucks (88), and household goods (86).
Livestock, saloon cars, and other assets such as stocks of finished goods, industrial equipment, and accession/agreements also featured prominently.
Micro, Small, and Medium Enterprises (MSMEs) pledged 340 collaterals. In terms of gender, men led the pledged collateral with 3 083, while women pledged a total of 874 collaterals.
The number of loans extended to women significantly increased to 319 634, totalling ZiG4,91 billion, a notable rise from 185 326 in December 2023. Similarly, the youth segment saw a considerable increase in loan access, with 73 770 loans valued at ZiG2,76 billion disbursed as of December 2024, up from 57 216 loans.
“The active security interests had a corresponding loan amount of ZiG47 176 billion, registered by various institutions. A breakdown of these interests reveals that banking institutions held the largest share, with 1 339 active security interests valued at ZiG23 689 billion.
“Other notable contributors include law firms, with 190 security interests valued at ZiG22 969 billion, microfinance institutions, with active security interests valued at ZiG388 972 million, contract financiers (6 security interests valued at ZiG39 381 million), and other various creditors (7 security interests valued at ZiG89 443 million),” said RBZ Deputy Governor Dr Jesimen Chipika, addressing delegates at the recently held Global Money Week 2025.
The RBZ established the collateral registry for movable assets to expand the range of qualifying collateral accepted by lenders as part of broader reforms aimed at promoting access to finance and enhancing financial inclusion.
The activation of the collateral registry came at a time when many under-served Zimbabweans, especially in the informal sector, could not access bank loans, as many movable properties were not recognised as loan security.
This prompted the Government to draft legislation allowing the use of movable property as collateral to address this challenge.
The collateral registry is established under the Movable Property Security Interests Act (Chapter 14:35), which allows the use of movable assets as security for loans.
According to the RBZ, the types of movable collateral that qualify for loans can vary from one lending institution to another.
Acceptable forms of movable collateral include agricultural products such as livestock, poultry, and crops, as well as industrial and commercial equipment, consumer goods, household items, agricultural equipment, inventory, and raw materials.
Additionally, gold coins, financial assets like accounts receivable and shares, can be used as loan collateral.
Intellectual property, including patents, copyrights, and trademarks, as well as natural resources such as oil, gas, and minerals, are also acceptable forms of movable collateral for loan purposes.
