RBZ to monitor progress at Women’s bank

Judith Phiri, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has said it shall monitor progress on the resolution of the identified weaknesses at the Zimbabwe Women’s Microfinance Bank Limited.

This comes after the Central Bank concluded an onsite examination of the bank in December 2022, as part of its on-going supervision activities in terms of Section 36 of the Microfinance Act [Chapter 24:30].

In a statement on Friday, the RBZ said the examination determined corporate governance and risk management weaknesses at the institution.

“Members of the public are advised that the Reserve Bank of Zimbabwe concluded an onsite examination of the Zimbabwe Women’s Microfinance Bank Limited in December 2022, as part of its on-going supervision activities in terms of Section 36 of the Microfinance Act [Chapter 24:30].

“The examination determined corporate governance and risk management weaknesses at the institution. As part of its supervisory processes, the Reserve Bank has engaged the institution’s board and shareholders who have since initiated processes and measures to address the deficiencies,” said the RBZ.

RBZ said the main mandate of Zimbabwe Women’s Microfinance Bank Limited was to facilitate financial inclusion and economic empowerment of women.

“The Government of Zimbabwe as shareholder, is committed to the resolution of the identified weaknesses to enable the microfinance bank to continue to perform its mandate. Through its supervisory processes, the Reserve Bank shall monitor progress on the resolution of the identified weaknesses.”

Established in 2018, Zimbabwe Women’s Microfinance Bank’s primary goal is to enhance access to affordable loans for women. The bank also offers training on the sustainable utilisation of loans.

Lack of access to capital is one of the major barriers facing women entrepreneurs in Zimbabwe, especially in marginalised areas. They often lack the security to borrow while some cultural values do not allow women to venture into businesses.

The Zimbabwe Women’s Microfinance Bank’s became the bank meant to empower women by ensuring they access money at concessionary rates.

The idea of a women’s bank was first put forward in 1982 by the Government as a means by which marginalised women could get access to credit facilities.

The Bank is mandated to empower all women economically and socially by providing access to affordable and innovative women-centred financial products and services.