adminThandiwe Katinhimure, Business Reporter
THE Zimbabwe Microfinance Wholesale Facility Trust (ZMWFT) has set a target of disbursing $12 million towards on lending to microfinance institutions (MFIs) this year.
Managing director, Mr Brian Zimunhu, said last year the company disbursed $7.4 million to MFIs.
“The target disbursement to MFIs for 2018 is $12 million. We could go above $16 million by year end if the economy continues to improve,” he said.
The ZMWFT has said there was high demand for lending capital to finance different economic sectors, which include micro and small to medium enterprises, agriculture, micro-housing and clean energy projects.
“This demand exceeds $20 million per year,” said Mr Zimunhu.
He said the cumulative disbursement to MFIs since inception in 2012 stood at $23 million as at 31 December 2017.
The Zimbabwe Microfinance Fund (ZMF) measures default through a ratio called Portfolio at Risk 90 days, which stood at three percent as at 31 December 2017.
“Overall ZMF is satisfied with the repayment behaviour of its clients.
“This is based on the relatively low PAR 90 days ratio of three percent,” Mr Zimunhu said.
He said strategies used to control default rate include strict screening and assessment of loans, close customer relations, monitoring and to a less extent securitisation of loans.
“Only when all these strategies fail will ZMF resort to taking legal action. Fortunately for us such cases have been very few and far apart,” said Mr Zimunhu.
The Zimbabwe Microfinance Fund disburses loans ranging from a minimum of $50 000 to a maximum of $1.5 million. The microfinance fund was established in 2012 to provide on-lending funding to MFIs dotted across the country as part of efforts to rejuvenate the sector that had collapsed at the height of economic meltdown in 2008. — @thandyfeminine
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