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Nyaradzo Bakari, Business Reporter
THE United Nations has endorsed the opening of the Zimbabwe Women’s Microfinance Bank (ZWMB), saying the move will go a long way in tackling gender inequalities in the country.
President Mnangagwa on Monday officially launched the Zimbabwe Women’s Microfinance Bank in Harare, where he announced that Government was working on permanent solutions to the current cash shortages. The bank is the first of its kind in the Sadc region and will offer loans to women, youths and other small scale businesses.
Commenting on the launch of ZWMB on the global body’s official Twitter handle, UN Resident Co-ordinator in Zimbabwe, Mr Bishow Parajuli, said the newly opened bank was significant in facilitating women emancipation and financial inclusion.
“With only 27 percent of women having access to formal banking products and accounting only for 10 percent of total bank loans, the newly launched microfinance bank for women can significantly contribute to the empowerment of women,” he said.
Despite the country having more than 25 banking institutions, women have often complained of being marginalised when it comes to accessing loans for various projects as the institutions demand collateral security upfront. Most women in Zimbabwe have assets registered in the names of their spouses, a situation which is blocking their capacity to access loans from financial institutions.
The opening of the bank was a long awaited dream, and prospects are high that it will avail funding to the informal sector at concessionary lending rates and less stringent requirements to women. Mr Parajuli said the bank would promote women entrepreneurship and alleviate poverty.
“I am sure this initiative will go a long way in facilitating women entrepreneurship, self-employment, create job opportunities and break the vicious cycle of poverty.
“The launch will greatly complement the global Spotlight initiative by UN Secretary-General and the EU to end violence against women and girls by enhancing the economic standing of women. Offering specialised banking services specifically targeting women is a viable option for empowering women,” he said.
Mr Parajuli commended the Government and Civil Society for pushing in solidarity for the establishment of the bank and pledged UN support in gender equality.
“We, as the UN, are proud to have been partners in the establishment of first Women’s Bank in Zimbabwe, together with Sadc, Ministry of Women Affairs, Gender and Community Development, the Ministry of Finance and the Reserve Bank of Zimbabwe,” he said.
“The UN and donor partners are actively engaged in empowering women holistically through various programmes including livelihoods, resilience building, social services- health, education, protection and tackling violence and harmful practices.”
Mr Parajuli said there was hope that ZWMB would address inequalities in accessing the labour market, creation of assets and access to basic services. He urged people to work together in ensuring that the bank enhances financial inclusion of women. Globally, close to two billion adults remain un-banked; with women making up more than half, which Mr Parajuli said jeopardised development.
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