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Oliver Kazunga Senior Business Reporter
THE Zimbabwe Women’s Microfinance Bank has disbursed over $200 million out of the $300 million it received from the Government in March this year for on-lending in pursuit of the economic empowerment agenda.
The $300 million is the first tranche from the $1 billion facility the Government has set aside to support the bank’s economic empowerment agenda for women entrepreneurs across the country this year.
This is in line with the aspirations President Mnangagwa has enunciated under Vision 2030 of transforming Zimbabwe into an upper middle-income economy society and that no-one and no place should be left behind in the envisioned transformative journey.
In an interview, ZWMB chief executive officer Dr Mandas Marikanda said the bank was promoting economic empowerment through asset financing loans as well as providing detergent-making starter packs loans, foliar fertiliser loans, poultry projects loans, working capital loans and order financing.
“The bank released $214 854 115 to fund the different projects.
“A total of 7 301 women beneficiaries have accessed loans from the bank from the beginning of the year,” she revealed.
Over 100 000 clients have benefited from the bank since its inception in 2018 with a total of 80 003 being women beneficiaries who have accessed loans from the bank for various projects.
In relation to the $300 million the bank has received early this year, the women were empowered directly by receiving loans creating 8 000 jobs and 10 00 sustained.
“Some women have had their businesses grow and others diversified their product offerings from petty trading to production-related income-generating activities with testimonials reaching the bank every day.
“Women who have never had a bank account or had access to formal financial services, mainly loans are now financially included through the bank.
“Women have been empowered through training and capacity building in various projects in partnership with stakeholders,” said Dr Marikanda.
The bank’s loans have an interest rate ranging between 10 percent and 20 percent per month in line with the Reserve Bank of Zimbabwe directive on interest rate while its repayment period is a maximum of 12 months.
Commenting on the default rate by the borrowers, Dr Marikanda said:
“Women are generally known to perform better in repaying loans; however, the general economic challenges and effects of the Covid-19 pandemic have not spared our clients, thereby affecting their repayment capacity.
“However, women continue to work hard to service their loans and improve their welfare.”
“The general economic challenges and effects of the Covid-19 pandemic have not spared our clients, thereby affecting their repayment capacity.
“Women however, continue to work hard to service their loans and improve their welfare,” she said.
Online Reporter