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Oliver Kazunga Senior Business Reporter
THE Zimbabwe Association of Microfinance Institutions (Zamfi) has adopted a new management information system that collects data and enables the monitoring of information by the Reserve Bank of Zimbabwe.The new management information system called “Musoni” was imported from Kenya and is being re-developed to address the needs of the local market.
“We recently imported the new system from Kenya because Kenya is one of the leading nations in microfinance lending. So, we imported the system which we want to develop to meet our local needs.
“We’re updating our members on how far we’ve gone on that,” said Zamfi board member Felicitas Sibanda.
RBZ requires information relating to quarterly returns as well as corporate governance among others. The association held a meeting with its members in Bulawayo on Tuesday to provide capacity building and highlight compliance issues among them inadequate explanation of terms and conditions of loans, over-deductions leading to excess loan repayments and the need to comply with laws and regulations.
“We’re also working hand in hand with the National University of Science and Technology (Nust) and Harare Institute of Technology to come up with a curriculum on training on micro-lending.
“We’re also looking at recapitalising microfinance institutions because we want to facilitate affordable rates in the market. We’ve funders who’re offering affordable rates on the market,” Sibanda said.
An official from the Reserve Bank, Norah Mukura, urged MFIs to comply with rules and regulations outlined in the Microfinance Act.
“Notwithstanding improving compliance levels, some MFIs’ operations fail to comply with the microfinance Act, microfinance code of conduct and the core client protection principles. This is evidenced by continued receipt by the RBZ of complaints from MFIs customers.’
Sibanda said some MFIs were not submitting quarterly returns while some fail to comply with licensing special conditions within stipulated timeframes.
She said monetary authorities would be strict to enforce compliance.
Speaking at the same occasion, the Zimbabwe Micro-finance Wholesale Facility fund manager Brian Zimunhu said as at December 31, 2014, the facility had disbursed $6,7 million to MFIs.
He said his organisation was looking forward to growing the loan book to around $12 million this year.
Since its inception in 2012, the facility has played a critical role in the MFIs sector through providing on-lending to Zamfi membership with interest rates ranging between eight and 13 percent per annum.
However, the market has complained over high interest rates that some of the MFIs were charging.
Some of the MFIs were pegging their interest at rates as high as 30 percent per month, one of the factors highlighted during the meeting as leading to excess loan repayment by clients.
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