adminRecently, Zamfi in conjunction with CBZ established an apex fund called the Zimbabwe Microfinance Wholesale Facility Trust to provide wholesale funding to financial service providers that serve micro, small and medium enterprises.
In an interview, the trust’s technical fund manager Mr Brian Zimunhu said the present call for funding applications, which opened last week, was their last in 2012.
“This is our last call for this year. Interested financial service providers must submit their application forms before the deadline,” he said.
The deadline for receipt of applications is 12 October.
Applications submitted after the closing date will not be accepted for funding during the window.
Mr Zimunhu said another call for funding applications was expected to open in the first quarter of 2013 subject to availability of resources.
“The facility targets to avail resources to developmental microfinance institutions that meet our minimum capital requirements before due diligence is made,” he said.
Prospective institutions are required among others to demonstrate that microfinance is their core business, sound corporate governance structure as well as the provision of a business plan for at least three years including financial projections.
In addition, the institutions must be registered with an appropriate registration authority and be in possession of valid operating licence from the Reserve Bank of Zimbabwe.
Of late, the trust said a number of money lending institutions were failing to benefit from the facility because of inaccurate information they give when applying for the resources.
In the first funding window that opened from December 2011 to January, Mr Zimunhu said they received 29 applications from which three institutions were approved for funding.
The window saw a total $163 000 being disbursed to qualifying firms while in the second round which ran from May to June saw 24 companies submitting their applications.
A total of $300 000 was disbursed to two institutions that qualified for funding.
The wholesale facility was introduced with the objective to assist money-lending institutions with seed capital at interest rates that range between 9 and 16 percent per annum.
Resources from the wholesale facility are being disbursed through CBZ because the banking institution was licensed by the Reserve Bank to disburse the funds.
The microfinance sector has not been spared from the adverse effects of the economic meltdown Zimbabwe was reeling under over the past decade.
As a long-term strategy, Zamfi resolved to set up the microfinance wholesale facility trust to mobilise resources to recapitalise money-lending institutions.
Online Reporter