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Bianca Mlilo, Business Reporter
THE Zimbabwe Microfinance Fund (ZMF) has disbursed $15,4 million for on-lending from January to September this year against its target for the year of $18 million.
In 2015 ZMF recorded cumulative loan disbursements of $9,7 million against a target of $12 million up from $6,8 million in 2014.
The microfinance fund was established in 2012 to provide on-lending funding to microfinance institutions (MFIs) dotted across the country as part of efforts to rejuvenate the MFI sector that had collapsed at the height of economic meltdown in 2008.
It also provides on-lending capital to financial service providers that include savings and credit cooperatives, agricultural value chain actors and banks downscaling to serve bottom-of-the-pyramid entrepreneurs.
“The operating environment characterised by cash shortages has not been kind to most enterprises served by our clients. This has seen some ZMF clients delaying some payments but still clear them within reasonable time,” ZMF managing director Mr Brian Zimunhu said.
“Overall, ZMF has hitherto been able to collect upwards of 90 percent of all repayments due.”
This year, 24 MFIs benefited from ZMF compared to last year’s 16.
He said the value of loans outstanding for this year was $8,1 million while the number of outstanding loans stands at 68. Loans paid out to female clients this year amounted to $12,2 million, which is 62 percent of the clientele served.
The value of loans advanced to rural clients amounted to $6,5 million.
Mr Zimunhu is on record saying the MFI sector needs a lot of capacity building in terms of developing microenterprise lending skills and the products to target micro entrepreneurs, rural enterprises and small holder farmers.
The fund disburses loans ranging from a minimum of $50,000 to a maximum of $1,5 million.
— @BiancaMlilo
Online Reporter