RBZ registers 153 micro-finance firms

RBZ registers 153 micro-finance firms
Published: 04 July 2014

The Reserve Bank of Zimbabwe (RBZ) says it has registered 153 micro-finance institutions since January this year after being satisfied with their capitalisation levels.

In a report for micro-finance institutions, the central bank says the new Micro-finance Act Chapter 24:29 of 2013 which directs micro-finance companies to disclose their capital levels and comply with ethical business conducts has restored confidence in the sector with 153 institutions having complied with requirements.

The Zimbabwe-SADC Business Association Chief Executive Officer, Mr Kingstone Kanyile says the growth of the micro-finance sector will depend on regular supervision of their operations.

"A continuous monitoring of operations is needed to ensure full growth," said Mr Kanyile.

A business consultant Patrick Gwasera says high interest rates from the micro-finance institutions are hindering the ability of the informal sector to access loans.

"More still needs to be done to boost viability for the industry," Mr Gwasera said.

According to the central bank, the number of registered micro-finance institutions increased from 213 in 2005 to 309 in 2007.

90 percent of the institutions closed operations in 2008 as the hyperinflation climate eroded balance sheets.

However, the number of the institutions has been increasing after the introduction of the multi-currency policy in 2009.
- zbc
Tags: RBZ,

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