'Banks need mindset change' - Homelink

Published: 30 May 2018

ZIMBABWE's banking sector needs a mind-set change in its business modelling to ensure provision of funding facilities that support business growth and complement the country's economic development goals, an official has said.

Reserve Bank of Zimbabwe (RBZ) subsidiary Homelink Finance's managing director, Mr Desmond Ali, said the gap in pro-poor finance has a negative bearing on inclusive economic development.

Speaking during a financial literacy workshop organised conjunction with the National University of Science and Technology here last week, he challenged banks to do away with collateral security when giving loans to ordinary citizens.

He said Homelink Finance has committed itself to working closely with communities in low cost projects such as housing and financing. "We need to change our attitude in banking. We behave as if we came from America or UK and tell people to bring title deeds forgetting that the villages we all come from have no title deeds. If one borrows to buy cattle, those cattle should be enough security.

"We need to come up with products that suit where we come from because we need each other. As Homelink it is our intention that we do projects that improve communities," he said.

Mr Ali said his organisation was importing about $4 million new notes every week hence it has the financial muscle to carry out projects in the country's communities.

He reported that Homelink has opened a new branch in Gwanda and intends to open another one in Lupane soon.

"We are open for ideas in areas you feel we must come to. Homelink also buys and develops land to build houses and we give loans and mortgages. We also finance exports, which are coming from rural areas.

"In the next three weeks we will be starting a low- cost housing project in Bindura. We need land in Lupane and we have bought land in Umguza where we will build low density houses in Sunninghill because we want to be involved in communities," said Mr Ali.

The training workshop was meant to capacitate traditional leaders with skills to identify and start projects in their areas. Homelink will finance the projects.
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