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CONTENTS
GOVERNOR’S FOREWORD ..................................................................................................................... 5
DIRECTOR’S FOREWORD ........................................................................................................................ 7
CHAPTER 1 INTRODUCTION ............................................................................................................. 9
CHAPTER 2 REGULATORY FRAMEWORK ......................................................................................... 13
CHAPTER 4 CONDITION AND PERFORMANCE OF THE MICROFINANCE SECTOR.............................. 19
CHAPTER 5 RESPONSES TO CHALLENGES IN THE MICROFINANCE SECTOR ................................... 27
CHAPTER 6 ROLE OF MICROFINANCE IN FINANCIAL INCLUSION ................................................... 29
CHAPTER 7 OUTLOOK ......................................................................................................................... 35
APPENDICES 39
MISSION STATEMENT
MIMISSIO N STATEMENT
Vision
To become a transformative and responsive Central Bank.
Mission
Maintaining financial stability and financial inclusion through credible policies and risk
based supervision of banks, supported by a skilled human resource base and a
modern integrated ICT system.
Values
Trust
Integrity
Passion
Transparency
Accountability
Efficiency
Creativity
PURPOSE OF THE REPORT
The purpose of this microfinance annual report is to provide an analysis of the status
and performance of the microfinance sector in Zimbabwe for the year ended 31
December 2015. This report presents an overview of the microfinance activities
during the period under review.
GOVERNOR’S FOREWORD
1. This inaugural Microfinance Annual Report comes at
a time when microfinance has enjoyed
unprecedented growth in the past decade to
become an important subsector of the global
financial system. Policy makers and regulators
worldwide recognize the vital role of microfinance
as an important tool in economic development and
poverty alleviation through facilitating access to
financial services.
2. In Sub-Saharan Africa microfinance has continued to register impressive growth
particularly in East Africa on the backdrop of the expansion of mobile technology
driven solutions.
3. Since the adoption of the multicurrency regime in 2009, the Zimbabwe microfinance
sector has enjoyed steady growth as reflected by an expansion in branch outreach and
number of clients accessing financial services from microfinance institutions.
4. Notwithstanding the noted positive growth, the microfinance sector has not been
spared from the challenges affecting the domestic economy which include market
illiquidity, absence of affordable wholesale funds, and non-performing credit.
5. Cognisant of the role of microfinance in channelling financial services to low income
groups, and the challenges hindering the sector from reaching its full potential, the
Reserve Bank spearheaded the development of the National Financial Inclusion
Strategy (NFIS) which was launched on 11 March 2016. Microfinance occupies a
prominent role in the NFIS as one of the four key pillars and is expected to play a
critical role in facilitating access to financial services by the unbanked particularly
small to medium enterprises (SMEs) which are recognised globally as the engine for
growth.
6. The Reserve Bank remains resolute in the execution of its mandate to maintain the
safety and soundness of the financial sector through proactive supervision and
enhancement of its supervisory tools and techniques to provide a more supportive
and efficient regulatory and supervisory framework for the microfinance sector in line
with international best practice.
7. To this end, the key stakeholders in the microfinance sector drafted a Microfinance
Policy to guide the sector’s development. The policy awaits requisite Government
approval.
8. The provisions of the Microfinance Act [Chapter 24:29] which was gazetted in 2013,
have promoted strengthened risk management and corporate governance systems
and practices in microfinance institutions. The introduction of the deposit-taking
microfinance licence has provided the long awaited avenue for funding through
authorized deposit mobilization. In the past some errant microfinance institutions
(credit-only) have ventured into illegal deposit-taking resulting in members of the
public losing their money.
9. The Reserve Bank and other stakeholders have since proposed amendments to the
Microfinance Act to further refine the legal framework. The amendments seek to
address, inter alia, tenure of the microfinance licence, the confusing categorization of
the microfinance institutions and liability of directors.
10. I wish to thank all our stakeholders for their dedication and invaluable support to the
Reserve Bank in its endeavours to create a strong, sustainable and inclusive financial
system that is supportive of economic growth.
Dr. J. P. Mangudya
Governor
DIRECTOR’S FOREWORD
1. Microfinance plays a critical role in providing access to
finance by the low-income groups and micro, small and
medium enterprises who cannot access the same from
the formal banking system, due to the absence of
collateral acceptable to banking institutions.
Microfinance is used as a tool to reach out to remote areas that are shunned by banking
institutions.
2. In view of its importance in economic development and poverty alleviation in Zimbabwe,
the microfinance sector has assumed an important role in the National Financial
Inclusion Strategy alongside other pillars namely financial literacy, financial innovation
and financial consumer protection. To promote the growth of the microfinance sector,
the Reserve Bank embarked on initiatives which include establishment of the credit
reference system and collateral registry, licensing of deposit-taking microfinance
institutions (DTMFIs), capacity building workshops and consumer financial literacy
awareness campaigns.
3. The above measures are expected to reduce information asymmetry in the sector,
facilitate effective management of credit risk and promote access to microfinance
products and services by segments previously excluded from formal financial services.
4. Further, the enactment of the Microfinance Act [Chapter 24:29] in 2013 which
incorporated a Code of Conduct also enhanced the consumer protection framework for
consumers of microfinance products and services.
5. The microfinance sector grew at an average of 32.61% in the last five years, in spite of
the constraints in the operating environment. Total loans increased from $63.43 million
as at 31 December 2011 to $187.16 million as at 31 December 2015. The number of
licensed microfinance institutions and branches increased from 95 and 106 to 152 and
571 from 2009 to 2015, respectively. Over the years, microfinance branch network has
also expanded to cover all the ten provinces of the country, while the proportion of
women accessing funding from microfinance institutions increased from 32.90% in 2014
to 42.10% in 2015.
6. Despite funding and capitalisation challenges the microfinance institutions have been
able to raise local and offshore funding to finance productive sectors of the economy,
particularly small and medium enterprises and small scale farmers.
7. In 2013 the Reserve Bank in conjunction with other key stakeholders constituted the
Microfinance Advisory Council (MAC) to promote the development of the microfinance
industry and expansion of financial inclusion. MAC has been instrumental in raising
awareness of the legal and regulatory provisions among the microfinance institutions.
8. In 2015 the Reserve Bank licensed three deposit-taking microfinance institutions which
are expected to play a major role in the development of the microfinance sector by
facilitating the mobilisation of savings from the unbanked segments of the population.
9. The Reserve Bank extends its sincere appreciation to all the stakeholders in the
microfinance sector, including the Zimbabwe Association of Microfinance Institutions,
microfinance institutions, and development partners for their continued support and
cooperation towards achievement of an inclusive, safe and sound financial system.
N. Mataruka
Director – Bank Supervision
CHAPTER 1 INTRODUCTION
1.1 The origins of microfinance date
back to the 19th century when credit
unions and rural cooperatives
emerged to provide sustainable
financial services. Microfinance then
became the domain of development
agencies in the 20th century, driven by large institutions such as the United Nations.
1.2 During the period 2004 to 2008, microfinance enjoyed unprecedented growth globally
to become an important sub-sector of the formal financial system in emerging
markets. The impressive asset growth, healthy returns and widespread international
recognition of microfinance as a development tool captured the interest of both
academics and policy makers.
Figure 1 Evolution of Microfinance
1.3 As a result, the sector was promoted by many national governments eager to bridge
the financial inclusion gap, and was elevated onto the agendas of the United Nations
and the G8 Group in 2004. The United Nations’ General Assembly designated 2005 as
the Year of Microcredit to underline the importance of microfinance. Donors and
socially oriented investors recognized the potential for social and financial returns and
directed increasing funding towards microfinance.
Microfinance is generally defined as the
provision of a range of financial services
including savings, small loans, insurance, and
money transfer services to marginalized
members of the population and SMEs that do
not have access to finance from mainstream
financial institutions.
Global Microfinance Outlook
1.4 Global economic growth slowed down to 3.1 percent in 2015, and is projected to
marginally recover to reach 3.4 percent in 2016, as a modest recovery in advanced
economies continues and activity stabilizes among major commodity exporters,
according to the World Bank’s January 2016 Global Economic Prospects.
1.5 The average growth in the global microfinance sector is estimated at 10-15% in 2016
with robust growth anticipated in Asia pacific and Sub-Saharan Africa as shown in table
1.1
Table 1 : Average microfinance growth rates in the selected major microfinance
markets
1 Microfinance Market Outlook: Developments, forecasts, trends, www. responsAbility.com
Country 2015 2016
India 7.3% 7.5%
Cambodia 7.0% 7.2%
Kenya 6.5% 6.8%
Bolivia 4.1% 3.5%
Azerbaijan 4.0% 2.5%
Ghana 3.5% 5.7%
Mongolia 3.5% 3.6%
Paraguay 3.0% 3.8%
Costa Rica 3.0% 4.0%
Tajikistan 3.0% 3.4%
Armenia 2.5% 2.2%
Peru 2.4% 3.3%
Sources: IMF and Responsibility Research
Evolution and Development of the Microfinance Sector in Zimbabwe
1.6 The microfinance sector in Zimbabwe dates back to 1963 when the Catholic
Missionary initiated a Savings Development Movement, (SDM) for rural women2. The
savings clubs grew in numbers from an estimated 30 in 1970 to 1500 in 1974.
1.7 The post-independence period in Zimbabwe created an enabling environment for the
further development of microfinance, particularly savings and credit cooperatives
(SACCOs) and (Rotating Savings and Credit Associations (ROSCAs).
1.8 A new economic dispensation created by the liberalization of the financial sector in
the early 90’s created a financial system characterised by stringent lending practices
by banking institutions in Zimbabwe which excluded low income groups and MSMEs
from accessing finance from banking institutions due to lack of acceptable collateral.
The situation presented an opportunity for NGOs to provide financial support to the
microfinance sector.
1.9 The growth of the sector was however, affected by the hyperinflationary environment
experienced from 2000 to 2008 which resulted in some microfinance institutions
closing down.
1.10 The microfinance sector which contributed 2.32% of Gross Domestic Product in 2015,
is expected to continue registering modest growth on the back of anticipated growth
of deposit-taking microfinance institutions (DTMFIs) coupled with high demand for
credit. Financial inclusion initiatives are also expected to spur growth in the
microfinance sector through outreach programmes by stakeholders.
2 Raftopoulos, B. and J. Lacoste. (2001). From Savings Mobilization to Microfinance: A Historical Perspective on the Zimbabwean Self Help Development Foundation (SHDF). Food and Agricultural Organization (FAO) Paper presented at the International Conference on “Livelihood, Savings and Debts in a Changing World: Developing Sociological and Anthropological Perspectives”.
Kyrgyz Republic 2.0% 3.6%
Georgia 2.0% 3.0%
Ecuador -0.6% 0.1%
Average 3.5% 4.0%
1.11 Microfinance as one of the key pillars of NFIS is expected to play a key role in
promoting access to financial services in Zimbabwe. It can offer a wide variety of
financial services to the unbanked particularly at the bottom of the pyramid.
1.12 Digital financial services continue to gain popularity and provide opportunities to not
only expand outreach and reduce costs but also expand the menu of financial services.
From allowing MFIs to access micro-entrepreneurs in remote areas, to enabling the
implementation of more robust ICT and risk assessment tools, technology represents
a huge opportunity for microfinance institutions across the world.
CHAPTER 2 REGULATORY FRAMEWORK
2.1 Prior to August 2013, microfinance institutions were regulated under the Moneylending
and Rates of Interest Act [Chapter 14:14] and the Banking Act [Chapter 24:20].
2.2 The legal and regulatory framework for the microfinance sector in Zimbabwe was largely
inadequate. The legislation for the sector was a notable constraint to the deepening and
broadening of microfinance services and the participation of foreign investors.
2.3 The Moneylending and Rates of Interest Act [Chapter 14:14] was deficient in that it did
not sufficiently provide for important issues such as consumer protection, corporate
governance and was now out of sync with market developments.
Microfinance Act [Chapter 24:29]…
2.4 In recognition of the need for a more supportive and efficient regulatory and supervisory
legislative framework for the microfinance sector, the Microfinance Act [Chapter 24:29]
(the Act) was gazetted in 2013.
2.5 The Act provides for registration and deregistration of microfinance institutions,
including deposit-taking microfinance institutions and expectations for the standard
loan agreement, administrative, accounting, and risk management and corporate
governance practices.
Code of Conduct
2.6 The Act is also customer–centric and has strengthened the consumer protection
framework for microfinance clients through embracing the Core Client Protection
Principles shown in Fig 2 below which are enshrined in the Code of Conduct which is in
the Act.
Fig 2: Microfinance Core Client Protection Principles
Microfinance Policy…
2.7 The National Microfinance Policy (NMP) seeks to achieve the following among other
objectives:
I. to put in place well-focused programmes to reduce poverty through empowering
the economically active poor and building an inclusive financial sector;
II. promote the development and integration of the microfinance sector into the
formal financial system; and
III. the creation of an enabling environment, conducive to the long-term
development and sustainability of the microfinance sector.
CHAPTER 3 ARCHITECTURE OF THE MICROFINANCE SECTOR
3.1 As at 31 December 2015, the microfinance sector comprised 152 microfinance
institutions including three deposit-taking microfinance institutions licensed in 2015.
3.2 The number of registered microfinance institutions (MFIs) increased from 147 as at 31
December 2014 to 152 as at 31 December 2015.
3.3 Fig 3 shows the trend in the number of licensed MFIs and the number of branches
since December 2009.
Credit-only microfinance institutions…
3.4 Credit-only MFIs are subject to non-prudential regulation, which entails:
i. registration of institutions to conduct the business of lending;
ii. enforcing appropriate standards on corporate governance arrangements;
iii. on-going review of condition and performance based on periodic submission of
regulatory returns; and
iv. monitoring with a view to minimize unethical business conduct.
3.5 Credit – only microfinance institutions issue loans to individuals as well as to micro,
small and medium enterprises.
95 114146 150 143 147 152
106 118162
278
334
473
571
50
100
150
200
250
300
350
400
450
500
550
600
31
-Dec-0
9
31
-Dec-1
0
31
-Dec-1
1
31
-Dec-1
2
31
-Dec-1
3
31
-Dec-1
4
31
-Dec-1
5
Fig 3 Trend in No. of MFIs & Branches
No. of MFIs No. of Branches
Deposit-taking Microfinance Institutions…
3.6 The first deposit-taking MFIs were registered in 2015. As at 31 December 2015, there
were three registered deposit-taking microfinance institutions namely African Century
Limited, GetBucks Financial Services (Private) Limited and Collarhedge Financial
Services (Private) Limited. All three institutions were licensed in 2015. African Century
Limited and GetBucks Financial Services (Private) Limited commenced operations in
January 2016.
3.7 Deposit-taking microfinance institutions are subjected to prudential regulation which
is achieved through the rigorous application of the following prudential standards,
among others:
i. Minimal capital requirements;
ii. Limits on unsecured lending;
iii. Provisioning requirements;
iv. Limits on lending to a single borrower or related party;
v. Restriction on declaration of dividends;
vi. Liquidity requirements; and
vii. Standard loan documentation requirements.
Other Providers of Microfinance Services…
3.8 In Zimbabwe microfinance is provided by banks, Post Office savings Bank (POSB),
microfinance institutions (MFIs), associations (ROSCAs), Savings and Credit
Cooperatives (SACCOs) and non-governmental organizations (NGOs). The government
is also a supplier of microfinance resources to the rural poor mainly in the form of
agricultural inputs and seasonal loans.
3.9 The majority of banks in Zimbabwe offer microfinance services and have established
dedicated SME divisions or units to provide financial services and capacity building.
Branch Network
3.10 As at 31 December 2015, Harare, Midlands, Manicaland and Bulawayo provinces
dominated in terms of the number of branches of MFIs as shown in Fig 4.
3.11 There has been a notable increase in MFIs establishing head offices outside major
cities of the country including in such areas as Beitbridge, Kariba, Matobo, Shurugwi,
Lupane, Rusape, Mashava, Zvishavane, Gwanda and Marondera. This has enhanced
outreach of microfinance products and services.
3.12 Fig 4 shows the total number of MFI branches in each of the country’s eight provinces as
at 31 December 2015.
Figure 4 Distribution of MFI Branches by Province
3.13 Two MFIs with 51 branches dominated the sector in terms of branch network while
100 microfinance institutions had one (1) branch each.
3.14 The number of active clients declined from 205,282 in 2014 to 204,242 in 2015,
notwithstanding the increase in the number of branch outlets from 473 to 571 during
the same period. Fig 5 shows the growth in the number of active clients from 2011
72
47 33
17
136
31
57
81
34
63
to 2015.
3.15 The proportion of women borrowers increased from 32.90% in 2014 to 42.10% in
2015.
Agent Banking
3.16 Increasingly, agent banking and e-banking are being recognized as efficient and cost
effective delivery channels for financial products and services.
3.17 To this end, a number of microfinance institutions have embraced the concept of
agent banking by establishing agents in various areas including rural areas where they
cannot establish branches.
3.18 Some Microfinance Institutions have also become agents of banking institutions,
mobile financial services providers and insurance companies. This has enhanced their
service delivery channels as they are now able to disburse and collect loans using the
banks and mobile money platforms.
3.19 The Reserve Bank has developed Prudential Standards on Agency Banking, which
provide a framework for the participation of banking institutions and MFIs in
branchless banking and bring financial services to the target markets particularly the
rural communities.
58,325
96,749
150,188
205,282 204,242
16,159
31,453
54,62267,536
85,982
0
50,000
100,000
150,000
200,000
250,000
31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15
No. of clients No. of women clients
Fig 5 Growth in Number of
Clients
CHAPTER 4 CONDITION AND PERFORMANCE OF THE MICROFINANCE
SECTOR
Introduction
4.1 The microfinance sector plays a significant role in promoting financial inclusion, self-
sufficiency and economic development particularly among the low income groups and
small to medium enterprises.
Lending Activities
4.2 Loans to the microfinance sector amounted to $187.16 million as at 31 December 2015,
an increase of 19.21% from $156.99 million as at 31 December 2014.
4.3 The top twenty microfinance institutions with a total loan book of $162.79 million
controlled 86.98% of the sector’s total loans as at 31 December 2015. The largest
microfinance institution, with a loan book of $32.50 million, commanded a market
share of 17.37% as at 31 December 2015.
4.4 As at 31 December 2015, loans comprised 83.13% of total microfinance assets of
$225.13 million compared to 77.45% as at 31 December 2014.
4.5 Fig 6 shows the trend in growth of loans in relation to growth in total microfinance
sector assets.
Fig 6: Growth in Total Microfinance Sector Assets and Loans
4.6 The bulk of loans disbursed by microfinance institutions were for consumption
185.73
202.71 202.58208.76 207.74
225.13
164.2156.99 163.53 162.2
173.31187.16
2013 2014 MAR-15 JUN-15 SEP-15 DEC-15
US
D i
n m
ilio
ns
Total Assets Total Loans
purposes constituting 54.26% while loans for productive or income generating
purposes constituted 42.43% as at 31 December 2015.
4.7 Table 2 shows the distribution of loans between productive or income generating
purposes and for consumption purposes.
4.8 There has been a significant shift from consumption lending as reflected by the drop in
the proportion from 70.89% in 2013 to 54.24% in 2015. It has also been established
that some of the individual loan facilities under consumption lending are utilised for
productive purposes.
4.9 MFIs have contributed to the development of
various areas in the country through financing
projects involving activities such as:
i. Banana Plantations in Honde Valley,
Manicaland;
ii. Micro-mortgage facilities to staff of universities, teachers unions and other
tertiary institutions;
iii. Irrigation Projects such as Redwood Irrigation Scheme in Umguza, Matebelenad
North;
iv. Cattle Fattening Schemes such as Masakhane Zihlobo Pen Fattening in Nkayi;
and
29.11%
46.70% 45.76%
70.89%
53.30% 54.24%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
2013 2014 2015
Fig 3: Distribution of Loans : 2013-2016
Productive Consumption
Mhende Irrigation Scheme-
Chirumanzu District, Mvuma
v. Small Scale Dairy projects in Chipinge.
4.10 The funding by MFIs has positively impacted
on the livelihoods of people around the
country. Small scale general dealers who
benefited from working capital increased the
variety of their trading stock and diversified
their businesses as well as introducing credit
facilities.
4.11 Microfinance institutions have also provided value chain financing to smallholder
livestock farmers who managed to increase their fattened cattle throughput. Small
scale horticulture farmers have also benefited immensely from microfinance loans that
have increased their disposable income and assets accumulation.
Portfolio at Risk (PaR)
4.12 The size of the portfolio at risk (PaR) ratio in the microfinance sector increased
marginally from $19.29 million as at 31 December 2014 to $20.06 million as at 31
December 2015. The growth was in line with the growth in the loan portfolio for the
entire sector on a year on year basis.
Small Scale Farmer, Mutoko, Mashonaland East
4.13 Although the level of credit risk in the sector as measured by the Portfolio at Risk (PaR)
ratio has been declining over the years from a peak of 25.52% as at 31 December 2012
to 10.72% as at 31 December 2015, the sector remains vulnerable to credit risk.
4.14 The improvement in the PaR ratio in the sector over the years is largely attributable to
improving credit risk management strategies and strengthening of underwriting
standards employed by microfinance institutions including enhanced credit risk
analysis and increased use of credit references.
4.15 The level of PaR is expected to continue improving in line with the on-going supervisory
initiatives including the capacity building in the areas of credit analysis and delinquency
management and the establishment of a credit reference system by the Reserve Bank.
Earnings…
4.16 Net profit after tax in the sector declined from $24.84 million for the year ended 31
December 2014 to $12.88 million for the year ended 31 December 2015. The decline is
largely attributed to increases in operating costs.
4.17 Fig 8 shows the trend in net income for the sector.
4.18 Consequently return on assets and return on equity declined significantly during the
same period as shown in Fig 11.
0
5
10
15
20
25
2011 2012 2013 2014 2015
2.63
4.91
22.04
24.84
12.88
USD
MIL
LIO
NS
FIG 8 :NET INCOME : 2011-2015
4.19 For the year ended 31 December 2015, eight (8) institutions, recorded net profit in
excess of one million dollars with eighteen (18) institutions posting losses. The losses
recorded by twelve (12) out of the eighteen (18) institutions were largely attributed to
start-up costs while those for the remaining six (6) institutions’ losses were attributed
to increases in provisions for bad & doubtful debts during the year.
Composition of Income
4.20 Total operating income of $100.15 million largely comprised interest income for the
year ended 31 December 2015. Ten microfinance institutions recorded total operating
income of $62.22 million constituting 62.12% of total income for the sector.
Sustainability
4.21 A number of microfinance institutions are considered sustainable3 as reflected by the
average Operational Self Sufficiency (OSS) of 124.57% for the year ended 31 December
2015. OSS is the ratio of an MFI’s operating revenues to its operating expenses
including the financial costs and impairment losses on loans.
4.22 The average OSS ratio is above the break-even point of 100%. Fifteen (15) microfinance
institutions out of 145 recorded OSS ratios of less than 100% largely due to high
3 Sustainability refers to the ability of a microfinance institution (MFI) to cover all its costs through interest and other income paid by its clients independent of external subsidies from donors or the government.
2.66%4.23%
11.87% 12.25%
5.72%
21.09%
6.87%
32.33%34.26%
13.28%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2011 2012 2013 2014 2015
Fig 9 : Profitability Ratios:2011-2015
ROA ROE
employment costs.
4.23 A total of 18 institutions posted losses amounting to $7.65 million, with one
institution’s losses of $7.01 million contributing 91.67% of the total loss figure which
significantly weighed down the sector’s average OSS ratio.
4.24 The sector’s top twenty MFIs (total loans) had operating expenses ratio of less than
70% for the year ended 31 December 2015, indicating that the larger MFIs are striving
to enhance their operational efficiency.
Capitalisation…
4.25 Microfinance institutions’ funding mix for their operations include debt and equity.
Aggregate equity infusion in MFIs increased by 25.94% from $72.49 million in
December 2014 to $95.71 million in December 2015. Microfinance institutions also
accessed a total of $127.52 in debt financing for the period ended 31 December 2015.
4.26 The trend in the sector capital levels from 2011 to 2015 is shown in Fig 10.
Social Performance
4.27 Although a few microfinance institutions have embraced social performance
measurement, there is still more work to be done in this area as Zimbabwe is lagging
0
10
20
30
40
50
60
70
80
90
100
2011 2012 2013 2014 2015
12.46
29.08
68.1772.49
97.01
USD
Mill
ion
s
Fig 10: Total Sector Capital Levels: 2011 – 2015
behind. To accelerate this, the Zimbabwe Association of Microfinance Institutions
(ZAMFI) together with other stakeholders convened a Social Performance
Management workshop in April 2015. The workshop was facilitated by the Grameen
Foundation Southern Africa office based in Uganda.
4.28 Initiatives are underway to adopt the Progress out of Poverty Index (PPI) for
Zimbabwe. The PPI will scientifically measure progress out of poverty which all MFIs
can use going forward.
Challenges in the Microfinance Sector
4.29 The performance of the sector has been constrained by the challenges discussed
below.
Funding…
4.30 MFIs are primarily funded through equity, loans and credit lines. Since the adoption of
the multi-currency system in February 2009, these traditional sources have been
limited. The microfinance sector has operated under a constricted liquidity
environment which has manifested through constrained funding ability, limited credit
creation and high lending rates.
4.31 A number of microfinance institutions continue to struggle to build financial capacity
to underwrite meaningful business. Weak capitalisation is constraining the organic
growth of microfinance institutions.
4.32 The liquidity constraints and limited availability of wholesale funds in the economy has
adversely hampered the provision of financial services to the low income groups and
micro, small and medium enterprises.
4.33 Inadequate funding has also affected microfinance institutions’ capacity to acquire
robust ICT and risk management systems to support their operations and facilitate
impact and financial stability assessments. Weak management information systems
(MIS) have also affected institutions’ ability to submit regulatory returns therefore
hampering performance monitoring of the industry.
Shortage of Relevant Microfinance Skills…
4.34 The sector continues to experience shortage of critical and relevant skills in
microfinance in the areas of micro-credit analysis, risk management and
administration, largely due to funding constraints and inability to train and retain skills.
The shortage of relevant microfinance skills has negatively affected the institutions’
capacity to manage risks emanating from their activities.
Absence of a Comprehensive Credit Reference System…
4.35 The absence of a comprehensive credit reference system for use by MFIs operating in
Zimbabwe has affected the quality of MFIs’ credit risk management systems resulting
in multiple borrowings among the low income groups which leads to over-
indebtedness.
4.36 Information asymmetry in the sector is hampering access to financial services by the
low-income groups as the microfinance institutions do not have access to credit
information for the prospect borrowers.
Illegal Deposit-Taking by Some Microfinance Institutions…
4.37 In 2012, the Reserve Bank cancelled the operating licences of a number of credit-only
microfinance institutions which were boosting their funding bases by illegally
mobilizing deposits, and quoting fictitiously high deposit rates which were meant to
entice members of the public.
Customer Complaints…
4.38 The Reserve Bank has been inundated with complaints from the members of the public
regarding unsustainably high lending rates which have contributed to high levels of
indebtedness. The institutions, given the target market, have failed to aligning their
cost structures to reflect the obtaining operating environment.
4.39 In addition, the nature of complaints also reflect that some MFIs are not fully and
clearly explaining the terms and conditions of their loan facilities.
CHAPTER 5 RESPONSES TO CHALLENGES IN THE MICROFINANCE SECTOR
5.1 Cognisant of the need to create profitable and sustainable microfinance institutions
that offer affordable financial services, the Reserve Bank has taken initiatives
discussed below to eliminate the impediments to the growth of the microfinance
sector.
Capacity Building Initiatives
5.2 The Reserve Bank in conjunction with other stakeholders including ZAMFI has
facilitated a number of capacity building programs including training workshops and
attachment programs for Reserve Bank officers to share supervisory experience in the
area of regulation and supervision of deposit-taking microfinance institutions.
5.3 The Harare Institute of Technology (HIT) in collaboration with ZAMFI and the Reserve
Bank developed and introduced a professional training programme in microfinance
which leads to a Professional Certificate and Diploma in Microfinance.
Membership of Industry Association
5.4 The Reserve Bank continues to encourage microfinance institutions to be members of
a recognised industry association. Membership of an industry association enables
microfinance institutions to tap into industry best practices and standards and
facilitates access to technical assistance, information, training and tools, and funding.
Microfinance Advisory Council
5.5 In 2013 the Reserve Bank in conjunction with the Ministry of Finance & Economic
Development, ZAMFI, other financial sector regulatory authorities and other
stakeholders formed the Microfinance Advisory Council (MAC) to spearhead the
development of the microfinance industry and promoting financial inclusion.
5.6 The terms of reference of MAC include:
i. advise the government on strategies and policies for the development of the
microfinance sector;
ii. promote and facilitate capacity building in the microfinance sector;
iii. promote professionalism, integrity, accountability and dissemination of best
practices in the microfinance sector; and
iv. promote financial inclusion through encouraging and facilitating the
development of innovative microfinance products and delivery channels;
5.7 MAC has reviewed the Zimbabwe Microfinance Policy and organised workshops to
educate microfinance institutions on their duties and responsibilities in terms of the
Microfinance Act [Chapter 24:29].
Initiatives to Enhance Financial Capability Levels
5.8 The World Bank Consumer Protection and Financial Literacy Diagnostic Review and
the FinScope Consumer Survey of 2014 revealed that although Zimbabwe has a high
rate of general literacy, there is low financial literacy. As a result, consumers do not
understand some financial concepts particularly the financial language used in loan
applications and loan agreements which results in over indebtedness and high default
rates.
5.9 In this regard, the Reserve Bank issued Consumer Education and Awareness Bulletins
to educate the public on financial terminologies, financial services and responsible
financial management.
5.10 Further, the Reserve Bank engaged civil organisations and associations including the
Zimbabwe Teachers Association, Progressive Teachers’ Union and Consumer Council
of Zimbabwe as important stakeholders in financial consumer education and
protection.
Establishment of Credit Information System
5.11 The Reserve Bank with the technical support of experts from the World Bank is
working towards the establishment of a credit information system which will
alleviate the information asymmetry in the financial sector.
Establishment of a Collateral Registry
5.12 The Reserve Bank has also accessed financial and technical support of the World Bank
to establish a collateral registry which will enhance access to finance for lower income
groups on the back of movable assets as collateral.
CHAPTER 6 ROLE OF MICROFINANCE IN FINANCIAL INCLUSION
6.1 The FinScope Survey of 2014, revealed that only 23% of the rural population is formally
banked compared to 46% of the urban population, and only 14% of MSMEs owners
are banked. In addition there are low levels of financial literacy and capability, and a
decline in the actual usage of banking services between 2011 and 2014.
6.2 Empirical evidence has demonstrated that microfinance can be a catalyst in economic
development and eradication of poverty through engagement of previously excluded
sections of the community, particularly the youth and women. The scope of
microfinance emerged from humble beginnings of provision of micro-credit to the low
income groups to become a key pillar of financial inclusion through provision of a
wider range of financial products and services including insurance, savings and
remittances.
Access to Financial Services…
6.3 The role of microfinance in financial inclusion manifests itself through the creation of
facilities that enable the low income groups and MSMEs, which are affected by
comparatively higher levels of financial exclusion, to access a variety of financial
services including microcredit, micro-savings, remittances, payments, micro-
insurance and pensions, delivered through an extensive branch network in
partnership with banking institutions and mobile network operators.
6.4 Microfinance institutions are undoubtedly best-placed to address some of the
demand-side barriers to access to finance by MSMEs as, among other attributes, they
possess vast experience in MSME financing. In this respect, the microfinance sector
is expected to be instrumental in the implementation of the SME Financing Policy.
6.5 With adequate and appropriate funding, microfinance institutions can be the main
source of funding for the MSMEs that cannot access funding from the banking
institutions due to lack of collateral usually demanded by the banks.
A young businesswoman running a wire meshing business at Hauna Growth Point, Manicaland
Women
6.6 Notwithstanding the fact that 57% of the
business owners in Zimbabwe are women
(Finscope Survey, 2012), and that women
constitute the majority of the Zimbabwean
population, women remain highly
excluded from the formal financial services
sector.
6.7 The microfinance institutions have
recognised this opportunity and have in
the past year increased their lending to women owned enterprises from 32.90% in
2014 to 42.10% in 2015 of the aggregate loan portfolio of the sector.
Small-Scale Agriculture Financing
6.8 In recognition of the fact that Zimbabwe is an agro-economy with agriculture
contributing about 12% of the country’s GDP in 2014 and more than 60% of inputs to
the manufacturing sector, the microfinance institutions have made inroads in
broadening of access to financial services particularly by smallholder farmers. A
number of microfinance institutions have provided financial support to smallholder
farmers for the production of groundnuts, paprika, bananas and livestock.
A General Dealer Store run by a woman at Siphambi Businesss Centre, Masvingo
6.9 The role of microfinance institutions in the financing of agriculture is expected to be
bolstered by the implementation of an Agricultural & Rural Finance Policy which is
being developed as part of the implementation of the NFIS.
Youth
6.10 Youth in Zimbabwe are excluded from formal financial services largely due to high
levels of unemployment, negative stereotypes about youth who are considered high
risk-takers, lack of collateral, limited business and life experience, and lack of track
record or credit history. This is in addition to the other demand side constraints
affecting all consumers of financial services.
Small Scale Banana Planation owned by a woman in Honde Valley, Manicaland
6.11 Microfinance Institutions are expected to be instrumental in implementing financial
inclusion strategies for the participation of the youth in some or all of the following
measures proposed in the National Financial Inclusion Strategy:
i. Design and implementation of financial literacy programs for the youth;
ii. Establishment of a youth empowerment window by all financial institutions;
iii. Development of appropriate collateral substitutes in order to address the
challenge of security among youth borrowers;
iv. Capacitation of vocational training centres across the country to ensure well
trained graduates are in a position to apply their knowledge on start-ups; and
v. Ensuring that regulatory frameworks and policies are youth friendly and
protective of youth rights in order to increase youth financial inclusion.
Savings mobilisation
6.12 The registration of deposit-taking microfinance institutions will go a long way in
mobilisation of deposits from the historically marginalised segments of the
population, through the development and introduction of innovative and tailor-made
savings accounts which suite the size and level of their cashflows. By providing
savings opportunities for households and MSMEs, deposit-taking microfinance
institutions reduce the vulnerability of their clients to natural disasters, and
A young farmer attending to a Horticulture project .
unexpected illnesses, while enabling them to smoothen their consumption
expenditures with their savings.
Reaching Out to the Remote Areas…
6.13 One of the impediments to financial inclusion is the absence of suppliers of formal
financial products and services in the remote and rural areas of the country, largely
due to inadequate financial and poor physical infrastructure.
6.14 Microfinance institutions play a significant role in facilitating financial inclusion as
they are uniquely positioned in reaching out to the rural communities. Many of them
operate in a limited geographical area, have a greater understanding of the unique
and specific needs of local communities, and are flexible in their operations providing
a level of comfort to their clients.
6.15 Microfinance institutions have managed to reach out to remote areas shunned by
other formal financial institutions. Over the years, microfinance institutions have
expanded their branch network from predominantly urban centres like Harare and
Bulawayo to all the ten provinces of the country. The spread of microfinance into
these predominantly agriculture-based regions has opened more opportunities for
the growth not only of the microfinance institutions themselves but also of
smallholder farmers and MSMEs at Growth Points and Rural Business Centres who
are now able to access working capital finance.
6.16 Microfinance institutions have partnered with other providers of financial services
and mobile finance to ensure that households in remote locations can benefit from
financial services including remittances and payment services at greatly reduced
transaction costs and in time to meet a range of financial obligations.
6.17 The implementation of the NFIS is expected to result in the roll out of micro-insurance
services including crop and livestock insurance, weather index insurance and micro-
health insurance to the rural communities.
CHAPTER 7 OUTLOOK
7.1 The microfinance industry is poised for further growth through the implementation of
the National Financial Inclusion Strategy (NFIS) which was launched on 11 March 2016.
Microfinance, as one of the key pillars of NFIS, is expected to drive the national
inclusion agenda.
7.2 Going forward, the roll out of the NFIS will see increased focus by stakeholders in the
provision of formal financial services to the unbanked segments of society through
delivery channels such as agent banking.
7.3 The Reserve Bank will continue to enhance the regulatory environment to ensure that
the legal framework is supportive of financial inclusion initiatives including mobile
technological innovation and agent banking.
Credit Growth…
7.4 The re-engagement of the international community by the Government of Zimbabwe
coupled with a raft of macro-economic reforms is expected to improve the general
macro-economic environment in Zimbabwe. The resultant effect will see improved
inflows in foreign investments and off-shore lines of credit which is expected to spur
credit growth in the sector.
7.5 The establishment of deposit-taking microfinance institutions is expected to further
boost credit growth in the microfinance sector through mobilization of savings
deposits.
7.6 Measures put in place to resolve non-performing loans in the main stream banking
sector which include setting up a credit reference system and collateral registry are
expected to spur micro-credit growth and enhance credit risk management.
Risk Management…
7.7 In view of capacity building initiatives by the Reserve Bank and other stakeholders,
microfinance institutions are envisaged to implement prudent risk management
systems to improve loan portfolio quality.
Financial Inclusion…
7.8 The microfinance sector is expected to play a
pivotal role in achieving financial inclusion
through extension of credit for productive
purposes and other financial services such as
micro-leasing, micro-insurance, savings and
agricultural loans for small scale farmers.
7.9 The Reserve Bank, in collaboration with other key
stakeholders such as microfinance practitioners, mobile network operators and
Government will continue to explore ways of promoting sustainable financial
inclusion.
7.10 Financial inclusion initiatives are expected to be boosted by the entrance of more
deposit-taking microfinance institutions in the market which in turn promotes the
deepening of financial markets.
Technology and Innovation in Microfinance…
7.11 The adoption of mobile technology, which had a
transformative impact on the banking sector in
the past years is expected to transcend to the
microfinance sector.
7.12 From allowing MFIs to access micro-entrepreneurs in remote areas to enabling the
implementation of more robust ICT and risk assessment tools, technology represents
a huge opportunity for microfinance institutions in Zimbabwe.
7.13 Technology is expected to play an important role in building and managing large loan
portfolios which are typical for MFIs, and help in adopting efficient delivery channels
and putting in place robust MIS. The microfinance sector is expected to gradually
embrace technology and become a technology driven industry.
7.14 Efforts by the umbrella body, ZAMFI to ensure microfinance institutions acquire
affordable information technology systems are expected to gather pace in the next
twelve months.
Compliance…
7.15 Regulatory compliance levels are expected to improve in the sector following Reserve
Bank efforts to enforce compliance and the microfinance institutions embracing the
microfinance code of conduct.
Consumer Protection and Financial Literacy Programmes…
7.16 In view of the target market served by microfinance institutions, the adoption of
sound pro-consumer principles and practices is expected to buttress public confidence
in the financial system as well as stimulating healthy competition and responsible
pricing amongst the players in the sector.
7.17 The rolling out of a consumer protection framework for the microfinance sector in the
next twelve (12) months is a critical component for the growth of an inclusive financial
system in Zimbabwe.
7.18 In view of the anticipated growth in microfinance in the coming year, the need for
financial literacy becomes paramount. The challenge is more pronounced among MFI
clients who are poor and have limited experience and interaction with the formal
financial sector. Microfinance institutions are expected to spearhead use of a variety
of channels to deliver financial literacy programmes to such clients.
7.19 The microfinance sector is envisaged to increase public awareness campaigns in rural
and urban areas, make use of mass media platforms, face-to-face communications
with clients, personal counselling on debt management and embracing of innovative
channels aimed at improving financial literacy among microfinance clients.
Financial Literacy Framework…
7.20 The Reserve Bank, in conjunction with other
stakeholders, is developing a financial
literacy framework which is aimed at
enhancing financial education among
consumers of financial services. The scope of
the financial literacy framework includes:
i. knowledge and awareness on the various types of financial products and services;
ii. knowledge and awareness on risks related to financial products;
iii. consumer protection; and
iv. financial management skill.
APPENDICES
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
1 ABC Easy Loans t/a BancEasy Loans (Private) Ltd
4th Floor, Heritage House, 67 Samora Machel Avenue, Harare
781046-7, 781715-7, 780270/7 Harare MFI
2 ABC Moneylenders (Pvt) Ltd Hatfield House, Seke Road, Graniteside, Harare
04-751904/751906 Harare MLI
3 African Century (Pvt) Limited African Century Gardens, 153 Josiah Chinamano Avenue, Harare
04-705503, 341 Harare Deposit- Taking MFI
4 Airmode Investments (Pvt) Ltd 9 Essex Avenue, Fitchlea, Kwekwe 055 25100, 0771 966 664, 0778 508 161 Kwekwe MLI
5 Aquapave Investments (Pvt) Ltd 135 Kwame Nkrumah Ave, Harare 772722029 Harare MLI
6 ANF Microfinance (Pvt) Ltd Block 2, Office 12, Longchen Plaza, Harare
778005293, 08644004199 Harare MFI
7 Ashlene Investments (Private) Limited 3rd Floor, West Wing, Construction House, 108-110 Leopold Takawira Street, Harare
04-793202/9, 8644058493-4 Harare MLI
8 Baardy Micro Capital (Pvt) Ltd Office 400, 4th Floor, Conctruction House, 108-110 Leopold Takawira Street, Harare
0772-550189, 777254 Harare MLI
9 Transport & Equpment Finance Company (Pvt) Ltd
30001 Dagenham Road, Willowvale, Harare
04-621551-5, 0772232072 Harare MFI
10 Big Grape Financial Services (Private) Limited
4 Maiden Drive, Newlands, Harare 04-781007-8, 0735495239 Harare MFI
11 Bizlink Finance (Pvt) Ltd 6th Floor, Bard House, 69 S. Machel Avenue, Harare
772380731 Harare MLI
12 Campion Capital (Pvt) Ltd 12 Lomagundi Road, Mount Pleasant, Harare
263777 010185, 4-302819/20, 253793 Harare MLI
13 Cablefin Finance (Pvt) Ltd No. 1 Armagh Avenue, Eastlea, Harare 04-782872/869/0772295077/0777 657 558
Harare MLI
14 Cash Connect Finance (Pvt) Ltd Suite 7, Third Floor, Mass Media House, 19 Selous Avenue, Harare
774452856, 797245 Harare MFI
15 Cash Dial Finance (Pvt) Ltd 48 Joshua Nkomo Street, Bulawayo 0776760080, 09230104 MLI
16 Cash Twentyfour (Pvt) Ltd Jalyd House, 87 Chinhoyi Street, Harare 0773055016, 0772283761 Harare MFI
17 Clarion Financial Services (Private) Limited
7 Bates Street, Milton Park, Harare 731002013 Harare MFI
18 Credit Plus Loans (Pvt) Ltd Stand No 411/2, Office No. 3 New Market Centre, R. Mugabe St, Masvingo
263 773 249 825 Masvingo MLI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
19 Collarhedge Finance (Pvt) Ltd Office No.14, Mezzanine Floor, Kopje Plaza Building, Cnr Jason Moyo/Kaguvi Street, Harare
04-771684, 770095, 705969, 749910, 0772410677
Harare MFI
20 Comoglobe Enterprises (Private) Limited
Suite 106, First Floor, 40 Samora Machel Avenue, Nicoz Diamond Building, Harare
0772 366937 Harare MLI
21 Coverlink Finance (Pvt) Ltd Third Floor, Nicoz House, Corner First Street/Nelson Mandela, Harare
04-708622, 702444, 0778202349, 0778 077 431; 0772 272 581
Harare MLI
22 Credfin (Pvt) Ltd 12 Silwood Close, Chisipite, Harare 04-442737,442901-2, 481003, 495545, 497853, 0772209229
Harare MFI
23 Crossroads Financial Services (Pvt) Ltd 4 Hyde Park, 183 Baines Avenue, Harare
0776 520 358/ 0772 255 570 Harare MLI
24 Cushion Me (Pvt) Ltd 8A Cromer Street, Shurugwi 263 52 6617-8, 263 772 515 454 Shurugwi MLI
25 Cutec Microfinance (Pvt) Ltd
Chinhoyi University of Technology, P. Bag 7724, Chinhoyi
6726321 Chinhoyi MFI
26 Darnster Finance (Pvt) Ltd Suite 5 , Albion Flats, 127A Fort Street, Corner 13th and 14th Avenue, Bulawayo
0777 024 405, 09 60274, 0972218 Bulawayo MLI
27 Delta Financial Services (Pvt) Ltd No. 7 Shashi Flats, Mabelreign, Harare 0773795207 / 0772319236 Harare MFI
28 Denvalene Financial Services (Pvt) Ltd Zimpost Building, Tongogara Street/Hughes Street, Masvingo
039-263499 0773232845, 0712 866739, 0772 426758
Masvingo MLI
29 Dotparic Investments (Private) Limited no. 38/2 Tongogara Street, Rusape 0772 479 823 Rusape MLI
30 Easy Credit (Pvt) Ltd 8th Floor, Pegasus House, 52 Samora Machel Avenue, Harare
04-707827-8, 703115, 701695, 790463, 0772 684 227
Harare MFI
31 Educate (Private) Limited 125 Kwame Nkrumah Avenue, Harare 773390737 Harare MFI
32 Eduloan (Pvt) Ltd 16 Palmer Road, Milton Park, Harare 2634740395/409+263712500490 Harare MLI
33 Equality Microfinance (Pvt) Ltd Opportunity House, 19 Harare Street, Harare
04-761170, 761171, 748357 Harare MFI
34 Face Saver Trading (Pvt) Ltd 413 Maphisa, Matobo 263 282 337/247, 263 282 337/247 Matobo MLI
35 Fastbucks Finance Enterprises (Pvt) Ltd
no. 1 Zandaam Court, Cnr Mazowe & Chinamano Street, Harare
04-790809, 798758, 764198, 04-764366, 0774116220
Harare MLI
36 Fidelity Life Financial Services (Pvt) Ltd 4th Floor, Fidelity House, 66 Julius Nyerere, Harare
(04) 750 927-34 or 750 943 - 4, 781141-3/8
Harare MLI
37 First Choice Finance (Private) Limited 17124 Teign Road, Borrowdale West, Harare
0734468876, 0773587796, 0772210658 Harare MFI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
38 Finsha Microfinance (Private) Limited Office no.5, James Court, Corner 9th Ave/Herbert Chitepo Street, Bulawayo
09-888222, 79620, 64027 Harare MLI
39 FMC Financial Services Limited (First Micro Credit ) (Pvt) Ltd
Second Floor, Lintas House, 46 Kwame Nkrumah Avenue, Harare
04-771623/748722/748731/749224/0712 435380, 2932161-2
Harare MFI
40 Fortmus Financial Services (Pvt) Ltd 7th Floor, Throgmorton House, 51 Samora Machel Avenue, Harare
04-2900291, 0772 431 183 Harare MLI
41 Flowtrade Investments (Private) Limited
256 The Green Street, First Floor, Howard House, Marondera
027927065, 0772375988 Marondera MLI
42 Fundhouse Finances (Pvt) Ltd Letjoin Building, 55, 3rd Street , Gweru 077 3 511 687, 077 3 046 613, 077 2 387 207
Gweru MLI
43 Get Bucks Financial Services (Pvt) Ltd Shop no.1, NSSA, Corner J. Nyerere/S. Nujoma, Harare
04-782849/55, +263 77 976 1766, +263 4 782 937, +27 82 330 2049
Harare Depoosit-Taking MFI
44 Great Thanks Investments (Pvt) Ltd 3rd Floor Left Wing, Msasa Building, 107 Herbert Chitepo Street, Mutare
02064799, 263 773 856 877, +263 773 015 946
Mutare MLI
45 Green Masters Investments (Pvt) Ltd 19 J. Tongogara Avenue/ Blakiston Street, Harare
04-738766,732166,732173,071 201740, 0772 511 255, 0733264001
Harare MFI
46 H & H Microfinance (Pvt) Ltd (Litreton Investments P/L
28 Nigel Philip Ave, Eastlea, Harare 04 - 747025,778990-1 ,0772 605501, 0772234054
Harare MLI
47 Hammer & Tongues Money Lenders (Pvt) Ltd
Shop 1A, Beverly Court, Cnr N. Mandela/4th Street, Harare
04-2901260/794812/11, 794808 Harare MLI
48 Harmony Hills (Pvt) Ltd No. 409, 4th Floor, Electra House, Samora Machel Avenue,Harare
0778 567 337 Harare MLI
49 Hart Finance (Pvt) Ltd 3 Gray Road, Braeside, Harare 0776 520 358 0774 120 590 0777 826 543
Harare MLI
50 Havilah Stream Finance (Pvt) Limited 260 Commercial Street, Chinhoyi 0773043359, 0772627207, 0773038337 Chinhoyi MFI
51 Heading North Investments (Pvt) Ltd 36 Haggerman Building, Corner 3rd & 4th Street, Kwekwe
263 772 834 638, 0778535808, 0779683621
Kwekwe MLI
52 Hilcrest Capital (Pvt) Ltd Shop 205-206, Longchen Plaza, Belvedere, Harare
0772789985, 0712787386,0733509570, 0778257512
Harare MFI
53 Hillthru Enterprises (Pvt) Ltd No. 6 Rekayi Tangwena Avenue, Masvingo
(039)-264574/0772739827,0775878490,0774148180,0775692005
Masvingo MLI
54 Impact Financial Services (Pvt) Ltd Stand 392 Willowvale road, Southerton, Harare
0773 000 156 / 0734 816 993 / 0734 559 295
Harare MLI
55 Inclusive Financial Services (Pvt) Ltd 139 Jason Moyo, Bulawayo 09-79049-9712505539 Bulawayo MFI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
56 Intelligent Business Consultancy (Pvt) Ltd
1st Floor, Stewart House, No. 4 Central Avenue, Cnr Central/ Sam Nujomah, Harare
0772 936 555/08644085309/0779 094 034/ 0734 379 980
Harare MFI
57 Intercrest Capital (Pvt) Ltd Second Floor, St Andrews House, 40 Samora Machel Ave, Harare
04747614, 04747643,08644104358-9, 0772101184/92
Harare MLI
58 Jakana Africa Microfinance (Pvt) Ltd 275 Herbert Chitepo Street, Harare 773020098, 0779 505948, 0783150256 Harare MFI
59 JHM Investments (Private) Limited (Pvt) Ltd
Suite 2, 8th Floor South Wing, Pax House, 89 Kwame Nkrumah Ave, Harare
04-2936697, 748811, 0734460729, 0772480806, 0777097150
Harare MFI
60 Kamlish Investments(Pvt) Ltd Suite 38, 3rd Floor, New Africa House, 40 Kwame Nkrumah Ave, Harare
04-755009, 0733749913 Harare MLI
61 KCI Management Consultants (Pvt) Ltd 5th Floor, LAPF Centre, Cnr Jason Moyo/Chinhoyi Street, Harare
0772 379 949 Harare MFI
62 Kingcash Finance (Pvt) Ltd Suite 45, St. Andrews House, 40 Samora Machel Avenue, Harare
+263 772 286 984 Harare MLI
63 Kreamon Investments (Pvt) Ltd First Floor, Claire House, 77 Sam Nujoma Street, Btwn Herbert Chitepo and Livingstone Avenue, Harare
04-443894/6 Harare MLI
64 Lance Financial Services (Pvt) Office 2A, 2 Lona Close, Borrowdale, Harare
885431, 0772 63 66 42, 772135347 Harare MLI
65 Landis Investments (Pvt) Ltd Room Number 21, Specks Hotel, Kadoma
068 25625, 0772 271147, 0772 967461 Kadoma MLI
66 Leon Business Solutions (Pvt) Ltd 15th Floor, Joina Centre, Cnr Jason Moyo/J. Nyerere Way, Harare
04777999, 779340, 779312 Harare MLI
67 Lic Finance (Private) Limited 2nd Floor, York House, Cnr Angwa Steet/Jason Moyo, Harare
0775691558, 0778034802 Harare MLI
68 Lien Enterprises (Pvt) Ltd 125 A Josiah Tongogara, Bulawayo 09-66500,0712 210626 Bulawayo MLI
69 Linkage Finance (Pvt) Ltd 49 Livingwaters Building, Beitbridge 028622099; 0772850705; 0772939611 Beitbridge MLI
70 Lamcent Capital (Private) Limited 22 Kent Road, Highlands, Harare 0782408655, 0774629998 Harare MLI
71 Landnest Financial Services (Pvt) Ltd Stand 26-27 Lupane Business Centre, Lupane
773962745 Lupane MLI
72 Leviticus Investments (Pvt) Ltd No. 3 Strand Street, Kopje, Harare 772736348 Harare MLI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
73 Citicash (Pvt) Ltd (formely Lopile Investments (Pvt) Ltd)
5th Floor, York House, Corner 8th Avenue/Herbert Chitepo Street, Bulawayo
09-883841 Bulawayo MLI
74 Magmik Capital Finance (Private) Limited
Siyawamwaya Complex , 140 Mbuya Nehanda Street/Jason Moyo Avenue, Harare
0772 420 190/077 2 513 500 Harare MFI
75 Maple Ridge A & S (Pvt) Ltd No. 9 Capri Court, 3rd Avenue/ Main Street, Bulawayo
0772 600616, 0712916751 Bulawayo MLI
76 Merit Financial Services (Pvt) Ltd Shop no.8, Ground Floor, ZB House, Cnr First St/Speke Ave, Harare
263 4 756 763, +263 4 771 758, 263 773 416 104
Harare MLI
77 Marvel Financial Services (Pvt) Ltd 5th Floor, St Barbara House, Cnr L. Takawira/N. Mandela Avenue, Harare
0772 414 821 Harare MFI
78 Masterlink Capital Services (Pvt) Limited (Formerly Homelink
72 – 74 Samora Machel Ave, Hardwicke House, Harare
04 – 791 423/792 800, 04-791162, 04-791205/6
Harare MFI
79 MCP Microfinance (Pvt) Ltd (formerly Met Capital Partners (Pvt) Ltd)
1 Wynne Street, Harare (04) 703335/ 0772402839/0772104485 Harare MFI
80 Mewl Investments (Private) Limited Office 11, Phumulani House, Sudan Street , Gwanda
0779683621 / 0772247763 / 0773263522
Gwanda MLI
81 MicroKing Finance (Pvt) Ltd 70 Park Lane, Harare 04-705414-8,795456,790443 Harare MFI
82 Microplan Financial Services (Pvt) Ltd (formerly Muirkirk)
4th Floor, FBC House, 113 Leopold Takawira St, Harare
04-772745/772729/0772283584 Harare MFI
83 Microdawn Financial Services (Pvt) Ltd Office 305, 3rd Floor, St Barbara House, Harare
0772131234, 0733356774 Harare MLI
84 Milgree Investments (Private) Limited 2nd Floor, Fidelity Lifetower, Raleigh Street, Harare
0772568775, 0772262981 Harare MLI
85 Milsam Finance Corporation (Pvt) Ltd
3rd Floor. South Wing, Lintas House, Kwame Nkrumah Avenue, Harare
263 772818314, 773555096, 772483952 Harare MLI
86 Missapi Finance (Private) Limited 38 Pine Street, Marondera 775009526 Marondera MLI
87 MoB Capital (Pvt) Ltd 601 Fidelity Life Centre, Cnr Fife Street/ 11th Avenue, Bulawayo
00263772256235, +263712684821 Bulawayo MFI
88 Moen Credit Guarantee (Pvt) Ltd 187 King Goerge Ave (At the Villa), Chegutu
263 53 2269, 2289, 0774244440, 0771831831, 0737800333, 0716288888
Chegutu MLI
89 Money Mart Finance (Pvt) Ltd
34 East Wing, Strathaven shopping Centre, Harare
772417488 Harare MLI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
90 Money Method Finance (Pvt) Ltd 25A Main Street/First Avenue, Bulawayo 09-280045, 62517, 0773023322, 0777114192
Bulawayo MLI
91 Mount Camel Investments (Pvt) Ltd 22 3rd Street, Mutare 0779 721 211, 020 31254 Mutare MLI
92 Mtilikwe Financial Services (Pvt) Ltd 3rd Floor, ZTA House, 95 Nelson Mandela Avenue, Harare
263 773 478 914, 0734861919, 0715409168
Harare MFI
93 Nash Micro Capital (Pvt) Ltd 4th Floor, 123 Dolphin House, Kwame Nkruma/ L. Takawira Street
263 772739132 Harare MFI
94 Nelhurst Trading (Pvt) Ltd 37 Atkinson Drive, Hillside, Harare 0773 426 877, 4747882, 4747869, 077 2 515 605, 077 2 425 802
Harare MFI
95 Newlands Financial Services (Pvt) Ltd 10 Cecil Rhodes Avenue, Newlands, Harare
0772 233 564 Harare MFI
96 Njere Micofinance (Private) Limited 5th Floor, Construction House, 110 Leopold Takawira, Harare
0783142240, 0777318447 Harare MFI
97 Nissi Finance (Pvt) Ltd Office No 5 James Court, 9th Avenue/H.Chitepo , Bulawayo
09-882138/09-61684, 263712572860 Bulawayo MLI
98 Northking Investments (Pvt) Ltd 162 The Chase, Mt Pleasant, Harare 263-04-745958/61, 745951/4 Harare MLI
99 Nyarube Investments (Pvt) Ltd Fourth Floor, Room 12, Exploration House, Robert Mugabe, Harare
08644132, 0713 785 859/0775 577 464/0773358613
Harare MLI
100 Oakfin Finance (Pvt) Ltd Suite 101, First Floor, Rothbart Building, 6th Street, Gweru
054-225646/0772 431 203/ 0773 050 538/0774 382 527/08644092905/0771055871
Gweru MFI
101 Octrev (Pvt) Ltd 182 Samora Machel Avenue, Harare 236739887406/716662229 Harare MFI
102 One Four Nine Financial Services (Pvt) Ltd
1 Abercorn Street, Harare 0771922241/+230 57141984 (Mauritius) Harare MFI
103 Osaro Enterprises (Pvt) Ltd 3rd Floor-Room 318, St Barbra House, Cnr Leopold Takawira/N. Mandela Street, Harare
0712 310456, 0777889544 Harare MLI
104 Outcome Financial Services (Pvt) Limited
12 Belvedere Road, Kopje, Harare 04 - 2906423/708054, 0772679879, 0734170701
Harare MFI
105 Oxlink Capital Finance (Pvt) Ltd No. 9 Ten Montague, Cnr J. Chinamano Avenue & Harare Street, Harare
04 251464, 796891/794239 or 0773 220642, 0775 345 995,04-729601-3
Harare MFI
106 Paradyme Financial Services (Pvt) Ltd 260 H. Chitepo Street, Harare 0772 962 782 Harare MLI
107 Passion Finance (Pvt) Ltd 5 Fife Street, Bulawayo 0962780, 713990011 Bulawayo MLI
108 Portify Investments (Pvt) Ltd Suite 13, Zimnat Building, 10th Avenue/Jason Moy Street, Bulawayo
09-885001/0773455138 Bulawayo MLI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
109 GPC Financial Services (Pvt) Ltd (Formerly Potsgate International (Pvt) Ltd)
168 Samora Machel Avenue West, Harare
04-778491-2 Harare MLI
110 Quad MoneyLending (Pvt) Ltd 10 Banff Road, Eastlea, Harare 04-746927, 0776878560 Harare MFI
111 Quest Financial Services (Pvt) Ltd 1st Floor Social Security Centre, Sam Nujoma/Julius Nyerere Way, Harare
04-783451/2, 762888, 0772156091, 712811839
Harare MFI
112 Quick Cash (Private) Limited 112 Fife Street, Bulawayo 09-880894 Bulawayo MFI
113 Ratisson Finance (Pvt) Ltd 147 Kwame Nkrumah Avenue, Harare 0773045329, 086300702 Harare MFI
114 Reach Sky Loans (Pvt) Ltd 708 Light Industry, Mashava 304462,0782710307, 0779625490, 0779625489, 0718261527
Mashava MLI
115 Rovdem Investments (Private) Limited Stand No. 3342, Nyamhunga Township, Kariba
263773921019/772205757 Kariba MLI
116 Safe Credit (Pvt) Ltd Third Floor, Office 301 & 302, Construction House, Harare
4-748130, 0774363479 Harare MFI
117 Samaita Finance (Pvt) Ltd 301 Daventry House, Cnr Angwa Street/Innez Terrace/R. Mugabe, Harare
772438703 Harare MLI
118 Share Wealth (Private) Limited First Floor, Gloster Court, 142 Samora Machel Avenue, Harare
04 2911558, 077 2 443 362, 0772338989
Harare MFI
119 Shawns Fincon (Pvt) Ltd 1 Timber Close, Chisipite, Harare 077 2 275 040, (04) 499 610 Harare MLI
120 Sheltersol Finance (Pvt) Ltd 50 Bradfield Road, Hillside, Harare 0773369974, 0777739715,04778641,778837
Harare MFI
121 Shons Financial Services (Pvt.) Ltd Rooms 18 & 19,12 Othitis Building, 72/6th Street, Gweru
054 228721/ 0772499992,0712085588, 0772379429 / 0776157975, 0772379429
Gweru MLI
122 Simukai Financial Services (Pvt) Ltd Shop no.6, 46 3rd Street, Harare 0775025155, 0773 237766, 0778400742 Harare MLI
123 Sirosang Investments (Pvt) Ltd 124 Twickenham Drive, Northwood, Mount Pleasant, Harare
04-884649, 0772699560/0735178437 Harare MLI
124 Skycredit (Pvt) Ltd Office 24 Shamwari Complex, Cnr Sam Nujoma St & Maasdorp Avenue, Belgravia, Harare
0772 262 579/ 708926 Harare MLI
125 Soledd Financial Services (Pvt) Ltd Suite 20, 4th Floor, Barts House, 32 Jason Moyo Avenue , Harare
0773 499 403 Harare MLI
126 Solten Financial Services (Private) Limited
92 Drew Road, Chisipite, Harare 0772 101 373, 0772 551 207, 0772 871 964, 0772 206 102,
Harare MFI
127 Spaven Trading (Private) Limited Office 11, Honey Court Building, Jason Moyo Avenue, Bulawayo
772342942 Bulawayo MLI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
128 Sport-Talk Investments (Pvt) Ltd No.113, 1st Floor, Unifreight House, L.Takawira Avenue/Fife Street , Bulawayo
(09) 888183/66004, 0712 754 224 Bulawayo MLI
129 Stone Microfinance (Pvt) Ltd 11 Angus Road Eastlea, Harare 04-703750, 0773581305, 0772434304 Harare MFI
130 Stratacord Investments (Pvt) Ltd Office 305, 3rd Floor, Electra House, Samora Machel Ave, Harare
773645439 Harare MFI
131 Stratfin Services (Pvt) Ltd 11 Treger House, 2nd Floor, Jason Moyo Street/12 Avenue, Bulawayo
09-61144, 0713551688/0712217605 Bulawayo MLI
132 Symdunes Enterprises (Pvt) Ltd Suite 6, Kennedy Court, Rusape +263 772 293 586 Rusape MLI
133 Tacotron (Pvt) Ltd 33 Robson Manyika Street, Harare 0772 380731 Harare MFI
134 Tantieme Finance Company (Pvt) Ltd Ground Floor, Mashwede Towers, Stand 18226, Culverwell Road, Granitside, Harare
04-496746,783541-3, 0712200542, 04-783546
Harare MFI
135 Taroth Investments (Pvt) Limited 2nd Floor, Dolphin House, 123 Leopold Takawira, Harare
0773 852307, 0772 957676, 0778186926, 0779744241
Harare MLI
136 Tax Driven Investments (Private) Limited
Suite 304, Pollack House, Robson Manyika Avenue, Harare
772148123 Harare MLI
137 Tazmac (Pvt) Ltd Cnr R Mugabe / Inez Terrace, Asia House, 1st Floor, Suite 4, Harare
04 775 679, 0775 221 918, 0772 930 643
Harare MLI
138 Thrive Microfinance (Pvt) Ltd 97 Willowvale Road, Harare (04) 663647/ 0736 241 381 Harare MFI
139 Tick Forward (Pvt) Ltd 140 Cornmarket Crescent, Govans Shops, Norton
0735 037887, 0779563805 Norton MLI
140 Tottengram Investments (Pvt) Ltd 5 Thurso Close, Eastlea, Harare 4-782127, 0773 416887, 0713279392, 0775404539, 07773782872, 0772432979
Harare MLI
141 Tretma Investments (Pvt) Ltd Office no.114, Unifreight House, Cnr L. Takawira Avenue / Fife Street, Bulawayo
0735 822 339 Bulawayo MLI
142 Untu Microfinance (Pvt) Ltd No.3 Drury Lane, Strathaven, Harare 04-308746, 0772 573276, 0774164390 Harare MFI
143 Ventures Microfinance (Pvt) Ltd No 5 Conald Road, Graniteside, Harare 04-250206, 0772 715 269 Harare MLI
144 Virl Rural & Social Financial Services (Pvt) Ltd
1 Waterfield Road, Mount Pleasant, Harare
04-338884,369604, 369607,263773021627, 263733 805 772, 08644106340
Harare MFI
145 Wintron Financial Services (Pvt) Ltd 313 Kingdom Building, 9th Avenue/J. Moyo Street, Bulawayo
09-887412 Bulawayo MLI
146 Wisrod Investments (Pvt) Ltd Suite 106, First Floor, 40 Samora Machel Avenue, Nicoz Diamond Building, Harare
0777 144 795 Harare MLI
LIST OF REGISTERED MICROFINANCE INSTITUTIONS AS AT 31 DECEMBER 2015
NAME HEAD OFFICE ADDRESS CONTACT TEL REGION Microfinance (MFI)/Money Lending (MLI)
147 Yambukai Finance (Pvt) Ltd
5th Floor, Chiyedza House, Cnr First Street/Kwame Nkrumah Ave, Harare
04-734595-9, 700602
Harare
MLI
148 Yonder-Rift Ent t/a Bridging Finances (Pvt.) Ltd
5th Floor, North Wing, Hungwe House, 69 J, Moyo Ave, Harare
04-252813, 252821, 0772688710, 0712409705
Harare MFI
149 Zambuko Trust (Pvt) Ltd No. 6 Aberdeen Road, Belgravia, Harare 04-333692-3/302495, 334834, 333908 Harare MFI
150 Ziada Capital Microfinance (Pvt) Ltd (Sendoff Trading (Pvt) Ltd)
16 Silwood Close, Chisipite, Harare 263 4 480250-2, 263 731 969 515 Harare MFI
151 Zimbabwe Microfinance Fund (Private) Limited
9th Floor, Causeway Building, Cnr 3rd Street & Central Ave, Harare
04-788223, 776274, 0773411809 Harare MFI
152 Zimnat Financial Services (Pvt) Ltd Zimnat House, Cnr 3rd/Nelson Mandela Street Harare
4701176, 707591-6 Harare MFI
