The Reserve Bank of Zimbabwe (RBZ) has licensed an additional deposit-taking microfinance institution, expanding the range of financial service providers operating in the country, widening access to credit and saving services for individuals and businesses.
The development comes as the Central Bank seeks to strengthen the financial sector, with increased participation by licensed institutions expected to support financial inclusion, business activity and economic growth.
The newly licensed institution’s chairperson, Mr Vinod Bissawah, said the decision reflected the company’s confidence in Zimbabwe’s economy and its long-term commitment to the local market.
“This is a landmark development for us, and we are glad to expand our financial products offering, and this licensing is due to our growing confidence in the economy. We will continue to operate in Zimbabwe’s financial sector with a long-term view to the growth of the economy,” he said.
Economists observed that the entry of another licensed deposit-taking microfinance institution could widen access to credit and savings services, particularly for small businesses, informal traders and entrepreneurs who often struggle to secure financing from conventional banks.
The development could also increase competition in the financial sector, encouraging more accessible and customer-focused products.
The RBZ has said financial institutions are meeting minimum capital requirements and recording profits, developments it regards as indicators of stability within the financial sector.
RBZ Governor Dr John Mushayavanhu has also identified financial-sector stability as an important foundation for economic growth and the country’s planned transition to a mono-currency system.
“The sector has fulfilled one condition precedent to a mono-currency, and as the Central Bank, we have attained a strong financial sector that is being shown by investors who are registering interest to operate in our financial sector,” he said.
The licensing of the new institution adds to the range of regulated financial service providers in Zimbabwe, while underscoring the importance of sound capitalisation, effective supervision and responsible lending practices to protect depositors and borrowers.
