Business / Local
Financial service providers gets $11,5 million to boost operations
23 Apr 2013 at 07:06hrs | Views
THE Zimbabwe Microfinance Wholesale Facility Trust (ZMWFT) has disbursed $1.5 million to capacitate the operations of financial service providers that serve micro, small and medium enterprises since its inception last year.
In a telephone interview from Harare, ZMWFT technical fund manager Mr Brian Zimunhu said the trust was formed at the beginning of 2012 and began lending money in May.
Towards the end of last year, the trust had disbursed about $1 million.
"We have to date disbursed $1.5 million. Lending began last year in May. Generally, the portfolio is working well as 90 percent of the borrowers are paying well," he said.
He said $80 000 had so far been released to some of the institutions for capacity building grants.
Through capacity building, financial institutions will improve in terms of their loan collection techniques, development of effective management information systems as well as sound policies and procedures for financial management.
Mr Zimunhu said they had also worked out a loan repayment plan to assist clients faced with challenges to repay the borrowed funds.
"In the event that some of the micro finance institutions are struggling to repay the loans, we will try to devise strategies and conditions that will assist us to recover the loan. For example, we can extend the pay back period and lower their monthly instalments," he said.
The ZMWFT was an apex fund established by the Zimbabwe Association of Microfinance
Institutions and CBZ to provide money-lending institutions with seed capital at interest rates that range between 9 and 16 percent per annum.
ZMWFT trust avails resources to developmental microfinance institutions that meet its minimum capital requirements before due diligence is made.
Prospective loan applicants are required among others to have a sound corporate governance structure as well as the provision of a business plan for at least three years including financial projections.
The institutions are also required to be registered with an appropriate authority and be in possession of valid operating licence from the Reserve Bank of Zimbabwe.
The microfinance sector is on a rebound following years of economic meltdown in the country
In a telephone interview from Harare, ZMWFT technical fund manager Mr Brian Zimunhu said the trust was formed at the beginning of 2012 and began lending money in May.
Towards the end of last year, the trust had disbursed about $1 million.
"We have to date disbursed $1.5 million. Lending began last year in May. Generally, the portfolio is working well as 90 percent of the borrowers are paying well," he said.
He said $80 000 had so far been released to some of the institutions for capacity building grants.
Through capacity building, financial institutions will improve in terms of their loan collection techniques, development of effective management information systems as well as sound policies and procedures for financial management.
Mr Zimunhu said they had also worked out a loan repayment plan to assist clients faced with challenges to repay the borrowed funds.
"In the event that some of the micro finance institutions are struggling to repay the loans, we will try to devise strategies and conditions that will assist us to recover the loan. For example, we can extend the pay back period and lower their monthly instalments," he said.
The ZMWFT was an apex fund established by the Zimbabwe Association of Microfinance
Institutions and CBZ to provide money-lending institutions with seed capital at interest rates that range between 9 and 16 percent per annum.
ZMWFT trust avails resources to developmental microfinance institutions that meet its minimum capital requirements before due diligence is made.
Prospective loan applicants are required among others to have a sound corporate governance structure as well as the provision of a business plan for at least three years including financial projections.
The institutions are also required to be registered with an appropriate authority and be in possession of valid operating licence from the Reserve Bank of Zimbabwe.
The microfinance sector is on a rebound following years of economic meltdown in the country
Source - TC
