Women's bank finally licensed

Zimbabwe's Women's Microfinance Bank Limited which had missed several proposed launch deadlines has finally been licensed to conduct deposit-making microfinance business with effect from May 29.

The bank represents one of the strategies put in place by government to empower women by ensuring that they access money at concessionary rates.

The micro-finance bank is expected to avail cash to the informal sector at reasonable interest rates, with less stringent requirements to women since women usually fail to access money from conventional banks due to lack of collateral.

The bank, which is aimed at capacitating women entrepreneurs, will use some of POSB branches dotted across the country to reach out to women in rural areas.

Observers reason that microfinance institutions play a critical role in providing finance to smaller businesses which are shunned by the larger commercial banks due to perceived high default rate.

It is estimated that about 60 percent of the population in the informal sector are women engaged in vending and various entrepreneurial projects.