Chinamasa sets up Empower Bank

The government is planning to launch a micro-finance institution- Empower Bank to cater for unbanked masses.

The majority of Zimbabweans don't have bank accounts, various surveys say.

"Government is also considering the establishment of a microfinance institution, to be called Empower Bank, to facilitate financial inclusion of the unbanked, as part of the implementation of our National Financial Inclusion Strategy," Chinamasa said while presenting his mid-term fiscal policy review statement in parliament today.

"The modalities for the establishment of the proposed Empower Bank, including capitalisation, are being developed in consultation with all the relevant authorities, including the Monetary Authorities.

"Given the constrained fiscal space Government is currently operating under, the establishment of Empower Bank will not be seeking funding from the fiscus" he said.

In addition to the Empower Bank, Chinamasa said a $5 million has being set aside for a Women's Bank.

"In the same vein, in fulfilment of my proposal in the 2016 National Budget for capitalisation of the Women's Bank, Treasury is also mobilising US$5 million, which will be disbursed to the proposed micro-finance institution before year end.

"This institution is very important for supporting various women and youth projects as a way of promoting their economic empowerment".