Zimbabwe sees sharp rise in credit registry inquiries

Zimbabwe recorded a marked increase in credit registry inquiries between September 2024 and March 2025, with the most dramatic spike occurring in February this year, according to the Mid-Term Budget Review Statement presented in Parliament by Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube.

Monthly inquiries - a key barometer of credit activity and financial sector confidence - fluctuated throughout the seven-month review period. The Credit Registry, housed within the Reserve Bank of Zimbabwe (RBZ), is a cornerstone of the country's financial system, enabling sound lending decisions and helping reduce non-performing loans.

Launched in 2017 as part of Zimbabwe's ease-of-doing-business reforms, the registry supports access to credit for individuals and businesses, especially Micro, Small and Medium Enterprises (MSMEs).

According to the review, inquiries totalled 109,236 in September 2024 before plunging to a low of 12,186 in October. The numbers rebounded sharply to 74,789 in November and climbed to 92,351 in December. A slight decline was recorded in January 2025, with inquiries falling to 82,098.

The largest surge occurred in February 2025, when inquiries soared to 318,517 — the highest in the review period — possibly reflecting a surge in demand for credit facilities ahead of anticipated economic activity or policy changes. By March, inquiries eased to 214,648 but remained significantly above most previous months.

Prof Ncube highlighted that by March 31, 2025, the Credit Registry had processed a cumulative 5.8 million inquiries, up from 5.2 million at the end of December 2024. He credited increased awareness campaigns and wider acceptance of movable assets as collateral for the growth.

"Government has been actively raising awareness of the operations and benefits of the collateral registry, an initiative aimed at improving access to credit for under-served segments," said Prof Ncube. "Lending institutions continue to broaden the range of movable assets accepted as collateral, including household goods, livestock, private vehicles, trucks, agricultural equipment, and shares."

The report noted that MSMEs are increasingly pledging movable assets such as construction machinery, agricultural equipment, and Notarial General Covering Bonds (NGCBs), particularly in the agricultural sector, underscoring the registry's role in supporting this critical segment.

Micro-finance players have welcomed the development. Mrs Regina Moyo, Chief Executive of Mid Level Micro-Finance, said access to accurate credit histories has reduced defaults and empowered informal traders to build credit profiles.

"The improved access to credit history through the Credit Registry has significantly reduced our default rates and helped us make more informed decisions," she said. "It has empowered even informal traders to build credit profiles, giving them better chances of securing loans at more favourable rates. For the micro-finance sector, this is a game-changer."

Analysts say the upward trend in inquiries reflects a strengthening credit culture in Zimbabwe, which, if sustained, could bolster financial inclusion and drive economic growth.