Lion Microfinance's licence cancelled

The Reserve Bank of Zimbabwe (RBZ) has cancelled the operating licence of Lion Microfinance Limited, trading as Lion Finance Zimbabwe, after determining that the company was no longer in a sound financial position.

In a statement, Philip Madamombe, RBZ's Registrar of Microfinance Institutions, said the cancellation, issued under Section 13 of the Microfinance Act [Chapter 24:30], takes effect from the date of publication of the notice.

"Notice is hereby given, in terms of Section 13 of the Microfinance Act, that the Registrar of Microfinance Institutions has cancelled the registration of Lion Microfinance Limited t/a Lion Finance Zimbabwe as a deposit-taking microfinance institution with effect from the date of publication of this notice," Madamombe said.

The RBZ cited several regulatory failings, chief among them the institution's inability to maintain the prescribed minimum capital levels. Regulators also noted that despite ongoing supervision, Lion Microfinance failed to implement remedial measures to address repeated deficiencies.

Further inspections revealed that the institution was not operating in accordance with sound administrative, accounting, and risk-management practices, as required under the Microfinance Act.

"In the circumstances, the maintenance of registration of Lion Microfinance Limited as a deposit-taking microfinance institution is undesirable. Accordingly, the Registrar has cancelled the institution's licence," Madamombe said.

The public has been advised not to undertake any microfinance business with Lion Microfinance. Authorities emphasised that the move aims to protect depositors and safeguard the integrity of Zimbabwe's financial sector.

"These failings, taken together, rendered the continued registration of the institution undesirable, leading to the revocation of its licence," the statement concluded.