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Zimbabwe govt backs microfinance drive to expand low-income lending
2 hrs ago |
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Zimbabwe's informal sector and civil service have received a significant boost following the official launch of a new micro-lending initiative, Talk and Pay Microfinance, aimed at expanding access to credit for small businesses, civil servants, and members of the security services.
The facility, a subsidiary of the Prevail Group of Companies, was officially commissioned on Friday by Defence Minister Oppah Muchinguri-Kashiri.
The new microfinance platform is designed to provide low-barrier loans starting from as little as US$50, targeting micro, small and medium enterprises (MSMEs), vendors, and backyard businesses - a sector that contributes more than 60 percent of Zimbabwe's GDP and supports an estimated 4.5 million livelihoods.
Speaking at the launch, Muchinguri-Kashiri said the introduction of private capital into low-income lending markets reflects growing confidence in Zimbabwe's economic direction and the government's Vision 2030 development strategy.
She praised Prevail Group of Companies for its involvement in several state-aligned social programmes, including rural development and housing initiatives, describing the partnership as evidence of private sector alignment with national priorities.
According to organisers, the new facility will also extend credit access to members of the uniformed forces, a group often excluded from mainstream financial services, as well as women-led enterprises.
Prevail Group chairperson Paul Tungwarara said the initiative was inspired by President Emmerson Mnangagwa's development philosophy of "leaving no one and no place behind," particularly through rural industrialisation programmes.
He said the platform aims to support a wide range of economic actors, from small-scale farmers to urban vendors, by improving access to affordable credit.
Senior government officials, including ICT Minister Tatenda Mavetera, Harare Provincial Minister Charles Tawengwa, and Deputy Minister Mercy Dinha, attended the launch ceremony.
During the event, Prevail Group also donated 30 tonnes of rice and 30 tonnes of cooking oil for distribution to members of the armed forces.
The microfinance institution is now fully operational and open to applications from eligible borrowers across multiple sectors of the economy.
The facility, a subsidiary of the Prevail Group of Companies, was officially commissioned on Friday by Defence Minister Oppah Muchinguri-Kashiri.
The new microfinance platform is designed to provide low-barrier loans starting from as little as US$50, targeting micro, small and medium enterprises (MSMEs), vendors, and backyard businesses - a sector that contributes more than 60 percent of Zimbabwe's GDP and supports an estimated 4.5 million livelihoods.
Speaking at the launch, Muchinguri-Kashiri said the introduction of private capital into low-income lending markets reflects growing confidence in Zimbabwe's economic direction and the government's Vision 2030 development strategy.
She praised Prevail Group of Companies for its involvement in several state-aligned social programmes, including rural development and housing initiatives, describing the partnership as evidence of private sector alignment with national priorities.
According to organisers, the new facility will also extend credit access to members of the uniformed forces, a group often excluded from mainstream financial services, as well as women-led enterprises.
Prevail Group chairperson Paul Tungwarara said the initiative was inspired by President Emmerson Mnangagwa's development philosophy of "leaving no one and no place behind," particularly through rural industrialisation programmes.
He said the platform aims to support a wide range of economic actors, from small-scale farmers to urban vendors, by improving access to affordable credit.
Senior government officials, including ICT Minister Tatenda Mavetera, Harare Provincial Minister Charles Tawengwa, and Deputy Minister Mercy Dinha, attended the launch ceremony.
During the event, Prevail Group also donated 30 tonnes of rice and 30 tonnes of cooking oil for distribution to members of the armed forces.
The microfinance institution is now fully operational and open to applications from eligible borrowers across multiple sectors of the economy.
Source - The Herald
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