MICROCAPITAL BRIEF: Zimbabwe Association of Microfinance Institutions (ZAMFI) Warns Against Illegal Deposit-taking by Microfinance Institutions (MFIs)

The executive director of the Zimbabwe Association of Microfinance Institutions (ZAMFI), Mr Godfrey Chitambo, reportedly cautioned the Zimbabwean public recently against microfinance institutions (MFIs) that are taking deposits illegally. He allegedly pointed out that none of the 147 MFIs registered by the Reserve Bank of Zimbabwe (RBZ), the country’s central bank, are licensed to take deposits. Yet, in a statement attributed to Mr Chitambo, he claimed that there “…have been calls from members of the public complaining that they have deposited money with some [MFIs]….”

ZAMFI was established in 1999 to provide a platform for advocacy for MFIs in Zimbabwe and to help integrate the microfinance sector into the country’s financial system. As of March 2014, the organization had 68 member MFIs in the country.

By A’kos Szebeni, Research Associate

About Zimbabwe Association of Microfinance Institutions:

The Zimbabwe Association of Microfinance Institutions (ZAMFI), was established in 1999 to provide a platform for advocacy for MFIs in Zimbabwe and to help integrate the microfinance sector into the country’s financial system. ZAMFI represents and lobbies for the country’s microfinance industry in matters relating to policy and regulatory environment for MFIs. It also acts as a unifying body to promote and represent the interests of Zimbabwean MFIs with donor agencies, financial sector institutions and government bodies. As of March 2014, the organization had 68 member MFIs in the country.

Sources and Additional Resources:

NewsDay, “Public warned against deposit-taking MFIs,” https://www.newsday.co.zw/2014/04/30/public-warned-deposit-taking-mfis/

MicroCapital, March 3, 2014, “Reserve Bank of Zimbabwe Gives Microfinance Institutions (MFIs) 6 Years to Plan for Higher Capitalization Requirements,” https://www.microcapital.org/microcapital-brief-reserve-bank-of-zimbabwe-gives-microfinance-institutions-mfis-6-years-to-plan-for-higher-capitalization-requirements/

MicroCapital, January 28, 2014, “Central Bank of Zimbabwe Imposes 5% Tax on Mobile Money Services,” https://www.microcapital.org/microcapital-brief-central-bank-of-zimbabwe-imposes-5-tax-on-mobile-money-services/

MicroCapital, December 21, 2012, “Government Hopes Zimbabwe Microfinance Wholesale Facility Can Lower Microfinance Institution Interest Rates That Reportedly Hit 40% Monthly,” https://www.microcapital.org/microcapital-brief-government-hopes-zimbabwe-microfinance-wholesale-facility-can-lower-microfinance-institution-interest-rates-that-reportedly-hit-40-monthly/

MicroCapital, December 28, 2011, “CBZ Bank of Zimbabwe, Zimbabwe Microfinance Wholesale Trust Issuing Loans of Up to $50k to Microfinance Institutions in Zimbabwe,” https://www.microcapital.org/microcapital-brief-cbz-bank-of-zimbabwe-zimbabwe-microfinance-wholesale-trust-issuing-loans-of-up-to-50k-to-microfinance-institutions-in-zimbabwe/

MicroCapital Universe profile: Zimbabwe Association of Microfinance Institutions (ZAMFI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Zimbabwe+Association+of+Microfinance+Institutions+%28ZAMFI%29+

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

Similar Posts: