The party of Zimbabwean President Robert Mugabe recently proposed a law that would require lenders to accept “moveable” assets, such as machinery, vehicles, livestock and accounts receivable, as collateral. Finance Minister, Patrick Chinamasa, said the legislation would “promote financial inclusion to small and medium enterprise, women, youths and other under-banked groups.” Lenders in countries including Nigeria, Ghana and Malawi already accept moveable assets as collateral.
The two Zimbabwean institutions that have listed data since 2015 via the US-based nonprofit Microfinance Information Exchange (MIX) report aggregate total assets of USD 1.9 million, 6,000 borrowers served and no deposits held.
By Phoebe Rorke, Research Associate
Sources and Additional Resources
TFI Daily News:
Zimbabwe to allow goats, cows and sheep as bank collateral
Zimbabwe Mix Market Profile
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