MICROCAPITAL BRIEF: Zimbabwe May Require Banks to Accept Moveable Collateral Such as Livestock, Accounts Receivable, Vehicles in Effort to Boost Financial Inclusion

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

MIX Market:
Zimbabwe Mix Market Profile

World Bank:
Nigeria’s New Collateral Registry Aims to Increase Access to Finance for Small Business

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