The Zimbabwean government is working to enhance loan accessibility for women through the Zimbabwe Women’s Microfinance Bank (ZWMB) by introducing loan guarantees.
This is aimed at improving access to capital for female entrepreneurs, a move following the establishment of the ZWMB, a microfinance institution providing affordable financial services tailored to women.
Speaking at a women’s entrepreneurship conference in Harare, Finance and Economic Development Minister Professor Mthuli Ncube highlighted that the government has been allocating funds to the ZWMB through its annual budget but recognizes the need to do more. He noted that women have shown to be reliable borrowers, with low rates of non-performing loans, which further encourages the government’s support.
Ncube also mentioned that efforts are being made to eliminate the need for collateral in certain cases, a significant barrier to women accessing loans.
This would open up further opportunities for women to secure funding, especially in cases where traditional lending requirements are prohibitive.
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The government, through the Ministry of Finance, is also offering mentorship to women entrepreneurs, helping them develop viable business projects. Additionally, the ZWMB is seeking prescribed asset status to attract investment from pension funds and insurance companies, bolstering its capital base.
Minister Ncube further emphasized that women’s empowerment is central to Zimbabwe’s Vision 2030, which focuses on fostering a business-friendly environment to encourage entrepreneurship and foreign investment. A report launched by the Atlantic Council at the conference showed Zimbabwe ranks 5th in Sub-Saharan Africa for women’s economic freedom, reflecting the country’s progress in gender empowerment.
Real estate executive Kenneth Sharpe highlighted the significant role women play in the economy, with 70% of small to medium enterprises (SMEs) run by women, emphasizing their potential to drive economic growth.
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