Category Archives: News And Events

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course

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News And Events

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course

February 4, 2026

In a volatile economic landscape, the “old way” of doing microfinance—relying on a single sector or a narrow client base—is no longer just a limitation; it’s a risk. To survive and thrive, Zimbabwean Microfinance Institutions (MFIs) must evolve from simple lending models into Diversified Financial Ecosystems.

The Zimbabwe Association of Microfinance Institutions (ZAMFI) is proud to announce a strategic three-day training session: Microfinance Diversification of Portfolios for Zimbabwean MFIs.

Why Diversification is the Key to Resilience

Diversification isn’t just a buzzword; it’s a survival strategy. By spreading loans and investments across various sectors, geographies, and client types (rural vs. urban, gender-focused, etc.), MFIs can:

  • Mitigate Risks: Protect your institution from sudden volatile economic shifts.

  • Gain a Competitive Edge: Enter new, untapped market segments before the competition.

  • Optimize Operations: Use data-driven insights to fuel sustainable growth.

Meet Your Trainer: Mrs. Petronella Chigara-Dhitima

Leading this session is Mrs. Petronella Chigara-Dhitima, a renowned expert dedicated to creating sustainable microfinance solutions. Her wealth of experience will guide participants through the practical “how-to” of portfolio management.

The 3-Day Roadmap to Transformation

The course is structured to take you from theory to a concrete Action Plan:

  • Day 1: Introduction to Diversification * Focus: Which strategic options are actually suitable for your specific MFI?

  • Day 2: Strategic Pillars for Entering New Segments

    • Focus: Answering the critical questions required to build a winning strategy.

  • Day 3: Managing a Diversified Portfolio

    • Focus: Identifying internal changes needed to manage more complex portfolios effectively.

Event Details & Registration

Don’t miss the opportunity to future-proof your institution.

  • Date: 4–6 March 2025 (Note: Please verify the year with ZAMFI)

  • Time: 08:30 – 16:30 HRS

  • Venue: Management Training Bureau (MTB), 128 Mutare Road, Harare

  • Investment: * ZAMFI Members: US$250

    • Non-Members: US$290

How to Register: You can register online here or scan the QR code on the official flyer.

For more information, contact:

  • Tinashe Pamacheche: +263 715 868 595 | tpamacheche@zamfi.org

  • Prosper Mukumbi: +263 712 959 356 | pmukumbi@zamfi.org

Be Future-Ready: Register for the Course TODAY!

Article by ZAMFI

Latest News

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course

•
February 4, 2026

In a volatile economic landscape, the “old way” of doing microfinance—relying on a single sector or a narrow client base—is no longer just a limitation; it’s a risk. To survive and thrive, Zimbabwean Microfinance Institutions (MFIs) must evolve from simple lending models into Diversified Financial Ecosystems.

When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era

•
January 26, 2026

“Instant loan approval. No paperwork. Funds today.” For many Zimbabweans navigating economic uncertainty, messages like these are hard to ignore. They arrive through Facebook, WhatsApp, and other digital platforms, often promising fast relief in moments of financial pressure.

Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe

•
September 17, 2025

Micro, Small and Medium Enterprises (MSMEs) are the heartbeat of Zimbabwe’s economy. Contributing over 60% to employment and nearly 50% to the country’s GDP, MSMEs play a pivotal role in job creation, poverty alleviation, and grassroots economic development. As such, supporting the growth and sustainability of this sector is not just a policy directive—it is a national imperative.

Success Stories

Empowering Communities – How Can a Microfinance Institution Create 1,000 Jobs?

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February 28, 2025
•
No Comments

Village Capital Finance P/L (VCAP) embarked on a bold mission to uplift underserved communities across Zimbabwe by delivering essential financial services to those who need them most.

A Story of Hope: Redefining Mukando for Women Empowerment

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February 11, 2016
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Success Stories A Story of Hope: Redefining Mukando for Women Empowerment February 11, 2016 Virl Microfinance, Chitungwiza ‘Those who introduced the idea …

A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented

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January 25, 2016
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No Comments

Success Stories A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented January 25, 2016 Mbuya Easter Chidzonga used to make a …

When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era

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News And Events

When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era

January 26, 2026

“Instant loan approval. No paperwork. Funds today.”


For many Zimbabweans navigating economic uncertainty, messages like these are hard to ignore. They arrive through Facebook, WhatsApp, and other digital platforms, often promising fast relief in moments of financial pressure. But behind an increasing number of these offers lies a growing and costly threat: loan-related fraud.

Financial institutions across Zimbabwe are raising the alarm as reports of loan scams continue to rise. These scams, which largely operate through social media and mobile platforms, exploit the same digital tools that have expanded access to finance — turning convenience into vulnerability.

How digital trust is being exploited

Zimbabwe’s financial ecosystem has become increasingly digital. Mobile wallets, online banking, and social media engagement have made financial services more visible and more accessible. But this visibility has also created fertile ground for impersonation.

Scammers now operate with a level of sophistication that closely mirrors legitimate institutions. Fake social media pages replicate logos, branding, and even repost content from official accounts. At first glance, these profiles appear credible. Once trust is established, the interaction moves to private messages, where the real deception begins.

The promise is usually the same: quick loan approval with minimal requirements. The catch follows shortly after — a request for an upfront “processing” or “administration” fee, framed as a necessary step before funds can be released.

The role of mobile money in modern scams

In many reported cases, victims are instructed to send these fees through mobile wallets. Payments are often directed to personal numbers rather than registered business accounts — a detail that only becomes obvious in hindsight.

Mobile money platforms are attractive to fraudsters because they are fast, widely used, and difficult to reverse once a transaction is completed. By the time a victim realizes the deception, the funds are gone and the scammer has disappeared.

Ironically, the same systems that have enabled financial inclusion and everyday transactions now feature prominently in financial crime — highlighting the double-edged nature of digital finance.

Urgency as the first red flag

Across many attempted scams, one pattern stands out: urgency. Victims are pressured to act immediately, warned that loan funds are “limited” or that the offer will expire within hours. This manufactured pressure is designed to override caution and prevent verification.

Several individuals who avoided financial loss later reported that this urgency triggered suspicion. The rush itself became the warning sign.

Financial institutions emphasize that legitimate lenders do not operate this way. Real loan processes allow time for review, verification, and informed decision-making.

Recognizing the warning signs

To help the public protect themselves, financial institutions have highlighted common red flags associated with loan scams:

  • Requests for upfront fees to secure or unlock a loan
  • Payment demands via personal mobile money accounts
  • Pressure tactics tied to time-limited or “exclusive” offers
  • Imitation social media pages posing as legitimate institutions
  • Loan processes that differ from official, published procedures

Any one of these should prompt caution. Together, they almost certainly indicate fraud.

Staying safe as finance goes digital

As more financial services move online, consumer vigilance has become a critical line of defence. Institutions are urging individuals to verify loan offers using official contact details, conduct independent research, and avoid making decisions under pressure.

Reporting suspicious activity — both to the impersonated institution and to law enforcement — is equally important. Awareness spreads protection. One informed decision can prevent losses far beyond a single individual.

A broader lesson for financial inclusion

The rise in loan scams is not happening in isolation. It reflects a broader reality: as access to digital finance expands, so too does the need for digital financial literacy and consumer protection.

Zimbabwe’s experience shows that inclusion is not only about access to services, but also about ensuring people can use those services safely. Trust, once broken, is difficult to rebuild — and sustained trust is essential for a healthy digital financial ecosystem.

The message to users of digital finance is clear:
Digital finance opens doors, but caution keeps them from becoming traps. Verification, patience, and awareness remain the strongest safeguards in an increasingly connected financial world.

There is also need for relentless consumer education from all concerned stakeholders to ensure that trust in digital payment platforms is not lost.

Latest News

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course

•
February 4, 2026

In a volatile economic landscape, the “old way” of doing microfinance—relying on a single sector or a narrow client base—is no longer just a limitation; it’s a risk. To survive and thrive, Zimbabwean Microfinance Institutions (MFIs) must evolve from simple lending models into Diversified Financial Ecosystems.

When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era

•
January 26, 2026

“Instant loan approval. No paperwork. Funds today.” For many Zimbabweans navigating economic uncertainty, messages like these are hard to ignore. They arrive through Facebook, WhatsApp, and other digital platforms, often promising fast relief in moments of financial pressure.

Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe

•
September 17, 2025

Micro, Small and Medium Enterprises (MSMEs) are the heartbeat of Zimbabwe’s economy. Contributing over 60% to employment and nearly 50% to the country’s GDP, MSMEs play a pivotal role in job creation, poverty alleviation, and grassroots economic development. As such, supporting the growth and sustainability of this sector is not just a policy directive—it is a national imperative.

Success Stories

Empowering Communities – How Can a Microfinance Institution Create 1,000 Jobs?

•
February 28, 2025

Village Capital Finance P/L (VCAP) embarked on a bold mission to uplift underserved communities across Zimbabwe by delivering essential financial services to those who need them most.

A Story of Hope: Redefining Mukando for Women Empowerment

•
February 11, 2016

Success Stories A Story of Hope: Redefining Mukando for Women Empowerment February 11, 2016 Virl Microfinance, Chitungwiza ‘Those who introduced the idea …

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January 25, 2016

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Grain Mapundu, a business regenerated

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Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe

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Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe

September 17, 2025

Micro, Small and Medium Enterprises (MSMEs) are the heartbeat of Zimbabwe’s economy. Contributing over 60% to employment and nearly 50% to the country’s GDP, MSMEs play a pivotal role in job creation, poverty alleviation, and grassroots economic development. As such, supporting the growth and sustainability of this sector is not just a policy directive—it is a national imperative.

It is in this spirit of empowerment and collaboration that the 2025 Insurance & Microfinance Expo will be held under the theme:
“Igniting MSMEs Success Through Exposing Them to Insurance and Microfinance Services Towards Building a Sustainable Business Community.”

This year’s Expo promises to be a dynamic and impactful event, bringing together MSME owners, financial service providers, insurers, policymakers, and the broader business community in two vibrant cities:

  • Bulawayo: 19 September 2025 at the Bulawayo City Hall Car Park
  • Harare: 26 September 2025 at Stanchart Sports Club

These open exhibitions welcome all businesses—from informal traders and startups to growing enterprises and cooperatives—offering them a platform to connect, grow, and thrive.

Why This Expo Matters

Access to finance and risk management tools remains a major barrier for MSMEs in Zimbabwe. Many small enterprises lack the financial literacy, capital, and insurance coverage needed to weather economic shocks or scale their operations. The Insurance & Microfinance Expo is designed to directly tackle these challenges by:

  • Showcasing tailored financial products from microfinance institutions and insurance providers
  • Creating opportunities for marketing and business promotion
  • Facilitating networking with potential partners and investors
  • Offering onsite services, real-time advice, and business support solutions
  • Celebrating MSME excellence through awards and recognitions

Beyond the business aspect, attendees can enjoy a lively atmosphere with music entertainment, food and beverage stalls, and lots of giveaways, making the Expo both a valuable and enjoyable experience.

ZMF’s Commitment to Sustainable Microfinance

As a key stakeholder in Zimbabwe’s financial inclusion agenda, the Zimbabwe Microfinance Fund (ZMF) is proud to be part of this transformative initiative. Guided by our mission “Towards Sustainable Microfinance,” we recognize the importance of equipping MSMEs with the tools and knowledge to operate resilient, sustainable businesses.

Participating in the Expo aligns with our strategic focus on capacity building, innovation, and inclusive finance. By engaging directly with MSMEs on the ground, we not only promote our services but also listen, learn, and co-create solutions that truly respond to the needs of our communities.

Building a Sustainable Business Community—Together

The 2025 Insurance & Microfinance Expo is more than an event—it’s a movement. A collective step towards building a future where every MSME in Zimbabwe has the opportunity to access quality financial services, grow their business, and contribute to a more inclusive economy.

We invite all entrepreneurs, partners, and stakeholders to be part of this exciting journey. Come, exhibit, learn, network, and ignite your business potential.

Let’s build a stronger, more sustainable MSME community—together.

Latest News

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course

•
February 4, 2026
•
No Comments

In a volatile economic landscape, the “old way” of doing microfinance—relying on a single sector or a narrow client base—is no longer just a limitation; it’s a risk. To survive and thrive, Zimbabwean Microfinance Institutions (MFIs) must evolve from simple lending models into Diversified Financial Ecosystems.

When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era

•
January 26, 2026
•
No Comments

“Instant loan approval. No paperwork. Funds today.” For many Zimbabweans navigating economic uncertainty, messages like these are hard to ignore. They arrive through Facebook, WhatsApp, and other digital platforms, often promising fast relief in moments of financial pressure.

Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe

•
September 17, 2025
•
No Comments

Micro, Small and Medium Enterprises (MSMEs) are the heartbeat of Zimbabwe’s economy. Contributing over 60% to employment and nearly 50% to the country’s GDP, MSMEs play a pivotal role in job creation, poverty alleviation, and grassroots economic development. As such, supporting the growth and sustainability of this sector is not just a policy directive—it is a national imperative.

Success Stories

Empowering Communities – How Can a Microfinance Institution Create 1,000 Jobs?

•
February 28, 2025

Village Capital Finance P/L (VCAP) embarked on a bold mission to uplift underserved communities across Zimbabwe by delivering essential financial services to those who need them most.

A Story of Hope: Redefining Mukando for Women Empowerment

•
February 11, 2016

Success Stories A Story of Hope: Redefining Mukando for Women Empowerment February 11, 2016 Virl Microfinance, Chitungwiza ‘Those who introduced the idea …

A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented

•
January 25, 2016

Success Stories A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented January 25, 2016 Mbuya Easter Chidzonga used to make a …

Zimbabwe Microfinance Fund and SoshoPay bringing the right Solar Solutions to the people of Zimbabwe.

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News And Events

Zimbabwe Microfinance Fund and SoshoPay bringing the right Solar Solutions to the people of Zimbabwe.

April 9, 2025

In the quiet corners of Zimbabwe, where entrepreneurial spirit is strong but access to power is weak, a transformation is quietly underway.

At dusty roadside stalls, in village workshops, and inside makeshift salons humming with the sound of ingenuity, a new kind of energy is beginning to flow. Not just solar energy, but the kind of energy that powers dignity, opportunity, and change.

At the heart of it all? A partnership grounded in innovation, inclusion, and impact.

A New Chapter in Inclusive Energy Access

At Zimbabwe Microfinance Fund (ZMF), we’ve always believed that access to finance should be a right, not a privilege. So when we joined forces with SoshoPay, the tech-savvy financial arm of Youth Economic Capital (YEC Fund), the alignment was natural. Our missions matched. The urgency was shared.

Together, we’ve launched a bold initiative: “SoshoPay Virtual Solar Grids for MSMEs in Zimbabwe.”

And it’s more than just a project. It’s a movement.

Reimagining Power

Zimbabwe’s informal sector isn’t small, it’s the backbone of the economy. But for many MSMEs (micro, small, and medium enterprises), power outages, unreliable grids, and the high cost of energy are daily barriers.

So we’re doing something different.

We’re financing modular solar nanogrids, think clean, powerful systems from 5 to 40kVA, that bring reliable energy directly to the entrepreneurs who need it most. Whether it’s a rural welding shop, a mobile food vendor, or a tailoring business, SoshoPay’s Energy-as-a-Service model puts power literally into their hands.

And with ZMF’s co-financing commitment of €80,000, we’re helping lease this equipment to last-mile MSMEs on flexible, affordable terms.

No hefty upfront costs.
No paperwork nightmares.
Just clean power, paid for as it’s used: Pay-As-You-Go.

Smart Tech. Real Impact.

What makes this model powerful isn’t just solar panels, it’s technology that meets people where they are.

SoshoPay’s platform uses IoT-enabled smart meters, GSM-based remote control, and real-time digital credit scoring. Every payment builds a digital footprint. Every transaction becomes a step toward formal financial inclusion.

These aren’t just energy leases, they’re stepping stones to creditworthiness, to growth, to investment-readiness.

In essence, we’re not just powering equipment, we’re powering financial identities.

Why This Matters To All of Us

This is the kind of change that multiplies.

When a rural grocery store gets steady power, food stays fresh, sales increase, and kids eat better. When a seamstress upgrades her machine with clean energy, she can take bigger orders, earn more, and reinvest in her family.

And when MSMEs thrive, entire communities rise with them.

This is about more than finance. More than technology. It’s about rewriting the future.

A Call to Be Part of the Movement

We didn’t enter this partnership because it was easy. We did it because it was necessary. Because the gap between potential and prosperity in Zimbabwe is too wide. And because we believe it can be closed with the right partners, the right tools, and a commitment to equity and innovation.

If you’re an investor, a policymaker, a development partner, or simply someone who believes in fair chances, we invite you to watch this space. Or better yet, to join the movement.

Because this is only the beginning.

With SoshoPay, we’re building something that can scale. That can last. That can change lives.

We are ZMF. And together with SoshoPay, we’re lighting up possibility,  one virtual grid, one MSME, and one clean, financed future at a time

 

 

Latest News​

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course

•
February 4, 2026
•
No Comments

In a volatile economic landscape, the “old way” of doing microfinance—relying on a single sector or a narrow client base—is no longer just a limitation; it’s a risk. To survive and thrive, Zimbabwean Microfinance Institutions (MFIs) must evolve from simple lending models into Diversified Financial Ecosystems.

When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era

•
January 26, 2026
•
No Comments

“Instant loan approval. No paperwork. Funds today.” For many Zimbabweans navigating economic uncertainty, messages like these are hard to ignore. They arrive through Facebook, WhatsApp, and other digital platforms, often promising fast relief in moments of financial pressure.

Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe

•
September 17, 2025
•
No Comments

Micro, Small and Medium Enterprises (MSMEs) are the heartbeat of Zimbabwe’s economy. Contributing over 60% to employment and nearly 50% to the country’s GDP, MSMEs play a pivotal role in job creation, poverty alleviation, and grassroots economic development. As such, supporting the growth and sustainability of this sector is not just a policy directive—it is a national imperative.

Success stories

Empowering Communities – How Can a Microfinance Institution Create 1,000 Jobs?

•
February 28, 2025
•
No Comments

Village Capital Finance P/L (VCAP) embarked on a bold mission to uplift underserved communities across Zimbabwe by delivering essential financial services to those who need them most.

A Story of Hope: Redefining Mukando for Women Empowerment

•
February 11, 2016
•
No Comments

Success Stories A Story of Hope: Redefining Mukando for Women Empowerment February 11, 2016 Virl Microfinance, Chitungwiza ‘Those who introduced the idea …

A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented

•
January 25, 2016
•
No Comments

Success Stories A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented January 25, 2016 Mbuya Easter Chidzonga used to make a …

6th National Microfinance Excellence Awards: A Night of Triumph and Celebration in Zimbabwe’s Microfinance Sector.

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6th National Microfinance Excellence Awards: A Night of Triumph and Celebration in Zimbabwe’s Microfinance Sector.

December 7, 2024

The grand ballroom of Rainbow Towers Hotel in Harare was aglow on the evening of December 6, 2024, as the Zimbabwe Microfinance Fund (ZMF) and the Zimbabwe Association of Microfinance Institutions (ZAMFI) co-hosted the 6th National Microfinance Excellence Awards Dinner. The event, an annual highlight for the microfinance sector, celebrated the unwavering commitment of institutions that have elevated the financial inclusion agenda in Zimbabwe.

With the country’s microfinance landscape growing ever more dynamic, this year’s awards were a testament to the innovation, resilience, and dedication displayed by these institutions in their drive to empower marginalized communities, especially women, youth, and rural clients. The awards spotlighted key areas such as outreach expansion, agricultural financing, and digital transformation, recognizing MFIs that have gone above and beyond in these critical areas.

 

Award Categories and Judging Criteria

The awards were divided into several key categories, each with its own stringent criteria that reflected the industry’s core values: financial inclusion, sustainability, and innovation. These included:

  • Fastest Outreach Growing MFI: Recognizing institutions that increased their client outreach by at least 25%, with a special focus on maintaining high portfolio quality through low portfolio-at-risk (PAR) ratios.
  • Most Women-Friendly MFI: Honouring institutions that have demonstrated exceptional commitment to empowering women, with at least 80% of their clients being women, significant female representation in staff and management, and non-financial services like financial literacy and consumer education for women.
  • Most Agriculture-Focused MFI: Celebrating institutions that have focused on financing agriculture, particularly in rural areas, with innovative products aimed at improving the livelihoods of farmers and rural entrepreneurs.
  • Most Productive Loans Focused MFI: Awarded to institutions that dedicate the majority of their loans to business-related funding, fueling entrepreneurship and business growth.
  • Most Profitable and Financially Stable MFI: Recognizing sustainability and profitability, including consistent positive net profits, high operational self-sufficiency (OSS), and return on assets (ROA) and equity (ROE) above industry standards.
  • Most Youth-Friendly MFI: Highlighting MFIs with strong youth-focused portfolios and mentorship programs, reflecting their role in driving youth empowerment.
  • Most Business Loans-Focused MFI: Awarded to MFIs that demonstrate solid capital adequacy ratios and a significant portion of their loan portfolio dedicated to business financing.
  • Most Digitalized MFI: Celebrating institutions that have embraced technology to enhance financial inclusion, reduce costs, promote financial literacy, and drive digital loan disbursements.
  • Most Rural Outreach MFI: Recognizing the MFIs that have deepened their impact in rural areas, with at least 40% of their branches located in rural regions and 30% of clients from these areas.

 

Spotlight on ZMF’s Sponsored Awards

Among the prestigious categories, ZMF sponsored three key awards that stood out for their emphasis on rural outreach, agriculture financing, and women’s empowerment. The winners and runners-up in these categories showcased remarkable achievements that reflect both the heart and the future of Zimbabwe’s microfinance sector.

Most Rural Outreach MFI

This award celebrated institutions that have made significant strides in bringing financial services to rural communities. The winner, KCI Management Consultants (Pvt) Ltd, impressed the judges with its commitment to rural outreach, with 75% of its branches located in rural areas and 40% of its clients based in these underserved regions. This impressive reach is complemented by a focus on financial inclusion in communities that are often left out of traditional banking services.

 

Runner-up Zimbabwe Women’s Microfinance Bank, with 36% of its branches in rural areas and 63% of its clients in the same regions, also stood out for its dedication to serving the rural population, providing essential services to those in need.

 

Most Agriculture-Focused MFI

Agricultural financing is key to Zimbabwe’s economic transformation, especially in rural areas. Solten Financial Services emerged as the winner in this category, with 13% of its loan book dedicated to agriculture, 27% of its clients from rural areas, and a significant focus on agricultural impact, such as increased productivity and the growth of smallholder farming businesses. Their innovative approach to supporting agriculture, which includes products for fishing, livestock, and goat farming, showcased their commitment to diversifying rural livelihoods.

Runner-up Zimbabwe Women’s Microfinance Bank took second place with a strong agricultural focus, with 67% of its loan book allocated to agriculture and a massive 85% of its USD loans targeting rural clients. Their approach has made a significant difference in the lives of rural farmers, with a focus on both economic and social empowerment.

Most Women-Friendly MFI

The Most Women-Friendly MFI category recognizes institutions that go above and beyond to support women’s financial inclusion. Zimbabwe Women’s Microfinance Bank was a clear winner in this category, with around 62% of its active clients being women, 59% of its staff being female, and 33% of its management team comprising women. Their dedication to empowering women was further evidenced by their extensive services for women, such as financial literacy programs and women-friendly loan requirements.

MoneyMart Finance (Pvt) Ltd was the runner-up, with 46% of its active clients being women and 54% of its clients from women-led businesses. With a strong focus on promoting financial literacy and providing inclusive products for women, MoneyMart’s efforts are making a difference in the lives of Zimbabwe’s women entrepreneurs.

 

ZMF’s Continued Commitment to Supporting Microfinance

The vibrant atmosphere at the event was filled with pride as ZMF recognized these outstanding institutions for their invaluable contributions to Zimbabwe’s microfinance landscape. ZMF remains steadfast in its mission to promote sustainable microfinance practices, drive innovation, and enhance financial inclusion across the nation.

“The growth and resilience demonstrated by these institutions inspire us to continue supporting the microfinance sector. We are committed to fostering innovation, inclusion, and empowerment, especially for vulnerable groups like women, youth, and rural communities,” said ZMF’s spokesperson.

As the evening came to a close, there was a collective sense of optimism about the future of microfinance in Zimbabwe. The passion and dedication shown by these MFIs provide a clear signal that the journey toward financial inclusion and economic empowerment for all Zimbabweans is well on its way. The 6th National Microfinance Excellence Awards were not just a celebration of past achievements but a reaffirmation of the sector’s unwavering commitment to building a brighter, more inclusive future.

Latest News

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course
•
February 4, 2026
When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era
•
January 26, 2026
Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe
•
September 17, 2025

Success Stories

Empowering Communities – How Can a Microfinance Institution Create 1,000 Jobs?
•
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February 11, 2016
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•
January 25, 2016

FN Software Solutions unveils NDASENDA PAY, a revolutionary new payment platform.

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News And Events

FN Software Solutions unveils NDASENDA PAY, a revolutionary new payment platform.

June 27, 2024

Mr. Brian Zimunhu, Managing Director of Zimbabwe Microfinance Fund, extends sincere appreciation to FN Software Solutions for the privilege to witness the launch of their pioneering online onboarding platform, NDASENDA PAY. This innovative technology has the potential to revolutionize microfinance accessibility nationwide, dismantling barriers and enhancing financial inclusivity. Zimbabwe Microfinance Fund is enthusiastic about contributing to this transformative journey and eagerly anticipates the impact of this innovation on the intersection of IT and finance, shaping a more inclusive financial landscape for all Zimbabweans.

FN Software Solutions celebrates the official launch of NDASENDA PAY, a groundbreaking digital payment platform meticulously tailored for the Zimbabwean market, marking a significant milestone for the organization. The company expresses profound gratitude to the Ministry of Information, Publicity & Broadcasting Services for their steadfast support and esteemed presence at the launch event.

Ndasenda Pay stands as a scalable and resilient platform crafted to streamline the processing of loan applications from customers to financiers. Facilitated through a tripartite agreement involving Ndasenda, merchants, and financiers, the platform enables swift access to credit for purchasing goods or services.

Together, FN Software Solutions and its collaborators are charting a path towards a more inclusive financial future for Zimbabweans. They express heartfelt appreciation for the invaluable collaboration and support received throughout this transformative journey.

Latest News

Microfinance Diversification of Portfolios for Zimbabwean MFIs Course
•
February 4, 2026
When Access Meets Risk: Zimbabwe’s Rising Loan Scam Threat in the Digital Finance Era
•
January 26, 2026
Empowering MSMEs: The 2025 Insurance & Microfinance Expo Aims to Spark Sustainable Growth Across Zimbabwe
•
September 17, 2025

Success Stories

Empowering Communities – How Can a Microfinance Institution Create 1,000 Jobs?
•
February 28, 2025
A Story of Hope: Redefining Mukando for Women Empowerment
•
February 11, 2016
A Story of Hope: Mbuya Easter Chidzonga, an entrepreneur re-invented
•
January 25, 2016

ZMF Managing Director meets the  RBZ Governor

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News And Events

ZMF Managing Director meets the  RBZ Governor

June 24, 2024

The ZMF Managing Director, was part of a Microfinance Sector Delegation that paid a courtesy call on the RBZ Governor on 6 June 2024.  The Governor’s immediate comments, among others were:

  • The microfinance sector is a very important sector in that some of the people in the remotest areas benefit through MFIs but certainly MFIs can and should do better
  • He implored DTMFIs to take deposits in rural areas as lack of their presence is stifling ZIG roll out
  • He indicated that MFIs should reduce competing for urban clients and /or civil servants but can think of new innovative products e.g. NSSA pensioners
  • The Governor also noted that whilst he is not a fan of interest rate caps there was need for responsible lending because invariably the poorest end up paying the most due to exorbitant cost of loans
  • He also took note of the sterling work which the Zimbabwe Microfinance Fund (ZMF) was doing in providing loans for the microfinance sector
  • Overall, the Governor commended the sector for a job well done in financial inclusion and encouraged ZAMFI and ZMF to do more so that Zimbabwe attends the envisioned upper middle-class status

                 

 

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Understanding credit products

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News And Events

Understanding credit products

April 11, 2018

Business herald: 11 APR, 2018 – 00:04    Dr Sanderson Abel
Financial institutions play a pivotal role in the granting of credit to the various sectors of the economy.

A bank is just like a heart in the economic structure and the capital it provides is like blood in it. As long as blood is in circulation the organs will remain sound and healthy.

If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to any economic sector, it will be destroyed.

The availability of credit is important in every economy since households and firms are not in a position to generate enough resources on their own. Credit, which is the pivot for financing of business enterprise serves as an essential, facilitating agency in the primary economic functions of production, exchange, consumption and distribution.

In its simplest sense finance refers to those activities involved in seeing that an individual or organisation has the resources with which to pay its bills promptly

In their endeavour to provide funding to the various sector of the economy, banks develop various products to suit their customer needs. It is important for bank clients to understand these various products so that they approach their various banks with the knowledge of the type of product they require for them to derive maximum value from the credit products provided.

There are different types of financing that you can choose depending with the agreement with your bankers. For example, in acquiring business equipment, fixtures and fittings, you can choose to finance the acquisitions through an industrial hire purchase, leasing or a term loan. Some of the credit products offered by the banking sector are discussed below.

Term Financing: This type of loan is availed by the borrower to acquire fixed assets (immovable properties i.e. land and buildings and vehicles for commercial use). The loan carries a predetermined length of time (tenure), with repayments done in instalments.

Lease Financing: This type of facility helps the borrowers to acquire equipment’s and machineries for their businesses on lease. This type of finance is long Term in nature and as such, the repayment is made in instalments.

Overdraft (OD): This is a short term facility which is granted to the borrower to enable him meeting his day to day funding needs; like payment of salaries, utilities and purchases of inventories etc. An agreed limit is sanctioned by the bank and the borrower is allowed to draw that amount through his current account.

Revolving Credit: This type of loan is also short-term in nature and is used to meet short-term funding requirements of the borrowers. This type of loan does not have a fixed number of payments, as in the case of instalment loan.

Cash Finance and Running Finance are types of revolving loans. Once the loan limit is approved, then the borrower is free to withdraw amounts to the extent of that limit. The borrower can withdraw and repay the amount as many times as he wishes to; but he has to pay mark-up on the amount which he has actually used.

Letter of Credit (LC) or Documentary Credit (DC): Letter of Credit is a written undertaking by a financial institution in favour of the supplier/seller to pay him the amount of imported/purchased goods, in case the actual importer/buyer fails to pay

Unsecured financing: Unsecured loans are those where the banks do not demand tangible securities such as land, building, fixed/current assets, tradeable inventory etc. as security; whereas, in secured financing, the banks demand any of the security as mentioned above. Secured financing is also called collateralised financing.

Credit provision by the banks to their clients through the various channels outlined above gives an obligation towards the borrower to dutifully service the obligation.

Failure to honour that obligation will disturb the whole credit system leading to reduced resources to other potential borrowers. In other words, the potential funding by the banking system is seriously reduced. Resultantly, the problem of credit impairment drags on the economy in the following ways: disintermediation of bank-system lending caused by the erosion of banks’ profitability; stagnation of economic resources, such as labour and capital, in fields with low productivity and cautious behaviour of corporations and consumers due to a decline in confidence in the financial system.

It is now an indisputable fact that economies are dependent on their growth and development on the provision of credit by the financial sector. Corporates, individual and other players provide credit to one another with the banks lying at the centre of the system. A cycle of credit is thus created in an economy where each economic agent is one way or the other in receipt of credit from another directly or indirectly. Any hiccup within the cycle might end up disturbing the smooth flow of resources among the economic agents.

On a broader macroeconomic level, this would translate to economic stagnation as some sectors become grappled with working capital and capital challenges as they fail to access loans and overdrafts from the banks while those who access the resources fail to repay as a consequence of the high cost of the funds.

Dr Sanderson Abel is an Economist. He writes in his capacity as Senior Economist for the Bankers Association of Zimbabwe. For your valuable feedback and comments related to this article, he can be contacted on abel@baz.org.zw or on numbers 04-744686 and 0772463008.

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Fostering responsible loan pricing in microfinance

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News And Events

Fostering responsible loan pricing in microfinance

February 2, 2017

In this third instalment, the spotlight is on the Zimbabwe Microfinance Fund (ZMF), a financial apex body. Brian Zimunhu (BZ), the Fund’s founding managing director talks to NewsDay financial columnist Omen Nyevero Muza (ONM) about the rationale of setting up the ZMF, its evolvement over the years as well as its current challenges and opportunities.

Below are excerpts of the interview.

ONM: What was the rationale of setting up the Zimbabwe Microfinance Fund (ZMF)?

BZ: The ZMF is a financial apex body formed in 2011 with the objective of providing wholesale lending capital to financial service providers (FSPs) such as microfinance institutions (MFIs), microfinance banks, agricultural value chain actors and savings and Credit Co-operative Societies (Saccos) for retailing to micro, small and medium enterprises (MSMEs).

ONM: Which key stakeholders were instrumental in getting the fund up and running?

BZ: The key stakeholders in question include: Zimbabwe Association of Microfinance institutions (Zamfi); development partners such as DFID, Hivos, GIZ and Danida, as well as the Reserve Bank of Zimbabwe (RBZ).

ONM: Please briefly outline the evolution of the fund since inception — its brief history, so to speak.

BZ: The ZMF commenced business in 2012 lending to its partners through a third party financial institution.

ONM: Would you care to disclose the identity of the third party financial institution?

BZ: Of course, this was a “partnership for success” with CBZ Bank. Over the years, ZMF has built adequate internal capacity and all business processes have now been internalised. The fund has since grown from $2 million as of 2012 to $12 million as at end of December 2016. As a revolving fund, ZMF has been able to disburse loans upwards of $17 million from inception to December 2016. This has been achieved through 25 partner FSPs. More than 60% of these loans have gone to women borrowers while an average of 35% has gone to rural clients.

ONM: What sort of borrowers does the ZMF’s lending programmes target?

BZ: The key target audience are financial service providers and value chain actors, who are into developmental lending serving micro, small and medium enterprises that are committed to improving the socio-economic and environmental well-being of the communities they serve.

ONM: What are the ZMF’s sources of funding?

BZ: Donated equity from social/development investors and debt financing.

ONM: Please outline the interest rates and fees that the ZMF charges for its loans.

BZ: Our interest rates are in the range of 7-13% per annum and we charge establishment fees of up to 3% of loan amount.

ONM: What are your key considerations in determining this interest rate and fee structure?

BZ: The fund considers the risk profile of partner financial service providers, the cost of capital, area of funds deployment and use of funds. Benchmarking against market rates is also a key consideration.

ONM: By area of funds deployment, do you mean physical location or sector? Please explain.

BZ: I mean physical location and indeed there is need to clarify this. So, as a fund, we are very clear and alive to the fact that, while financial exclusion is most rampant in rural areas, servicing clients from those locations is both more expensive and highly risky. As a way of incentivising and cushioning FSPs extending the boundaries of financial inclusion by serving the rural and supposedly risky clients, ZMF tends to lean to the lower end of the interest rate band.

ONM: What was the fund’s exposure like in sectoral terms at the end of 2016?

BZ: As of end of 2016, the fund had a total exposure of $10m to the following sectors: distribution (62%), agriculture (29%), manufacturing (4%), services (3%) and other (2%).

ONM: What would you say have been the key impacts of your funding interventions on the target market?

BZ: Among the key impacts of our funding are growth in enterprise lending as opposed to mere consumer lending among the ZMF partners, improved operational self-sufficiency among partner financial service providers and increased rural reach and access to finance by women. We are also fostering responsible loan pricing and have sparked growing interest from offshore funders. ZMF alone may never be able to meet the ever-increasing funding needs of the sector and funding from offshore sources will help in keeping the country’s MSMEs oiled but also shoring up the levels of the much-needed foreign direct investments.

ONM: Having been operational for close to five years, what would you say have been the ZMF’s key constraints?

BZ: At inception, the challenge was slow uptake of funds as FSPs lacked immediate capacity to handle big loans from the fund; interestingly, the challenge now has become limited funding in the face of increasing demand for loans by partner FSPs. The challenging economic environment, which has significantly increased the level of inherent credit risk, is another key constraint.

ONM: And opportunities? There must be some opportunities.

BZ: There are several opportunities, including national recognition of microfinance as a key pillar of the national financial inclusion strategy. The initiatives by the RBZ and other development partners to build strong financial infrastructure such as the credit and collateral registry will go a long way in enhancing risk management and promoting financial inclusion. There are opportunities for funding climate smart technologies to help microenterprises and households cope with or mitigate the effects of climate change. We also see increasing demands for loans and increased absorption capacity amongst our existing clients.

ONM: Since the ZMF is licensed as credit-only MFI with capacity to do retail loans, have you ever considered going that route?

BZ: ZMF’s business model is to reach out and positively impact on as many Bottom of the pyramid (BoP) clients as possible working through partner FSPs and value chain actors. Direct lending to retail clients is not part of our current strategy.

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RBZ licenses 10 more Microfinanciers

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News And Events

RBZ licenses 10 more Microfinanciers

November 14, 2016

Business herald: 11 APR, 2018 – 00:04   

Dr Sanderson Abel
Financial institutions play a pivotal role in the granting of credit to the various sectors of the economy.

A bank is just like a heart in the economic structure and the capital it provides is like blood in it. As long as blood is in circulation the organs will remain sound and healthy.

If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to any economic sector, it will be destroyed.

The availability of credit is important in every economy since households and firms are not in a position to generate enough resources on their own. Credit, which is the pivot for financing of business enterprise serves as an essential, facilitating agency in the primary economic functions of production, exchange, consumption and distribution.

In its simplest sense finance refers to those activities involved in seeing that an individual or organisation has the resources with which to pay its bills promptly

In their endeavour to provide funding to the various sector of the economy, banks develop various products to suit their customer needs. It is important for bank clients to understand these various products so that they approach their various banks with the knowledge of the type of product they require for them to derive maximum value from the credit products provided.

There are different types of financing that you can choose depending with the agreement with your bankers. For example, in acquiring business equipment, fixtures and fittings, you can choose to finance the acquisitions through an industrial hire purchase, leasing or a term loan. Some of the credit products offered by the banking sector are discussed below.

Term Financing: This type of loan is availed by the borrower to acquire fixed assets (immovable properties i.e. land and buildings and vehicles for commercial use). The loan carries a predetermined length of time (tenure), with repayments done in instalments.

Lease Financing: This type of facility helps the borrowers to acquire equipment’s and machineries for their businesses on lease. This type of finance is long Term in nature and as such, the repayment is made in instalments.

Overdraft (OD): This is a short term facility which is granted to the borrower to enable him meeting his day to day funding needs; like payment of salaries, utilities and purchases of inventories etc. An agreed limit is sanctioned by the bank and the borrower is allowed to draw that amount through his current account.

Revolving Credit: This type of loan is also short-term in nature and is used to meet short-term funding requirements of the borrowers. This type of loan does not have a fixed number of payments, as in the case of instalment loan.

Cash Finance and Running Finance are types of revolving loans. Once the loan limit is approved, then the borrower is free to withdraw amounts to the extent of that limit. The borrower can withdraw and repay the amount as many times as he wishes to; but he has to pay mark-up on the amount which he has actually used.

Letter of Credit (LC) or Documentary Credit (DC): Letter of Credit is a written undertaking by a financial institution in favour of the supplier/seller to pay him the amount of imported/purchased goods, in case the actual importer/buyer fails to pay

Unsecured financing: Unsecured loans are those where the banks do not demand tangible securities such as land, building, fixed/current assets, tradeable inventory etc. as security; whereas, in secured financing, the banks demand any of the security as mentioned above. Secured financing is also called collateralised financing.

Credit provision by the banks to their clients through the various channels outlined above gives an obligation towards the borrower to dutifully service the obligation.

Failure to honour that obligation will disturb the whole credit system leading to reduced resources to other potential borrowers. In other words, the potential funding by the banking system is seriously reduced. Resultantly, the problem of credit impairment drags on the economy in the following ways: disintermediation of bank-system lending caused by the erosion of banks’ profitability; stagnation of economic resources, such as labour and capital, in fields with low productivity and cautious behaviour of corporations and consumers due to a decline in confidence in the financial system.

It is now an indisputable fact that economies are dependent on their growth and development on the provision of credit by the financial sector. Corporates, individual and other players provide credit to one another with the banks lying at the centre of the system. A cycle of credit is thus created in an economy where each economic agent is one way or the other in receipt of credit from another directly or indirectly. Any hiccup within the cycle might end up disturbing the smooth flow of resources among the economic agents.

On a broader macroeconomic level, this would translate to economic stagnation as some sectors become grappled with working capital and capital challenges as they fail to access loans and overdrafts from the banks while those who access the resources fail to repay as a consequence of the high cost of the funds.

Dr Sanderson Abel is an Economist. He writes in his capacity as Senior Economist for the Bankers Association of Zimbabwe. For your valuable feedback and comments related to this article, he can be contacted on abel@baz.org.zw or on numbers 04-744686 and 0772463008.

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