Microfinance Sector Recovery Study

Recommending measures for rebuilding the microfinance sector in Zimbabwe
Download 61 pages

This paper evaluates the status of financial access in Zimbabwe and suggests measures for rebuilding the country's microfinance sector. It also highlights challenges in creating an inclusive financial sector in Zimbabwe.

The paper gives an overview of the macroeconomic situation in Zimbabwe and the demand for financial services from small enterprises and low-income households. It suggests steps for various stakeholders to aid recovery of the microfinance sector. These include:

  • MFIs should prepare bankable business plans, create efficient business models, engage in fund-raising, and improve visibility;
  • Zimbabwe Association of Microfinance Institutions (ZAMFI) needs to revise its strategy accounting for changes in economic and political environment, lobby for enabling environment and infrastructure, improve information collection and dissemination, and network with finance providers;
  • Government should focus on creating an enabling environment for inclusive financial sectors, modify regulations, and institute a financial inclusion forum;
  • Donors need to provide funding for the microfinance recovery package.