MFIs achieved $1,2bn record lending in 2020

THE credit-only Microfinance Institutions (MFIs’) outstanding loans reached a record high of $1,225 billion in the quarter ended December 31, 2020.

In a performance report for the period under review, the Zimbabwe Association of Microfinance Institutions (Zamfi) said the remarkable growing trend shows the sector is emerging from the woods despite the economic recession on the back of the Covid-19 health pandemic.

“As at 31 December 2020, outstanding loans amounted to $1,225 billion compared with $651,1 million as at 30 September 2020 and $567,7 million reported in June 2020.

“This is the first time the sector to hit a ‘billion’ lending mark and as such represent a strong comeback of the sector in a period when the country is slowly but surely coming out of the woods on economic recession and the health pandemic,” it said.

Zamfi said a large percentage of the portfolio was made up of consumption and business loans amounting to $464,2 million (38 percent) and $385,3 million (31 percent) respectively.

“The bulk of the consumption loans during the period are reflective of the family needs for basic requirements,” said the MFIs association.-chronice.c.zw