Mukuru licensed to conduct deposit-taking microfinance business
MUKURU Financial Services Zimbabwe Limited, recently licensed as a deposit-taking microfinance institution (DTMFI), has expressed excitement over the opportunity to expand its mission of promoting financial inclusion in Zimbabwe.
The company, which has been operating in the country for the past 20 years, believes its new licence will enable it to provide financial services to underserved groups, including small and medium enterprises (SMEs), people with disabilities, women, youth, and rural communities.
This week, the Reserve Bank of Zimbabwe (RBZ) in line with the provisions of the Microfinance Act [Chapter 24:30] licensed Mukuru as a deposit-taking microfinance business with effect from 16 December.
The RBZ’s Registrar of Microfinance Institutions, Mr Philip Madamombe, confirmed the development in a statement.
“It is hereby notified that Mukuru Financial Services Zimbabwe Limited, licensed in October 2024, has been authorised to conduct deposit-taking microfinance business in terms of the Microfinance Act [Chapter 24:30], with effect from 16 December 2024,” read the statement.
In a statement, Mukuru’s Group chief executive officer, Mr Andy Jury, described the licence as a key milestone in the company’s growth.
“We are excited to leverage our extensive network and digital capabilities to further empower underserved communities, particularly SMEs, women, youth, people with disabilities and rural populations and drive greater financial inclusion across the country,” he said.
Mr Jury said Mukuru is uniquely positioned to bridge the gaps between formal and informal financial services in Zimbabwe by unlocking new economic opportunities through the provision of innovative financial products that enable people to send, store, spend and potentially borrow with ease.
“Relevant financial inclusion depends on the uptake of products and services. To this end, Mukuru’s trusted brand and reputation as a reliable financial services provider is expected to support the building of customer trust and drive the adoption of digital offerings,” he said.
Mukuru Zimbabwe Financial Services chief executive officer, Mr Doug Tait Knight said meaningful financial inclusion uplifts communities by enabling them to access financial services and enter the mainstream economy.
“DTMFI service offerings cut out travel costs and enhance secure and inclusive practices as money does not need to be collected. More than 90 percent of people who receive remittances cash them out and so we are well-positioned now to help them along their digital financial inclusion journeys,” he said.
Mr Knight noted that the DTMFI licence would help eliminate travel costs and enhance security by allowing customers to access services digitally, without the need to physically collect money.
“Presently, more than 90 percent of people who receive remittances cash them out, so we are now well-positioned to help them along their digital financial inclusion journeys. Our DTMFI licence will enable us to deliver innovative digital solutions that address the specific needs of our customers, from those in wheelchairs who struggle to access cash from ATMs, to small business owners seeking to grow their enterprises,” Mr Knight explained.
With a customer base of over three million, Mukuru has built a strong presence in Zimbabwe. The company operates 250 owned access points, 40 percent of which are in rural areas, and has more than 500 partner access points across the country.
Mukuru’s new licence is expected to play a key role in advancing financial inclusion in Zimbabwe, in line with the RBZ’s broader strategy to integrate more people into the formal economy.-chroncile
