By Staff Reporter/Agencies
PARLIAMENTARIANS have called for reforms at the Women’s Microfinance Bank to ensure women can access loans without being excluded due to stringent collateral requirements and high interest rates.
A recent credit registry database revealed that men overwhelmingly outnumber women across nearly all eligible age groups seeking loans from financial institutions. Legislators, while applauding the establishment of the Women’s Microfinance Bank, expressed concern that many women, particularly those in the informal sector, are struggling to secure funding.
Speaking in Parliament, proportional representation legislator for Bulawayo Dr Thokozani Khupe emphasised that while Zimbabwe has made notable progress in women’s empowerment, significant challenges remain.
“There is notable progress on the empowerment front of women in Zimbabwe but at the same time we still have a long way to go in terms of women’s empowerment, I applaud the establishment of the
Women’s Microfinance Bank, a bank which is supposed to uplift women who are in business,” she said.
Dr Khupe noted that about 80 percent of people in the informal sector are women, yet many have never had an opportunity to borrow from the bank.
“During last year’s budget consultations, women expressed concern that the bank was charging 10 percent interest per month, an amount they found excessive given the small scale of their businesses.
“Many also lamented the short repayment periods, which do not allow them to generate enough profit before repayment is due,” she said.
Other women, Dr Khupe added, cited lack of collateral as a major barrier, a problem rooted in primogeniture practices that favour male inheritance, leaving women without assets to use as security for loans.
“There is a need for Parliament to enact laws that address the plight of women affected by inheritance laws that prioritise males. Many women are left destitute and unable to meet collateral requirements,” she said.
Dr Khupe further argued that if women were given access to capital without stringent conditions, they could produce their own goods instead of relying on imports from neighbouring countries.
To address these challenges, the legislator proposed that collateral requirements be redefined to accommodate women’s circumstances, emphasising trustworthiness as an asset in business.
Dr Khupe also recommended the introduction of group lending schemes, with financial literacy training provided beforehand.
Other legislators concurred, stressing that the current requirements at the Women’s Microfinance Bank were locking out many women from financial services. They called for flexible measures to ensure women, who are vital contributors to economic growth and development, are not left behind.
Sunningdale legislator Ms Maureen Kademaunga said stringent requirements within the Women’s Microfinance Bank are excluding many women from accessing financial services.
“To promote access to loans for women in Zimbabwe, I propose that the Women’s Microfinance Bank must start to offer affordable interest rates that cater to the needs of women entrepreneurs, particularly those in the informal sector,” she said.
Ms Kademaunga urged the Ministry of Women Affairs, Community, Small and Medium Enterprises Development and the Women’s Micro-Finance Bank to partner with women’s organisations, business associations that are pro-women and communities to promote access to loans and provide support services for women.
