- February 20, 2017
- Posted by: KeCAdmin540
- Category: Africa, CreditEase
Zimbabwe is slowly regaining some of its appeal as an investment opportunity, particularly for MFIs.
The Zimbabwean government recently recognised MFI’s valuable role in deepening the financial sector, as well as their critical involvement in the development of the country’s informal sector, which has historically employed and supported the most people.
The fact that Zimbabwe’s commercial banks are not lending to low income earners means that there is a strong commercial case for microfinance in the form of a vast informal funding gap. This is creating opportunities for MFIs who understand the local market well and can effectively manage the associated risks. Ké has already acquired two such clients, for which we are currently enabling payroll collection-based lending. Both are start-ups based and operating in Zimbabwe and indicative of the kind of growing entrepreneurial interest in the country. In the months to come we are expecting to see even further development of MFIs and an expansion of services that will only uplift the local economy.