creating sustainable microfinance


Date : 13 December 2019 | Venue : Rainbow | Towers Time : 1830hrs

Concept Note

The training course shall be held as follows:



Fri 8 Nov 2019


Dzidzo House


0900 – 1630hrs



Fri 8 Nov 2019


Samaritan Befrienders


0900 – 1630hrs

The objective of this course shall be to enhance the level of knowledge and skills of credit officers with respect to loan processing and credit decision-making for individual lending. Through this course the participants will be better able to understand what is individual lending, how to analyze and evaluate individual clients, how to use cash flow analysis for credit decisions and how to monitor and effectively collect loans. Participants will also learn how to structure loans, make use of client screening models and credit scoring in a way that ensure that MFIs will end up with the least level of credit risk from the start of loan cycle. At a minimum the following will be the main building blocks of the course:

  • Credit portfolio management
  • Collection and Monitoring
  • Analysis of Portfolio Ratios
  • Problems in Loan Management
  • Areas of compliance by Credit Officers from the Microfinance Act
  • Exercises and case studies shall be extensively used in facilitating this course

14 August 2019

On behalf of the ZAMFI Board, we would like to congratulate Mr. Collins Muguyo, one of the staff members at Virl Rural and Social Financial Services for successfully completing the Cerise- SPI Auditor qualification process [see attached certificate] . Collins is now the first SPI4 Auditor (according to our records) in the country accredited by Cerise to train MFIs in Social Performance Management.

ZAMFI is very proud of his achievements which indeed shall a go a long way in improving the social impact goal of our country through training and knowledge sharing on the Universal Standards for social performance management.

We wish him the best.


Oliver Kazunga, Senior Business Reporter

TOTAL loans for the credit-only microfinance sector increased by 26,4 percent to $316,3 million in the quarter ended June 30, 2019, with the bulk of the loans supporting the agriculture sector.

In a performance report for the period under review, the Zimbabwe Association of Microfinance Institutions (Zamfi) attributed the increase in the loan book to improved lending by various sectors of the economy.

“The credit-only microfinance sector total loan book significantly increased from $250,1 million as at March 31, 2019, to $316,3 million as at June 30, 2019, constituting an increase by $66,2 million.

“The previous quarterly increase (January to March period) was $18,5 million, indicating that the sector is increasing its lending,” it said.

In the microfinance sector performance report, Zamfi indicated that the agriculture sector received 35 percent of the micro-finance institutions total loan book followed by the productive sector, which received 29 percent while 24 percent went towards consumptive purposes.

“As at June 30, 2019, the microfinance loan portfolio was made up of 35 percent for the agriculture sector, a significant increase from 13 percent reported in March 2019.

“This is a significant shift of the microfinance business away from the traditional consumption loans, generally regarded as less productive and inflationary,” said the microfinance association.

“The support of the productive sectors of the economy by the MFIs resonates very well with current Government efforts to increase the production of goods and services.”

Zamfi commended microfinance institutions for lending to the agriculture sector at a time when Government has pinned Gross Domestic Product growth on revival of the agriculture industry in addition to mining and tourism.

It also noted that the level and amount of the loan portfolio of the micro-finance industry is regarded as the main source of revenue and risk hence tracking of its performance is important.

As at June 30, 2019, the loan portfolio for the credit-only microfinance sector amounted to $315,84 million while the total for non-performing loans (value of loans in arrears by more than 30 days) was $46,05 million.

This constitutes 14,58 percent of the total loan portfolio and as such represents a deterioration of the quality of the loan portfolio compared with 11,01 percent reported in March 2019.

On portfolio quality, Zamfi said the main reason for the high delinquency level during the period was the adverse external macro-economic environment characterised by high inflation and sudden deterioration in income levels of the majority of clients for the MFIs.

“Major policy changes such as the introduction of a local currency (Zimbabwe dollar), interbank market for foreign currency trading and slow adjustment of workers’ salaries by many employers has left many clients highly exposed to over indebtedness.

“The only alternative solution is a significant increase in wages and salaries by both the public and private sector.

“This will go a long way to restore living standards, create customer demand and give clients the capacity to repay their outstanding debts,” it said.

On profitability and sustainability, the microfinance sector reported total income for the first six months of the year amounting to $53,7 million and a portfolio to yield ratio of 19,9 percent, up from 14 percent reported in March 2019.

Net profit increased from $4,5 million in March 2019 to $6,9 million in June 2019 leading to return to equity of 10,4 percent for the shareholders.

“Overally, the level of sustainability as reflected by the operational self sufficiency ratio of 114,7 percent had remained stable, indicating that the sector is able to cover its expenses from operating revenues,” said Zamfi. — @okazunga

Source: https://www.chronicle.co.zw/microfinance-sector-loans-increase/


August 2019

On behalf of the ZAMFI Board, we would like to congratulate, Thrive Microfinance for being awarded a 1st class social performance and rating status by Inclusion Social Rating, an institution which specializes in undertaking social performance assessment on MFIs. This award, apart from being of benefit in many ways to Thrive Microfinance is set to improve the country image in the eyes of investors and developmental partners with keen interest on social impact performance of the microfinance sector.

The Association is indeed happy and excited that our members are continuing to raise the flag and bar high.

We wish the institution the best.


Contact Details - Head Office

74 Rhodesville Ave
Harare, Zimbabwe
Landline: +263 24 2702 146/7 or 2702173
Email: info@zamfi.org


Mimosa Building(Opposite Bulawayo Centre)
Room 4, 3rd floor, 9th Avenue/J.M Nkomo Street, Bulawayo
Tel: +263 9 67485
Email: info@zamfi.org