ACCESS to credit by women nearly doubled to ZWL$721,43 billion in the last quarter of last year from ZWL$378,71 billion in the previous quarter, thanks to the operationalisation of the collateral registry system, latest central bank data shows.
In a bid to enhance the credit infrastructure and promote financial inclusion, the central bank established the collateral registry in November 2022.
The collateral registry serves to facilitate commerce and industry by enabling individuals and businesses to utilise their movable property as collateral to access credit. As at December 31, 2023, 57 institutional users were utilising the system including banks, microfinance institutions, contract financiers and law firms.
The system recorded 1 204 active registered security interests with a total loan amount of ZWL$4,59 trillion as at December 31, 2023, data gathered from the central bank’s monetary policy statement show.
“Access to credit improved during the year ended December 31, 2023 as indicated by the significant increase in the real value of loans to women, which registered a 90,50% increase from ZWL$378,71 billion as at September 30, 2023, to ZWL$721,43 billion as at December 31, 2023,” the report read in part.
“The increase was partly attributed to the operationalisation of the collateral registry system which facilitates the usage of moveable assets particularly by women who previously lacked collateral to secure funding from financial institutions.”
As at December 31, 2023, loans to women accounted for 7,76% of total banking sector loans, up from 4,48% in the previous quarter.
In addition, real value of loans to micro, small and medium enterprises (MSMEs) and youth increased to ZWL$461,39 billion and ZWL$292,85 billion as at December 31, 2023, respectively from ZWL$326,97 billion and ZWL$278,49 billion as at September 30, 2023.
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The proportion of loans to MSMEs compared to total banking sector loans increased from 3,87% to 4,96%, while the proportion of loans to youth compared to total banking sector loans marginally declined from 3,29% to 3,15% for the same period.
In the period under review, the number of active bank accounts marginally declined to 7,69 million from 8,02 million, while low-cost accounts increased from 3,5 million to 3,75 million during the same period.
The number of security interest registrations has been on an upward trend since inception, closing the year at 1 204.
Movable assets accepted as collateral by lending institutions range from household goods, private vehicles, trucks, agricultural equipment to shares.
