Maravi

(ZIMBABWE GUARDIAN) ABC puts micro-finance for Zim on hold

ABC puts micro-finance for Zim on hold
Posted: Thursday, April 8, 2010 5:39 pm

ABC Holdings Limited has put on hold plans to extend micro-finance business into Zimbabwe citing the sub standard salary scale for government employees. The Group’s micro-finance project has a loan book with 40 000 customers in 17 outlets across Zambia.

“In Zimbabwe we have been given a deduction code. When government employees start getting real salaries, we will start operating there,” said Doug Munatsi the Group’s chief executive in Gaborone last month.

Zimbabwe’s economic turnaround process ignited by the inclusive Government and the use of multi-currencies, after sanctions-induced inflation eroded the value of the Zimbabwean dollar, has boosted the Group’s confidence in Zimbabwe market where they recorded a 4% growth after a ten year slump.

“We expect Zimbabwe to grow and grow aggressively particularly in 2010,” said Munatsi.

He highlighted that because of the good operational performance exhibited by the Group’s microfinance division in Zambia, the Group is reluctant to open the same operations in Botswana, Tanzania and Mozambique.

“We would have wanted to go to all the markets but there is a lot more legislation activism. We have put those markets on ice,” he said.

Following South Africa’s National Credit Act of 2007, neighbouring countries have been active on regulating the credit sector.

In Botswana to tighten the micro-finance market government has set off the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) a regulatory authority responsible for the regulation and orderly market conduct of all non-bank financial institutions.

Meanwhile the Group’s outlook indicates that ABC Holdings will launch new products in Zambia and Tanzania to boost non-income interests. In 2009 the Group managed to record high non-income interest compared to 2008 following a notable rise from forex trading income and currency revaluation.

The figures rose from 29 448 million pula to 115,786 million pula.

Labels: ABC HOLDINGS, BANKING, MICRO-FINANCE

posted by MrK @ 4:06 PM