By Owen Mandovha
INDIVIDUALS, small businesses and players in the informal sector are now able to register their movable and immovable assets in an official database following the launch of the Collateral Registry which is expected to promote inclusive lending to the private sector.
The Collateral Registry introduced by the Reserve Bank of Zimbabwe (RBZ) is a database of collateral for would-be borrowers for reference by lenders to effectively provide access to financing to the economy.
“The registry allows lenders to check assets of would-be borrowers for ease of providing credit to the private sector primarily the SMEs and informal sector participants who were previously marginalised. It dovetails with the National Financial Inclusion Strategy,” said Dr John Mangudya the Governor of the Reserve Bank of Zimbabwe.
The system was installed by BY-Systems from Ghana which says it has been adopted by several African countries helping to boost the SMEs and informal sector.
“Many countries have adopted the systems and it has proven to be effective in promoting the growth of SMEs and facilitating the formalization of the economy,” said Dr Thomas Baafi II the Group CEO of By-systems Ghana.
The launch of the Collateral Registry by the Reserve Bank of Zimbabwe is part of efforts to strengthen the financial system which also include the introduction of the financial clearing bureau a few years back as the government strives to create a strong and inclusive economy.