There are moves in Zimbabwe to have entrepreneurs secure loans from banks using livestock and vehicles. A special bill has been sent to the country’s parliament this week to make this possible.
The Movable Property Security Interest Bill was sent to the parliament by Finance Minister Patrick Chinamasa hoping to get the backing of lawmakers.
The bill if passed will make it easier for players in the informal sector in the South African country to access funds from banks.
The finance minister told the parliament that “The Reserve Bank of Zimbabwe Act will be amended to achieve the objective of this bill, and the assets to be considered include any type such as machinery, motor vehicles, livestock, and accounts receivable.”
“As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect our economic realities,” Chinamasa said.
Chinamasa said small scale businesses are only able to access $250 million out of total bank loans of nearly $4 billion in the year to date. He wants this to change and small businesses properly supported to grow the Zimbabwean economy.
Source: Africafeeds.com
