NEW: SMEs received $461 billion loans in 2023 

The Sunday Mail

Online Reporter

ZIMBABWE’S micro, small and medium enterprises (MSMEs)  received credit and loan extensions to the tune of $461,3 billion last year, which constituted 4,96 percent of total banking sector loans.

This was a modest increase from 2022, when loans to MSMEs constituted 4,15 percent of total banking sector loans.

According to data from the Reserve Bank of Zimbabwe (RBZ), the inflation-adjusted value of loans to the MSMEs grew to $461,3 billion in December 2023 from $14,5 billion previously.

The number of loans to the MSMEs segment of the economy increased to 93 404 as at December 2023, from 24 987 in the comparable period in 2022.

The number of loans to women last year grew to 185 326 from 177 671, a 7,76 percent growth ahead of loan disbursements the previous year.

The total value of loans to women reached $721,4 billion from $14,5 billion, in inflation-adjusted terms.

However, the number of loan disbursements to youths in 2023 declined to 57 216 from 65 098 in 2022, while the value of loans to youths rose to $293 billion in inflation-adjusted terms from $10,9 billion in 2022, translating to a 3,15 percent decrease in real terms.

General access to loans and credit improved during 2023, on the back of the operationalisation of the collateral registry.

“The increase in loan disbursements 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,” said RBZ Governor Dr John Mushayavanhu in his inaugural Monetary Policy Statement.