Farayi Machamire 12 August 2017
HARARE – The Reserve Bank of Zimbabwe (RBZ) is set to establish a central
registry to avoid prospective borrowers from using the same asset for
multiple loans under the Movable Property Security Interests Act.
This comes as the Movable Property Security Interests Bill, which seeks to
provide for movable property such as goats and cows to be used as security
for the purpose of obtaining loans, came into law last week.
“This is a major initiative for the country,” RBZ deputy governor Jesimen
Chipika said yesterday on the side-lines of a cross-border traders meeting
with central bank officials.
“At central bank level, we are establishing a collateral registry where if
someone approaches their bank they can use their movable assets. They just
agree with the bank that I have my cows.
“And if the bank is satisfied that this moveable asset is there and can
cover the loan being asked for, they come to the central bank and then the
asset is registered in the collateral registry in the central bank.”
The movable assets include any tangible property such as motor vehicles,
jewellery, equipment and machinery, household goods and livestock, among
Chipika added: “We do this so that if you ask for a loan using one asset,
you cannot use it again to pledge for another loan elsewhere, thereby
safeguarding the integrity of our financial sector as we are opening up
financial access to our people.”
Meanwhile, the RBZ-owned Homelink said the $15 million loan scheme availed
to cross border traders early this year has begun benefiting thousands of
This comes as government moves to cushion the informal traders against
cash shortages that had given room for parallel market activities.
Cross-Border Traders Association president Killer Zivhu, who brokered the
deal, said the facility has been assisting in stemming externalisation and
encouraged more cross border traders to take up the scheme.
“Many Zimbabweans have a wait a see attitude, especially when we are
coming to elections.
“They think it’s an election gimmick but many are benefiting from this
programme,” Zivhu said.
He added that the coming into law of the Movable Property Security
Interests Bill would aid cross-border traders who were finding it
difficult to access loans without pay slips or guarantors.
Zivhu said there were vast opportunities for the traders, who could become
a vehicle to boost the country’s exports.
“We will soon dispatch some of our members to Germany, Angola and many
other places to explore export opportunities. This has nothing to do with
politics. It’s money unveiled by RBZ. Let’s come and work for our
“So many people are benefiting from this project. To go on these trips you
just have to come with your papers and you can be on that trip. You just
have to be Zimbabwean,” he said.