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Message: [QUOTE="Munyaradzi Mafaro, post: 52321, member: 636"] Zimbabwe's central bank reported growing credit access among small and medium-sized enterprises, while expressing concern about the persistence of informal sector operations. Chief Examiner Simbarashe Mashonganyika addressed business owners in Bulawayo last Friday regarding the implementation of the National Financial Inclusion Strategy II. The initiative spans from 2022 through 2026 and supports the nation's Vision 2030 economic development goals. The expansion of financial inclusion among smaller businesses could significantly advance Zimbabwe's aspirations for a middle-class economy. The Reserve Bank documented notable improvements in lending activity across the targeted sector. Loan disbursements to small businesses climbed from 8,237 transactions in March 2024 to 11,927 by December before declining to 6,702 in March 2025. The central bank established a collateral registry system that allows movable assets to serve as security for loans. Credit guarantee schemes help banks manage lending risks while specialized microfinance institutions provide tailored services. Small business owners often pledge household goods, personal vehicles, and livestock as collateral for loans. High borrowing costs remain a primary barrier preventing entrepreneurs from accessing formal banking services. The Reserve Bank monitors commercial lenders to encourage more favorable terms for emerging enterprises. Mashonganyika emphasized that formalizing small businesses would enhance their substantial economic contributions. Multi-stakeholder collaboration remains essential for addressing the complex challenges facing this vital sector. Capacity-building programs and financial literacy initiatives complement the broader inclusion strategy. [/QUOTE]

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