UNDP Microfinance Assessment Report: Zimbabwe

This study, prepared as a part of the 'MicroStart' Feasibility Mission, discusses policy issues impacting microfinance in Zimbabwe. The report also gauges the future demand for microfinance programs in Zimbabwe.

The report mentions the following key points:

• Micro and small enterprise development is a key element in the Zimbabwe national economic development strategy;
• Donor involvement is increasing in microfinance and microenterprise sectors in Zimbabwe;
• UNDP is assisting Zimbabwe in micro and small enterprise sector, with emphasis on microfinance institutions;
• UNDP shall assist Zimbabwe in formulation of national policy, leveraging self-help development areas and in funding sustainable livelihoods programs;
• A rough estimate of the supply of credit to micro and small enterprises is only US$ 2.6 million against an approximate credit demand of US$ 31 million.

The report finds that:

• Lack of institutional capacity is a key constraint for growth and long-term viability of the microfinance sector;
• Newer organizations, and those operating in underserved markets, often need substantial direct assistance; however, these niches often escape donor attention.