First Mutual Microfinance launches SME loan facility to spur entrepreneurship nationwide

STAFF WRITER

First Mutual Microfinance has officially launched its Small and Medium Enterprises (SME) Loan Product, a transformative financing solution designed to empower SMEs and promote inclusive economic development across Zimbabwe.

The high-profile launch event brought together key players from the financial sector, including Mr. Phillip Madamombe, the Registrar of the Microfinance Division at the Reserve Bank of Zimbabwe, executives from First Mutual Holdings Limited, stakeholders, media representatives, and members of the First Mutual Microfinance team.

Speaking at the event, Mr. Madamombe applauded the initiative for aligning with national development priorities, stating, “this product is a welcome development that unlocks the potential of local enterprises. It offers SMEs the lifeline they need to start, grow, or sustain their operations. More than just financing, this is about transforming lives, households, and entire communities.”

Designed to address the unique challenges faced by small businesses, the SME Loan Product offers flexible repayment terms, minimal collateral requirements, and quick access to working capital.

These features are particularly tailored to Zimbabwe’s dynamic entrepreneurial landscape.

Mr. Max Ncube, General Manager of First Mutual Microfinance, emphasized the institution’s people-centric approach: “With this loan, we are not just financing businesses—we are backing dreams. This product speaks to the aspirations of entrepreneurs from market traders in Highfield to transport operators in Mutare.”

Since its establishment in 2018, First Mutual Microfinance has been at the forefront of financial inclusion, serving over 18,000 clients through eight branches and a network of 150 agents nationwide. Its product portfolio includes agricultural loans, value chain financing, and digital-first services accessible via WhatsApp—ensuring broad accessibility, even in underserved areas.

The launch of the SME Loan Product strengthens the institution’s role as a strategic arm of First Mutual Holdings Limited.

It reflects a broader effort to integrate microfinance, insurance, and financial services into a comprehensive value proposition tailored to the evolving needs of Zimbabwe’s economy.

This milestone also underscores the significance of public-private partnerships in driving sustainable development. As Mr. Madamombe remarked, “Our goal is to build a strong, well-regulated microfinance sector that empowers individuals and promotes inclusive growth. Today’s launch is a positive step toward realising that vision,” added Mr Ncube

First Mutual Microfinance continues to align its strategies with national blueprints such as the National Financial Inclusion Strategy II (NFIS II), which champions financial access for underserved communities.

The SME Loan Product stands as a practical demonstration of this commitment—positioned to fuel entrepreneurship, stimulate job creation, and contribute meaningfully to Zimbabwe’s socio-economic transformation.

The key SME product features include:

• Order Finance Facility:
  Designed to finance working capital for SMEs with confirmed purchase orders from reputable institutions.
• Invoice Discounting Facility:
  Provides liquidity by allowing businesses to access funds tied up in outstanding invoices.
• Asset Finance Facility:
  Enables acquisition of essential business assets such as machinery, equipment, and vehicles.
• Working Capital Facility:
  Offers flexible capital injection to support short-term operational requirements.

Each facility is structured with customised terms and repayment periods aligned to the cash flow realities of small businesses.

Our objective is to be a trusted financial partner to SMEs and believe these products will enable entrepreneurs to unlock value, scale operations, and contribute meaningfully to Zimbabwe’s economic resurgence.  Business owners can access these facilities nationwide through First Mutual Microfinance, with dedicated support provided to guide clients throughout the application and disbursement process.

This financial solution is designed to address the everyday operational challenges faced by SMEs by providing access to quick, flexible, and purpose-driven funding.

With tailored repayment structures and a focus on business viability, these products aim to unlock growth opportunities and enhance working capital for small business owners.

The SME products will be accessible nationwide through First Mutual Microfinance’s digital platforms and physical channels, ensuring convenience and responsiveness to business needs across sectors.