Lack of collateral hinders women entrepreneurs from accessing loans

STAFF WRITER

Lack of access to capital is one of the major barriers facing women entrepreneurs in Zimbabwe, it has emerged.

Although women entrepreneurs comprise a significant portion of Zimbabwe’s micro small and medium enterprise landscape, the crux of the matter is that the majority of them lack collateral, which restricts  their financial capacity.

Several female entrepreneurs expressed their concerns about the issue at a recent breakfast meeting held in the capital, Harare, stating that local banks were hesitant to provide them with loans without collateral.
They stated that banks ought to eliminate obstacles that restrict female entrepreneurs’ access to finance.

Nonsikelelo Sibanda, the monitoring and evaluation officer for Zimbabwe Women Microfinance Bank (ZWMB), said her financial institution has launched an SME platform called ‘All Women’ .

She encouraged women entrepreneurs to approach  ZWMB as a group.

“The money is available for women. This is important for women entrepreneurs to take advantage of our All Women initiative.  However, the difficulty arises when it comes to loan payback. We must pay back our loans,” Sibanda said.

The event organiser, Sharon Runako Mupfumira,who is also a

business development consultancy award winner, said the ZWMB’s All Women initiative was a game changer.

“I would like to thank the Zimbabwe Women in Tourism for giving me the opportunity to host an enlightening session with Zimbabwe Women’s Microfinance Bank.

Their ‘All Woman’ SME platform is a game-changer for women entrepreneurs,” Mupfumira told Business Times.

She added: “ The presentation shed light on invaluable business development strategies and resources available to support our growth.

“This initiative empowers women to take control of their businesses, fostering economic independence and contribution to Zimbabwe’s economic growth. Grateful for the collaboration and looking forward to seeing the impact of this program on women-led businesses in tourism. The ‘All Woman’ initiative is a significant step towards economic equality.”