ZB Holdings targets more informal trader accounts

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ZB Holdings plans to increase its services to the informal sector as the group has proved to be a low default risk when it comes to loan repayments.

Business Reporter

ZB Holdings business development manager Shadowsight Chiganze said informal trader’s contribution to the group has been positive.
He said as at March 25, there were 5 989 informal trader accounts with total deposits of $1 088 399.

He said the group has advanced a total of 218 microfinance loans to the sector with a total value of $846,63 and has disbursed 33 weekend loan facilities with a value of $17 100.

Chiganze said with 853, Gazaland has the highest number of informal trader accounts followed by Siyaso with 527 and Glen View 483.

He said the group was set to expand its services to Norton.

“We have had a very low default rate due to the structures and risk mitigation we have put in place. Ultimately, our focus has been on quality lending within the informal sector. This has helped us ensure limited default,” said Chiganze.

He said the group has realised that there was a need in the sector for lending and had a facility that offered free banking for traders.

“We have realised that this sector is driving economic activity and a lot of business is being conducted through it,” said Chiganze. “It is through our knowledge of this sector that we have realised that many who operate in the informal sector do not have time to come to the bank so we have brought the bank closer to them for their ready access.”

Chiganze said the bank will open a new branch in Norton for the traders.

In December last year, ZB launched a $1 million loan facility for informal traders.
Traders under the facility can access between $100 and $500 that is payable per week.
The Ministry of Small to Medium Enterprise last week said official statistics show that $7 billion is circulating in the informal sector.

5 COMMENTS

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  1. When will we learn that Zimbabwe is not in Harare only, you introduce a service for Harare residents only and you think you’re doing well. What of Informal traders in Plumtree, Chirundu, Masvingo, Gokwe. News for Harare should be in H-Metro, not in a national newspaper like this one.

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