WOMEN participation in the financial services sector is usually low as compared to their male counterparts. In an effort to address this disparity, the Zimbabwe Women’s Microfinance Bank (ZWMB) was created. NewsDay (ND) reporter Thomas Chidamba spoke to ZWMB chief executive officer Mandas Marikanda (MM) on issues related to women participation in the financial services sector, the challenges and way forward.
ND: How much have you disbursed since the bank started, and to how many beneficiaries?
MM: We have disbursed above $100 million granted to more than 80 000 beneficiaries.
ND: What criteria have you used which makes ZWMB different from other banks?
MM: The Women’s Bank understands and responds to the unique needs that have resulted in the exclusion of women, youths, people with disabilities and rural communities of Zimbabwe. The bank understands that every household has needs that require an economic solution.
In most cases, the woman is at the forefront of ensuring that Maslow’s hierarchy of basic needs which covers shelter, food, health, clothing and education is met. The bank understands, empathises and crafts solutions to these basic needs.
ND: What are some of the success stories that have been recorded so far?
MM: Being a new bank with an age-old mandate, the bank has to date opened over 86 000 accounts spread across all 10 provinces and districts of Zimbabwe, making inroads to expand on its outreach breadth and depth by establishing a solid distribution network with the head office and main branch in Harare, offices in Bulawayo, Gweru, Mutare and Masvingo supported by agents countrywide.
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The introduction of value chains has been a smiling point for most rural women and youths especially value chains in sorghum, castor beans, cotton, sunflower and groundnuts.
ND: Usually, there have been challenges of collateral security, especially for ordinary women, how do you circumvent this?
MM: The bank notes that security is important to ensure repayments are done. It also recognises availability of alternative security. The bank understands the challenges that women have with collateral requirements and appreciates that everyone has something of value, which includes assets (movable and immovable) as well as social cohesion security.
ND: What are some of the major challenges the bank is facing?
MM: Demand always outstrips the supply or disbursement of loans. The bank is grateful for the current support and managed growth which ensures a good reputation. There are some who do not expect to repay and often borrow and create hype with the hope of not repaying.
We are grateful that the bank has received tremendous support from the highest office and reiterate the need for all who borrow to make good in repayments.
The bank is hoping to be assisted by Reserve Bank of Zimbabwe exchange control to find a solid solution to forex transaction support to ensure women fully transact with their bank of choice.
ND: What do you value most about women’s participation in the economy?
MM: Women’s participation in the economy reduces dependence, ensures direct tackling of poverty challenges, and ensures the inflow of resources directly benefits the intended beneficiaries.
With women constituting 52% of the population, participation is empowering women as well as the nation. Women’s economic empowerment reduces gender-based violence, brings equality, and builds confidence in women and social cohesion.
Participation boosts productivity, increases economic diversification and income equality. In addition, this contributes to the sustainable development goal of poverty eradication, good health, education and gender equality
ND: How much did ZWMB disburse in 2020?
MM: Above $50 million granted to 30 000 beneficiaries.
ND: The bank, at one time, considered to give out loans in foreign currency. Did it succeed?
MM: It is an area of interest that the banking sector is looking at and exploring while engagements with the regulator is ongoing and the stabilisation of the foreign exchange rates through the auction system is giving comfort.
ND: How is the uptake of the loans by rural women?
MM: The women are keen to get loans from the bank and the knowledge that a bank was created to cater for women gives them more excitement to access loans for different projects.
ND: How has the COVID-19 pandemic affected the operations of the bank, considering that most women are in the informal sector?
MM: The COVID-19 pandemic has generally slowed down most business operations and the bank has not been spared though it is part of essential service providers. The bank’s target market (women) is in the informal sector, which was mostly affected by the COVID-19 protocols and lockdown. Upon relaxation, we are optimistic that business activity and volumes will surge as experienced in 2020.
ND: Do you feel there is total investment parity between male and female entrepreneurs?
MM: The situation obtaining at present reveals that women in Zimbabwe continue to have unequal access to finance, skills and markets in all sectors of the economy (agriculture, mining, tourism and trade). The lack of property title as collateral security leaves women with little chances to qualify for credit.
ND: Women entrepreneurs sometimes rate themselves lower than how their peers rate them. Why do you think women underrate themselves in business?
MM: It is important to know that Zimbabwe has a strong breed of confident, go-getter women leaders who are not apologetic and have made significant progress and impact.
There are, however, many women who have been trapped under the vice of lack and oppressive cultural practices that are often taught, which insinuate that a boy child is better than a girl child. A child is a child despite their gender and requires support and love.
These exclusions have resulted in some women lagging behind in education and income, with some not having access to a bank account in their life. These social and cultural barriers tend to prevent women from fully participating in accessing financial products and services.
ND: How has your personal journey been? Have you encountered stereotypes or the proverbial glass ceiling?
MM: I have a great testimony of the hand of God all the way to where I am. Romans 8:28 says: “For everything works together for those who love the Lord who are called after His purpose.”
A humble background, God-fearing parenting, instillation of good morals and cultural values, a great supportive spiritual nurturing all helped me in handling challenges in my career.
ND: What is your reaction to the view that social norms constrain women in accessing financial services?
MM: I am a very proud Zimbabwean woman who loves our culture. In every culture, there are good and bad practices. What is important is to adopt the modern life with the cultures so that we do not have a “them” and “us” gap among generations. I believe women are enforcers and culture builders, so I believe in making good what I can do, challenging what is wrong and proffering relevant solutions.
ND: How should women’s economic empowerment be defined?
MM: It is access to knowledge, financial literacy, business opportunities, assets and resources. These play a critical role in women economic empowerment, increasing women’s and girls’ educational attainment, access to financial services and closing gender-related gaps in financial inclusion.
ND: What aspects of women’s economic empowerment are most important to measure?
MM: Access to resources and assets, education and financial literacy, access to a bank account, and access to skills for women capacitation.
ND: What are the common challenges women encounter in economic empowerment?
MM: High costs of accessing financial products and services such as bank charges and stringent account opening requirements, irregular and low income, poor return and lack of adequate capital; and poor rural infrastructure which does not support development of micro-enterprises into sustainable large business ventures.
ND: What approaches does the Women Bank employ in order to enhance women financial inclusion?
MM: ZWMB continues to raise awareness about financial products and financial services among women through consumer education and financial literacy programmes. We have the support and collaboration of various stakeholders including ministries of Education, Women Affairs and development partners.
We increase women’s awareness in their legal rights in respect of property ownership to improve access to collateral and control over assets, which in turn will enable women to access credit and other financial services.
ND: How far has the bank fared in advancing women financial inclusion, and where does it stand today?
MM: A journey of a thousand miles begins with one step. The launch of the bank is that initial step. According to the microfinance life cycle theory, the bank is still in its start-up phase, having operated for two years. Accounts have been opened in all 10 provinces and loans have been disbursed in most if not all sectors. We are optimistic of embracing all women and leaving no one behind.
