BULAWAYO informal traders have welcomed the Reserve Bank of Zimbabwe (RBZ) collateral registry facility, saying it will assist them to boost their businesses because they will be able to access loans without stringent requirements.
The collateral registry is a record of legal claims to personal property used as collateral for a loan and allows lenders to check if collateral being offered as security for a loan has already been pledged to another lender.
The RBZ targets to operationalise it by year-end, and it will make movable property bankable.
Bulawayo Vendors and Traders Association director Michael Ndiweni said it was a good initiative for traders because it would give them a platform to access loans using movable assets.
“It is a step in the right direction for all workers in the informal economy. Prior to that, there was no system in place for the traders to access loans. Overtime, traders have been raising concern over the stringent requirements for them to access loans,” Ndiweni said.
“It will also allow traders to apply for loans as a group. Traders must take advantage of this facility as it is a system which did not exist before. Traders should test the system so that they are able to access loans that will be of great significance and further contribute to the growth of their operations.”
Ndiweni said RBZ and government should come up with awareness programmes to ensure that vendors are well informed and understand the facility.
“For instance, traders in rural areas should not be forgotten because they are affected by the digital divide. People in rural areas lack access to the internet and they need to be educated on how they can register and apply for loans,” he added.
- RBZ blocks Harare US dollar charges
- Industry cries foul over new export surrender requirements
- One stitch in time saves nine
- Banks keep NPLs in safe territory