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Microfinance Act [Chapter 24:29], No. 3 of 2013

Country/Territory
Zimbabwe
Document type
Legislation
Date
2013
Source
FAO, FAOLEX
Long title
AN ACT To provide for the registration, supervision and regulation of persons conducting microfinance business in Zimbabwe; to amend the Moneylending and Rates of Interest Act [Chapter 14:14] and the Banking Act [Chapter 24:20] (Act No. 9 of 1999); and to provide for matters connected with or incidental to the foregoing.
Subject
Agricultural & rural development, General
Keyword
Cooperative/producer organization Business/industry/corporations Agricultural development Financial agricultural measures
Geographical area
Africa, Eastern Africa, Landlocked Developing Nations
Abstract

The Act is meant to apply to all credit-only microfinance business and all deposit-taking microfinance business conducted by any entity otherwise than for the sole or exclusive benefit of the members of that entity; or any subsidiary of a banking institution, building society and the People’s Own Savings Bank; or all moneylending business not carried on as part of the business carried on by a banking institution, a building society or the People’s Own Savings Bank. Exceptionally, the Act does not apply to microfinance business conducted by a body corporate established by any enactment; or a co-operative society registered in terms of the Co-operative Societies Act or the Companies Act. The Reserve Bank of Zimbabwe shall appoint one of its employees to be the Registrar of Microfinanciers and shall assign a number of its employees to assist the Registrar. The Registrar functions to ensure that any policy directives under the Act are reduced in writing and filed in the office, with access to the public, unless the Reserve Bank determines that such communications is confidential. The Registrar is in charge of registering the microfinanciers. Among other things, the Act prohibits the carrying on of microfinance activities without adequate registration. The Act goes further to extensively provide for the procedure for registration as a microfinancier. The Act provides for the conduct of microfinanciers for instance, they are to display conspicuously at the entrance of the place of business an authenticated copy of their registration certificate, loan agreements shall be in writing, microfinanciers shall comply with the code of conduct, etc.

Full text
English

References - Legislation

Amended by

Microfinance Amendment Act, No. 6 of 2019

Legislation | Zimbabwe | 2019

Keyword: Agricultural development, Financial agricultural measures, Cooperative/producer organization, Business/industry/corporations

Source: FAO, FAOLEX