RBZ backs First Mutual’s SME loan product initiative

Zimbabwe’s central bank endorsed a new lending program targeting small businesses as part of efforts to expand credit access for entrepreneurs with limited collateral or operating histories. First Mutual Microfinance launched the product to provide working capital for retailers, manufacturers and service providers across the country.

Reserve Bank registrar Simbarashe Mashonganyika said the initiative supports national goals to reduce poverty and create jobs by providing financing to enterprises that struggle to secure traditional financing. The regulator promotes digital payment systems and responsible lending standards while monitoring microfinance institutions that serve rural populations and informal businesses.

First Mutual general manager Max Ncube said the firm operates more than 150 agent locations and uses mobile messaging platforms to process applications. The company offers agricultural loans, livestock financing and salary-based credit alongside the commercial product introduced recently.

The lending program aligns with the National Financial Inclusion Strategy that prioritizes women, youth and micro enterprises as beneficiaries of expanded financial services. Officials encourage partnerships between banks and policymakers to close funding gaps that prevent business growth and economic development.