BILL WATCH

PARLIAMENTARY COMMITTEES SERIES 11/2019

[4th April 2019]

Public Hearings on Microfinance Amendment Bill:
Monday 8th to Thursday 11th April
Harare, Mutare, Masvingo and Bulawayo

Parliament has published the following self-explanatory advertisement notifying forthcoming public hearings on the Microfinance Amendment Bill [please see the end of this bulletin for more information on this important Bill].  The Bill is available on the Veritas website [link]  .  The Microfinance Act is also available [link]

PUBLIC HEARINGS ON MICROFINANCE AMENDMENT BILL
(H.B. 11, 2018)

The Portfolio Committee on Budget, Finance and Economic Development will hold public consultations on the Microfinance Amendment Bill (H. B. 11, 2018) from 08 - 11 April 2019.  The Committee will cover various areas as follows:

ALL THOSE WHO WILL BE PUTTING ON MILITARY UNIFORMS, SIGNS OF RANKS, FLAGS OR BADGES AND POLITICAL PARTY REGALIA WILL NOT HAVE ACCESS TO THE PUBLIC HEARING.

The public, interested groups and organisations are invited to attend these consultations. Written submissions and correspondences are welcome and should be addressed to:

The Clerk of Parliament

Attention: Portfolio Committee on Primary and Secondary Education

P.O. Box CY 298

Causeway

Harare

Submissions can also be made by email through email address clerk@parlzim.gov.zw 

Queries

Telephone: (024) 2700181-8, 252936-50    

Mr. S. Manhivi (Senior Committee Clerk) Ext. 2057

Mrs. Sibonisiwe Dube-Nkala (Public Relations Officer) Ext. 2310/2143

Fax: (04)252935

More on the Microfinance Amendment Bill

The Bill was gazetted on 21st December 2019.  It includes an official explanatory memorandum which commences as follows:

This Bill will amend the Microfinance Act [Chapter 24:30] to achieve two main objectives:

First, the Bill will reduce the variety of institutions that can carry on microfinance business under the Act. At present the Act envisages four different types of institution:

1. Corporate microfinanciers, which are partnerships or companies engaged in money-lending or providing credit to or accepting deposits from small-scale businesses and members of lower-income groups.
2. Credit-only microfinanciers, which are organisations that provide loans and credit to small-scale borrowers.
3. Deposit-taking microfinanciers, which are organisations accepting deposits from small-scale businesses and members of lower-income groups.
4. Money-lenders, who provide loans and credit but who are not microfinanciers.

To reduce confusion and overlapping, the Bill will amend the Act to recognise only  two institutions:  credit-only microfinance institutions (namely companies that provide loans and credit to small-scale borrowers); and deposit-taking microfinance institutions, namely companies that accept deposits from small-scale businesses and members of lower-income groups).

The second main object of the Bill is to extend and strengthen the supervision that can be exercised over microfinance institutions.