Source: Credit Registry inquiries soar – herald
Nqobile Bhebhe,
Zimpapers Business Hub
Zimbabwe experienced a notable increase in credit registry inquiries during the seven months from September 2024 to March 2025, with a sharp surge recorded in February this year, the Mid-Term Budget Review Statement presented in Parliament by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube shows.
The number of monthly inquiries, which serve as a key indicator of credit activity and financial sector confidence, fluctuated significantly throughout the review period.
The Credit Registry, housed within the RBZ, plays a critical role in the country’s financial ecosystem by supporting sound credit decision-making and helping to mitigate non-performing loans. The Credit Registry went live in 2017 as part of efforts to bridge Zimbabwe’s ease of doing business deficiencies relating to getting credit.
The intervention is part of ease of doing business reforms to improve the country’s attractiveness to foreign and domestic investment, reducing the cost of doing business, improving the performance of public utilities in delivering quality service, as well as creating value for money.
According to information contained in the mid-term budget review document, in September 2024, total inquiries stood at 109 236. However, activity dipped sharply in October 2024, with inquiries plummeting to just 12 186, the lowest level during the reporting period. The inquiries began to rebound in the subsequent months, reaching 74 789 in November 2024 and climbing further to 92 351 in December 2024. A slight decline was noted in January 2025, with inquiries falling to 82 098.
The most dramatic increase came in February 2025, when inquiries sky-rocketed to 318 517, marking the peak of the period under review. This surge could reflect increased demand for credit facilities or financial services ahead of anticipated economic activity or policy shifts.
By March 2025, inquiries had declined to 214 648 but remained significantly higher than most other months.
The increased usage of the Credit Registry is seen as a positive development, indicating growing reliance on credit risk information by lending institutions to assess borrower profiles.
In his presentation, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said the sharing of credit information among lending institutions, through the Credit Registry and private credit bureaus, continues to enhance credit market efficiency, financial inclusion, and financial stability. He noted that the Credit Registry accumulated 5,8 million inquiries as at March 31, 2025, up from 5,2 million as of December 31, 2024, indicating enhanced access to the system.
“Government has been actively increasing awareness of the operations and benefits of the collateral registry, an initiative aimed at improving access to credit for the underserved segments. Lending institutions continue to broaden the range of movable assets accepted as collateral. During the quarter ending March 31, 2025, registered collateral included household goods, livestock, private vehicles, trucks, agricultural plant and equipment and shares,” he said.
According to the mid-term report, lending institutions continue to broaden the range of movable assets accepted as collateral. During the quarter ending March 31, 2025, registered collateral included household goods, livestock, private vehicles, trucks, agricultural plant and equipment and shares.
Micro, Small and Medium Enterprises (MSMEs) also pledged a variety of movable assets, including construction equipment, agricultural machinery, and Notarial General Covering Bonds (NGCBs), particularly in the agricultural sector, reinforcing the Registry’s utility in supporting this critical segment of the economy.
Commenting on the impact of the Credit Registry on micro-finance lending, Mid Level Micro-Finance chief executive Mrs Regina Moyo said, “The improved access to credit history through the Credit Registry has significantly reduced our default rates and helped us make more informed decisions. It has empowered even informal traders to build credit profiles, giving them better chances of securing loans at more favourable rates.”
“For the micro-finance sector, this is a game-changer. We are seeing more MSMEs being able to leverage movable collateral and access much-needed capital, particularly in agriculture and small-scale trading.”
Echoing similar sentiments, Credit management expert Mr Tawanda Mupfigu said, “The Credit Registry has brought transparency and accountability to the lending process. We are no longer lending in the dark. It has enabled us to tailor loan products to borrower behaviour, rather than treating everyone with a blanket approach. This has improved our loan recovery rate and encouraged responsible borrowing, especially among youth entrepreneurs and start-ups.”
“Previously, many of our clients, especially young and first-time borrowers, had no credit footprint, making it difficult to assess risk. But now, we can trace even the smallest credit activity, such as micro-loans or mobile-based borrowing. This has allowed us to gradually increase their loan limits and support their growth journey.”
“Moreover, the data helps us better identify serial defaulters, ensuring we channel limited funds toward responsible and deserving clients. It is no longer just about gut feeling, it’s evidence-based lending.”
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