First Mutual Microfinance reflects on five years anniversary

FIRST Mutual Microfinance, a subsidiary of First Mutual Holdings Limited, marked its 5th anniversary with a celebration in Harare, highlighting its impressive growth and contribution to the country’s financial inclusion efforts.

Speaking to The Financial Gazette on the sideline of the five years celebration event, First Mutual Microfinance General Manager, Max Ncube said the institution’s achievement of ranking third among Zimbabwe’s microfinance institutions (MFIs), with a loan portfolio of USD 8 million and a clientele of over 18,000, served through eight branches across key cities, including Harare, Bulawayo, and Mutare.

He pointed out that institution’s diverse product range includes salary-based loans, agricultural loans, cattle-based SME products, and loans tailored to informal markets.

“Customer convenience is at the heart of our operations,” Ncube said, highlighting the company’s efforts to enhance accessibility with a network of over 150 agents across Zimbabwe, complemented by digital platforms like WhatsApp for easier onboarding and service access.

Reflecting on the challenges faced during the first three years, Ncube praised his team’s resilience, innovation, and commitment to uplifting communities.

“Our vision is to become the preferred provider of financial solutions in our chosen communities,” he said.

Reserve Bank of Zimbabwe’s Deputy Director of Bank Supervision, Susan Kabungaidze, who was the guest of honour at the colourful event, lauded the institution’s contribution to financial inclusion, economic growth, and poverty reduction.

She said microfinancing has become the cornerstone of Zimbabwe’s National Financial Inclusion Strategy (NFIS II), playing a crucial role in reaching marginalised communities at the grassroots level.

The four-year long strategy was operationalised in 2022 with a strategic focus on microfinance institutions (MFIs) the aim being driving financial inclusion, reducing poverty, and facilitating economic growth and development.

“Microfinance institutions play a catalytic role in promoting sustainable use of financial services and inclusive growth,” she said, noting Zimbabwe’s 253 registered MFIs as critical to the country’s economic development.

“In accordance with the National Financial Inclusion Strategy, microfinance institutions are mandated to promote access to and utilisation of financial services by underserved members of our society, including persons with disabilities.

“I encourage First Mutual Microfinance to continue to develop tailored products, services and infrastructure that cater to the unique needs of the underserved members of society,” she said further.

As of June 30, 2024, Zimbabwe is home to 253 registered microfinance institutions, including 245 credit-only and eight deposit-taking MFIs.

These institutions are crucial in fostering sustainable financial services and driving inclusive economic growth.

They contribute significantly to wealth and job creation, as well as entrepreneurship development, aligning with the goals of the National Development Strategy 1 (NDS1).