Mukuru Gets RBZ Licence to Offer Loans and Deposit Services

Mukuru Now Able to Offer Loans to Individuals and SMEs Following RBZ Licensing

Mukuru Financial Services Zimbabwe Limited has been granted the green light to expand its operations by the Reserve Bank of Zimbabwe (RBZ). Known for its money transfer services, Mukuru is now authorised to operate as a deposit-taking microfinance institution (DTMFI) in Zimbabwe, which allows it to offer loans to individuals and SMEs.

The announcement was made on 13 December 2024 by P.T. Madamombe, the Registrar of Microfinance Institutions for the RBZ. According to the notice, Mukuru can officially offer deposit-taking and loan services starting 16 December 2024 under the Microfinance Act [Chapter 24:30].

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A New Chapter for Mukuru

This means Mukuru can act like a small bank and give loans to individuals and SMEs who lack access to traditional borrowing methods.

Industry observers see this as a significant step for the financial services provider. newZWire highlighted the milestone, tweeting,

“Branching out: @mukurudotcom now licensed to operate a microfinance business in Zimbabwe. This means Mukuru, known for its money transfer services, can now offer small loans to people and SMEs.”

This development improves financial inclusion for individuals and small businesses.

Competition Heats Up

With the new licence, Mukuru enters a competitive microfinance landscape. Tech publication Techzim noted that Mukuru will now compete against established players such as EcoCash, Innbucks, OneMoney, and OMari.

“EcoCash has been a leader in mobile money for over a decade,” stated Techzim. “However, regulatory challenges and rising competition, particularly from Innbucks and OMari, have shifted the dynamics.”

Twitter user @Changunda1 commented on the rivalry, saying,

“Well done, Mukuru. It’ll be interesting to see how they compete with Innbucks as both are licensed as DMFIs.”

Leveraging Data for Financial Inclusion

Some experts believe Mukuru’s established remittance infrastructure gives it an advantage.

“Mukuru can leverage remittance data for credit assessment,” noted Twitter user @Sir_Takue. “This dovetails with the financial inclusion agenda.”

As a DTMFI, Mukuru can take deposits and lend to individuals and businesses. This has sparked discussions about its role in the economy.

“This is a welcome move,” remarked financial analyst @andrea_hoxbucks. “We will now see Mukuru financials as a public interest institution. The question is, which industry is more lucrative—money transfer or microfinance?”

While some expressed concerns about possible high-interest lending, the general sentiment was optimistic.

What’s Next?

With its expanded mandate, Mukuru is poised to play a significant role in Zimbabwe’s financial ecosystem. Whether its entry into microfinance will reshape the sector remains to be seen.