Surge in credit registry inquiries indicates growing financial activity in Zimbabwe

Nqobile Bhebhe, Zimpapers Business HubZimbabwe 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 skyrocketed 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 31 March 2025 up from 5,2 million as of 31 December 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 31 March 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 31 March 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.Share on FacebookPost on XFollow usSave

Originally published on Zimbabwe Herald

Source: Zimbabwe Herald