The Sunday News
Dickson Mangena, Business Reporter
THE Zimbabwe Microfinance Fund (ZMF) has set aside $3 million for “green financing” to Micro Finance Institutions (MFIs) starting next year, a move expected to lower loss risks for the financial service providers and save the environment.
ZMF is an organisation that provides funding to micro-finance institutions and similar enterprises. ZMF operations manager Mr John Banda said the $3 million will go to 12 Financial Service Providers including MFIs involved in funding of green projects.
“We hope that MFIs and other FSPs will brainstorm on business opportunities in green loan products, take for example solar lighting, solar geysers, solar pumps, solar dryers, energy efficient cook-stoves, bio-digesters and so on,” said Mr Banda.
Zimbabwe Association of Micro Finance Institutions regional co-ordinator for Bulawayo Mr George Nhepera said MFIs must consider green projects since they are less risky.
“In today’s world that is becoming more and more sensitive to the environment, it becomes necessary for MFIs to move with times and avoid the risk of losing money by loaning to environment degrading projects,” said Mr Nhepera.
He also said that MFIs should be careful to engage in environmental risky loans because they may find themselves in a loss after the projects get shut down by environment authorities.
Mr Nhepera also said there was money to be made in servicing loans to green projects as there was a need for such in the rural areas and other financial excluded areas.
“MFIs have a role to play in financially excluded groups like women and rural people by servicing them loans to improve their lives,” Mr Nhepera said.
Also according to Mr Banda, in 2015 ZMF decided to become a green financier and resolved to integrate environmental sustainability and social performance management in all aspects of its programmes in the next five years.
“ZMF has been in existence in Zimbabwe since 2011 and has funded 29 FSPs to the tune of $14 million including green houses, drip irrigation, solar lighting and other modern farming techniques,” said Mr Banda.
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