Abstract
This paper critically evaluates the key provisions of the new Microfinance Act in Zimbabwe and other related pieces of legislation. The study is not an exposition of debates and theories about microfinance regulation and supervision in general but one focused on a specialized piece of law and its related institutions. The aim of the study is to evaluate the regulatory framework at place for microfinance business in Zimbabwe in order to establish the extent to which the growth of the microfinance sector is promoted from a legal point of view. The classical legal research method was employed in this study wherein a critical analysis of the law was done and leveraged through a review of related literature. The paper concludes that a new specialised microfinance law in Zimbabwe is a welcome development although certain aspects of the law still need improvement. DOI: 10.5901/mjss.2016.v7n1p376
Highlights
The microfinance sector plays a vital role in enhancing financial inclusion levels through the provision of appropriate financial services and capacity building, among the low income groups.1 The sector continues to play a critical role in the provision of finance to small and medium enterprises in Zimbabwe as part of the broader perspective of building inclusive financial systems.2 One of the most important issues in microfinance today is the regulation and supervision of microfinance institutions (Ledgerwood 1999)
This paper critically evaluates the key provisions of the new Microfinance Act in Zimbabwe and other related pieces of legislation
The Zimbabwean Microfinance sector is still in its infancy but is growing exponentially due to the closure of numerous banks while the majority of Zimbabweans are yearning for financial inclusion
Summary
The microfinance sector plays a vital role in enhancing financial inclusion levels through the provision of appropriate financial services and capacity building, among the low income groups. The sector continues to play a critical role in the provision of finance to small and medium enterprises in Zimbabwe as part of the broader perspective of building inclusive financial systems. One of the most important issues in microfinance today is the regulation and supervision of microfinance institutions (Ledgerwood 1999). The microfinance sector plays a vital role in enhancing financial inclusion levels through the provision of appropriate financial services and capacity building, among the low income groups.. The sector continues to play a critical role in the provision of finance to small and medium enterprises in Zimbabwe as part of the broader perspective of building inclusive financial systems.. It is in light of that broad counter-balanced need that this paper seeks to give a critical overview of the microfinance sector regulation and supervision in Zimbabwe in order to establish areas of improvement. The paper critically evaluates the key provisions of the new Microfinance Act in Zimbabwe and other related pieces of legislation. The study is not an exposition of debates and theories about microfinance regulation and supervision. Classical legal research methods are employed in this study wherein a critical analysis of the law is done and leveraged through a review of related literature
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
