Microfinance institution Mukuru claims securing a Deposit-taking Microfinance license will result in cost reductions, subsequently benefiting customers with lower fees.
In a significant move towards financial inclusion, the Reserve Bank of Zimbabwe has awarded Mukuru a Deposit-taking Microfinance Institution (DTMFI) licence. This licence empowers Mukuru to provide efficient, affordable, and accessible financial infrastructure, benefiting Small and Medium Enterprises (SMEs), women, youth, and rural communities.
With this licence, Mukuru can now handle deposits directly, reducing fees associated with third-party services. This development enables Mukuru to offer loans at lower interest rates to SMEs and individuals, using customer deposits as a funding source.
Mukuru's services are designed to uplift communities by enabling them to access financial services and enter the mainstream economy. The platform specifically targets underserved groups, such as SMEs, people with disabilities, women, youth, and rural communities, reducing their reliance on expensive informal financial options.
One of the key ways the licence facilitates cost savings is through instant access to funds and bulk payments. MukuruPay, a part of Mukuru's services, allows leaf buyers and agricultural buyers to disburse bulk payments to smallholder farmers instantly, eliminating delays that previously hindered earning access and cash flow for farmers and SMEs in rural areas.
The Mukuru Wallet, introduced after obtaining the licence, enables users to securely store and manage money, withdraw funds, pay for utilities, buy insurance, and save—all accessible via over 250 branches and booths, 40% of which are in rural areas. This reduces the need to travel long distances or rely on costly intermediaries, thus lowering transaction-related expenses.
Mukuru's services align with Zimbabwe's National Financial Inclusion Strategy, which is spearheaded by the Reserve Bank of Zimbabwe. With 40% of Mukuru's access points located in rural areas, the company is committed to improving financial inclusion in these regions.
Moreover, Mukuru's services are designed to address the specific needs of its customers, including those with disabilities and small business owners seeking to grow their enterprises. Customers, particularly in rural areas, can now access Mukuru's services digitally, reducing travel costs.
In summary, the DTMFI licence issued to Mukuru in Zimbabwe leads to cost savings for SMEs, women, youth, and rural communities primarily by improving access to efficient, low-cost financial services. This development is expected to promote economic participation and growth in financially underserved communities.
[1] Mukuru Press Release, 2021 [3] Reserve Bank of Zimbabwe, 2021 [5] Mukuru Impact Report, 2020
- The Deposit-taking Microfinance Institution (DTMFI) licence awarded to Mukuru allows them to manage customer deposits, which in turn can be used as a funding source to offer lower interest rates on loans to Small and Medium Enterprises (SMEs) and individuals, thereby aligning with the principles of efficient and affordable business finance.
- By providing services such as MukuruPay and the Mukuru Wallet, the technology-driven platform is able to bring financial inclusion to underserved groups like SMEs, women, youth, and rural communities in Zimbabwe, leveraging technology to reduce transaction-related expenses and promote economic growth.
