Zimbabwe:
Amendment To The Microfinance Act
30 April 2020
Zenas Chambers, ChimwaMurombe Legal Practice
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A Glimpse on the Microfinance Amendment Act.
Finally the much awaited perpetual license was promulgated.
However, the new section 10A proves some elements of poor drafting
as it speaks of renewal terms which were taken away by the
perpetual licensing. It can not overemphasized that perpetual
licensing will attract investment in the sector as it brings
confidence to the investors. It was difficult to bring millions
against an annual license!
The introduction of the Advisory Council is very much
commendable as it brings together the government, private players
and civic organizations to work together in sharing ideas for the
growth of this industry.
Corporate governance was strengthened although the idea of
having other directors being spared from liability on the acts done
by the company simply because they had a descending position is
subject to test by reality.
More to follow.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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