Mishma Chakanyuka, Staff Writer 
MICROLENDERS are urging the government to bolster incentives for businesses targeting the youth, a move they believe will catalyse job creation and foster sustainable growth.
Despite demonstrating their potential to drive economic growth, young entrepreneurs continue to grapple with challenges that stifle their progress.
Ringisai Runyowa, CEO of local microfinance firm Probfix Holdings, suggests that the government could offer tax breaks, mentorship, and support to youthled businesses.
Runyowa envisions a future where the government introduces incentives specifically for youth who employ their peers. He cites the potential for tax breaks and other initiatives within the existing special economic zones.
Ringisai Runyowa, CEO of local microfinance firm Probfix Holdings
“We appreciate the government’s inclination to support us as young people with youth-friendly policies,” he adds.
Probfix Holdings, like many microfinance institutions, has the potential to scale up and transition into a full-fledged banking institution. However, licensing challenges, particularly in rural areas, have impeded their expansion across the country.
Runyowa highlights the prohibitive costs of council licenses, especially in rural areas, which limit their operational reach. He advocates for policies similar to those in South Africa and Kenya, where microfinance institutions can accept investments and deposits from the market.
The Reserve Bank of Zimbabwe (RBZ) reports that microfinance institutions disbursed $476,79 billion to various productive sectors of the economy in the third quarter of 2023, a 13,96 percent increase from in the second quarter of 2023.
This growth is attributed to increased loan demand from micro, small and medium enterprises (MSMEs) and low-income households. During the same period, the average loan size per borrower rose by 32,14 percent to $1,85 million.
The top 20 microfinance institutions held a 79,06 percent market share of the total loan portfolio in the microfinance industry, underscoring their continued dominance.
The microfinance sector’s net profit surged from $9,70 billion in the nine months ending September 2022 to $157,14 billion in the same period in 2023.
