Collateral Is Overrated, Banks Must Remove Collateral Requirements For Entrepreneurs: Minister

Deputy Minister of Finance and Economic Planning Terrence Mukupe has called on banks to relax the stringent collateral requirements for entrepreneurs in order to allow business to grow. Speaking at the 2018 Zimbabwe National Chamber of Commerce Mashonaland Region Awards, the Minister said,

The issue of collateral by banks is overrated. I am calling on local banks that if we are to properly empower entrepreneurs, they have to revisit the issue of collateral and the way they approach their loan books. If banks are not extending debt and lines of credit to businesses because the entrepreneurs lack collateral, how do you expect business to grow? Look at the tobacco sector, the country managed to resuscitate it without any demands for collateral by contractors.

More: Financial Gazette