Government gazetted the Movable Property Security Interests Act on November 28, which will see individuals use their movable properties as collateral in accessing loans. The Act will become operational on a date to be set by President Robert Mugabe via a statutory instrument.
Part of the Act allows for the creation of a a department of the Reserve Bank to be known as the Collateral Registry whose duty will be to facilitate commerce, industry and other socio-economic activities by enabling individuals and businesses to utilise their movable property as collateral for credit.
The registry is a welcome development for micro, small to medium enterprises (MSMEs) who have been failing to access funding due to financiers’ demands for immovable collateral like houses.
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