Microfinance Act

Laws.Africa Legislation Commons

Zimbabwe

Micro?nance Act

Chapter 24:29

Legislation as at 31 December 2016

FRBR URI: /akn/zw/act/2013/3/eng@2016-12-31

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Micro?nance Act

Contents

Part I �C Preliminary ............................................................................................................................................................................................ 1

1. Short title .................................................................................................................................................................................................... 1

2. Interpretation ............................................................................................................................................................................................. 1

3. Application of Act .................................................................................................................................................................................... 3

Part II �C Administration .................................................................................................................................................................................... 4

4. Registrar of Micro?nanciers and other of?cers ............................................................................................................................. 4

5. Exercise of functions by Registrar ..................................................................................................................................................... 4

Part III �C Registration of micro?nanciers ................................................................................................................................................... 4

6. Prohibitions in relation to conduct of micro?nance business ................................................................................................. 4

7. Application for registration as micro?nancier ............................................................................................................................... 5

8. Registration of micro?nanciers ........................................................................................................................................................... 7

9. Register of micro?nanciers ................................................................................................................................................................... 7

10. Renewal of registration ....................................................................................................................................................................... 7

11. Amendment of registration ................................................................................................................................................................ 8

12. Cancellation of registration ............................................................................................................................................................... 8

13. Public notice of registration and cancellation of registration .............................................................................................. 9

14. Effect of cancellation of registration ........................................................................................................................................... 10

Part IV �C Conduct of micro?nanciers generally ..................................................................................................................................... 10

15. Information to be displayed or published by micro?nanciers ............................................................................................ 10

16. Requirements for loan agreements .............................................................................................................................................. 11

17. Micro?nanciers code of conduct .................................................................................................................................................... 11

Part V �C Conduct of corporate micro?nance business ........................................................................................................................ 11

18. Application of Part V ......................................................................................................................................................................... 11

19. Conduct of micro?nance and other business by corporate micro?nanciers .................................................................. 11

20. Board of corporate micro?nancier ................................................................................................................................................ 11

21. Records of transactions ..................................................................................................................................................................... 12

22. Accounts and ?nancial records of corporate micro?nanciers ............................................................................................. 13

23. Audit of accounts of micro?nance institutions ........................................................................................................................ 13

Part VI �C Provisions applying speci?cally to micro?nance institutions ........................................................................................ 13

24. Application of Part VI ........................................................................................................................................................................ 13

25. Restriction on type of business that may be carried on by micro?nance institutions ............................................... 13

26. Requirements for lending by micro?nance institutions ........................................................................................................ 14

27. Employees and agents of micro?nance institutions ............................................................................................................... 14

28. Restriction on payment of dividends by micro?nance institutions ................................................................................... 14

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29. Restriction on other business that may be carried on by micro?nance institutions ................................................... 14

30. Restriction on micro?nance institution extending credit to of?cers, employees and certain shareholders and

their relatives ............................................................................................................................................................................................... 15

31. Principal of?cers of micro?nance institution ............................................................................................................................ 15

32. Alteration of memorandum or articles of association by micro?nance institution ..................................................... 15

33. Minimum capital and reserves of micro?nance institutions ............................................................................................... 16

34. Limits on shareholding and transfer of shares in micro?nance institutions and corporate micro?nanciers ...... 16

35. Curatorship arid winding up of micro?nance institutions ................................................................................................... 17

Part VII �C Supervision of micro?nanciers ................................................................................................................................................ 17

36. Responsibilities of Reserve Bank .................................................................................................................................................. 17

37. Action that may be taken by Reserve Bank where micro?nancier found to have contravened the Act or

condition of registration, etc .................................................................................................................................................................. 18

38. Investigation into micro?nancier .................................................................................................................................................. 19

39. Procedure on completion of investigation ................................................................................................................................ 20

40. Action by Reserve Bank following investigation ..................................................................................................................... 20

41. Expenses of investigation ................................................................................................................................................................ 21

42. Statements and reports to be submitted by micro?nanciers ............................................................................................. 21

43. Appointment of supervisors and inspectors .............................................................................................................................. 21

Part VIII �C Enforcement of micro?nanciers�� code of conduct ........................................................................................................... 22

44. Application of Part VIII ..................................................................................................................................................................... 22

45. Disciplinary committee ..................................................................................................................................................................... 22

46. Complaints against micro?nanciers and initial investigation by disciplinary committee ......................................... 22

47. Notice of complaint or of allegation of undesirable method of conducting business ................................................ 23

48. Determination of complaint or allegation ................................................................................................................................. 23

49. Offences in connection with investigations under this part ............................................................................................... 25

Part IX �C General .............................................................................................................................................................................................. 25

50. Appeals .................................................................................................................................................................................................... 25

51. Extension of time-limits ................................................................................................................................................................... 25

52. Translations of documents, etc, may be demanded ............................................................................................................... 26

53. Powers of Registrar where unregistered person is suspected of conducting micro?nance business .................... 26

54. Preservation of secrecy and use of con?dential information for personal gain ........................................................... 26

55. Reserve Bank and Registrar may supply statistics .................................................................................................................. 27

56. Annual reports of Reserve Bank and Registrar ........................................................................................................................ 27

57. Exercise of functions by Reserve Bank and Registrar ............................................................................................................ 28

58. Evidence and presumptions ............................................................................................................................................................ 28

59. Amendment or substitution of First and Second Schedules ............................................................................................... 28

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60. Regulations ............................................................................................................................................................................................ 28

61. Amendment of Cap. 14:14 ............................................................................................................................................................... 29

62. Amendment of Cap. 24:20 ............................................................................................................................................................... 29

63. Transitional provision ........................................................................................................................................................................ 30

First Schedule (Section 2) .............................................................................................................................................................................. 30

Second Schedule (Section 7) ......................................................................................................................................................................... 32

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Micro?nance Act

Zimbabwe

Zimbabwe

Micro?nance Act

Chapter 24:29

Commenced on 30 August 2013

[This is the version of this document as it was at 31 December 2016 to 18 November 2019.]

[Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]

To provide for the registration, supervision and regulation of persons conducting micro?nance business

in Zimbabwe; to amend the Moneylending and Rates of Interest Act [Chapter 14:14] and the Banking

Act [Chapter 24:20] (Act No. 9 of 1999); and to provide for matters connected with or incidental to the

foregoing.

ENACTED by the President and the Parliament of Zimbabwe.

Part I �C Preliminary

1.

Short title

This Act may be cited as the Micro?nance Act [Chapter 24:29].

2.

Interpretation

In this Act��

��board��, in relation to a corporate micro?nancier or micro?nance institution, means the board referred

to in section 20;

��borrower�� means a person to whom a micro?nancier makes a loan or provides a credit facility, and

includes a person to whom such a borrower��s rights and liabilities have passed, whether by assignment,

delegation, cession or otherwise;

��chief accounting of?cer��, in relation to a micro?nance institution, means a person who is responsible,

under the direct authority of the institution��s chief executive of?cer, for��

(a)

preparing and maintaining the institution��s books of accounts and other ?nancial records;

and

(b)

ensuring that the institution has systems of internal ?nancial control that comply with this Act

and any other enactment;

��chief executive of?cer��, in relation to a micro?nance institution, means a person who is responsible,

under the direct authority of the institution��s board, for conducting the institution��s banking business;

��company�� means company incorporated or registered under the Companies Act [Chapter 24:03];

��corporate micro?nancier�� means a micro?nancier that is a partnership or company referred to in

section 7(1)(b)(ii) or (iii);

��credit-only micro?nance business�� means the business of providing loans or other credit facilities to

persons who, for the most part��

(a)

operate micro-, small or medium enterprises; or

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