The Zimbabwe Association of Microfinance Institutions (Zamfi) recently published its first-quarter report which was less reflective of the negative effects of COVID-19 but pointed out that the pandemic was likely to take a huge toll on the sector. Although the sector's loan portfolio remained stable for the period up to March 2020 as indicated by the reported portfolio at risk (PAR) (>30) of 13,93% as at March 31 against 13,38 % for December 31, 2019, Zamfi said it is important to note that the post-lockdown period put tremendous pressure on microfinance credit systems of disbursements and repayments, especially on microfinance institutions (MFIs) that had lagged behind in the implementation of information communication technology systems. Business reporter Melody Chikono (MC) this week spoke to Zamfi executive director Godfrey Chitambo (GC, pictured) on the association's operations and the impact of the Covid-19 lockdown on the sector. Below are the excerpts of the interview:
MC: In the face of Covid-19, how do you see the sector performing in the aftermath of the pandemic?
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