In addition to
the US$85m, there is a Zig component backlog which Masvingo Mirror could not
establish.
Stakeholders
have called for government intervention to save the situation.
The situation
is dire and has paralysed microfinance institutions, banks and deposit-taking
microfinance institutions throughout the country, with CBZ subsidiary Red
Sphere Finance suspending with immediate effect all loans to civil servants
until further notice, according to a statement released by the company on
December 9, 2025.
Several sources
who spoke to Masvingo Mirror on condition of anonymity said many microfinance
institutions are closing shop. The situation also affects government policy on
financial inclusion, with civil servants who are most of the poor failing to
access loans in times of need.
Salary Service
Bureau (SSB) Paymaster Twoboy Shoko confirmed the arrears in a telephone
interview with Masvingo Mirror but declined to discuss the actual figure. He,
however, dismissed allegations of a financial crisis in government and said the
delay in remittances was not due to the government’s inability to pay but a
deliberate measure to manage liquidity in the economy.
He said the
backlog will be cleared by the end of this year, with 150 microfinance
institutions being paid this week alone.
The position,
however, contradicts sources who told Masvingo Mirror that the government is so
broke that it is failing to pay the second tranche of US$75 presidential civil
servant bonuses. Sources said payment of the US$75 is no longer going to be
done together with the December salaries but has been pushed to December 30 to
allow the Ministry of Finance to look for the money.
It is still not
certain whether this payment will happen on December 30, and other sources said
civil servants may receive the bonus in 2026. Sources also said that the
government is not remitting subscriptions to the National Social Security
Authority and Premier Medical Aid Society.
Godfrey
Chitambo, Executive Director of the Zimbabwe Association of Microfinance
Institutions (ZAMFI), said he is not aware of the arrears.
“I am not aware
that micro finance institutions are owed by the Government. We had a meeting on
Wednesday and that issue was never raised. If that is the case and our members
alert us, we will take up the matter,” he said.
“Yes, I can
confirm that the government has a backlog on payments to microfinance
institutions. It is not because the government lacks the capacity to pay, but
it is one of the measures to control liquidity in the market. The amount will
be cleared by the end of December this year. This week alone, we are going to
pay 150 microfinance institutions.
“Microfinance
institutions have flooded the market. It was discovered that civil servants
lack financial discipline, and this had become a major concern. Some employees
were getting loans from more than four institutions, leaving them highly
indebted. SSB and the Reserve Bank of Zimbabwe will hold district and
provincial workshops next year to train civil servants on financial
discipline,” said Shoko.
Minister of
Public Service, Labour and Social Welfare Edgar Moyo referred questions to the
Ministry of Finance, Economic Development and Investment.
Efforts to get
a comment from Minister of Finance, Economic Development and Investment
Promotion Mthuli Ncube were futile as his mobile phone was on voicemail.
“Please be
advised that Red Sphere Finance is suspending lending to SSB clients effective
December 9, 2025. We sincerely regret any inconvenience this may cause. Further
communication will be shared once there are notable developments,” reads the
letter signed by Red Sphere Finance General Manager, Desmund Ali.
Desmund Ali,
Red Sphere Finance General Manager, declined to comment and referred questions
to CBZ Group Chief Marketing and Customer Experience Officer, Matilda Nyathi.
Masvingo Mirror
No comments:
Post a Comment