Govt gazettes Movable Property Security Interests Act

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.