RBZ Cancels Lion Finance’s Microfinance Licence

The Reserve Bank of Zimbabwe (RBZ) has cancelled the registration of Lion Microfinance Limited, trading as Lion Finance Zimbabwe, as a deposit-taking microfinance institution, effective immediately.

According to a public notice issued by the Registrar of Microfinance Institutions, P.T. Madamombe, on 10 December, the cancellation follows a determination that Lion Microfinance was no longer in a sound financial position.

The RBZ cited several reasons for the move, including the institution’s failure to maintain the prescribed minimum capital for deposit-taking microfinance institutions, its inability to implement remedial measures identified during supervision, and its failure to adhere to sound administrative, accounting, and risk management practices as required under the Microfinance Act [Chapter 24:30]. Said Madamombe:

“In the circumstances, the maintenance of registration of Lion Microfinance Limited as a deposit-taking microfinance institution is undesirable.

“Accordingly, the Registrar has cancelled the institution’s licence in terms of section 13 of the Microfinance Act.”

The RBZ has advised members of the public not to undertake any microfinance business with Lion Microfinance.

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