Govt Fails To Remit US$85 Million, In Civil Servant Loan Deductions, To Microfinance Institutions

The government has not remitted US$85 million, deducted from civil servants’ salaries over the past five months, to service loans borrowed from microfinance companies.

According to Masvingo Mirror, the situation has become critical, paralysing microfinance institutions, banks, and deposit-taking microfinance companies across the country.

As a result, civil servants, many of whom are low-income, are unable to access loans when they need them most.

CBZ subsidiary Red Sphere Finance has, with immediate effect, suspended all loans to civil servants until further notice, the company said in a statement released on 9 December 2025.

Salary Service Bureau (SSB) Paymaster Twoboy Shoko confirmed the arrears in a telephone interview with Masvingo Mirror but declined to provide the exact figure.

He dismissed claims of a financial crisis within the government, saying the delay in remittances was not due to an inability to pay but a deliberate measure to manage liquidity in the economy.

Shoko added that the backlog is expected to be cleared by the end of this year. He said:

“Yes, I can confirm that the government has a backlog of 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 has 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.”

Meanwhile, sources told Masvingo Mirror that the government is so short of funds it was unable to pay the second tranche of the US$75 presidential civil servant bonus, along with December salaries.

The bonus has been postponed to 30 December to give the Ministry of Finance time to find the money.

It remains unclear whether the payment will actually be made on that date, and some sources say civil servants may not receive the bonus until 2026.

It is further alleged that the government has not been remitting contributions to the National Social Security Authority (NSSA) and Premier Medical Aid Society.