RBZ launches Zimbabwe’s collateral registry

Bsystems CEO Thomas Baafi (L) with RBZ governonr Dr John Mangudya after the launch of the Collateral Registry System.

The Reserve Bank of Zimbabwe has officially launched its newly established online Collateral Registry System developed by the leading Ghanaian software company, Bsystems.

The live activation of the Collateral Registry System by the central bank of Zimbabwe forms part of the bank’s move to improve the ease of doing business in the country through disclosing information by borrowers/debtors aimed at encouraging micro-credit growth and enhanced credit risk management in the microfinance sector.

This is also under Zimbabwe’s Movable Property Security Interest Act 2020 (Chapter 14:35), which specifies that the Registry facilitates commerce, industry and other socio-economic activities by enabling individuals and businesses to utilise their movable property as collateral for credit.

The RBZ website says the Registry facilitates secured creditors or lenders to register security interest in movable assets such as livestock, household goods and crops.

Economic growth

Speaking during the launch in Harare on Friday at a brief ceremony, RBZ governor Dr John Mangudya noted that the establishment of the Collateral Registry is in response to the Zimbabwe banking and financial sector to support economic growth and development as enshrined in the national development strategy, in line with the vision of an upper and middle-income country by 2030.

“Going forward, there is the need to intensify the awareness campaigns to reach out to various stakeholders in the country to conscientise the public about this good news of collateral registry established here in Zimbabwe in terms of the law of this country,” he said.

Governor Dr Mangudya expressed the central bank’s appreciation to software system supplier, Bsystems from Ghana for developing a Collateral Registry System to the bank’s expectations.

“We look forward to continuing support during the implementation stage of our collective efforts to improve our credit infrastructure,” he added.

In his remark, the Bsystems Limited CEO Thomas Baafi said Bsystems had, over the years, blazed a trail of developing top-notch cutting-edge IT-based business solutions, including the Electronic ID Verification, Smart HR and Payroll and PeoplePay, a mobile payment platform.

According to him, introducing the collateral registry through a digital platform would allow many Zimbabweans to access its services in real time using their phones or computers.

Mr Baafi then lauded officials of the Reserve Bank of Zimbabwe (RBZ) for their immense support in getting the online Registry to go live.

The registry is an online public database that allows financial institutions to register security interests in movable property and mitigate the risk to customers.

With the introduction of the collateral registry, banks should be able to diversify their credit portfolio from mostly corporates to include small and medium enterprises.

A web-based system offers remote access beyond regular business hours without visiting the registry office. With this system in place, officials of the registry are free from operations that involve paperwork, manual reviews and searches. Storage costs are also significantly reduced.

Electronic registration

The online registry facilitates the electronic registration of information on movable collaterals submitted through registration forms; it entails rules for creating a security interest, practical procedures and protection in case of default, including enforcement and repossession.

The system allows lending institutions and the general public to conduct searches on registered notices, collaterals and other ancillary functions.

The Bsystems Collateral Registry System software solution has been adopted by the Central Banks and Registrar General’s Department of nine other African countries, including Ghana, Nigeria, Liberia, Malawi, Zambia, Sierra Leone, Uganda, Ethiopia and Mozambique.

The rollout of the collateral registry software solution in Zimbabwe brings to ten the number of African countries that are currently enjoying the benefits of the Bsystems Collateral Registry System.