Digital-credit scoring tool to expand credit to MSMEs

In March 2016 the Reserve Bank of Zimbabwe (RBZ) published a National Financial Inclusion Strategy. At its heart is a micro, small and medium enterprise (MSME) finance priority area that recognises the critical role the MSME sector plays in economic development in Zimbabwe through job creation and poverty alleviation.

As part of a broader consortium bringing together data analytics capability, mobile application technology and agricultural value-chain financing expertise, Genesis proposed to develop a digital-credit scoring tool for micro, small and medium enterprise lending in Zimbabwe.

The tool will be developed to enable financial service providers to lend to previously excluded entrepreneurs and MSMEs across a number of economic sectors using alternative data and non-traditional sources of data.

The purpose of the market-scoping assignment was to identify sources of appropriate data and commercially viable markets for the digital-risk scoring tool, once that is developed.

The market scoping was a research and insight assignment that led to a critical decision for the funding of a longer-term implementation programme over 24 months, rolling out the tool to deserving MSMEs in Zimbabwe.

TOP: A group of cowpea farmers from Rushinga District in the Mashonaland Central Province who were interviewed during the market scoping exercise.