Strengthening Untu Microfinance Ltd. / Zimbabwe

2014-10-31 - 2015-05-31

Untu Microfinance (Private) Limited, is a wholly owned subsidiary of Untu Holdings Limited and was established in order to provide credit to the MSMEs in Zimbabwe. The company started operations in 2009. Five years later its loan book was approximately $3.1 million serving 5,000 clients across Zimbabwe through its six branches. Untu Holdings Limited is an organisation which is majority owned by Zimbabwean individuals. Other shareholders include International Private Equity firms; Maris Capital, African Century and Sub-Saharan Capital. Untu refocused its strategy in late 2013 and it is currently going through a period of consolidation and transformation as a credit only MFI. After a further 24 months from 31 December 2014 the management and board of Untu will take a view of the next steps which could include transforming into a deposit-taking institution. Presently, Untu’s management would like to fortify efforts in credit and risk management processes together with further strengthening of the senior management team. This will require a continued focus on building human resource capacity at the senior and branch-level management to plan for and implement needed changes and continue to build a healthy credit culture throughout the institution
Diagnostic review and needs assessment: Comprehensive review of business strategy, operations, policies, processes and products. Conduction of a workshop to define the support and activity plan. Exposure visit to AccessBank Zambia: Visit of Untu’s management board to AccessBank Zambia. The visit was structured and guided by a LFS consultant who offered tailor-suited classroom sessions on processes and products before and after respective field exposures with staff of AccessBank. Strengthening credit and credit risk: The resident advisor re-designed credit policies and procedures, training courses, and credit & credit risk departmental structures. He implemented the changes, trained and coached the credit manager, risk manager, regional managers, branch managers and a credit trainer on the re-designed procedures as well as in training and coaching loan officers. Strengthening Agricultural lending: Comprehensive review of agro credit product and agro lending strategy Strengthening internal audit: Review of governance structure, policies, procedures, working papers, audit reports. Training and coaching of audit staff. Remote support of auditors via teleconferences. Strengthening HR systems: Revision of Job Descriptions and staff incentives. Delivery of the Management Development Program (envisioned)