Experiences in other countries
Madam Speaker, many countries regionally and internationally have established collateral registries over the last few decades. These include Liberia, Ghana, Malawi, Kenya, Lesotho, Rwanda, China, Peru, Mexico and Ukraine, among others.
Studies show that collateral registries have substantial economic impact. A study conducted in 2013 found that in countries that have introduced collateral registries, access to bank finance increased by 8% and the terms increased by six months whilst interest rates declined by 3% per annum on average.
In conclusion, Madam Speaker, the proposed Collateral Registry will bring substantial benefits to the economy including enhancement of the participation of MSMEs in the mainstream financial sector through the growth of secured lending in Zimbabwe.
In view of the anticipated benefits from the establishment of the Collateral Registry, I hereby table the proposals to introduce the new legislation for the establishment of a Collateral Registry before this august House for consideration.
I therefore move that the Movable Property Security Interests Bill (H.B. 7, 2016), be now read a second time.
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