Zimbabwe is presently in the process of formulating new legislation to reform secured transactions law in the country.
This new reform takes the shape of the Movable Property Security Interest Bill that is currently being drafted. This new law aims to “facilitate commerce, industry, and other socio-economic activities by enabling individuals and businesses to utilise their movable property as collateral for credit, to establish the collateral registry (and) to publicise the potential existence of interests in the collateral”.
The Draft Bill is set to be debated in the current Session of the Zimbabwe Parliament. It has been highlighted as a key element of the current legislative agenda by President Robert Mugabe, as part of efforts to make doing business in Zimbabwe easier.
One of the key difficulties in Zimbabwe that the Draft Bill attempts to tackle, is the lack of access to credit from financial institutions faced by micro to small businesses. To tackle these problems, the draft bill envisions the use of livestock and furniture, among other classes of property, as collateral.
The Bill also aims to introduce a Central Registry, at which security interests, and apparently defaulting borrowers will be registered.