DTMFI Subsector Deposits

94. The microfinance sector registered a 231.56% increase in aggregated equity from $1.68 billion to $5.57 billion as at 31 December 2021. The increase was attributed to organic growth and fresh capital injection by some microfinance institutions.

Loan Portfolio

95. The microfinance sector registered a 262.69% increase in total loans from

ZW$2.01 billion as at 31 December 2020, to ZW$7.29 billion as at 31

December 2021. The loan portfolio quality deteriorated as evidenced by the deterioration of the portfolio-at-risk (>30 days) ratio from 8.34% to 10.06% as at 31 December 2021.

Profitability

96. Aggregate net profit for the sector increased by 427.16% from ZW$384.77 million to ZW$2,03 billion for year ended 31 December 2021. The increase was largely attributed to improved operational efficiency as reflected by an improvement in the average operational self-sufficiency (OSS) ratio from 111.86%, to 168.63% for year ended 31 December 2021, against the international benchmark of 100%.

97. The improvement in OSS indicates an improvement in the income generation capacity of the microfinance institutions in the wake of relaxation of the national Covid-19 lockdown restrictions.

DTMFI Subsector Deposits

98. Aggregate deposits for the DTMFIs sub-sector deposits increased by 105.09% from $442.98 million as at 30 June 2021 to $908.50 million as at