HARARE (FinX) – Doves Financial Services has partnered with Chengetedzai Depository Company Limited (CDC) to offer a specialised lending facility that allows investors to use their VFX and ZSE-listed shares as collateral for loans.
Doves Financial Services Managing Director Shepard Chihoro said the collaboration aims to provide liquidity to shareholders without requiring them to sell off their investment portfolios. By leveraging CDC’s central securities depository infrastructure, the two entities have streamlined a process that has been facilitating the use of shares as collateral for over six years.
By electronically locking the shares, CDC ensures lender security as Doves Financial Services knows the shares cannot be sold or moved while the loan is active and borrower security as the investor knows their ownership is legally protected and their rights (like voting or dividends) are maintained.
Unlocking capital without sacrificing growth
For the average investor, this facility solves the “liquidity vs. long-term growth” dilemma. Traditionally, if an investor needed cash for an emergency (medical, fees, etc.), they would have to sell their shares. This facility allows them to keep their investment while accessing cash.
Investors don’t miss out on dividends or capital gains. If the stock price doubles while it’s pledged, that entire profit still belongs to the investor, not the lender.
In addition, knowing that shares are a “liquid” asset that can be used for credit encourages people to move their savings from “under the pillow” or informal schemes into the formal stock market.
One of the primary advantages of this facility is that investors can access immediate capital while retaining ownership of their assets. Key benefits highlighted by the partners include:
Rapid Processing: For applicants with all paperwork in order, the loan process can be completed in as little as 24 hours.
Versatile Use of Funds: The capital accessed can be used for business expansion or to meet urgent personal obligations such as medical, educational, or bereavement expenses.
