This study breaks new ground by looking at an innovative financial approach of livestock banking
vis-à-vis rural finance. The purpose of this paper is to evaluate the validity and feasibility of
‘cattle banking’ as an alternative innovative financing strategy in Africa with specific reference to
Zimbabwe. ‘Cattle banking’ has entered the debate on innovative financing for rural areas. In
Zimbabwe, TN Bank (now Steward Bank) has taken the ‘bull by the horns’ through introducing
the new strategy to farmers who are mostly rural. Cattle are very important assets in the rural
areas despite the challenge of climate change and global warming that have direct negative
effects on pastures.
This is an exploratory paper that relies on extensive literature relating to ‘cattle banking’. The
authors find that ‘cattle banking’ has the potential to assist farmers to open bank accounts using
cattle, thus encouraging them to save their assets. Moreover ‘cattle banking’ promotes assetbuilding
among farmers. Many farmers in the rural areas of Zimbabwe do not have bank accounts
because of what they experienced during Zimbabwe’s “lost decade” (2000-2010) when bankers
lost millions of dollars to the hyperinflation. This paper recommends that cattle banking should be
developed as it has the potential to uplift the livelihoods of rural farmers. It is also seen as an
innovative strategy to overcome rural finance challenges.