The study sought to evaluate the role being played by microfinance on urban informal traders in creating and sustaining their businesses in Zimbabwe. The economic meltdown in Zimbabwe in the last two decades triggered closures of many industries in cities and towns thereby creating the poor and unemployed people. Some of retrenched people were entrepreneurially inclined individuals, who started informal businesses in urban areas in order to irk a living. The purpose of the research was to explain the significance of microfinance to urban informal traders and the government. The study applied a pragmatic approach method to seek responses from a sample of 138 informal traders in Mutare city.