The Zambian affiliate of the Foundation for International Community Assistance (FINCA International) has borrowed approximately equivalent to US$ 3.5 million from the Luxembourg-based Grameen Credit Agricole (GCA) Foundation for on-lending in Zambia.
FINCA Zambia aims to “be an unconventional community-based bank that profitably and responsibly provides innovative and impactful financial services to enable low-income individuals and communities to invest in their futures.”
These services include loans and savings via mobile banking and agent banking.
Groups of three to 10 people may borrow in amounts from ZMW 1,500 (USD 125) to ZMW 20,000 (USD 1670), and business-owners may borrow individually in amounts from ZMW 5000 (USD 420) to ZMW 159,000 (USD 13,300).
Repayment schedules range from 6 to 24 months.
As of 2017, FINCA Zambia reported total assets of USD 718,000, gross loans of USD 583,000 and total deposits of USD 282,000.
FINCA International is a US-based nonprofit that was founded in 1984.
As of 2018, it operates in 20 countries with a focus on poor women in the Americas, sub-Saharan Africa and Eurasia.
It has approximately 2.1 million clients, including 790,000 borrowers. The organization’s 2017 revenue totaled USD 340 million.
GCA Foundation was founded in 2008 by Credit Agricole SA, a French retail bank, in partnership with Muhammad Yunus, the founder of the Grameen Bank of Bangladesh.
The foundation provides funding and technical assistance to microfinance institutions and other social businesses.
As of November 2018, GCA Foundation has commitments of approximately EUR 78 million (USD 89 million) outstanding to 76 partners in 35 countries in Africa and Eurasia.
Its partners serve 3 million customers, of whom 75 percent are women and 79 percent live in rural areas.