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.

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10 COMMENTS

  1. Another scandal, grand staged publicly theft.
    Social cash donations was stolen, what more that loan, who the ffcck gonna pay back loan with interest?

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    • probably FINCA has accessed this kaloba at 3% interest rate and will charge innocent unsuspecting Zambians 27.5% interest

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  2. That is good news, I hope it will go a long way to assist women not only in low income groups but even to middle income groups.

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    • Jay Jay for once, I find your intellect lacking. How else do you think banks or indeed any other credit provider mobilises its capital for onward lending. It borrows!! Either through debt our equity or mobilised savings! In other words ‘borrowing from A to and lend to B’. A tried and tested model from time immemorial. Not this is not unique to Zambia. FINCA and similar organisations operate world-wide using the Grameen group lending model. The micro-entrepreneurs they lend to are able to repay at a high enough return for the financial institution to be able to repay back its lenders and still make a profit margin. I guess I am stating the obvious!

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    • blabla – Banks are in the business of lending money for a profit to creditworthy customers.

      FINCA aim to 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.
      What security will they use to lend this money to these low income individuals and what is the average APR? You just like clapping without thought..you are the same chaps who go to the bank to obtain a loan for a brand new Jeep when you are still renting.

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    • Again exhibiting your ignorance. Who says community banks and microfinance institutions like FINCA lend without collateral. The group lending methodology that FINCA and similar institutions use what is called collateral substitutes in the form of group members co-guaranteeing each other. The risk is further mitigated by keeping the loan amounts small. With regards to the APR, you will be surprised to find that it is higher than some of the leading banks. There is a whole industry of impact investment funds (Blue Orchard, Symbiotics, Triodos Facet etc) that make a higher return on investment than your typical blue chip companies. Google them!! They are only able to do so because lending to microenterprises through group lending is as profitable as any other credit business. I suggest you…

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  3. Out of common courtesy & journalistic excellence, please quote your sources and name of your reporter. This alos interested readers to croos referance your stories.

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  4. Out of common courtesy & journalistic excellence, please quote your sources and name of your reporter. This alos interested readers to croos referance your stories.

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