FINCA Zambia

Gross Loan Portfolio USD, 2010: 2.8 million

Number of active borrowers 2010: 13,669

Average loan balance per borrower USD, 2010: 208.1

Deposits USD, 2010: 793,418.3

Assets USD, 2010: 4.9 million

Number of depositors 2010: —

Mission:

Provide financial services particulary micro credit and savings services to the productive low income people in Zambia empowering them to enhance their economic and social standard of living through self employment.

Background and Main Challenges:

FINCA Zambia started its operations in January 2001 in Lusaka Zambia, funded by USAID. Like other countries it entered a market already facing the after effects of default in government funded and other private weakly run micro finance programs. Its current challenges include serving a market ... Read more

Address:

P. O. Box 50061, Ridgeway Plot No. 1215/3 Mukonteka Close Off Great East Road, Rhodes Park

Lusaka

Zambia

Phone:

+260-211-261736

Fax:

+260 125-1736

Email:

finca [at] finca [dot] co [dot] zm

Website:

www.FINCA.org

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

Looking for (Investment Types):

Loans in Local Currency

Donations

Guarantees

Capacity Building Grants

Equity investments

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 2001

FYE:

31-Dec

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
+ Development goals (ranked by importance)
+ Poverty targets
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Loans for agriculture
+ Savings products offered
Voluntary savings accounts
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
+ Social responsibility to staff
+ Human resources
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use
Per capita household expenditure
Per capita household income
Housing index
Participatory wealth ranking (PWR)
Means test
Food security index
Own proxy poverty index
Multiple standard of living measures

Partnerships

Current
Name	Relationship
ACCION International CAMEL	Rating
AMIZ	Network Affiliation
FINCA International	Network Affiliation
MFSI	Vendor

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