FINCA Results

Measuring Our Impact

Social Performance Management

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Zambia

Poverty is deep and widespread in Zambia, despite the country's abundant natural resources. Sixty-one percent of the population lives below the poverty line—twice as many as in nearby Tanzania. The poorest households are headed by women, since men commonly migrate in search of employment, or by people suffering from chronic illnesses, such as HIV, tuberculosis and malaria.

Founded in 2001, FINCA Zambia started-off mainly in urban areas but is actively expanding its rural outreach. Mobile and agency banking are key strategies for improving the reach and range of its services.

Explore Zambia Data ↓

Financial Inclusion

Zambia:
Reaching the Financially Excluded

76% Adult population financially excluded The level of financial inclusion in Zambia is higher than in Africa overall, but is still low, at 31%.
3,697 59% Female borrowers % #
23,004 Total FINCA clients
0 0% Borrowers in rural areas FINCA aims to increase its rural outreach through mobile and agency banking. % #
6,231 Total FINCA borrowers

Financial exclusion affects two out of every three adults in Zambia, making it difficult for most people to conduct business, run a household and build a future. In the face of severe poverty, the income that a family can earn through a small business might be the difference between one or two full meals in a day, while small amounts of savings can keep a child in school. FINCA Zambia aims to help families implement these basic survival strategies by providing credit and other financial tools to grow their resources.

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Living Standards

Zambia:
Quality of Life

3,053 49% Client homes without water % #
1,495 24% Client homes without electricity This is somewhat better than the rural conditions in neighboring countries, but not as good as DRC, whose clientele is primarily urban, like Zambia's. % #
4,549 73% Client homes without access to Internet % #
2,492 40% Clients who don’t own their home % #
2,692 43% Head of household with primary education or less % #

The living standards of FINCA clients in Zambia reflect widespread poverty and a lack of basic services. Half the households have no running water and a quarter lack electricity. The educational status of family breadwinners is exceedingly low: 43 percent have only a primary education or less. A high percentage do not own the home they occupy, which makes it difficult for them to access credit and to accumulate wealth over time.

Like Pakistan, which also has an urban-based clientele, FINCA Zambia shows that quality of life is not always better in urban areas than in the countryside. Cities may offer more diverse economic opportunities, but they do not guarantee a better standard of living, especially for those at the bottom of the ladder.

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Income & Employment

Zambia:
Income & Employment

$2,208 36% Average annual profit 36% of total sales. % #
1.6 Average # of employees per client enterprise
9,789 People employed in FINCA-funded enterprises
479 5% Employees hired due to FINCA loan % #
5,433 56% Wages paid above the poverty line The wages provided by FINCA clients in Zambia are lower than other subsidiaries in the region. % #
Explore FINCA Loan Sectors

The average client enterprise in Zambia earns $2,208 each year in profits. Most of these micro-enterprises are engaged in trading activities, which make less intensive use of paid laborers than other sectors. This reduces the job-creating impact of FINCA's loans relative to other countries where we work. Despite these factors, the majority of people working in FINCA-funded enterprises are earning wages above the national poverty line.

View All Income & Employment Data

Women’s Empowerment

Zambia:
Empowering Women

3,697 59% Female borrowers % #
1,326 21% Clients with female-headed household % #
2,883 46% Households with female as main earner % #
3,801 61.0% Businesses run by women Almost two-thirds of the enterprises funded by FINCA in Zambia are headed by women (61%). % #
5,670 58% Women employed by enterprises Avg. #
4,601 47% Jobs created by women % #

FINCA Zambia has the highest share of female business owners in the region. Most of FINCA's female borrowers are the main source of income for their families. A quarter of them are single mothers, also the highest in the region. Woman-run enterprises are contributing a smaller share of the total jobs, however, because they are more likely to be engaged in activities such as trade, which are less prone to use hired workers.

View All Women’s Empowerment Data

Clients’ Goals

Zambia:
Attaining Business and Personal Goals

Goals Set By FINCA Borrowers
Goals Met By FINCA Borrowers
339 5% Start a business % #
3,196 51% Expand a business % #
299 5% Invest in education % #
1,708 27% Improve their home % #
606 10% Buy an asset % #
83 1% Pay down debts % #
335 99% Start a business Almost all borrowers expect that FINCA’s loan will enable them to achieve these goals. % #
2,704 85% Expand a business % #
299 100% Invest in education % #
1,693 99% Improve their home % #
590 97% Buy an asset % #
83 100% Pay down debts % #

While the majority of clients in Zambia are using their loans to expand or start a business, they also have other priorities. Twenty-seven percent aspire to improve their homes, 10 percent are purchasing family assets, and another 5 percent are investing in education. The overwhelming majority of our borrowers in Zambia believe that the FINCA loan was (or will be) instrumental in helping them to achieve these goals.

View All Clients’ Goals Data

Business Activities and Profit

Zambia:
Poverty, Economic Sectors, Jobs and Profits

FINCA Loan Sectors

4,673 75% Trade % #
729 12% Services % #
480 8% Manufacturing % #
218 4% Crops % #
131 2% Livestock % #

Profit and Profit/Sales Ratio by Sector

$2,309 35% Trade Profit/sales ratio Avg. profit
1,976 38% Services Profit/sales ratio Avg. profit
$1,996 35% Manufacturing Profit/sales ratio Avg. profit
$1,658 46% Crops Profit/sales ratio Avg. profit
$1,610 46% Livestock Profit/sales ratio Avg. profit

Jobs by Sector Due to FINCA Loan

319 67% Trade % #
70 15% Services % #
69 14% Manufacturing % #
19 4% Crops % #
3 1% Livestock % #

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