Misozi is 22 years old. She owns a mobile money transfers shop in Lusaka, the capital city of Zambia. She comes from a family of five.
Misozi describes her business as the service of sending and receiving money. She is very proud of the fact that she has been able to start her business from scratch. Before Misozi started her own business, she worked at Zoona as an Agent Administrator, which gave her a clear sense of how the business works.
Misozi is taking out a Kiva loan so that she can increase her float. Float is the working capital that she uses to serve her customers. Right now, the float is not enough because her shop is located in the centre of town, where the demand is so high that she cannot satisfy all the customers. She will also use part of her loan money to purchase a tin of paint so that she can paint her shop.
This loan will enable Misozi to serve more customers and earn more profits. The profits will help her to pay for her studies and help out at home. She thanks the Kiva lenders.
In this video, a representative from Zoona interviews Misozi at her shop.
More information about this loan
This loan is a combination of the following:
1) Capital Growth Loan: an asset-based loan provided to both existing and new Zoona agents for setting-up or expanding their mobile transactions business. Part of the amount is an in-kind loan to enable agents to acquire assets for their mobile transaction business. For existing agents, the loan is designed to inject medium-term working capital assistance to purchase additional assets or expand to new locations thereby helping their businesses grow.
2) Electronic Float Advance: short-term liquidity assistance to qualifying Zoona agents to allow them to make mobile money payments when their electronic balance is too low to meet their immediate business needs.The loan is intended to provide borrowers with a boost to their electronic float to allow them to handle more revenue generating transactions and also give them a means to support transactions during peak demands. The borrowers will be able to draw down their electronic advance on a per-transaction basis. There are no monthly repayments, rather the borrowers will earn less commission on per transaction basis on the funds utilized from the advance.
Repayments will include fixed monthly repayments for the Capital Growth portion and a bullet payment at the end of an 18-month term for the electronic float advance.
Zoona is a mobile money operator that invests in emerging entrepreneurs in Africa who are transforming their communities.
In Africa, there is a tremendous pool of entrepreneurs, business owners, and young people who dream of making money and serving their communities but who are struggling to find the resources and support to reach their full potential.
Zoona offers entrepreneurs an opportunity to build their own businesses and create wealth and employment through mobile payment solutions, financial services, business management tools and support.
The network of Zoona outlets in urban and rural areas enables unbanked and financially excluded individuals the ability to transact in an easy, quick and safe manner with family, friends, and other service providers. This is a step change improvement in countries like Zambia, where the majority of transactions are still conducted in cash and are thus inefficient, insecure, and expensive. Zoona's unique model of enabling emerging entrepreneurs to provide mobile money services to consumers has the potential to significantly push the boundaries of financial inclusion in Africa.