Owen is a 27-year-old micro-entrepreneur. He operates his own Zoona mobile money-transfer business. Upon completing school in 2009, Owen began working as a teller for a Zoona mobile money outlet. During this time he was able to learn the business well and through time grew the desire to start one on his own. Because of his dedication as a teller for four years, the mobile money owner decided to help Owen start his own outlet. He provided an initial investment of $1,000, and now Owen is successfully operating his own Zoona mobile money shop. With his increased income he has been able to pay for his younger sisters' school fees as well.
Owen is requesting a loan from Kiva because he wants to expand his business and open another mobile money outlet in the town centre. He has seen an increase in demand for a secure way to transfer money from his customers. With the loan, Owen will purchase a trading booth and new phone technology, which will enable him to serve more customers.
Owen’s dream is to attend university and study business administration. He sees his mobile money business as a good first step in becoming a successful businessman.
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.