Cecilia is a single 34 year-old mother with a five-year-old daughter. She operates a Zoona mobile money transfer business at a shopping center located in Lusaka, Zambia. Having been raised by her single mother, she now works very hard so that her daughter will have better opportunities and less hardship than she did during childhood.
Upon graduating from college with a diploma in Marketing, Cecilia began working for Southern Cross Motors as a sales consultant. This is her full-time employment. However, she sees more opportunity for income in her mobile money transfer business that she runs to supplement her earnings and provide for her daughter and 72 year-old mother.
This loan will allow Cecilia to grow her business by adding needed working capital to service additional customers in need of financial services at her shop. Cecilia sees the opportunity this loan can provide her in growing the business and earning more profits. She hopes to be able to grow the business so she can leave her sales job and focus completely on growing her business. This will also allow her more flexible working hours so she can spend more time with her young daughter.
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.