Last updated November 19, 2012

Status Update - May 22, 2013:

Kwacha, the currency in Zambia where Zoona operates, has been re-denominated so that what was formerly 1,000 ZMK (Zambian Kwacha) is now only 1 ZMW (renamed acronym). This impacts about 40 Kiva loans that will still be in the repayment process after the currency data feeds reflecting the old denomination are retired on June 30. To adjust to this change, Kiva will keep the old currency in our system until these existing loans are fully repaid. We will begin using the new currency for Zoona loans going forward. This will not impact the lender experience, but we wanted you to be aware of the change.

Partner Description:

Zoona is a mobile money/transactions company that allows individuals to send and receive money over their phones, using the conversion of cash into electronic value, and electronic value back into cash.

For Zambians, especially the poor, mobile money presents a new method of sending funds that is potentially cheaper, more accessible, and more secure than money transfer services, bank transfers, or requests of friends to carry cash on buses. Mobile money has the potential to significantly push the boundaries of financial inclusion, in particular, by allowing poor individuals to securely store savings on their phone, receive insurance payouts, and receive/repay on loans.

To enable more Zambians to get access to mobile banking technology, Zoona uses a distributed network of agents, called champion agents, who operate the individual business locations that provide the cash in/out capability.

Kiva loans administered by Zoona will fund both agents and micro-distributors. For agents, loans provide working capital so that they have enough cash on hand to process transactions. Additionally, the loans will help existing agents open new transaction booths so they can serve even more customers in different areas. This will increase the number of Zambians who have access to mobile banking technology.

As the mobile transactions business is new in Zambia and takes some months to scale in an agent location, Kiva loans will be structured so that a percentage of an agent’s monthly transaction revenue/commissions will be used to repay Kiva loans.

For micro-distributors, Kiva loans enable borrowers to buy large inventories of soft drinks that they can sell to retailers. This is related to Zoona because the micro-distributors in the program make their loan repayments electronically through the Zoona network.

Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jan 27, 2012 Oct 12, 2005
Total Loans $436,975 $535,743,725
Amount of Raised Inactive Loans $800 $325,675
Number Of Raised Inactive Loans 1 364
Amount of Paying Back Loans $267,900 $108,847,475
Number Of Paying Back Loans 104 112,638
Amount of Ended Loans $168,275 $426,570,575
Number Of Ended Loans 62 548,146
Delinquency Rate 0.00% 3.61%
Amount In Arrears $0 $2,527,996
Outstanding Portfolio $179,346 $70,107,758
Number of Loans Delinquent 0 12,066
Default Rate 0.00% 1.02%
Amount of Ended Loans Defaulted $0 $4,346,140
Amount of Ended Loans $168,275 $426,570,575
Number Of Ended Loans Defaulted 0 14,095
Currency Exchange Loss Rate 0.30% 0.05%
Amount of Currency Exchange Loss $1,295 $294,028
Refund Rate 9.13% 0.82%
Amount of Refunded Loans $39,875 $4,415,650
Number Of Refunded Loans 11 4,862

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 35.87% 74.09%
Average Loan Size $2,664 $417
Average Individual Loan Size $2,667 $655
Average Group Loan Size $4,775 $1,810
Average Number Of Entrepreneurs Per Group 2 8
Average GDP Per Capita (PPP) in Local Country $1,800 $3,463
Average Loan Size / GDP Per Capita (PPP) 148.00% 12.04%
Average Time To Fund A Loan 8.6 days 5.27 days
Average Dollars Raised Per Day Per Loan $309.72 $79.14
  Average Loan Term 26.23 months 10.04 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 188 268,352
  Journaling Rate 100.00% 42.14%
  Average Number Of Comments Per Journal 0.26 0.09
  Average Number Of Recommendations Per Journal 0.03 2.06

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield N/A N/A 34.93%
  Profitability (Return on Assets) N/A N/A -1.11%
  Average Loan Size (% of Per Capita Income) N/A 6.44% 42.70%

Kiva HelpCountry Fast Facts

Field Partner Staff

Memory Chirwa
Ragmat Davids
Keith Davies
Lee Ann Lancaster
Brad Magrath
Brad Magrath
Lyndall Marwick
Marian Van der Linden