Zoona
Zambia
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.
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.
Repayment Performance on Kiva
Repayment Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Jan 27, 2012 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $230,900 | $432,399,575 | |
| Amount of Raised Inactive Loans | $16,775 | $301,825 | |
| Number Of Raised Inactive Loans | 7 | 235 | |
| Amount of Paying Back Loans | $158,675 | $92,726,900 | |
| Number Of Paying Back Loans | 48 | 100,693 | |
| Amount of Ended Loans | $55,450 | $339,370,850 | |
| Number Of Ended Loans | 20 | 443,521 | |
| Delinquency Rate | 0.00% | 2.50% | |
| Amount In Arrears | $0 | $1,467,080 | |
| Outstanding Portfolio | $92,882 | $58,746,667 | |
| Number of Loans Delinquent | 0 | 11,059 | |
| Default Rate | 0.00% | 0.95% | |
| Amount of Ended Loans Defaulted | $0 | $3,227,945 | |
| Amount of Ended Loans | $55,450 | $339,370,850 | |
| Number Of Ended Loans Defaulted | 0 | 9,845 | |
| Currency Exchange Loss Rate | 0.02% | 0.02% | |
| Amount of Currency Exchange Loss | $41 | $77,519 | |
| Refund Rate | 13.39% | 0.94% | |
| Amount of Refunded Loans | $30,925 | $4,075,975 | |
| Number Of Refunded Loans | 7 | 4,599 |
Loan Characteristics On Kiva
Loan Characteristics On Kiva| This Field Partner | All Kiva Partners | ||
| Loans To Women Entrepreneurs | 34.74% | 74.00% | |
|---|---|---|---|
| Average Loan Size | $3,193 | $408 | |
| Average Individual Loan Size | $3,193 | $646 | |
| Average Group Loan Size | $0 | $1,747 | |
| Average Number Of Entrepreneurs Per Group | 0 | 8 | |
| Average GDP Per Capita (PPP) in Local Country | $0 | $3,348 | |
| Average Loan Size / GDP Per Capita (PPP) | 0.00% | 12.18% | |
| Average Time To Fund A Loan | 6.89 days | 4.68 days | |
| Average Dollars Raised Per Day Per Loan | $463.47 | $87.13 | |
| Average Loan Term | 28.12 months | 9.63 months |
Journaling Performance on Kiva
Journaling Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Total Journals | 102 | 208,136 | |
|---|---|---|---|
| Journaling Rate | 0.00% | 40.14% | |
| Average Number Of Comments Per Journal | 0.47 | 0.11 | |
| Average Number Of Recommendations Per Journal | 0.05 | 2.66 |
Borrowing Cost Comparison (based on 2011 data)
Borrowing Cost Comparison (based on 2011 data)| This Field Partner | Median for MFI Peers in Country | All Kiva Partners | ||
| Portfolio Yield | N/A | N/A | 35.16% | |
|---|---|---|---|---|
| Profitability (Return on Assets) | N/A | N/A | -0.08% | |
| Average Loan Size (% of Per Capita Income) | N/A | 6.44% | 46.79% |
Country Fast Facts
Country Fast Facts- Country:
- Zambia
- Capital:
- Lusaka
- Official Language:
- English
- Population:
- 11,862,740
- Avg Annual Income:
- Labor Force:
- Population Below Poverty Line:
- Literacy Rate:
- 80.6%
- Infant Mortality Rate (per 1000):
- 102 deaths
- Life Expectancy:
- 43 years
Field Partner Staff
Leshain ArmstrongMemory Chirwa
Keith Davies
Jennifer Ferreri
Olivia Hanrahan-Soar
Marissa Kruger
Graham Lettner
Thulasy Lettner
Brad Magrath
Brad Magrath
Lyndall Marwick
Lelemba Phiri
Michelle Schenck
Marian Van der Linden