Rent-to-Own
Zambia
Last updated January 7, 2013
Partner Description:
Rent-to-Own is a social enterprise that supports entrepreneurs in rural Zambia by providing financing and access to productive assets at low prices. The organization also offers a holistic set of services including delivery, installation, training, and repair for their equipment to give entrepreneurs the highest possible chance of succeeding.
Founded in 2010 with the help of Engineers Without Borders and Forest Fruits Ltd., Rent-to-Own has served more than 600 clients in rural Zambia, creating $1.5 million in sustainable income and over 500 new jobs.
Kiva lenders’ funds are used to test new forms of asset financing to help more clients in new and innovative ways. For example, Rent-to-Own has identified the need to provide more support to clients through a franchise model. This new approach could reach thousands of farmers and shop owners, but finding financing for this is difficult because the model is not yet proven. Kiva lenders’ funds will be used to test this innovative model and make it scalable across the region.
A unique lending approach:
Most small business owners in Zambia live a 20-hour drive from the capital city, which makes the purchase of equipment costly and challenging. Rent-to-own uses a product catalogue for clients to purchase equipment needed to grow their businesses and a network of local agents who leverage their social networks to decide if clients are credit-worthy. Once clients are approved, Rent-to-Own provides delivery, installation, training, and repair services for their equipment.
Margaret brought an oven from Rent to Own to grow her cooking business.
The typical entrepreneur has a cash income of $1,000 to $5,000 a year and employs 2 to 10 people. Rent-to-Own focuses on entrepreneurs who can generate new revenue with the right tools and equipment, and who are in remote areas that are underserved. By sourcing the products themselves and organizing delivery and installation, Rent-to-Own is able to provide products at a fraction of the cost in most cases.
Learn more about Rent-to-Own’s work and impact:
http://www.youtube.com/watch?v=xzV2mJHVAjo
In addition to providing low-cost assets, financing and a holistic set of support services for these assets, Rent-to-Own delivers a wide variety of trainings ranging from business development to record keeping. These classes ensure that clients can maximize their earnings from the equipment.
Rent-to-Own joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.
Partner Description:
Rent-to-Own is a social enterprise that supports entrepreneurs in rural Zambia by providing financing and access to productive assets at low prices. The organization also offers a holistic set of services including delivery, installation, training, and repair for their equipment to give entrepreneurs the highest possible chance of succeeding.
Founded in 2010 with the help of Engineers Without Borders and Forest Fruits Ltd., Rent-to-Own has served more than 600 clients in rural Zambia, creating $1.5 million in sustainable income and over 500 new jobs.
Kiva lenders’ funds are used to test new forms of asset financing to help more clients in new and innovative ways. For example, Rent-to-Own has identified the need to provide more support to clients through a franchise model. This new approach could reach thousands of farmers and shop owners, but finding financing for this is difficult because the model is not yet proven. Kiva lenders’ funds will be used to test this innovative model and make it scalable across the region.
A unique lending approach:
Most small business owners in Zambia live a 20-hour drive from the capital city, which makes the purchase of equipment costly and challenging. Rent-to-own uses a product catalogue for clients to purchase equipment needed to grow their businesses and a network of local agents who leverage their social networks to decide if clients are credit-worthy. Once clients are approved, Rent-to-Own provides delivery, installation, training, and repair services for their equipment.
Margaret brought an oven from Rent to Own to grow her cooking business.
The typical entrepreneur has a cash income of $1,000 to $5,000 a year and employs 2 to 10 people. Rent-to-Own focuses on entrepreneurs who can generate new revenue with the right tools and equipment, and who are in remote areas that are underserved. By sourcing the products themselves and organizing delivery and installation, Rent-to-Own is able to provide products at a fraction of the cost in most cases.
Learn more about Rent-to-Own’s work and impact:
http://www.youtube.com/watch?v=xzV2mJHVAjo
In addition to providing low-cost assets, financing and a holistic set of support services for these assets, Rent-to-Own delivers a wide variety of trainings ranging from business development to record keeping. These classes ensure that clients can maximize their earnings from the equipment.
Rent-to-Own joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.
Repayment Performance on Kiva
Repayment Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Mar 1, 2013 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $675 | $423,513,950 | |
| Amount of Raised Inactive Loans | $0 | $239,150 | |
| Number Of Raised Inactive Loans | 0 | 206 | |
| Amount of Paying Back Loans | $675 | $91,781,200 | |
| Number Of Paying Back Loans | 1 | 99,540 | |
| Amount of Ended Loans | $0 | $331,493,600 | |
| Number Of Ended Loans | 0 | 434,605 | |
| Delinquency Rate | 0.00% | 2.16% | |
| Amount In Arrears | $0 | $1,251,783 | |
| Outstanding Portfolio | $675 | $58,030,117 | |
| Number of Loans Delinquent | 0 | 10,003 | |
| Default Rate | 0.00% | 0.97% | |
| Amount of Ended Loans Defaulted | $0 | $3,220,059 | |
| Amount of Ended Loans | $0 | $331,493,600 | |
| Number Of Ended Loans Defaulted | 0 | 9,823 | |
| Currency Exchange Loss Rate | 0.00% | 0.02% | |
| Amount of Currency Exchange Loss | $0 | $77,435 | |
| Refund Rate | 0.00% | 0.96% | |
| Amount of Refunded Loans | $0 | $4,068,925 | |
| Number Of Refunded Loans | 0 | 4,589 |
Loan Characteristics On Kiva
Loan Characteristics On Kiva| This Field Partner | All Kiva Partners | ||
| Loans To Women Entrepreneurs | 0.00% | 74.04% | |
|---|---|---|---|
| Average Loan Size | $675 | $406 | |
| Average Individual Loan Size | $675 | $645 | |
| Average Group Loan Size | $0 | $1,741 | |
| Average Number Of Entrepreneurs Per Group | 0 | 8 | |
| Average GDP Per Capita (PPP) in Local Country | $0 | $3,347 | |
| Average Loan Size / GDP Per Capita (PPP) | 0.00% | 12.14% | |
| Average Time To Fund A Loan | 0.11 days | 4.69 days | |
| Average Dollars Raised Per Day Per Loan | $5,965.63 | $86.59 | |
| Average Loan Term | 5 months | 9.61 months |
Journaling Performance on Kiva
Journaling Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Total Journals | 0 | 202,746 | |
|---|---|---|---|
| Journaling Rate | 0.00% | 39.94% | |
| Average Number Of Comments Per Journal | 0.00 | 0.11 | |
| Average Number Of Recommendations Per Journal | 0.00 | 2.73 |
Borrowing Cost Comparison (based on 2009 data)
Borrowing Cost Comparison (based on 2009 data)| This Field Partner | Median for MFI Peers in Country | All Kiva Partners | ||
| Portfolio Yield | N/A | N/A | 35.14% | |
|---|---|---|---|---|
| Profitability (Return on Assets) | N/A | N/A | -0.41% | |
| Average Loan Size (% of Per Capita Income) | N/A | 6.44% | 46.81% |
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
Mark HemsworthBrian Magee