Zambuko Trust was awarded a grant of USD 500,000 by Africa Enterprise Challenge Fund (AECF) in October 2019. This was under the AECF’s Sub-Saharan Africa (SSA) Programme in Zimbabwe. The implementation of the project will be over 6 years from January 2020 to December 2025.
The objective of the project is to promote the acquisition and use of solar energy products by rural and peri-urban communities, making renewable energy accessible to marginalized communities. Zambuko will use this grant to provide cheaper and longer term credit to new and existing clients. Zambuko will also use this facility to promote the standard of living of women and youth in the rural and peri-urban areas.
The facility will also support those that are into income generating projects by providing financing for equipment such as solar water pumps, and solar incubators, amongst other products. The solar project will enable Zambuko diversify its product offering while fostering its vision to create sustainable wealth, empower communities and transform lives.
3.1.2 Business/ Projects
|Loan Type||Asset Financing|
|Interest Rate||3 to 5% per month|
|Application Fees||$5 payable upfront for individuals $10 payable upfront for businesses|
|Administration Fees||5% upfront/ factored into instalment|
|Loan Insurance||1% of the loan amount|
|Late Payment Fees||25% of monthly instalment|
|Loan Tenure||3 to 18 Months|
|Client Class||Deposit Paid||Interest Rate||Recommended Loan Tenure|
|Existing clients with good repayment record and sound loan repayment capacity||5% to 10%||3 %to 5% per month (All other charges as per above)||6 to 18 months|
|New client with verifiable repayment capacity||10%-25%||5% per month All other charges as per above||6 to 12 months|