Transforming Lives Through Solar

When Are Personal Loans a Good Idea?
May 8, 2014

1. Background

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.

2. Target Market

  • Existing Zambuko customers with good credit history.
  • Customers of strategic solar partners enabling us to increase our reach to areas where we are not represented.
  • Customers based in rural; peri urban areas running business projects or household
  • Income generating ventures (groups/ individuals).
  • Rural Households; private schools and clinics.
  • Church linked business ventures.
  • Farming and small holder farming communities.
  • Growth points
  • Poor urban communities

3. Nature of the Product

3.1 Solar Product Ranges (to be supported)

3.1.1     Household

  • Solar lighting systems
  • Solar Home systems
  • Solar geysers

3.1.2     Business/ Projects

  • Solar Water pumps
  • Solar powered irrigation systems
  • Solar incubators
  • Solar lighting systems

3.2        SunShine Loan Product Features

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
Loan Currency USD/ZWL

3.3 Loan Categories

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