The AgriFin program of US-based NGO Mercy Corps, the UN Capital Development Fund and Zambia National Commercial Bank (Zanaco) recently partnered to create a digital financial services product in Zambia. Within four months, 3,000 farmers – just over half of them women – had enrolled to access the savings and remittances services of the program, dubbed AgriPay. About of a third of the users are youth, and 60 percent are members of the Cotton Association of Zambia. AgriPay attributes part of the success of its pilot program to approaching potential customers via previously existing organizations such as the cotton and dairy associations of the country.
Farmer Brillian Handondo said, “This account has really helped me. Once I receive money, I’m able to easily transact, such as sending money to my child in college.”
The initial rollout covered six provinces, with “Booster Teams” of 15 to 20 young people recruiting potential customers and agents. A total of 307 “Xpress” agents – mainly shopkeepers – joined the program. Future plans for AgriPay include using it to distribute financial literacy training and information on boosting agricultural yields.
Going forward, the organizers will consider: (1) increasing outreach by recruiting agents who will move from place to place to serve clients in more locations; and (2) training sales staff on local farming practices, such as to understand when farmers are more likely to be available to learn about and access new services.
Zanaco, which is 25-percent government owned, reported net income of ZMW 231 million (USD 14 million) for 2019, ending the year with total assets of ZMW 12 billion (USD 730 million).
Mercy Corps serves 29 million people in 40 countries as of 2020. Its service areas are climate, youth, technology, emergency response and social ventures.
UNCDF promotes “financial inclusion that expands the opportunities for individuals, households, and small businesses to…climb out of poverty and manage their financial lives” as well as demonstrating “how localized investments – through fiscal decentralization, innovative municipal finance, and structured project finance – can [support] local economic expansion and sustainable development.” During 2018, the organization took in donations of USD 69 million, operating in 40 countries in Africa and Asia. As part of this work, UNCDF supported financial services providers that have a total of 32 million customers.
Sources and Additional Resources
UNCDF press release
https://www.uncdf.org/article/5431/agripay-brings-digital-banking-to-thousands-of-zambian-farmers
Zanaco Bank homepage
https://www.zanaco.co.zm
AgriFin homepage
https://mercycorpsagrifin.org
Mercy Corps homepage
https://www.mercycorps.org
More news on Zambia
https://www.microcapital.org/?s=Zambia
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