Agora Microfinance Zambia

EDFI MC, through AgriFI ACP – Regional Window funded by the EU and OACPS, together with Abler Nordic, and IDH Farmfit Fund joined forces to empower Zambian rural communities through AMZ. This strategic investment combines AgriFI’s expertise as a catalyser, Abler’s commitment to sustainable finance, and IDH Farmfit’s de-risking model for smallholder farmers.

Project overview

Agora Microfinance Zambia is a microfinance institution dedicated to serving low-income, rural households in Zambia with appropriate financial products. Their mission is to contribute to the economic well-being of the poor through effective provision of appropriate financial services, among which small loans, insurance products, mobile money services and farming equipment leases.

Funding objective

AgriFI will invest close to USD 2.5 million equity. The financing aims at supporting the microfinance institution to grow its current portfolio and to reach out to more isolated rural people. It will also allow the company to become deposit-taking and therefore lower its cost of funds, which will in return allow to charge lower interest rates to its clients. 

Expected impact story

By 2030, AMZ aims to create 600 direct jobs, double the number of beneficiaries, and grow the agriculture-related portfolio by 400% .

Investment rationale

AgriFI is willing to support Agora Microfinance Zambia, a microfinance institution which provides access to finance to remote rural populations. AgriFI plays an additional and substantial catalytic role with its equity investment, helping the microfinance institution to become deposit-taking in order to charge lower rates to its clients

More info:

• Press release
• Disclosure
• Agora Microfinance Zambia