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AFRICA RURAL AND AGRICULTURAL CREDIT ASSOCIATION (AFRACA). Southern Africa Sub-Regional Workshop “Rural Finance Intermediation for Growth and Wealth Creation” Rainbow Towers, Harare, ZIMBABWE 4-6 November, 2009. BANKING ON WOMEN AND THE POOR. By Mrs Molly Dingani Retail Banking Executive

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africa rural and agricultural credit association afraca

AFRICA RURAL AND AGRICULTURAL CREDIT ASSOCIATION (AFRACA)

Southern Africa Sub-Regional Workshop

“Rural Finance Intermediation for Growth and Wealth Creation”

Rainbow Towers, Harare, ZIMBABWE

4-6 November, 2009

banking on women and the poor
BANKING ON WOMEN AND THE POOR

By

Mrs Molly Dingani

Retail Banking Executive

CBZ Bank Limited

about cbz bank ltd
ABOUT CBZ BANK LTD
  • Locally registered commercial bank
  • Offers comprehensive financial services cutting across all segments
  • 38 branches across the country
why bank women the poor
WHY BANK WOMEN & THE POOR?

Historically

  • Traditionally known as the “unbankable population”
  • “Unbankable” because they were unable to meet the normal banking requirements
why bank women the poor1
WHY BANK WOMEN & THE POOR?

About Women

  • Women have been generating income through agricultural activities and other income generating activities
  • If supported financially, they are able to do more and create capacity to make repayments
why bank women the poor2
WHY BANK WOMEN & THE POOR?

About the Economy

  • The economy has been informalised for almost a decade
  • It makes business sense for financial service providers to extend credit to the huge population of women and the poor
cbz bank microfinance
CBZ BANK MICROFINANCE
  • In 1996 the Bank made a strategic decision to extend financial services to the informal sector following the market liberalization policies adopted by the Government
  • The Bank sought technical partners i.e CARE International (technical assistance)and DFID (funding)
  • Thus the CBZ Microfinance Unit was birthed
the product
THE PRODUCT
  • Tailor made to cater for the low-income earners
  • The terms and conditions were designed to meet the specific market segment
  • The “groups concept” was one such concept
groups concept
GROUPS CONCEPT
  • To enable sharing of expertise and support
  • The group members would guarantee each other when accessing facilities thus creating responsibility for each other and accountability
the success story
THE SUCCESS STORY
  • 76% of the loans advanced during the period 1996 – 2008 were to women
  • To date over 2000 customers have benefited and 90% of these customers are women
  • A significant percentage has already graduated to SME Department and are now able to access higher amounts
  • Women are disciplined and have shown capacity to repay
  • A repayment rate of 95% has been achieved and repeat borrowers are able to access higher loans for extended periods
a success story
A SUCCESS STORY
  • A living example is “Good Hope Leather”
  • Now a producer of high quality leather products such as the leather folders that participants have received today
  • This client and many others associate their success with CBZ Bank and continue to refer other clients to us
other developments
OTHER DEVELOPMENTS
  • We have partnered with a non-governmental organization involved in supporting the less-priviledged members of society
  • The Bank is involved in administering their funds to their clients
  • We are also working with women associations by supporting their projects
  • The Bank launched a $250 000 Youth Development Project with the Ministry of Youth Development and Indigenisation and Empowerment as a way of supporting youth projects
  • The respnse has been overwhelming!
other developments1
OTHER DEVELOPMENTS
  • We are proud to state that through synergies with community-based organisations and multi-lateral agencies and non-governmental organizations we have managed to reach out to the rural poor even where we are physically represented!