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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. By Mrs Molly Dingani Retail Banking Executive

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AFRICA RURAL AND AGRICULTURAL CREDIT ASSOCIATION (AFRACA)

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  1. 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

  2. BANKING ON WOMEN AND THE POOR By Mrs Molly Dingani Retail Banking Executive CBZ Bank Limited

  3. ABOUT CBZ BANK LTD • Locally registered commercial bank • Offers comprehensive financial services cutting across all segments • 38 branches across the country

  4. WHY BANK WOMEN & THE POOR? Historically • Traditionally known as the “unbankable population” • “Unbankable” because they were unable to meet the normal banking requirements

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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!

  13. 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!

  14. CONCLUSION

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