On 18 December 2024, EDFI Management Company (EDFI MC), IDH Farmfit Fund and Abler Nordic announced an equity investment in an amount of ZMW 172,962,000 ~USD 6,26m in Agora Microfinance Zambia (AMZ). This strategic investment aims to transform AMZ into a deposit-taking Microfinance Institution and expand its reach to rural Zambian communities.
Agora Microfinance Zambia is a non-deposit microfinance institution established in 2011 to improve financial access in rural Zambia. AMZ serves over 150,000 clients across Zambia’s 10 provinces, focusing primarily on smallholder farmers and small traders. The institution operates through a network of 40 branches, reaching remote and underserved areas often neglected by other financial institutions.
Group loans make up around 75% of AMZ’s loan portfolio, but the Company has also expanded its offerings to include individual, agricultural, SME, and leasing loans, as well as life, health, and weather-index insurance, and mobile money services. AMZ’s vision is to create a Zambia where economic opportunities enable the poor to improve their livelihoods and lift themselves out of poverty. AMZ’s commitment to social impact has been recognized by 60 Decibels, ranking it as the 3rd best Microfinance Institution in Africa in the Microfinance Social Impact Awards. By 2030, AMZ aims to create 600 direct jobs, double the number of beneficiaries, and grow the agriculture-related portfolio by 400%.
The AgriFI ACP Regional Window, funded by the EU and the OACPS, and managed by EDFI Management Company, is dedicated to catalysing private investments in sustainable agriculture and agri-businesses in developing countries. Yvonne Chileshe, Expert on Value Chains at OACPS, emphasized the alignment of this investment with their goals, stating, “This investment in AMZ perfectly aligns with our objectives of promoting sustainable agriculture and financial inclusion in ACP countries. It demonstrates the power of collaborative efforts in driving meaningful change in rural communities.”
The Managing Director of Abler Nordic, Arthur Sletteberg, expressed enthusiasm for the partnership, adding, “We’re looking forward to collaborating with the team to broaden access to financial services in rural Zambia. AMZ’s ranking among Africa’s top three in the 2024 60 Decibels Microfinance Index really shows the impact they’re making in rural communities. With 94% of the surveyed customers reporting increased income and 82% accessing loans for the first time, AMZ are reaching underserved areas that others shy away from.”
The IDH Farmfit Fund, the world’s largest public-private impact fund for smallholder farmers, aims to transform rural finance by de-risking investments and fostering sustainable impact. According to Barbara Visser, Chief Operating Officer of IDH Investment Manager, the Manager of the Farmfit Fund: “This investment demonstrates the IDH Farmfit Fund’s commitment to advancing financial inclusion for smallholder farmers and will contribute to strengthening Agora’s operations.”
The CEO of Agora Microfinance Zambia, Susan Chibanga stated that “This investment underscores the confidence in the institution’s governance, scalability, and long-term potential. It’s a significant step towards financial inclusion, addressing systemic barriers to finance and promoting social impact by creating opportunities for economic participation. This investment will enable AMZ to diversify its offerings including opportunities for savings, increase outreach by opening new branches, and upgrade technology infrastructure. Our services empower low-income households and small entrepreneurs to build resilience, improve livelihoods, and generate wealth.”
Rodrigo Madrazo, CEO of EDFI Management Company, commented on the significance of the investment, saying, “Our investment in AMZ represents a significant step towards expanding financial access in rural Zambia. By supporting AMZ, we’re helping AMZ to pave the way for more affordable financial services for smallholder farmers.”