Zambuko Trust: Difference between revisions
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In 2004, Zimbabwe had an estimated population of 13.15 million people according to the data collected by the World Bank. Among the population, 54% were between the ages of 15 and 64. Although recent unemployment figures are not available, the Bank reported that the unemployment rate was 6% in 1999. According to the UN Human Development Report, the proportion of Zimbabweans living on less than US$2 a day in 2003 was 83.0%, and 56.1% of the population survived on less than US$1 per day. | In 2004, Zimbabwe had an estimated population of 13.15 million people according to the data collected by the World Bank. Among the population, 54% were between the ages of 15 and 64. Although recent unemployment figures are not available, the Bank reported that the unemployment rate was 6% in 1999. According to the UN Human Development Report, the proportion of Zimbabweans living on less than US$2 a day in 2003 was 83.0%, and 56.1% of the population survived on less than US$1 per day (UNICEF). | ||
Micro-enterprises are an important source of employment in Zimbabwe. According to the data in 1998, an estimated 860,000 micro and small enterprises were engaged in manufacturing, commerce and service activities, and approximately 25 percent of Zimbabwe’s working population got jobs or self-employment from these enterprises. | |||
The U.S. Agency for International Development’s Assessing the Impacts of Microenterprise Services (AIMS) Project has three longitudinal studies, and one of them is the assessment of Zambuko Trust, Zimbabwe. The main objective of the assessment is to determine the nature, extent and distribution of impacts from participation in Zambuko’s program (Barnes, p. 1). | |||
Zambuko began in 1992 and is a partner in the Opportunity International Network. “It offers group co-guaranteed loans and individual loans backed by guarantors to individuals who have a microenterprise that is at least six months old, are not employed fulltime elsewhere, and have an enterprise that is deemed to be financially viable. The loans are normally nine to twelve months in duration and repaid on a monthly basis." They also provide business management training to help borrowers. “Since 1996 it has extended more than 10,000 loans each year. It issues more loans to microentrepreneurs than any other organization in Zimbabwe” (Barnes, p. 3). | |||
Zambuko began in 1992 and is a partner in the Opportunity International Network. “It offers group co-guaranteed loans and individual loans backed by guarantors to individuals who have a microenterprise that is at least six months old, are not employed fulltime elsewhere, and have an enterprise that is deemed to be financially viable. The loans are normally nine to twelve months in duration and repaid on a monthly basis." They also provide business management training to help borrowers. “Since 1996 it has extended more than 10,000 loans each year. It issues more loans to microentrepreneurs than any other organization in | "According to the assessment, during the study period in Zimbabwe, there were two factors affecting the environment of microfinance: inflation and HIV/AIDS. “The annual inflation rate rose from 14 percent in 1997 to 32 percent the following year and then jumped to 70 percent in 1999” (Barnes, p. 2). | ||
Based on the results from the impact analysis of the survey data, Zambuko's program has a positive impact on its clients. While microfinance appears to have an impact only on repeat continuing clients in some areas, "Zambuko’s program has a positive impact on clients from extremely poor households, especially among those who remain in the program” (Barnes, p. 4). | |||
According to the assessment, during the study period in Zimbabwe, there were two factors affecting the environment of microfinance: inflation and HIV/AIDS. “The annual inflation rate rose from 14 percent in 1997 to 32 percent the following year and then jumped to 70 percent in 1999” ( | |||
Based on the results from the impact analysis of the survey data, Zambuko's program has a positive impact on its clients. While microfinance appears to have an impact only on repeat continuing clients in some areas, "Zambuko’s program has a positive impact on clients from extremely poor households, especially among those who remain in the | |||
'''Household Level''' | '''Household Level''' | ||
▪ Client households acquiring assets: The spending on household durable assets, which improve the quality of life for women who are responsible for preparation of meals. | |||
▪ | ▪ Education of children: The data suggest that Zambuko’s program had an positive impact on the education of boys aged 6 to 16 in client household. | ||
▪ Health level: The frequency of nutritious foods were consumed and the diversification of income sources among departing clients have been improved. | |||
▪ | |||
▪ | |||
However, there are still areas that have been unaffected by microfinance programs, such as the income level in 1999, the value of assistance given to non-household members, education of household’s girls aged 6 to 16, expenditures on housing improvement , and acquisition of a television, electric fan or means of transport. This fact shows us that microfinance does have positive impact on many things, but on everything and the level of the impact various as well. | However, there are still areas that have been unaffected by microfinance programs, such as the income level in 1999, the value of assistance given to non-household members, education of household’s girls aged 6 to 16, expenditures on housing improvement , and acquisition of a television, electric fan or means of transport. This fact shows us that microfinance does have positive impact on many things, but on everything and the level of the impact various as well. | ||
'''Enterprise Level''' | '''Enterprise Level''' | ||
▪ Net revenue: There were decreases in the enterprises of the extremely poor. Further analysis suggests that Zambuko’s repeat continuing clients received a positive impact on the inflation-adjusted value of the monthly net revenue. However, “the estimated values in 1999 did not suggest that microfinance had an impact on the level of income from all the household’s enterprises” (Barnes, p. 6). | |||
▪ Employment: The study shows that the participation in the microfinance program does not have an impact on employment. However, the reason is most likely because of the unfavorable economic conditions in 1999. | |||
▪ Value of assets: All tend to be higher. | |||
Individual Level | |||
The impact on borrowers for participating in a microfinance program may be either positive or negative. But “the case study findings support the hypotheses that participation in a microfinance program can lead to greater self-esteem and self-confidence, and enhances clients’ ability to plan for the future” (Barnes, p. 7). | |||
'''Bibliography''' | |||
"Zimbabwe." UNICEF. UNICEF. 14 Dec 2007 <http://www.unicef.org/infobycountry/zimbabwe_1403.html>. | |||
Barnes, Carolyn. "Microfinance Program Clients and Impact: An Assessment of Zambuko Trust, Zimbabwe". Octobor, 2001 | |||
Written by Duoyi Zhao | |||
Revision as of 19:28, 15 December 2007
In 2004, Zimbabwe had an estimated population of 13.15 million people according to the data collected by the World Bank. Among the population, 54% were between the ages of 15 and 64. Although recent unemployment figures are not available, the Bank reported that the unemployment rate was 6% in 1999. According to the UN Human Development Report, the proportion of Zimbabweans living on less than US$2 a day in 2003 was 83.0%, and 56.1% of the population survived on less than US$1 per day (UNICEF). Micro-enterprises are an important source of employment in Zimbabwe. According to the data in 1998, an estimated 860,000 micro and small enterprises were engaged in manufacturing, commerce and service activities, and approximately 25 percent of Zimbabwe’s working population got jobs or self-employment from these enterprises.
The U.S. Agency for International Development’s Assessing the Impacts of Microenterprise Services (AIMS) Project has three longitudinal studies, and one of them is the assessment of Zambuko Trust, Zimbabwe. The main objective of the assessment is to determine the nature, extent and distribution of impacts from participation in Zambuko’s program (Barnes, p. 1).
Zambuko began in 1992 and is a partner in the Opportunity International Network. “It offers group co-guaranteed loans and individual loans backed by guarantors to individuals who have a microenterprise that is at least six months old, are not employed fulltime elsewhere, and have an enterprise that is deemed to be financially viable. The loans are normally nine to twelve months in duration and repaid on a monthly basis." They also provide business management training to help borrowers. “Since 1996 it has extended more than 10,000 loans each year. It issues more loans to microentrepreneurs than any other organization in Zimbabwe” (Barnes, p. 3).
"According to the assessment, during the study period in Zimbabwe, there were two factors affecting the environment of microfinance: inflation and HIV/AIDS. “The annual inflation rate rose from 14 percent in 1997 to 32 percent the following year and then jumped to 70 percent in 1999” (Barnes, p. 2). Based on the results from the impact analysis of the survey data, Zambuko's program has a positive impact on its clients. While microfinance appears to have an impact only on repeat continuing clients in some areas, "Zambuko’s program has a positive impact on clients from extremely poor households, especially among those who remain in the program” (Barnes, p. 4).
Household Level ▪ Client households acquiring assets: The spending on household durable assets, which improve the quality of life for women who are responsible for preparation of meals. ▪ Education of children: The data suggest that Zambuko’s program had an positive impact on the education of boys aged 6 to 16 in client household. ▪ Health level: The frequency of nutritious foods were consumed and the diversification of income sources among departing clients have been improved. However, there are still areas that have been unaffected by microfinance programs, such as the income level in 1999, the value of assistance given to non-household members, education of household’s girls aged 6 to 16, expenditures on housing improvement , and acquisition of a television, electric fan or means of transport. This fact shows us that microfinance does have positive impact on many things, but on everything and the level of the impact various as well.
Enterprise Level ▪ Net revenue: There were decreases in the enterprises of the extremely poor. Further analysis suggests that Zambuko’s repeat continuing clients received a positive impact on the inflation-adjusted value of the monthly net revenue. However, “the estimated values in 1999 did not suggest that microfinance had an impact on the level of income from all the household’s enterprises” (Barnes, p. 6). ▪ Employment: The study shows that the participation in the microfinance program does not have an impact on employment. However, the reason is most likely because of the unfavorable economic conditions in 1999. ▪ Value of assets: All tend to be higher. Individual Level The impact on borrowers for participating in a microfinance program may be either positive or negative. But “the case study findings support the hypotheses that participation in a microfinance program can lead to greater self-esteem and self-confidence, and enhances clients’ ability to plan for the future” (Barnes, p. 7).
Bibliography
"Zimbabwe." UNICEF. UNICEF. 14 Dec 2007 <http://www.unicef.org/infobycountry/zimbabwe_1403.html>. Barnes, Carolyn. "Microfinance Program Clients and Impact: An Assessment of Zambuko Trust, Zimbabwe". Octobor, 2001
Written by Duoyi Zhao
