Zambuko Trust

According to the World Bank, Zimbabwe had an estimated population of 13.15 million people in 2004, of whom 54% were between the ages of 15 and 64. While recent unemployment figures were not available, the Bank reported that in 1999, the unemployment rate was 6%. The UN Human Development Report indicates that the proportion of Zimbabweans living on less than US$2 a day in 2003 was 83.0%, compared to 56.1% of the population which survived on less than US$1 per day. Zimbabwe’s GINI coefficient, which measures its income distribution, was 0.568 in 2003 according to the same report.

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. (Carolyn Barnes, p1).

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.” (p3)

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” (p2).

“The results from the impact analysis of the survey data, which controlled for specific, initial differences, make a strong case that Zambuko’s program has a positive impact on its clients. In some areas, microfinance appears to have an impact only on repeat continuing clients. Zambuko’s program has a positive impact on clients from extremely poor households, especially among those who remain in the program.” (p4)

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 nutritious foods were consumed and the diversification of income sources among departing clients

However, the income level in 1999 did not appear to be related with Zambuko’s program. Also, 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 have been unaffected by participation in the microfinance program, which shows us that the positive impact of microfinance does exist but not dramatic.

Enterprise Level

▪ Net revenue: There were decreases in the enterprises of the extremely poor. However, further analysis suggests that Zambuko’s repeat continuing clients received a positive impact on the inflation-adjusted value of the monthly net revenue.

▪ Employment:

▪ Value of assets

Individual Level

▪ Individual savings

▪ Greater self-esteem

▪ Greater self-confidence

▪ Clients’ ability to plan for the future