[INTERVIEW] African Facility: technical assistance for MLF Zambia

© MicroLoan Foundation (Zambia)

The African Facility is a mechanism set up in 2013 by the Grameen Crédit Agricole Foundation, in partnership with theFrench Development Agency (AFD), to support rural microfinance institutions in sub-Saharan Africa.

This system, which ends at the end of 2021, will have enabled 326 technical assistance missions to 26 microfinance institutions for a total amount of €3.52 million in subsidies.

 A look back at this program through the testimony of Jack Ngoma, Executive Director of MLF Zambia.

Established in 2008, MLF Zambia is a Tier 3 microfinance institution (credit portfolio < 10 million USD). At the end of December 2020, the institution offered credit products and training to a clientele of almost 23,000 women living in rural areas, for an outstanding loan of €830,217. As part of the African Facility's technical assistance program, MLF Zambia was supported in developing a business plan for the period 2021-2025. The consultant in charge of the mission, Thomas Lendzian, from Tukumuka Consulting, enabled the institution to frame its strategy and define an operational action plan, in particular to enable MLF Zambia to expand into new areas and find new sources of financing.

 Why was developing a business plan important for your institution?

An outside perspective was needed to thoroughly analyze the microfinance market in Zambia, to enable us to clearly position ourselves and strengthen our competitiveness. Furthermore, we wanted to be able to effectively communicate our long-term objectives to stakeholders, some of whom are potential investors. The support of the Grameen Crédit Agricole Foundation was very useful at every stage of the business plan implementation.

 What did you expect from the consultant? Did the results match your expectations?

We were looking for a firm with microfinance expertise and field experience that would help us improve our business planning process. Thomas Lendzian, from the local consulting firm Tukumuka Consulting, was the ideal candidate, and it turned out to be a particularly judicious and relevant recruitment. We appreciated his knowledge of the different regions of Africa, and Zambia in particular, as well as his understanding of industry strategies and trends. The business plan allowed us to better understand the local sector and precisely define our growth projections. We are now equipped to compete and have clarified our long-term objectives. Developing this business plan also allowed us to more clearly communicate our organizational objectives to our staff and stakeholders, and to approach investors identified as relevant.

 What are the priorities defined in the business plan? 

Among the strategic pillars of the five-year business plan, we are targeting significant growth, with the goal of serving 80,000 clients by 2025. We also aim to strengthen our operational efficiency through a revised lending methodology using agent networks and smart technology. We are also focusing on product diversification to provide clients with access to flexible credit products tailored to their activities, particularly agricultural ones. Through the formulation of this business plan, we also hope to establish strategic partnerships with relevant investors and business partners. Finally, strengthening MLF Zambia's social impact, particularly through client retention and improving women's living conditions, is a major objective for the coming years.