国际贸易中心（ITC）：赞比亚女性企业家融资指南

UnlockingFinanceinZambia

AWOMANENTREPRENEUR’SGUIDE

International

Trade

centre

Withthesupportof

UnlockingFinanceinZambia

AWOMANENTREPRENEUR’SGUIDE

ii

ABOUTTHEPAPER

Accordingtothe2021WorldBankReport,Zambianwomenentrepreneursownmorethanone-thirdofthecountry’ssmallbusinessesandmorethan40%ofitsmicroenterprises.DespitetheirpivotalroleintheZambianeconomy,womenencounteradisproportionatenumberofobstaclesinaccessingfinancialservices,hamperingtheireconomicpotentialandtheprogressionofgenderequity.

Inresponse,thisguidewascreatedasatoolforwomenentrepreneurstonavigatetheZambianfinanciallandscape,identifysuitablefundingoptionsandnarrowthegenderfinancegap.Drawingoninterviewswithpolicymakers,financialinstitutions,businessexpertsandotherkeystakeholders,UnlockingFinanceinZambia:Awomanentrepreneur’sguideofferspracticaltipsforwomenentrepreneurstosecurefunding.Italsoprovidesinformationtofundersinterestedinadoptingagender-lensapproachtofinance.

Publisher:InternationalTradeCentre

Title:UnlockingFinanceinZambia:Awomanentrepreneur’sguide

Publicationdateandplace:Geneva,December2023

Pagecount:60

ITCDocumentNumber:WYVC-23-141.E

Citation:InternationalTradeCentre(2023).UnlockingFinanceinZambia:AWomanEntrepreneur’sGuide.ITC,Geneva.

Formoreinformation,contact:AidaLizbethBecerraGarza,abecerra@

ITCencouragesthereprintingandtranslationofitspublicationstoachievewiderdissemination.Shortextractsofthispapermaybefreelyreproduced,withdueacknowledgementofthesource.Permissionshouldberequestedformoreextensivereproductionortranslation.

AcopyofthereprintedortranslatedmaterialshouldbesenttoITC.

Digitalimage(s)onthecover:©Sand©ITC

©InternationalTradeCentre(ITC)

ITCisthejointagencyoftheWorldTradeOrganizationandtheUnitedNations.

iii

FOREWORD

Zambia,akeyplayerintheAfricaneconomy,haswitnessedremarkablegrowthinrecentyears.Yet,toachievetrueinclusivityandequitablegrowth,itisimperativetoaddressthechallengesfacedbywomen-ownedand-ledbusinesses,especiallyaccesstofinance.

ThisguideisjointlyproducedbytheInternationalTradeCentre(ITC)andtheBankofZambiawithintheframeworkoftheSheTradesZambiaproject,whichisimplementedbyITCincollaborationwiththeZambianMinistryofCommerce,TradeandIndustryandtheZambiaDevelopmentAgency.ThisguideaimstoshedlightonthegenderfinancegapinZambiaandprovidepracticalsolutionstobridgethedivide.

WomenentrepreneursareprominentactorsinZambia’seconomy.Theyconstitute48%ofthelabourforceandownaround36%ofsmallbusinessesand42%ofmicroenterprisesinthecountry.Theirsuccesshingeslargelyonaccesstofinance,andthesebusinessesplayacriticalroleinunlockingeconomicgrowthandreducingpoverty.Whilethecountryhasmadecommendablestridesinreducingthegenderfinancegapinrecentyears,challengespersist.

Thisguideunveilsthegapbetweentheneedsofwomenentrepreneursandtheavailablefinancialproductsandservices.Itisbasedonin-depthinterviewswithwomenentrepreneurswithhighexportpotentialwhoaretakingpartinSheTradesZambiaandfinanciersoperatinginthecountry.Limitedaccesstofundinginformation,overwhelmingloanrequirements,unclearfundingcriteriaanddifficultiesinidentifyingsuitablefundingoptionsareamongthebarrierstheyface.

Toaddressthesegapsandsupportwomenentrepreneurs’efforts,thisguidehasbeendevelopedtoprovidestep-by-stepinstructionsonnavigatingthefinanciallandscapeinZambia.Italsoshowcasesthewiderangeofavailablefinancialproductsandservices.Moreover,itmayoffervaluableinsightforfundersinterestedinestablishingorstrengtheningagender-lensapproachtofinance.

ITCandtheBankofZambiashareacommonvisionofcreatingasupportiveecosystemthatfostersthesuccessofwomen-ownedbusinesses.Byremovingtheinequalitiesthathinderwomen’sparticipationintrade,improvingtheircompetitiveness,andstrengtheningtheirmarketandinvestmentlinkages,wetakeasignificantsteptowardsgeneratinginclusivegrowth,reducingpovertyandimprovinglivelihoodsforall.

Weextendourgratitudetothewomenentrepreneurs,financiersandgovernmentofficialswhogenerouslysharedtheirexperiencesandinsight,makingthisguidepossible.ItisourhopethatithelpsZambia’swomen-ledand-owned

businessesaccessthefundingtheyneed,sparksmeaningfuldialogueandcatalysesactiontoaddressthegenderfinancegap.

PamelaCoke-Hamilton

ExecutiveDirector

InternationalTradeCentre

iv

ACKNOWLEDGEMENTS

ITCexpressesitsgratitudetothosewhohavecontributedtotheproductionofthispublication.TheguidewaspreparedbyLindaZuze,aninternationalconsultantandaccess-to-financeexpertworkingforITCunderthesupervisionofAnnaZaleskiMori,PartnershipsandProgrammeOfficer,andAidaLizbethBecerraGarza,AssociateProgrammeOfficer(bothITC).ThanksareduetoTapiwaJanda(researchassistantworkingwithLindaZuzefordatacollectionandlogisticssupport).

WealsothankFionaShera,RaimundMoserandJudithFessehaie(allITC),aswellasChilesheMwambaWagner,RasyidahIbrahim(internationalconsultants)fortheirsupport,feedbackandcomments.

ITCthankstheBankofZambiaforitscontributiontothisguideandsupportofITC’sSheTradesZambiaproject.SpecialthanksareduetoHappyMulweandStellaNkhoma(BankofZambiaStaff).ITCwishestoexpressitsgratitudetothewomenentrepreneurs,financiersandgovernmentofficialswhosharedtheirinsight.

ITCwouldalsoliketothankNatalieDomeisenandAnneGriffin(bothITC),whooversawproductionandqualitycontrol,JanetHill,whoeditedthereport,DesignPlusforgraphicdesignandlayout,andSergeAdeagbo(ITC)forprintingsupport.

ITCSheTradesZambiaissupportedbyEIF.ITCSheTradesissupportedbythegovernmentsofDenmark,Finland,Germany,Iceland,Japan,Korea,Netherlands,NorwayandSweden,aswellastheEuropeanUnion,andtheFoodandAgricultureOrganizationoftheUnitedNations,theInternationalIslamicTradeFinanceCorporation,MaryKayandtheUnitedParcelService.

v

CONTENTS

Forewordiii

Acknowledgementsiv

Acronymsvii

Executivesummaryviii

CHAPTER1

WomenbusinessownersinZambia1

Whoarewomenentrepreneursandwhatfundingbarriersdotheyface?2

Snapshots5

Formalizationandrecordkeeping7

CHAPTER2

Applyingforfinance9

Choosingthebestproductforyourneeds10

Calculatehowmuchtoborrow10

Developabusinessplan11

Picktherighttypeoffunding12

Financialinstitutions13

Financialinstruments13

CHAPTER3

FinancialproductsandservicesavailableinZambia17

Fundingoptionswithagenderlens18

Public-sectorfunding19

Private-sectorfunding21

OtherfundingoptionsavailableforSMEs,withnodirectgenderlens28

Developmentpartners38

Funds,venturecapitalandothersourcesoffinancing40

CHAPTER4

Recommendationsforbusinessownersandfunders43

Keyrecommendations44

APPENDICES47

AppendixI:ThepolicylandscapeofbusinessfinanceforwomeninZambia48

AppendixII:Workedexampleofcalculatinghowmuchyoushouldborrow49

References50

Endnotes50

vi

Boxes

1:ToptipsfromRuthKayiraMooto,Textiles5

2:ToptipsfromAbigailMwailenge,Apparel6

3:ToptipsfromMbezaNsanganyi,Agriculture6

Figure

1:Whichfinancialoptionshouldyouchoose?12

Tables

1:Women’sentrepreneurship–definitionsandgeneralcriteria2

2:Step-by-stepguidelinestocalculatefundingneeds10

3:Elementsofbusinessplan11

4:Informalfundingsources13

5:Keyquestionsaboutinformalfinancinginstruments14

6:Formalfundingsources15

7:Choosingafinancinginstrument15

8:ConstituencyDevelopmentFund(CDF)19

9:ZambiaExportDevelopmentFund(ZDA)20

10:AbsaWomeninBusiness21

11:AccessBank,the‘W’initiative22

12:Lupiya23

13:ProsperoLimited24

14:StanbicAnakazibanking25

15:CapLimited25

16:ZANACO–ZeeWomenBanking27

17:Commercialbanks28

18:Impactinvestors30

19:Microfinanceinstitutions30

20:Businesssupportorganizations35

21:Fintechinstitutions37

22:Developmentpartners38

23:Venturecapitalandalternativesourcesoffinancing40

24:PolicylandscapeofbusinessfinanceforwomeninZambia48

vii

ACRONYMS

Unlessotherwisespecified,allreferencestodollars($)aretoUnitedStatesdollars,andallreferencestotonsaretometrictons.

BoZ

BankofZambia

CDF

ConstituencyDevelopmentFund

CEEC

CitizensEconomicEmpowermentCommission

CCPC

CompetitionandConsumerProtectionCommission

ISO

InternationalOrganizationforStandardization

ITC

InternationalTradeCentre

LuSE

LusakaStockExchange

MCTI

MinistryofCommerce,Trade,andIndustry

NAPSA

NationalPensionSchemesAuthority

NRC

NationalRegistrationCard

PACRA

PatentsandCompaniesRegistrationAgency

PIA

PensionsandInsuranceAuthority

SEC

SecuritiesandExchangeCommission

TPIN

TaxpayerIdentificationNumber

WEAC

Women’sEntrepreneurshipAccessCenter

We-Fi

WomenEntrepreneursFinanceInitiativeZambia

WLB

WomenLedBusiness

W-MSMEs

Women-ledMicro,SmallandMediumEnterprises

WOB

WomenOwnedBusiness

ZDA

ZambiaDevelopmentAgency

ZRA

ZambiaRevenueAuthority

©ITC

viii

UNLOCKINGFINANCEINZAMBIA:AWOMANENTREPRENEUR’SGUIDE

Executivesummary

UnlockingFinanceinZambia:Awomanentrepreneur’sguideisaresourcetohelpwomenbusinessownersinZambiaidentifysuitablefundingoptionsforbusinessgrowth.Itaddressesthebarriersthatthesewomenfacewhenaccessingcapital,describesacomprehensiverangeoffinancialproductsandservices,andofferspracticaladvicetoobtainfunding.

AlthoughwomenentrepreneursplayanimportantroleintheZambianeconomy,securingfundingtogrowandsustaintheirbusinesscanbedifficult.Thebarrierstheyfaceincludealackofcollateralforloansandinterestratesthatputborrowingmoneyoutofreach.Applyingforfundingcanbetime-consuming,especiallyconsideringotherdemandsontheirtime,suchaschildcare.Socialnormsaboutwhomakesfinancialdecisionsmayalsoplayarole.Somewomendon’tknowwhatfundingopportunitiesareavailableorhowmuchtheyneedtoborrow.Othersneedhelpcomparingthealternativesandputtingtogetheranapplication.

Theguideacknowledgesthechallengesthatwomenencounterinobtainingaccurateinformationaboutopportunitiesfortheirbusiness.ItseekstobridgethisinformationgapbyprovidingacomprehensiveoverviewofthefundingoptionsavailableinZambia.

Chapter1emphasizesthat,despitethesebarriers,viablefundingoptionsexistandwomencanimprovetheirchancesofsecuringfundingbytakingtargetedactions.Themostimportantstepistoformalizetheirbusiness.BusinessformalizationinvolvesregisteringandlicensingthebusinesstomeetZambianlegalrequirementsandisrequiredforaccessingformalcreditandinsuranceservices.Theguidealsocontainsinformationaboutwheretoregister.Businessownersshouldkeepaccuraterecordstosharewithpotentialfunders;goodrecord-keepingalsohelpsbusinessownerstotakeinformeddecisions.Manyinvestorsexpectawell-writtenbusinessplanwiththeapplication.Thischapterthereforeincludesastep-by-stepexplanationofhowtoformalizeabusinessandcreateabusinessplan,aswellasadetailedlistofthetypesofrecordsbusinessesshouldroutinelykeep.

Chapter2outlinesthetypesoffundingthatareavailableandhowtoidentifythemostappropriatefundingforthebusiness.Onekeyrecommendationisthatwomenbusinessownerscalculatetheexactamountoffundingtheyrequirebeforeembarkingonafundingsearch.Thisprocessallowsthemtoapproachpotentialfunderswithaclearunderstandingoftheirfinancialneeds.Developingabusinessplanwillalsogivefunder’smoreconfidenceintheirabilitytorepaythefunding.Forsomefunders,abusinessplanismandatory.

ix

UNLOCKINGFINANCEINZAMBIA:AWOMANENTREPRENEUR’SGUIDE

Choosingwhichfundinginstrumenttousewilldependonwhatisavailableandthestateofthebusiness.Werecommendaccessinggrants,ifpossible,becausetheyarethecheapestformoffunding.

Equityfinancinginvolvessellingpartofone’scompany.Thismayseemlikeaninexpensivesourceoffinance,butthebusinessownerwillneedtoshareprofitswiththeirequitypartner.AvarietyofloansareavailableinZambia;andlonger-termloansgenerallyneedcollateraltosecuretheloan.SomecompaniesinZambiacansourceangelinvestors,butbusinessownersshouldbeawareofthecostofthisfundingbeforeacceptingit.

Ifthebusinessisnotregistered,theseoptionsmaynotbeavailableandmaypushtheownertowardsinformalmechanisms.ManywomenentrepreneursinZambiausechilimbasorsavingsgroups.Becausethesegroupsarenotregulated,thereissomeriskattachedtousingthem.Thischapteroutlinesquestionstoaskbeforejoiningachilimbaorsavingsgrouptoreducetherisk.

Obtainingaloanfromasavingsgroupwillgenerallybelessonerousthanfromaformalfinancialinstitution.Theotherparticipantsinthesavingsgroupmayalsoserveasausefulresourceforthecompanyforidentifyingsuppliersandcustomers.Anotheroptionistousegovernmentfunding,forexamplethroughtheConstituencyDevelopmentFund.Applicationprocessestaketimeforthesefunds,sootheroptionsmaybeneededwhiletheadjudicationtakesplace.

Whiletheguidehighlightsfinancialproductsandservicesthathaveagenderlens,italsoacknowledgesthepresenceofotherfundingoptionsintheZambianmarket.Chapter3isacomprehensiveguidetothefundingavailableinZambiaforbothwomen-ownedbusinessesandthegeneralpopulation.Itprovidesadescriptionofthefunding,contactdetails,informationonwhoqualifies,detailsonhowtoapplyandwhatdocumentsareneeded,howmuchfundingacompanycanobtain,andunderwhatterms.

Theguidecoversprivateandgovernmentsourcesoffundingandconcessionalfinancingofferedbysomedevelopmentpartners.Byprovidingacomprehensivecatalogueofavailablefundingsources,theguideequipswomenbusinessownerstomakeinformeddecisionsabouttheirfundingstrategies.

Theguideemphasizesthatbothbusinessownersandfundershavearoletoplayinimprovingfundingprocesses.Itcallsforincreasedcollaborationamongthesestakeholderstoaddressthechallengesspecifictowomenentrepreneurs.RecommendationsforbusinessownersandfundersareprovidedinChapter4.Byworkingtogether,theycancreateanenablingenvironmentforgreateraccesstofundingforwomen-ownedbusinessesinZambia.

Werecommendthatwomenbusinessowners:

.Buildtheirnetwork;

.Knowtheirnumbers;

.Findamentortoofferguidanceandsupportaboutfundingwhenneeded;

.Keepfinancialrecordsuptodate;

.Exploredifferentfundingoptionsbecausesometakelongerthanothers;

.Learnfromeachunsuccessfulfundingapplication;

Forfunders,werecommend:

.Publicizefundingopportunitiesthroughasmanynetworksaspossible;

.Improvetheturnaroundtimeforloanapplications;

.Includecapacitybuildingwithinyourfundingpackages;

.Supplytoolsforwomeninbusinesstocomparefinancingoptions(formalandinformal);

.Shareresourcesthatwillhelpwomentofindbusinessmentors(localandinternational);

.Encourageformalization.

ThisguideaimstobeavaluableresourceforwomenbusinessownersinZambia.Byaddressingthebarrierstheyfaceinaccessingcapital,providinganoverviewoffundingoptionsandofferingpracticaladvice,theguideequipswomenentrepreneurstosuccessfullypursuetheirbusinessgrowthaspirations.Collaborationbetweenbusinessownersandfunderscanfosteranenvironmentthatsupportsandpromoteswomen’saccesstofunding.

©S

CHAPTER1

WOMENBUSINESSOWNERS

INZAMBIA

WHOAREWOMENENTREPRENEURSANDWHATFUNDINGBARRIERSDOTHEYFACE? 2

SNAPSHOTS 5

FORMALIZATIONANDRECORDKEEPING 7

2

UNLOCKINGFINANCEINZAMBIA:AWOMANENTREPRENEUR’SGUIDE

CHAPTER1

WomenbusinessownersinZambia

WHOAREWOMENENTREPRENEURS

ANDWHATFUNDINGBARRIERSDOTHEYFACE?

WomenentrepreneursplayanimportantroleincreatingjobsandgrowingtheZambianeconomy,butmanystruggletosecurefundingtoexpandtheirbusiness.Womenreportthattheycannotraisefundingbecausetheydonothavecollateralforloanswhichtendtobestringentandinterestratesaretoohigh.Applyingforfundingtakestime,timethatwomenoftenneedtomanagemultipleresponsibilities.Socialnormscanbeanotherasetback(forexample,ifwomenneedpermissiontoapplyforfunding).

Somewomentendnottobeawareofwhatfundingoptionsareavailable,orhowtoaccessthem.Thisguideisdesigned

tohelpZambianwomenfindtherightbusinessfunding.Whiletheexamplesarelargelydrawnfromthetextiles,clothingandagriculturesectors,theguidelinescanbeusefultoanywomanentrepreneurorsupportorganizationinterestedinfindingwaystoaccessfunding,regardlessofbusinesssizeorsector.

Stakeholdersworldwideusevariousdefinitionstodescribeenterprisesownedorledbywomen,whichisproblematicasitdelaystheimpl