EFC Zambia


EFC Zambia (Entrepreneurial Financial Center) is an microfinance institution (MFI) that offers both credit and savings to micro and small entrepreneurs living in urban and peri-urban areas. Compared to traditional microfinance, EFC Zambia targets higher end clientele, with an average outstanding loan of USD 3,400. BIO’s loan aims at the growth of the micro and small enterprises loan portfolio of EFC.

EFC Zambia’s founder is Développement International Desjardins (DID), a member of the Canadian Desjardins Group. Upon the signing of the partnership in 2008, DID decided to implement its tested business model of Entrepreneur Financial Centers (EFC) and to transform the existing company “Pulse Financial Services” into a full-fledged microfinance institution.

Micro and small entrepreneurs play an essential role in the development of emerging economies. A major obstacle to the growth of these enterprises is the lack of access to adequate financing and other related services, such as savings, insurance and remittances. The development of the microfinance sector worldwide increasingly fills this gap; professional microfinance institutions provide an adapted financial services to micro-entrepreneurs who need to grow their activities, mobilise their small savings on a large scale and bring transactions they generate back into the financial system, enhancing the role of the formal financial sector as a facilitator of economic activity.

Zambia has a very young micro-financial systems, as few MFIs are existing, and none of them has reached a significant scale. This implies that the level of financial exclusion is particularly high in the country.

In funding EFC Zambia, BIO will encourage the further growth of a reputable microfinance player and contribute to the development of a sustainable and diversified microfinance industry in Zambia. Last but not least, this transaction has as well to be seen in the framework of the collaboration agreement signed between DID and BIO early 2012. This transaction is the second investment realized by BIO in a DID’s affiliate, after EFC Uganda where BIO is a shareholder.

The development impact of BIO’s loan is expected to be significant in terms of improving access of micro and small entrepreneurs to financing, stimulating economic growth and employment generation. BIO is eager to support an MFI which developed detailed procedures and policies on social aspects. The clients protection principles (CPP) are already as well included in the procedures.

Website: www.efczambia.com.zm

More information on CPP as part of SMART campaign: www.smartcampaign.org

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  • Development impacts :

    • 1 — Improving access of micro and small entrepreneurs to financing
    • 2 — Stimulating economic growth
    • 3 — employment generation

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