Zambia - Startup under 3 years old

Describe your project or startup in a few words

This service is offered to women entrepreneurs running small businesses in Zambia, Our lending model operates without collateral, emphasizing mutual support and networking among women. We offer financial literacy training and networking opportunities

01.01 Describe your startup in more detail

Brace Loans Services is a pioneering solidarity micro-finance institution committed to empowering women entrepreneurs in Zambia through innovative financial solutions, targeted interventions, and advocacy efforts. We strive to create a more inclusive and prosperous society where every woman has the opportunity to thrive as an entrepreneur. Our existence is anchored on the belief that every woman deserves a chance to unveil their potential. Women entrepreneurs are essential to economic and family development, as such we dedicate ourselves to helping them access the finance needed to start, grow, and sustain their businesses through our model of lending called solidarity lending. Our business model enables women to access finance without collateral, accompanied by basic financial literacy training and networking opportunities to foster a supportive community of entrepreneurs.

01.02 What is the main problem you are trying to solve?

Our Solidarity Group lending model is a powerful solution that address specific challenges like; 1. lack of physical collateral;- Many Zambians lack sufficient physical collateral to secure traditional loans from financial institutions 2. Limited credited history;- Most Zambians have limited or no credit history, making it challenging for them to qualify for individual loans. 3.Access to financial Services;- Many Zambians leaving in poverty lack access to formal financial services. All in all, our project addresses barriers related to collateral, credit history, community support and financial inclusion. By leveraging social bonds, we create pathways for economic empowerment and sustainable development.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

In response to major problems faced by most Zambians concerning financial inclusion, our project provides the following solutions/ benefits; 1. Our solidarity group loans provide access to credit to women entrepreneurs. As group members repay loans successfully. Their creditworthiness improves, allowing them to access larger loans in the future. 2. Our solidarity group loan circumvents the issue of collateral by relying on social collateral instead of assets, the group members vouch for each other creating a collective guarantee for repayment. This approach enables borrowers who would otherwise be excluded due to lack of collateral to access credit. 3. Solidarity Groups foster a sense of community and mutual support. members encourage each other, share knowledge and hold one another accountable. When a member faces financial difficulties, the group rallies to help. this cohesion strengthens financial resilience promotes responsible borrowing.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

Solidarity groups provide crucial financial support to small-scale farmers involved in cultivating seasoned crops such as maize, soybeans, sunflower and groundnuts and women business owners operating small businesses in Zambia. In a nutshell, Our group solidarity lending model addresses barriers related to, collateral, credit history, community support and financial inclusion. By leveraging social bonds, we create pathways for economic empowerment and sustainable development.

01.05 When was your company established?

2021-09-27

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

1

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

Ensures that everything runs smoothly from one day to another by maximizing processes and procedures while meeting customer expectations in terms of cost-effectiveness. She Holds a Diploma in Education from Malcom moffat college. Her Exceptional interpersonal skills set her aside as bring warm experiences having worked for different organisations

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://web.facebook.com/profile.php?id=61550057164222

01.11 Which industry best describes your project?

g) Financial services

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

Solidarity group lending operates on the principle of social collateral. It allows individuals without sufficient physical assets to access credit. Relying on group guarantees includes marginalized populations who would otherwise be excluded from formal financial services due to lack of collateral. This inclusion contributes directly to poverty reduction by empowering vulnerable communities. Solidarity groups also foster a sense of community and mutual responsibility. Members support each other, share knowledge, and encourage responsible borrowing. When a member faces financial challenges, the group rallies to help, reducing the risk of loan default. This social cohesion strengthens financial resilience and promotes responsible financial behavior. Many Zambians lack credit history, making it difficult for them to qualify for individual loans. This service allows members to collectively build their creditworthiness.

02.02.01 My startup contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification for my startup

Solidarity group lending operates on the principle of social collateral. It allows individuals without sufficient physical assets to access credit. By relying on group guarantees, it includes marginalized populations who would otherwise be excluded from formal financial services due to lack of collateral. This inclusion contributes directly to Zero Hunger by empowering vulnerable communities and women entrepreneurs.

02.03.01 My startup contributes to the Good health and well-being goal

7 - Strongly Agree

02.03.02 Good health and well-being - Justification for my startup

We believe once the vulnerable community has access to financial services, they can automatically afford a healthy lifestyle. Our service offers vulnerable communities an opportunity to be financially included and build a better financial stamina.

02.04.01 My startup contributes to the Quality education goal

7 - Strongly Agree

02.04.02 Quality education - Justification for my startup

If a vulnerable citizen is financially handicapped, he/she can barely afford a good education. we have testimonies of women who have been able to take their children to better schools through our service. By providing the vulnerable an opportunity to access financial services, we empower households to afford quality and good education.

02.05.01 My startup contributes to the Gender equality goal

7 - Strongly Agree

02.05.02 Gender equality - Justification for my startup

Our solidarity Group Loan is mostly meant for women entrepreneurs. We believe empowering women is empowering a community and a nation at large.

02.06.01 My startup contributes to the Clean water and sanitation goal

2

02.06.02 Clean water and sanitation - Justification for my startup

We mostly talk about financial literacy and offer an opportunity for vulnerable women and individuals to access finacial services. So to some extent, this contributes to a clean water and sanitation program because the after being empoweredfinancially, one can then afford clean water and sanitation.

02.07.01 My startup contributes to the Affordable and clean energy goal

7 - Strongly Agree

02.07.02 Affordable and clean energy - Justification for my startup

If the major problem the vulnerable community faces is poverty, then not until that is sorted, you cant even talk about affordable and clean energy. In our quest liberate these communities from poverty, we provide financial literacy training which then gives them clarity on how to handle life's challenges. At this point they can now afford clean and affordable energy. So we contribute greatly to this goal by providing financial support.

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

This is our core business. solidarity group lending fosters financial inclusion, builds credit histories, supports agriculture, and strengthens community bonds. By addressing poverty at its roots, it contributes significantly to achieving decent work and economic growth in Zambia.

02.09.01 My startup contributes to the Industry innovation and infrastructure

6

02.09.02 Industry innovation and infrastructure - Justification for my startup

We are one of the pioneering companies providing this service in Zambia so far, The service is coming up well and women are being helped. We believe by being part of the industry through our service provision, we contribute immensely to the industry innovation and infrastructure.

02.10.01 My startup contributes to the Reduced inequalities goal

3

02.10.02 Reduced inequalities - Justification for my startup

We carter for all people but mostly women

02.11.01 My startup contributes to the Sustainable cities and communities goal

7 - Strongly Agree

02.11.02 Sustainable cities and communities - Justification for my startup

We are one of the pioneering companies providing this service in Zambia so far, The service is coming up well and women are being helped. By being part of the industry through our service provision, we contribute immensely to the sustainable city and community goal.

02.12.01 My startup contributes to the Responsible consumption and production goal

4

02.12.02 Responsible consumption and production - Justification for my startup

We are one of the pioneering companies providing this service in Zambia so far, The service is coming up well and women are being helped. By being part of the industry through our service provision, we contribute immensely to the industry innovation which inturn breeds responsible consumption and production.

02.13.01 My startup contributes to the Climate action goal

6

02.13.02 Climate action - Justification for my startup

Solidarity lending contributes to climate action in several ways: Solidarity loans can finance the adoption of sustainable agricultural practices, such as organic farming, which reduces the use of harmful chemicals and promotes biodiversity. They can also fund renewable energy projects, like solar installations for homes and businesses, reducing reliance on fossil fuels. Encouraging Climate-Smart Agriculture: Loans can help farmers invest in climate-resilient crops and irrigation systems that conserve water, improving food security while adapting to changing climate conditions. Promoting Green Entrepreneurship: By providing capital to start or expand eco-friendly businesses, solidarity lending supports economic activities that have a lower environmental impact. Facilitating Community-Led Environmental Projects: Groups can use loans to undertake community projects like tree planting, waste management, or water conservation efforts, directly contributing to environmental protection.

02.14.01 My startup contributes to the Life below water goal

7 - Strongly Agree

02.14.02 Life below water - Justification for my startup

Solidarity lending can contribute to the “Life Below Water” goal by supporting initiatives that protect and preserve marine ecosystems: Funding Sustainable Fisheries: Loans can help fishers adopt sustainable fishing practices that prevent overfishing and protect fish stocks. They can also finance equipment like eco-friendly nets that reduce bycatch and harm to non-target species. Aquaculture Development: Solidarity loans can support the establishment of sustainable aquaculture operations that provide alternative livelihoods and reduce pressure on wild fish populations. Marine Conservation Projects: Groups can use loans to fund conservation efforts such as coral reef restoration, mangrove reforestation, or beach clean-up activities. Promoting Eco-Tourism: By providing capital for eco-tourism businesses, solidarity lending encourages economic activities that raise awareness about marine conservation while providing income for coastal communities.

02.15.01 My startup contributes to the Life on land goal

7 - Strongly Agree

02.15.02 Life on land - Justification for my startup

Solidarity lending can contribute to the “Life on land” goal by supporting initiatives that protect and preserve land ecosystems:

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

7 - Strongly Agree

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

Solidarity lending contributes to the “Peace, Justice, and Strong Institutions” goal in several impactful ways: Promoting Social Cohesion: By requiring group cooperation, solidarity lending fosters a sense of community and mutual trust among members, which can contribute to a more peaceful society. Enhancing Access to Justice: Access to financial services can empower individuals to seek legal redress and protect their rights, as they have the economic means to do so. Supporting Community Governance: Solidarity lending groups often establish their own rules and regulations, which can serve as a model for participatory governance and accountability within communities. Encouraging Transparency: The group lending model requires transparency in financial dealings, which can help instill broader values of honesty and integrity in public life. Solidarity lending programs may offer training in financial literacy and management, helping to strengthen local institutions.

02.17.01 My startup contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification for my startup

We act and are directly involved with the activities of the community. In so doing we partner greatly for the goal and are ready to run side by side with other players for the goals.

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

5

06.02 The product/service represents an entirely new type of product/service.

5

06.03 The product/service could be described as a new technology.

6

06.04 The product/service is an improvement on an existing product or service.

7 - Strongly Agree

06.05 The product/service could be described as an extension of a range of products or services.

6

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

06.07 The product/service is a new version of an old product/service.

1 - Strongly Disagree

06.08 Justification for my startup

Brace Loans Services specializes in providing solidarity loans to women entrepreneurs running small businesses in Zambia. Our lending model operates without the need for collateral, emphasizing mutual support and networking among borrowers. We offer financial literacy training and facilitate networking opportunities to empower our clients and foster a supportive community of entrepreneurs.

06.09 Competitive Analysis

ASA Microfinance Zambia, FINCA, and Vision Fund Zambia are the most prominent and dominating organizations operating solidarity lending models in Zambia. They share a bigger portion of the market and possess extensive experience having been the pioneers of this model in Zambia and are well known for this service. However, they all possess similar strengths and weaknesses which include, high administrative fees, poor customer service and low customer retention. Except ASA Microfinance Zambia has affordable admin fees as well as interest rates but lacks proper customer service in their administration of their service which affects their customer retention rate.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

Yes, by providing access to financial services to community women entrepreneurs, we greatly promote female entrepreneurs So far, we have more than 10 solidarity groups in communities with a membership of more than 100 active borrowers for which 95% are female.