Zambia

Economy: Zambia is one of the poorest countries in the world, with 64% of the population living on less than $1/day, and 87% of the population living on less than $2/day. Zambia’s infant mortality rate is 87 deaths per 1,000 live births--nearly 14 times the U.S. rate. HIV/AIDS has killed over 14,000 and 950,000 people live with HIV/AIDS.

Zambia's unemployment rate is 50%. Copper mining is spurring economic growth, due to higher copper prices and the opening of new mines, but this has a negligible impact on the broader population. The maize harvest was good in 2005, helping boost GDP (just $900 on a per capita basis) and agricultural exports. Agriculture employs 85% of workers. Industry makes up 6% and services 9%.

Climate for microfinance:
• The regulatory environment is positive, according to draft regulations recently submitted by the Bank of Zambia, and the MFI lobby is actively involved in forming these regulations.
• Taxation of MFIs in the future is likely
• MFIs are required to register as either “deposit-taking” or “credit-only” institutions. Credit-only institutions do not have the right to intermediate deposits.

FINCA Zambia operates in Zambia's capital city of Lusaka and the Central, Southern, and Copperbelt Provinces. Many borrowers are single mothers; many care for orphans who have lost parents due to HIV/AIDS.

Their businesses include selling food crops, groceries, second hand clothes, charcoal, poultry and other goods, running make shift restaurants, and other small enterprises.