Lewis is an entrepreneurial farmer in Lundazi District, Zambia. He is asking for a loan to buy a new engine for his maize milling machine, so that he can provide a milling service to approximately 2,000 families in his community.
The maize milling machine takes raw maize (corn) and creates a flour which is the staple food in Zambia. Most rural families in Zambia grow maize on their small farms, store it, and use it as their primary supply of food. After the kernels are removed from the cob, they have to be milled to create flour, which can then be boiled to make what is locally called nshima.
Rent-to-Own has done research in Lewis’ community and has determined that the location for this equipment is ideal. The closest maize mill is in another community about 12 km away and since most will walk or use their bicycles to travel to the maize mill, it is certain they will prefer to use this maize mill rather than traveling a longer distance.
Equipment such as a maize mill can be a major boost for many rural farmers such as Lewis. However, the upfront costs of such a maize mill are very prohibitive. With this loan, Lewis will be able to get a new maize mill engine from Rent-to-Own, which will deliver the equipment to his farm, as well as provide him with training on how to use and maintain it. This loan will help Lewis on the path to building up a viable business that can provide a valuable service not only for his family, but also for the wider community throughout the year.
This loan is special because:
More about this loan
Rent-to-Ownis a social enterprise that supports entrepreneurs in rural Zambia by providing financing and access to productive assets at low prices. The company uses a product catalogue for clients to purchase equipment needed to grow their businesses, and a network of local agents who leverage their social networks to decide if clients are credit-worthy.
Once clients are approved, Rent-to-Own provides a holistic set of services including delivery, installation, training, and repair services for their equipment to give clients the highest possible chance of succeeding. All equipment has a 30% mark-up over Rent-to-Own’s purchase price. This mark-up covers all the logistical transportation costs that Rent-to-Own incurs in order to deliver the asset to the borrower, to provide training, ongoing support and to cover transaction costs. Kiva lenders’ funds are used to test new forms of asset financing to help more clients in new and innovative ways.
Rent-to-Own joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.