Agora Microfinance Zambia Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Agora Microfinance Zambia (‘AMZ’), established in 2011, is a non-depositary microfinance institution (MFI) dedicated to serving low-income rural households and underserved (micro-)entrepreneurs in Zambia, a Least Developed Country (LDC). AMZ is a subsidiary of Agora Microfinance N.V., a Dutch holding group that owns different MFIs in India, Zambia, Botswana and South Africa with a mission to contribute to the economic well-being of low-income households.
What is our funding objective?
FMO proposes a senior, unsecured, amortizing term loan of USD 7.5 million equivalent in ZMW to AMZ, funded through the MASSIF facility with a committed tranche of USD 5 million and an uncommitted tranche of USD 2.5 million. The proceeds will be used to expand AMZ’s microenterprise loan book, specifically targeting agri-, women- and youth-led micro-, small-, and medium-sized entrepreneurs (MSMEs) in rural Zambia. FMO’s investment aims to support activities that contribute to financial flows to LDCs and Inclusive growth, contributing to SDG 10.
Why do we want to fund this investment?
FMO continues to support this long-term client (partnered since 2019) which has shown resilience in the face of challenging macroeconomic conditions in Zambia in recent years. Development Finance Institutions (DFIs) like FMO play a key role in funding AMZ, which is unable to access funding from local banks at affordable rates and terms.
What is the Environmental and Social categorization rationale?
This is an E&S Category C investment. Environmental and social (E&S) risks are considered low as the operations of AMZ, an MFI, are geared towards small-scale lending to microentrepreneurs in rural areas, with limited exposure to higher-risk E&S sectors. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
More investments
| Date | Total FMO financing |
|---|---|
| 6/2/2023 | USD 0.01 MLN |
| 6/28/2022 | USD 5.00 MLN |
| 12/9/2021 | EUR 0.01 MLN |
| 1/19/2023 | USD 2.50 MLN |
- Website customer/investment
- https://www.amz.co.zm/
- Region
- Africa
- Country
- Zambia
- Sector
- Financial Institutions
- Publication date
- 4/23/2026
- Deadline for feedback
- 5/23/2026
- Total FMO financing
- USD 5.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C