The LFSP supports communal farmers to access financial services that enable them to invest in farm enterprise diversification, productivity-enhancing technologies, non-farm economic activities and livelihood strategies. This is being achieved through a two pronged approach:
- Enhancing the savings, lending and investment capacity of community based microfinance institutions (CBMFIs) like Internal Savings and Lending Schemes (ISALS), SACCOs, and Commodity Associations.
- Enabling access to credit, savings and other financial services from formal Financial Institutions (FIs).
The main intervention for savings mobilisation is through formation and strengthening of CBMFIs and creating linkages with formal FIs while lending to the target groups by formal FIs is promoted through three instruments:
- Refinance Facility
- Guarantee facility
- Technical assistance facility
- LFSP facilitates the provision of financial services to rural communities through partnerships with Steward Bank, CABS, CBZ, Virl Financial Services, Microplan Financial Services, Intercrest Capital, Quest Financial Services, Inclusive Financial Services, and Zimbabwe Microfinance Fund.
- The programme supports Community Based Microfinance Institutions (CBMFIs). These comprise 50 SACCOS and 4,652 ISAL groups with a membership of 44,484 (77% women).
- LFSP provides technical assistance to financial service institutions
towards provision of Insurance, Savings, Remittances, and Mobile money
services. From 2015 to date:
- 24 financial products have been developed
- $12.4million in savings were mobilised by CBMFIs
- $27million in loans were disbursed through FI partners
- 36,823 farmers accessed loans