Agora Group invites new equity investors in Agora Microfinance Zambia
Agora Group’s Holding Company, AMNV has entered into an agreement – subject to regulatory approvals in Zambia – to invite three impact investors as new shareholders into its subsidiary Agora Microfinance Zambia. EDFI Management Company (EDFI MC), IDH Farmfit Fund and Abler Nordic announced today an equity investment to further the progress of Agora Microfinance Zambia (AMZ).
Once approved the transaction will substantially enhance AMZ’s capital position and enable it to reach more clients with an expanded product range, thereby enhancing the impact achieved by AMZ in rural Zambia. At the same time, AMZ will also be able to tap into the new investors’ expertise in the areas of rural and impact finance.
Agora Group CEO and Chairman of AMZ, Tanmay Chetan, and Agora Group’s CFO Roanna Peat, both of whom worked on this agreement, said that “the joining of forces with three high quality impact investors marks a new chapter in the evolution of AMZ, one that places it firmly in the forefront of financial inclusion and impact in Zambia. AMZ’s work already touches millions of lives through loans, leases, insurance and mobile money products, and this proposed investment will provide it with the platform to be one of the most consequential financial institutions in the country. We look forward to this new era of its evolution.”
Speaking on this development Susan Chibanga, CEO, said “This investment underscores the confidence in the institution’s governance, scalability, and long-term potential. It’s a significant step towards financial inclusion, addressing systemic barriers to finance and promoting social impact by creating opportunities for economic participation.”
This investment will enable AMZ to diversify its offerings including opportunities for savings, increase outreach by opening new branches, and upgrade technology infrastructure. Our services empower low-income households and small entrepreneurs to build resilience, improve livelihoods, and generate wealth.”
Representatives of the new investors shared their excitement and expectations about the proposed investment –
Rodrigo Madrazo, CEO of EDFI Management Company, commented on the significance of the investment, saying, “Our investment in AMZ represents a significant step towards expanding financial access in rural Zambia. By supporting AMZ, we’re helping AMZ to pave the way for more affordable financial services for smallholder farmers.”
The Managing Director of Abler Nordic, Arthur Sletteberg, expressed enthusiasm for the partnership, adding, “We’re looking forward to collaborating with the team to broaden access to financial services in rural Zambia. AMZ’s ranking among Africa’s top three in the 2024 60 Decibels Microfinance Index really shows the impact they’re making in rural communities. With 94% of the surveyed customers reporting increased income and 82% accessing loans for the first time, AMZ are reaching underserved areas that others shy away from.”
The IDH Farmfit Fund, the world’s largest public-private impact fund for smallholder farmers, aims to transform rural finance by de-risking investments and fostering sustainable impact. According to Barbara Visser, Chief Operating Officer of IDH Investment Manager, the Manager of the Farmfit Fund: “This investment demonstrates the IDH Farmfit Fund’s commitment to advancing financial inclusion for smallholder farmers and will contribute to strengthening Agora’s operations.”
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