Title: Credit Management Services Limited - Zambia : case study of a microfinance scheme
Abstract: Credit Management Services Limited (CMS) is a subsidiary of Molver and Company, a private company that created CMS in response to donor demand to act as a credit intermediary to the rural poor. This paper aims to document the experiences focusing on the company's changes in operations and performance in its efforts to deliver credit effectively to microenterprises owned by women. CMS first acts an intermediary between donors and small agricultural producers, traders, and fishing families, for a fee. Then it borrows from the recently established Microbankers Trust to onlend to its clients. It also provides clients with training in business, financial management, and legal services. This study focuses on Women's Micro Credit Scheme which targets women who need funds to finance small enterprises. The loans have created a positive impact on incomes of the clients. The success of CMS is largely attributable to its innovative approach to microcredit: a) portfolio diversification; b) use of existing institutions; c) transparent Management Information Systems; and d) weekly club meetings. The key lesson learned from the implementation include: a) high potential for rural savings; b) close supervision improves performance; c) women are a good credit risk; d) the value of strict contract enforcement, and e) critical minimum loan size.
Publication Year: 1998
Publication Date: 1998-05-31
Language: en
Type: article
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Cited By Count: 4
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