STANBIC Bank Zambia and CARE Zambia have joined forces to expand financial inclusion among underserved communities, women entrepreneurs, young business owners and village savings and loan associations across the country. The two organisations signed a memorandum of understanding in Lusaka yesterday, creating a partnership focused on financial literacy, formal banking services and enterprise development. The initiative aims to help community savings groups move beyond informal financial activities and gradually participate in the formal financial system. It also seeks to strengthen the ability of individuals and community groups to save, invest, manage businesses and access suitable financial services. The partnership comes at a time when improving access to financial knowledge and banking services remains important for supporting inclusive economic participation.
The collaboration will provide CARE Zambia beneficiaries and community groups with support to access formal banking services and navigate the process of opening bank accounts. Stanbic Bank Zambia will also provide financial literacy and financial capability training designed to help participants make informed decisions about their money. This approach recognises that financial inclusion involves more than simply giving people access to a bank account. Individuals and community groups need to understand how different financial products work and how to manage savings, borrowing, budgeting and investments responsibly. By combining banking access with practical financial education, the partnership aims to give beneficiaries the knowledge and tools required to participate more confidently in the formal financial system.
Village savings and loan associations are central to the initiative because they provide communities with a practical way to mobilise their own financial resources. Through these groups, members can contribute savings regularly, borrow from pooled funds and invest in activities that support household incomes and businesses. CARE Zambia has experience using the VSLA model to help women, young people and households develop stronger saving and financial management habits. The new partnership creates an opportunity to connect these community-based systems with formal financial institutions. This could allow successful savings groups to gradually build relationships with banks while retaining the community-driven principles that have helped them establish financial discipline.
Women entrepreneurs will be a major focus of the partnership because women already make significant contributions to Zambia’s economy through business, farming, trading and various income-generating activities. Stanbic Bank Zambia head of personal and private banking Eunice Mundia highlighted the role women play in creating economic activity and supporting households. She explained that the partnership is intended to help women and other entrepreneurs overcome barriers that can limit their access to financial services and opportunities. These barriers can include limited financial knowledge, lack of formal banking relationships and difficulties understanding available financial products. Improving access to relevant information and services could help more women strengthen their businesses and take advantage of opportunities for growth.
Ms Mundia said Stanbic Bank believes economic growth is strongest when more people can participate and benefit from it. The bank will use its Anakazi proposition, which is designed to support women through financial solutions, networks and opportunities, as part of its contribution to the partnership. The focus on women’s economic empowerment gives the initiative a broader purpose beyond basic financial literacy. Women who operate businesses or agricultural activities need access to tools that can help them manage cash flow, plan investments and grow sustainably. Connecting these entrepreneurs with financial education, banking services and business opportunities could strengthen their ability to participate in the formal economy.
Young people will also benefit from the collaboration as the partners seek to support a broader range of entrepreneurs and underserved communities. Young business owners often require practical knowledge about managing finances, separating personal and business money, budgeting and responsible borrowing. Providing this knowledge at an early stage can help young entrepreneurs make stronger financial decisions as their businesses develop. The partnership will also focus on smallholder farmers and small businesses, recognising their role in local economic activity and income generation. By extending financial capability programmes to these groups, the initiative aims to create stronger foundations for enterprise development across different parts of the community.
CARE Zambia country director Chikwe Mbweenda said the organisation’s VSLA model has demonstrated that women, young people and households can mobilise their own resources, save consistently, borrow responsibly and invest. These experiences provide a strong foundation for helping community savings groups move towards greater participation in the formal financial system. Ms Mbweenda explained that the partnership would create a pathway for community-based savings groups to participate meaningfully in formal financial and economic activities. This transition could help groups develop stronger financial histories while improving their understanding of services available through formal banking institutions. It also recognises the value of building on financial practices that communities have already developed rather than replacing them entirely.
Financial capability will remain a key part of the partnership because communities need to be prepared for banking before they are introduced to banking services. Simply opening accounts does not necessarily mean that customers understand how to use them effectively or make appropriate financial decisions. Training in savings, budgeting, investment, business management and responsible borrowing can help participants use formal financial services more confidently. VSLAs, farmer groups, women entrepreneurs and young people can use this knowledge to strengthen both household and business financial management. The emphasis on preparation could therefore help make the transition into formal banking more sustainable and meaningful for participating communities.
Digitisation will provide another important opportunity under the collaboration, particularly in improving financial records and transaction management. Digital tools can make it easier for community groups to keep accurate records of savings, loans and other financial activities. Better records can also help groups demonstrate their financial behaviour over time and potentially build profiles that support future access to formal financial services. For small businesses and community organisations, improved record keeping can contribute to better planning and greater accountability. Digital financial participation could therefore help connect informal savings activities with the systems used by formal financial institutions.
The partnership between Stanbic Bank Zambia and CARE Zambia demonstrates how financial institutions and development organisations can combine their respective strengths to address barriers to financial inclusion. CARE Zambia brings experience working directly with communities through savings groups, while Stanbic Bank can provide access to formal banking services and financial expertise. Bringing these capabilities together can create a more comprehensive approach to helping underserved groups participate in the economy. The focus on financial education, digital participation and enterprise development also means the initiative is addressing several interconnected challenges rather than concentrating solely on access to banking. Its success will depend on how effectively these services reach communities and translate into improved financial knowledge and economic opportunities.
The memorandum of understanding marks an important step towards creating stronger links between community-based savings systems and Zambia’s formal financial sector. Supporting VSLAs, women entrepreneurs, young people, smallholder farmers and small businesses can help broaden participation in financial and economic activity. The partnership’s emphasis on financial capability ensures that beneficiaries are equipped with knowledge before they are expected to use formal banking services. Its focus on digitisation and enterprise development could further help community groups improve their records, strengthen their businesses and build financial profiles over time. If implemented effectively, the Stanbic Bank Zambia and CARE Zambia collaboration could provide communities with practical tools to save, invest, manage businesses and access financial services, contributing to broader financial inclusion and economic empowerment in Zambia.