Private Sector Investment and Financial Inclusion in Zambia

For this Capstone, the team was asked to identify areas where development finance institutions can make the most value-add impact towards financial inclusion in Zambia through investments in the private sector. To provide the U.S Development Finance Corporation (DFC) with a robust analysis of the landscape and potential recommendations to inform and identify impactful investments, the Capstone team provided a comprehensive analysis considering i) the financial actors investing in the private companies and SMEs engaged in this sector. ii) the government policies and initiatives that support these investments. iii) the demand for financial services including barriers hindering financial inclusion, and levers such as financial literacy, uptake of financial inclusion initiatives, and consumer protection policies.

This Capstone project explored potential opportunities for DFC to make an impact in alignment with its investment priorities and mandate such as: the use of blended finance vehicles to catalyze high impact fintech’s that focus on underserved segments; leveraging of existing DFC investments to embed financial tools within broader economic systems and bridge the credit constraints faced by small and medium enterprises, youth and women led enterprises; and enhancing ecosystem alignment by convening stakeholders to leverage scale.