Summary

Zimbabwe remains one of the most economically inequitable countries in the world.  This imbalance is felt most among the disadvantaged segments of the population: communal area residents, women, under- and unemployed youth, the urban poor, the disabled, orphans, farm workers and in recent years, households affected by HIV/AIDS. Over the years, Zimbabwe's economic indicators have worsened, and more and more of these people now fall below the poverty datum line.  The challenge is to facilitate micro-income generating opportunities for these disadvantaged groups to sustain their livelihoods.  USAID's "Economic Opportunities" program is a direct response to this challenge and its main objective is to improve access to economic opportunities for disadvantaged groups through two innovative initiatives:

• Increasing access to financial services by disadvantaged groups, and

• Improving the business capacity of disadvantaged groups.

Activity Profile

Increased Access to Financial Services

This activity supports the expansion of micro-banking facilities to disadvantaged groups through two approaches: furnishing technical assistance and training to help micro-banks plan and execute appropriate expansion strategies; and partnering with micro-finance institutions (MFIs) in expanding their loan capital so that they can reach target groups.  A special activity focuses on working with MFIs to develop products and services for the increasing segment of the population affected by HIV/AIDS.

Business Capacity Improved

To complement the effort of expanding micro-finance services to disadvantaged groups, this activity focuses on strengthening the business skills of entrepreneurial groups and their representative associations.  Selected entrepreneur groups receive training in basic business practices, development of innovative production technologies; and, marketing strategies for group products.  Micro-enterprise representative business associations receive training in financial management, marketing and advocacy skills.

Beneficiaries

Disadvantaged groups, including those affected by HIV/AIDS, benefit from commercial market linkages and a range of financial services to improve their ability to survive the economic crisis.  Micro-finance institutions and business development service providers benefit from the opportunity to provide an expanded range of client services.

Local Partners

The local partners are drawn from local micro-finance institutions, business development service providers, private sector companies and NGOs.

Implementing Partners

An institutional contractor, Development Alternatives Inc. (DAI), manages the design and implementation of activities outlined under this program.  DAI has agreements with the International Capital Corporation, Vulindlela and Aid for Artisans to implement some technical inputs of the "Economic Opportunities" program.

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