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Pan Africa Building Society - Special Home Ownership Financing Scheme: Zambia

Project Start Date: March 2004

Funding: FDCF £65,000 (47%); Pan African Building Society £73,310 (53%)

What is it?

The Pan African Building Society is offering loans to people on low wages, particularly public sector employees with assured salaries (especially female teachers, nurses and police women) to buy or improve property.

Who benefits?

  • Low income workers who are unable to borrow because they lack collateral or can't afford high interest payments
  • Women who have previously been excluded from owning property
  • The construction industry in poor areas
  • The Zambian government's Home Ownership Empowerment Policy is creating demand for housing finance which this scheme is helping to satisfy
  • Pan Africa building Society aims to gain 1,425 new borrowers within 3 years rising to 2,100 by the scheme's end


  • Applicants pay salaries into a loan qualifying account; loan repayments are automatically debited
  • Minimum account balance of K100,000 is much lower than the existing equivalent
  • Loans start at K5m (approximately £600): sufficient to self-build a two room house
  • Loans are subject to interest kept 2-4% below the current market rate and are repayable within 36 months
  • The policy is insured with Madison Insurance Company


The scheme is unique in that it offers low-salaried workers, and particularly women, the opportunity to borrow funds to buy or improve their property. This group has never previously had access to this kind of borrowing from the major banks and lending institutions of Zambia and women have been excluded from borrowing by custom.

Related Documents

August 2006 Progress Report

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