Author: ABDUEL ELINAZA
AfricaPress-Tanzania: EQUITY Bank Tanzania and Zola Electric on Wednesday signed an agreement where the lender will provide affordable loans for purchasing solar devices across the country.
The partnership enables off-grid households to access a solar device loan without collateral. The device, which will be provided by Zola, will act as security.
The agreement came at the right time since it is estimated that 8 million families in the country are unable to access power.
Equity’s Managing Director, Robert Kiboti told journalists that the bank’s goal is to tap the unbanked market by offering a competitive interest rates and flexible repayment period.
“Purchase of Zola product is a onetime cost to all customers, which relies only on the sun to produce energy for a household, which means that there are no monthly electric bills to pay,” Mr Kiboti said.
The partnership was inked on Wednesday, warranting a beneficiary to loan solar device system starting from 300,000/- to 2m/-, where repayment period is 18 months, with very small amount of instalments to enable majority to afford.
The loan attracts an interest of between 16 and 18 per cent, depending on the size of the device.
“We take pleasure in transforming lives and livelihoods of all Tanzanians socially and economically, this is why we exist, by availing affordable credit facilities…,” he said.
The loans will be available to all citizens with a simple condition of opening an account at any of the lender’s 14 branches or at the almost 4,000 agents countrywide.
The account has no monthly charges, no ledger fees, no specified amount for opening balances, while a Visa card is issued instantly.
Zola Managing Director-East Africa [Tanzania and Rwanda], Johnson Kiwango said the partnership mainly targets rural off-grid households at affordable rates.
“Our onetime survey at solar shops in Dar es Salaam unveiled that many want to buy the devices but face money challenges.
“The partnership is going to solve that challenge, since both Zola and Equity will process the loan applications,” Mr Kiwango said.
He said by accessing solar power, which is clean energy, people in rural areas can continue with their income generating activities past sundown.
Zola is feasible in every village in the country and is supported by over 600 agents. The firm was one of the first organisations to offer pay-as-you-go solution for home solar system.
Equity and Zola will undertake joint activities, including recruiting all prospective customers in need of off-grid solar facilities but in one hand need a financial support towards accessing them.
The agreement is a conscious decision to ensure availability of affordable financial need, as it is in line with the lender’s purpose of transforming lives, giving dignity and expanding opportunities for wealth creation.
Investing in a grid-tied system means retaining the common problems experienced by ordinary homeowners, like power outages, while having to depend on professional and use of particular infrastructures to make use of electricity.
The agreement is specifically to fully support the underprivileged who have not been reached with electricity at affordable price.
