Challenges of Crowdfunding (Village Banking) in Zambia: Solutions and Opportunities

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Prudence Kalunga
Victor Neene
Bob Jere
Mwiza Phiri
Christopher Chembe


Crowdfunding is a new phenomenon that has piqued the curiosity of academics and practitioners alike, owing to its potential as a source of alternative finance. It is considered a mechanism with significant potential for expanding access to finance for entrepreneurs in developing economies. One such platform in Zambia is known as “Village Banking”. Village banking has been discovered to be the most profitable platform in Zambia, outperforming even traditional risk-free platforms such as micro-financing. Village banking has enabled business growth, idea realization, and has generally improved the lives of many participants. The risks associated with the village banking system, on the other hand, have been increasing. As the popularity of crowdfunding has increased, so have the challenges and opportunities. In this paper we employ a systematic literature review that defines crowdfunding, its properties, discusses the challenges, opportunities of Crowdfunding specifically the Village Banking platform. In addition, we conducted a survey to determine the main challenges faced by Village Banking participants in Zambia. The results of the survey identified the following primary challenges; online infrastructure, trust, monitoring of payments, tracking of collections, and approval of payments. Based on literature reviewed and survey conducted, we proposed the use of blockchain technology to address some of the challenges identified.

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How to Cite
Kalunga, P., Neene, V., Jere, B., Phiri, M., & Chembe, C. (2023). Challenges of Crowdfunding (Village Banking) in Zambia: Solutions and Opportunities. Zambia ICT Journal, 7(1), 38–46.