Wisrod – Giving Vendors Wings to Fly

To some, the name Wisrod is just another brick in the wall, but to vendors and small businesses in the ghettos and makeshift markets of Zimbabwe, the name is sweet music to the ears. Wisrod may not be listed on the stock exchange, but it occupies a special place in the hearts of common people. The reason being that Wisrod has succeeded in creating a unique business model and genuinely loves, understands, and listens to its clients. The company has created a win-win situation with its clients, hence transforming their lives. Wisrod’s success story has been about perseverance and faith – it is a story of false starts, lost money, bad decisions and judgements. Here, we share the journey and the story of Wisrod’s success.

The Birth of Wisrod

Having been classmates at Harare High School, Wisrod’s co-founders, Mr Lewis Madafi and Mr Nimrod Nyakanyanga did not know that fate would bring them together again almost 20 years later. After observing that many ordinary people had nowhere to get financial assistance, the two friends brainstormed on how to help the disadvantaged brothers and sisters, mothers and fathers, sons and daughters.

The sad thing was that young girls and boys could also be seen wandering around the market during school hours because of lack of school fees. Also, these disadvantaged people had relatives who looked up to them, yet they were unable to meet life’s needs. It was such a pitiful and desperate situation.

“We could see that people needed someone who understood what was deep down their hearts, their wishes and the need to be better in a society,”

..explains Mr Nyakanyanga.

And so, Wisrod Investments Pvt Ltd was set up. The aim was to empower the informal sector, starting with vendors.

False Start

In 2011, the two gentlemen started the Wisrod pilot project in Unit L, Chitungwiza (Zimbabwe’s 3^rd largest city).  The Unit L market where Wisrod piloted its project is nicknamed Speed. Here, people come and go, push and shove, shout and even fight. The place is a hive of activity and money easily changes hands as almost every minute something is bought or sold. It is in this place where Mr Nyakanyanga says,

“We were testing all the products we had. We wanted to see if the repayment method we had devised really worked, as well as assess how convenient it was for our target group.”

“We had deliberately decided to target vendors. So the pilot project ran for a couple of months, but because we had not planned the financial administration properly, we ended up losing the money we had put in the business…. “

Lessons Learnt

 
According to Mr Nyakanyanga, from the failure of their initial investment, they learnt a number of lessons. Their initial aim was to empower the under-served people working in the informal sector who are primarily vendors, cobblers, among others.

“At the same time, we also wanted to empower our own people, to alleviate poverty in our society. So, we ended up employing less qualified and incompetent workers. Obviously that was one of the mistakes we made, and we drew some lessons from there.”

Wisrod had fingers burnt for starting without proper procedures and process. Yet, mistakes can be great lessons. Wisrod restarted the project with proper financial oversight in place, with proper recruitment and credit appraisal procedures in place.

Success at Last

Having plugged all the loopholes, the ship was finally ready to sail again and this time, to get to its destination. The company started by giving the vendor loan. This was very successful, and then it introduced other products like the school fees loan to support the vendors with school fees for their children. That product performed beyond expectations. Thereafter Wisrod started introducing other products like the hire purchase and the micro-housing loans. As they say, the rest is history.

Today, Wisrod is the leading microfinance company that provides tailor made financial products to the unserved and underserved population of MSMEs. These MSMEs include primarily fruit and vegetable vendors, flea market vendors, tuck shops, and formalized entrepreneurs. The client base has been built over time through less cumbersome requirements, fast and easy transactions offered through a robust ICT system and excellent customer service.

Wisrod has now grown across the country with over 50 branches and employing more than 200 staff.

Business Loans

Over 100 000 MSMEs and their families have gained better access to business loans and other financial services disbursed through Wisrod.

Everyday, Wisrod unlocks the potential of entrepreneurs through the right financial plan.

School Fees Loans!

Wisrod is disbursing over US$50,000 school fees loans each year. Through our affordable school fees loans, most children have furthered and completed their education instead of being school dropouts because of lack of school fees. The school fees loan has eased the burden on parents and is helping them secure a brighter future for their children.

Housing Loans

Women are empowered through Wisrod Housing Loans.

Women are building houses through Wisrod.

82% of our clients are women entrepreneurs and we have been empowering them by helping them achieve the biggest goal which is putting a roof over their heads through our Housing Loans..

Hire Purchase Loans & Micro-leasing Products

Entrepreneurs are buying vehicles, business and household assets through Wisrod.

Most informal traders cannot easily walk into a furniture shop and get what they desire on credit whilst they are using it. At Wisrod we have cut the red tape by providing hire purchase loans, motor vehicle loans and business asset loans.

Vendor loans

Vendors are seldom taken seriously anywhere in the world, especially our very own Zimbabwean vendors. Some of their products are highly perishable, they lack collateral security and proper credit history. Hence most financial institutions view them as risky. However Wisrod felt that everyone deserves a fair shot at excellence that is why it launched the vendor loan to cater for the most underserved and overlooked entrepreneur.

Agriculture loans.

Many Irrigation Schemes and farmers have benefited from productive loans through Wisrod.

Wisrod is redefining the Microfinance landscape. From humble beginnings in Chitungwiza with a pilot project, today it has 50 branches throughout Zimbabwe.

“We are no longer only for vendors, but we now fund established businesses, as well as fees for overseas students,” says Mr Madafi.

Wisrod aims to become a world class and well diversified financial service company in the next 8 years, offering affordable access to a wide range of appropriately designed financial products and services to MSMEs