"When employees worry about money, they're not worrying about your business."

Across Zambia's vibrant private sector, a quiet crisis is playing out in offices, hospitals, warehouses, and classrooms: financial stress. For many employees, income is not enough to keep pace with their financial obligations. And when staff are struggling financially, businesses suffer. But there is a solution that doesn’t involve pay raises or expensive wellness programs. In this article, we explore how financial stress manifests in the workplace, its measurable cost to organizations, and how Divitia’s loan system, anchored by Memorandums of Understanding (MOUs), provides a win-win solution.

The Hidden cost of financial stress in the Zambian workplace

Financial stress is not just a personal issue; it is a business issue.

According to a global PwC survey, 57% of employees cite financial matters as their top stressor, ahead of health and job-related concerns. Although local data for Zambia is limited, indicators suggest the numbers may be even higher:

• According to the Finscope Zambia 2020 survey, only 38% of adults are formally banked.

• Access to credit is limited, with many people relying on informal lenders who charge 20–30% monthly interest.

• 76% of Zambians use informal mechanisms to manage risks, including borrowing from friends, family, or loan sharks.

This financial instability spills into the workplace. Consider:

• Absenteeism: Employees take days off to deal with financial emergencies or chase unreliable lenders.

• Presenteeism: They show up, but are mentally and emotionally distracted by personal debt crises.

• Decreased Productivity: Financial anxiety reduces decision-making ability, focus, and performance.

• Attrition: Staff facing ongoing financial strain are more likely to quit for marginal salary increases.

• HR Strain: Managers are inundated with salary advance requests, creating operational strain and inconsistent precedent.

A Lusaka-based distribution firm conducted an internal study and found that financially stressed employees were:

• 35% more likely to take unplanned leave.

• 3x more likely to request salary advances.

• 18% more likely to resign within a year.

The cost is not just emotional—it’s financial.

The Employer’s bind: wanting to help without overextending

Most employers genuinely want to support their teams but find themselves caught between compassion and sustainability. Here’s the reality:

• Salary increases, while appreciated, create recurring financial obligations and may not be feasible given thin margins, inflationary pressures, or sector-specific constraints.

• Salary advances, often approved on a case-by-case basis, lack consistency. They tie up company cashflows, become difficult to track, and sometimes strain employer-employee dynamics when expectations go unmet.

• Employee loan programs through banks are difficult to scale—many banks require collateral, impose strict credit conditions, or offer terms that exclude lower-income and junior employees.

Additionally, internal HR teams are not equipped to evaluate credit risk or manage repayment logistics. It diverts their attention from core strategic HR initiatives like training, development, and performance management.

What’s needed is a solution that allows employers to be supportive without becoming the lender, one that scales across all employee levels and offers real dignity, professionalism, and speed.

Divitia’s MOU Model: A Smarter Way to Support Employee Finance

Divitia’s MOU loan solution is built on a simple but powerful idea:

"Enable responsible borrowing for employees, backed by their income, in partnership with their employer—without adding liability to the business."

How it works:

1. Divitia signs an MOU with the employer.

2. Employees become eligible for collateral-free loans of up to K75,000.

3. Loan repayments are deducted at source via the employer’s payroll or HR system.

4. No liability is carried by the employer. Divitia takes full financial responsibility.

5. Employees repay in manageable monthly installments over 6–24 months.

The result is a seamless, low-risk system that:

• Supports financial wellness.

• Reduces informal borrowing.

• Enhances employee engagement and loyalty.

Practical impact: Real-life scenarios

Case study: A mid-Tier Retail Chain in Lusaka

Before partnering with Divitia, a well-known retail chain operating three outlets across Lusaka was overwhelmed with ad hoc salary advance requests—especially at month-end or around school terms. Many employees relied on informal lenders and would miss work while resolving debt-related issues.

After signing an MOU with Divitia:

• Over 50 employees accessed loans within the first 45 days.

• HR reported a 70% reduction in salary advance requests.

• Staff reported improved morale and trust in leadership.

• A store supervisor used a Divitia loan to pay off a high-interest debt and enrolled in a part-time diploma course.

Example: Manufacturing company in Lusaka

The company had experienced high turnover among production workers due to financial strain. Divitia partnered with the business to pilot the loan program with 50 staff. Within 6 months:

• Productivity scores rose by 8%.

• Exit interviews dropped mentions of financial stress by 60%.

• Staff began referring friends to work at the company, citing the Divitia program as a benefit.

Benefits to Employers: why you should sign an MOU with Divitia

Additional benefits include:

• Zero liability for your company

• Improved employer branding

• Minimal disruption to HR processes

• Custom onboarding and communication support from Divitia

Employee experience: what your team gains

From the employee’s side, the Divitia experience is dignified, fast, and life-enhancing:

• No collateral required – Employees don’t need to risk their property or get guarantors.

• Fast disbursement – Funds are often disbursed within 48–72 hours of approval.

• Fair interest rates – Ethical and transparent terms with no hidden fees.

• Flexible repayment terms – Monthly deductions that align with salary cycles.

• Accessible to all staff levels – From frontline workers to mid-management.

• Confidentiality assured – Private and professional application process.

• Improved emotional well-being – Reduced stress leads to more engaged, focused team members.

Employees consistently share how the experience changed their financial narrative:

"This loan helped me avoid a crisis without begging my manager. It felt like my company cared about me beyond just work."

"I used the loan to pay off a debt and now I’m saving again. I feel more in control."

Final thoughts: Investing in financial wellness is business strategy

Companies that win in today’s market are those that understand their people are their most valuable asset. Financially empowered employees are more focused, loyal, and engaged.

"Financial wellbeing isn’t a luxury—it’s a productivity tool."

With Divitia’s MOU model, you can offer access to ethical credit without carrying the weight yourself.

Ready to learn more?

We’re already working with forward-thinking employers across healthcare, retail, and manufacturing. Let us show you how a simple MOU can transform your team’s financial future.

Contact Divitia today via email sipoh@divitia.co.zm to explore how our employee loan partnership can work for your organization.