POSB launches solar, Starlink loan scheme for schools

The People's Own Savings Bank (POSB) has launched an ambitious solar and Starlink internet loan scheme targeted at Zimbabwe's schools, marking a rare example of a local bank offering accessible, impactful financial support to the education sector.

The initiative offers loans of up to US$10,000 to registered educational institutions and education sector employees - including teachers, lecturers, and Ministry of Education staff - for the installation of solar energy systems and Starlink internet connectivity. The scheme is designed with speed and accessibility in mind, with loan approval within 48 hours and installation completed within a week. Repayment terms are flexible, extending up to 24 months, and the loans require no collateral.

POSB has partnered with Transerv and Global Solar to supply the solar systems, while TelOne will handle Starlink hardware supply and installation. The loan covers installation costs but not the ongoing Starlink subscription fees, which schools must budget for independently.

Eligibility is broad but comes with some administrative requirements. Schools must be registered, maintain a POSB account with at least six months of statements, and provide documentation such as an up-to-date School Development Committee (SDC) constitution, recent meeting minutes, and a borrowing mandate signed by the SDC. Quotations from suppliers, as well as identification and proof of residence for school heads and SDC members, are also required.

While the requirements are standard, they may prove challenging for rural schools that lack structured governance and recordkeeping systems. Ironically, the very schools most in need of reliable electricity and internet access may struggle to qualify due to these administrative hurdles.

Despite these concerns, the move has been widely praised for its forward-thinking approach. Zimbabwe continues to struggle with deep digital and energy disparities, with over 60% of rural schools lacking electricity and more than 70% having no internet access. By directly addressing these gaps, POSB is offering a potentially transformative lifeline to schools that are often left behind.

The US$10,000 cap may be limiting for larger institutions requiring more comprehensive energy setups, but for many schools, it's a substantial start. POSB's willingness to align repayment structures with school income cycles - allowing term-based repayments - is also a thoughtful touch that could prevent defaults.

Perhaps most notable is that the scheme extends to individuals in the education sector. By allowing teachers, lecturers, and ministry staff to access the loans, POSB acknowledges the broader ecosystem that supports learning.

In an environment where most local banks have been criticised for being passive, fee-driven institutions, POSB's move is refreshing. It represents a rare instance of banking that responds to real developmental needs, not just financial returns.

This scheme may not be perfect. There are real concerns about long-term sustainability, especially for rural schools facing economic uncertainty. But it's a step in the right direction - a bold, practical intervention in support of education, energy access, and digital inclusion.

For a sector that too often hears promises without delivery, POSB's solar and Starlink loan initiative offers hope. Now, the challenge is ensuring it reaches the schools that need it most - and that the systems remain supported beyond installation.