Robert Kennedy College on Kiva

March 10th, 2012

After over 3 years of experiences in micro finance platform the results are fairly simple. Kiva is the best platform to help micro entrepreneurs around the world achieve their dreams. Through the Robert Kennedy College team on Kiva we have disbursed 458 loans for a total of 12375$.

I invite all to participate as even 25$ can make a big difference. Now I would like to stress that platforms like MYC4 are not effective and, in our experience, result in a total loss of capital and, more importantly, I am not convinced that the money really reaches micro entrepreneurs. So after years of review, Kiva was and remain the best option to  be part, in an easy and straightforward way, of the microfinance world. 

Why Kiva is a better option

November 8th, 2009

I will let the figures speak:

MYC4
1705 Repaid loans
1220 Defaulted loans (not sure if this includes Ebony);

So we have a very high percentage of defaults 41.70%

Kiva
74486 Paid Back
3369 Ended with Loss (many of which are Ebony)
4.3%  defaults/ended with loss

Obviously, given the data, Kiva is a much better (and simplier) option.

I have just made some more loans on Kiva – my updated lender page is here


Cautious with MYC4

November 7th, 2009

Back in March I pointed out in the MYC4 forum that both my class and I felt that many of the loans offered by Ebony on MC4 were unreal.  Three Loans for a DJ of over 10,000 Euro each have a) Nothing to do with Microfinance b) Cannot be real. A number of myc4 users shared my views  while others thought that there was nothing wrong with it.

Recently MYC4 announced that all the investments on Ebony projects are at risk this is very sad but at the same dangerous to the development of MYC4. In other circumstances providers defaulted (Cote d’Ivoire and a provider in Senegal seems very late with repayments too) .

The whole MYC4 differentiation is that, in theory, investors will receive interests on their loan. In practice (it looks like the statistics have just been updated) “The average successful bid rate has been 13.2% whereas the net interest earnings have been

-3.2% per annum encompassing defaults, currency losses and gain, late repayments and idle times for transactions.”

so in practice everyone is losing money on MyC4. Defaults and delays are not just in Ebony where, in my opinion, it will be tough to recover the principal but also in Uganda and virtually every provider.

For example this this and this are delaying loans outside Kenya where I did “invest”.  Echoing what Marie wrote in the forum the big issue is not helping a small entrepreneur and losing some money in the process but “The turning point for me was clearly when I realised that my money is in some/many(?) instances NOT ending up in the pockets of African entrepreneurs (I have no idea how many, but hope the auditors soon gain access to Ebonys files so we can get some information). And I have to be true to myself and my objectives of investing on MyC4. I will NOT give away money to the MyC4 providers – I need to have some kind of guarantee/trust/reassurance that my investments are reaching the small and medium enterprises.”

What I see as the main problem is loan size and due diligence. In Microfinance you simply can’t open the doors to providers and say “we are just an intermediary” but you need to conduct extensive due diligence and limit loans to the Microfinance size – 500 Euro/Dollars as an example. This is what Kiva is doing and what made Kiva successful. I feel that, for the time being, it is not safe nor proper to invest in microfinance through MYC4.

I recommend every investor interest in “investing” on myc4 to be extremely cautious as the money you invest might a) be lost forever b) not help anyone in the microfinance world.

MYC4 profile Mariam Miraji Mrisho

September 27th, 2009
Tanzania

The loan is to be used to buy more equipment and add more stock.
Read the rest of this entry »

MYC4 profile Kakembo Rose

September 27th, 2009
Uganda

To increase the working capital of her business so as to stock more products and prepare for the Christmas season.
Read the rest of this entry »

MYC4 profile Bireza Sam

September 27th, 2009
Uganda

To increase working capital in his business of buying and selling produce.
Read the rest of this entry »

United Prosperity: an Interesting Concept

September 27th, 2009

I have just finished my second round of guarantees at united prosperity the concept is very interesting and I do like the no minimum to start a guarantee. I think that the guarantee vs. loan can have some relevant benefits. I also think that in India this is the only possible way to participate in the microfinance market as foreign loans are usually not allowed. As this is a new platform it would be very interesting to know how it develops!


RKC Microfinance – Leaso Kerisimasi

July 9th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

Leaso (IVA A)Borrower Name : Leaso Kerisimasi
Village/Centre : Iva A

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Retail
Business Activity : Retail

Loan Use : Purchase cement, sand, dust

Leaso Kerisimasi, 25, is married with two children and lives in the village of Iva, Savaii.  She has over five years experience in the brick-making business and she sells to the public five days per week. Leaso has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the brick business is 300 ST (~120 USD).  SPBD loans are Leaso’s only access to capital because she was never able to qualify for a loan at a traditional bank. Leaso will use her loan to purchase the production materials, including cement, sand, and dust, that will enable her to grow and maintain the brick businesss. She is a multi-talented young mother and will continue to run the family plantation alongside her brick-making enterprise.


RKC Microfinance – Salafai Suaesi

July 9th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

Salafai (SALELAVALU UTA)Borrower Name : Salafai Suaesi
Village/Centre : Salelavalu Uta 1

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Food
Business Activity : Bakery

Loan Use : Purchase drum, sugar, baking soda, custard etc.

Salafai Suaesi, 52, is married with 12 children.  She has one year of experience in the bakery business and she sells to the villagers and public six days per week. Salafai has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the bakery is 400 ST (~160 USD).  SPBD loans are Salafai’s only access to capital because she was never able to qualify for a loan at a traditional bank. Salafai will use her loan to purchase the equipment and ingredients, including a stirring drum, sugar, baking soda, and custard, that will enable her to start and maintain her bakery business. She will use a portion of the proceeds from the bakery to purchase equipment for her family run plantation.

RKC Microfinance – Siva Neemia

July 9th, 2009

Micro-Entrepreneurs impacted by Robert Kennedy College

SIVA (SAFOTU)Borrower Name : Siva Neemia
Village/Centre : Safotu

Loan Amount : 1000 ST, 400 USD
Repayment Term : 12 months

Business Sector : Food
Business Activity : Food Production

Loan Use : Purchase frying pan, plastic bags, sugar, vegetable oil, bananas, etc.

Siva Neemia, 27, is married with three children and lives in the village of Safotu, Sevaii. She has over five years experience in the chip business and she sells her chips to retail outlets and the public five days per week. Siva has no previous loans with SPBD and she will repay her first 1000 ST (~400 USD) loan over a period of twelve months. The expected weekly net cash flow from the chip business is 200 ST (~80 USD).  SPBD loans are Siva’s only access to capital because she was never able to qualify for a loan at a traditional bank. Siva will use the loan to purchase the equipment and ingredients, including frying pans, plastic bags, sugar, vegetable oil, and bananas, that will enable her to grow and maintain the chip business. She believes part of the proceeds from the business can be used to improve a family run plantation. With improvements to the plantation, Siva’s family will be able to sell surplus crops for supplementary income  to the income provided by the chip business.