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.

The loan is to be used to buy more equipment and add more stock.

Mariam Miraji Mrisho owns a stationary shop in Kinondoni. Her stationary shop is situated in a good location. She started this business in 2008. She has one lady employed. She is honest and willing to pay back on time. She requested for a loan in order to increase her stock and buy more working equipment.

My bid

Bid Amount: 30.00
Interest Rate: 9.00 %
Place your investment here

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

Kakembo Rose started her business after completing her A-level education. She began by helping her sister-in-law at her shop. Later she was supported by her husband to start up her own shop and she started selling ladies’ fabrics. Her business grew and she managed to purchase land and constructed some rental houses which also generate income and help in supporting her family’s expenses.

My bid

Bid Amount: 50.00
Interest Rate: 10.00 %
Place your investment here

To increase working capital in his business of buying and selling produce.

Bireza Sam deals in buying and selling of produce such as; maize, millet and coffee. He buys from local farmers and sells to stock houses and large scale produce buyers. He has been doing this business for 10 years.

My bid

Bid Amount: 50.00
Interest Rate: 9.00 %
Place your investment here

Munyarubuga Francios, carries out a retail business of selling beer and he also has a video libraly as another small income generating activity. He needs the money to expand his business of selling beer and increase the profitability.

Munyarubuga Francois, started operating the business of selling beers and soft drinks at an early age because he started it in 1987 when he used to help his father who owned a bar. At the age of 18 he started doing his own business which he operated for 2 year and in 1994 during the Genocide it was clashed down. Munyarubuga is now back in the business where he has spent 5 years after the Genocide and heis doing well in the business and needs money to expand it for higher profitability.

My bid

Bid Amount: 30.00
Interest Rate: 8.00 %
Place your investment here

To enable Fatuma to purchase more stock and expand her business.

Kayitesi Fatuma is a business lady that started a shop business in the year 2007. she is a single monther with three children. The husband died in the 1994 Genocide and left her with some rentals and the 3 children.She got the capital to start the business from the rentals. she needs money to purchase more stock and expand the business.

My bid

Bid Amount: 35.00
Interest Rate: 3.00 %
Place your investment here

Alice deals in the sale of fabric in both wholesale and retail. She wants a second loan to invest in the purchase of more materials. This will enable her to serve more clients hence boosting her sales.

Alice is interested in acquiring a second loan from MYC4. During the early stages of her business, she decided to obtain a loan of 1,500 Euros from MYC4. Using the loan, she purchased more fabrics and increased her business stock. This placed her in a better position to serve more clients like retail traders and individuals thus improving profitability of her business. Presently, her business provides her with a monthly net income of 100 Euros.

Alice is finding challenges in generating profits due to stiff competition in her line of business. As a result, she wants another loan to increase her stock and buy more materials. She will not only be able to compete favorably in the market but attract more clients to her shop. Alice is confident that her monthly turnover will increase by 22%, 12 months after receipt of the loan.

Alice sells her fabric of good quality to a number of clients at affordable prices.

In addition, she uses the income she generates to cater for the needs of her family in terms of food, shelter and education for her children.

For more information about MYC4 credit history, please refer to resources.

My bid

Bid Amount: 51.03
Interest Rate: 10.00 %
Place your investment here

Ahimbisibwe Pius runs a shop selling shoes for men, women and children. He is seeking for a loan to increase his working capital and boost his business.

In his early years, Pius worked alongside his father who was a carpenter and he therefore acquired skills in that field.
He worked as a carpenter for eight years and from his savings, he started a shop in Mbarara in 2005.
His business is doing well but needs more working capital, which is the reason he is applying for the loan.

My bid

Bid Amount: 35.00
Interest Rate: 9.50 %
Place your investment here

Mududu Francis runs a drug shop where he sells drugs and other kind of medicine. He is seeking for a loan to purchase a motorcycle for transport and also boost his stock.

Francis is a medical worker in Pallisa main hospital but runs a private clinic in Palisa town. He has asked for the said loan to purchase a motorcycle for two reasons; firstly, to easy transport from the main hospital, where he is employed as a government worker, to his private clinic and secondly, to help him get some income by lending it to one of the young people to use it for transporting passagers at a time when he (Francis) does not have any journey to make.

My bid

Bid Amount: 50.00
Interest Rate: 8.00 %
Place your investment here

Nakkazi Christine provides hair dressing services. She is seeking for a loan to increase her working capital and purchase more hair dressing machines.

Christine trained in hair dressing after failing to continue with her studies. After acquiring knowledge in hairdressing, she set up her own salon and began to run her business.
Therefore, she needs a loan to purchase more hair dressing machines and to increase her working capital.

My bid

Bid Amount: 100.00
Interest Rate: 7.00 %
Place your investment here