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

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

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.

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.

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.

Borrower Name : Tauese Pauga
Village/Centre : Safotu

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

Business Sector : Agriculture
Business Activity : Farming
Loan Use : Purchase knapsack sprayer, knives, chemicals, ranging pole

Tauese Pauga, 70, is married with five children and lives in the village of Safotu, Sevaii. She is a farmer with one year of experience running a vegetable business that sells to villagers and the greater public three days per week. Tauese 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 vegetable business is 250 ST (~100 USD).  SPBD loans are Tauese’s only access to capital because she was never able to qualify for a loan at a traditional bank. Tauese will use the loan to purchase the equipment and supplies, including a knapsack sprayer, knives, chemicals, and a ranging pole, that will enable her to grow and maintain her vegetable plantation and business. Due to her age, Tauese will forgo hard labor on the plantation in favor of selling the taro, taamu, and banana harvest.