bridging the gap between crowdfunding and microfinance
TRANSCRIPT
Bridging the gap between
crowdfunding and microfinancePeter Munyua, Program Finance Manager,
Hand in Hand International
Maphefo Ramatseka | Mafu’s Kitchen | Gauteng, South Africa
Agenda
1. The different faces of crowdfunding
2. Hand in Hand
3. Crowdfunding in Kenya
4. Enterprise Incubation Fund
The different faces of crowd
funding
Beatrice Wanjiku | Yoghurt Maker | Nairobi, Kenya Hanna Haciku | Tailor | Nairobi, Kenya
Passbook for Beatrice Wanjiku | Nairobi, Kenya
Alice Nduku Kingowe | Farmer | Machakos,
Kenya
What does crowdfunding mean to you?
What does crowdfunding mean to you?
A crowdfunding success story
Hand in Hand
Gloria Kabagwira | Organic Produce Farmer
of Abaticumuga Group | Kirehe, RwandaRahabu Mukampenda | Aubergine Crop | Kirehe,
Rwanda
Uwimana | Retail Shop | Gatsibo, Rwanda Maida | Phone Charging | Duteranink Unga, Rwanda
Hand in Hand – an introduction
• Founder: businessman and philanthropist, Percy
Barnevik
• 10 countries
• 1 million people trained
• 1 million businesses
• 1.7 million jobs
• 197 million Euros in microloans
Look at poverty differently
You will see grassroots entrepreneurs, full of energy and
ideas. We help turn their skills and potential into jobs
The Hand in Hand model
Crowd funding in Kenya
Beatrice Wanjiku | Yoghurt Maker | Nairobi, Kenya Hanna Haciku | Tailor | Nairobi, Kenya
Passbook for Beatrice Wanjiku | Nairobi, Kenya
Alice Nduku Kingowe | Farmer | Machakos,
Kenya
Crowdfunding and group saving funds
Saving Group RCT
results, summary :
– 100% Increase in savings
– 4 out of 7 reported increase
in assets
– 2 out of 7 reported increase
in business profits
– Less than 10% loans used
for business purposes
Hand in Hand group saving funds
• Group loans invested for business purposes: 100%
• Groups in Kenya invest in :– farming: chilli peppers, tomatoes, kale, avocadoes, dairy
– sewing: baskets, clothes, school uniforms
– green fuel: basket fireless cookers, charcoal briquettes
– electronic: solar powered electricity supply, video hire, office facilities,
• AVERAGE loan size: EURO 95
• Maximum loan given: EURO 265.
Enterprise Incubation Fund –
plugging the microfinance gap in
Kenya
Beatrice Wanjiku | Yoghurt Maker | Nairobi, Kenya Hanna Haciku | Tailor | Nairobi, Kenya
Passbook for Beatrice Wanjiku | Nairobi, Kenya
Alice Nduku Kingowe | Farmer | Machakos,
Kenya
The Enterprise Incubation Fund
• Microloans start from as low as Euros90
• Loans limited to three per person so are used only as
seed funding to bridge to microfinance
• Exclusive to those who have received our business
training and have a positive saving and lending history
EIF by the numbers
• 2011 to date: 899,000 Euros total value of loans to date
• 2011 to date: 9,700 loans issued
• Average loan size: 89
• 83% of EIF loans are made to women
Societal impact, financial return
A 80,000 Euro loan will produce
Interest paid in Kenyan Shilling and your money returned after 5 years
Meeting the needs of investors
• Reaches far more people than a grant
• Lending safely and responsibly
• Lending to those who need capital the most
• Measurable social impact
Meeting the needs of borrowers
• 64% started new businesses
• 92% reported higher incomes
“Hand in Hand has “been successful in building the
capacity of rural women and men small holder farmers as
well as in promoting deeper access to financial services
and thereby made a contribution to poverty reduction in the
country”
Societal impact, financial return
• Invest in the Enterprise Incubation Fund
Thank you for your attention
Peter Munyua
Finance Program Manager | Hand in Hand International
T: +44 7664 344476 | + 44 207 514 5092
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We hope to hear from you soon.
Thank you,
Hand in Hand International