Bridging the gap between crowdfunding and microfinance

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

E: [email protected]

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Thank you,

Hand in Hand International