The UK stock market has been doing much better than I expected in the aftermath of Brexit. However, it is early days in an economic narrative that will unfold over many years. Here is an update on something which is playing out more rapidly.
Two months ago I wrote about Kiva, a micro-finance charity. In summary, I have “invested” $100 but because some of my loans have been repaid and re-lent I have lent $175. This is all very satisfying as, although I don’t get any tax break and can’t make any profit, my small commitment will snowball over time to help less fortunate people.
My most recent loan was in April to a project in Kenya, Golden Services Organisation, that raised $4,950 to sell eco-friendly products to womens’ groups. The main thing they sell is Jikokoa stoves that use charcoal – better than paraffin. You can buy one on the Internet for $38 but GSO I hope sell them a lot cheaper. Anyway, they raised the money from 165 lenders of which I’m one and their payback schedule is unusually short. Repayments are due in July, August and September this year. They have missed their first repayment. They are my first delinquent borrower, as Kiva puts it.
What’s gone wrong? Here is what the Kiva person in Kenya has to say.
GSO still have some stock of stoves and are currently working on selling these so they can repay the rest of their loan. The loan was really successful and allowed them to sell to customers they would not have previously. However the reason they have not been able to pay back in full yet is because they sell to customers on credit and have not received full repayments from all of them yet.
In point of fact they haven’t repaid any of their loan yet; pure Ginger & Pickles. I will let you know if they do start repaying. The stoves look good for outdoors cooking. A Jikokoa and a Kelly kettle would make a good combo for a camping trip – though too heavy for backpackers.
Meanwhile, nil desperandum, I have lent a Peruvian student $25 to continue her studies. Thirty lenders have raised the $925 she needs and she will start to repay in fifteen months. I’m aware that few student loans in the UK get repaid but maybe it’s different in Peru. Here is more about her.
Yamily is a 20-year-old young woman. She is currently studying for an accounting degree. She is in her third year of her degree program. She also works as a secretary at an educational center during her free time. She is thankful for her mother for the support and confidence she provides. Her biggest wish is to work abroad. The loan she requested will be used to pay for her studies. Yamily is grateful for the Kiva lenders who made this loan possible.
It’s good for a girl to have aspirations …