Agora Microfinance Zambia 7
With a loan of EUR 92,250 local partner AMZ will be able to provide working capital to 28 small businesses in Zambia (general traders, guest houses, schools, restaurants).
- Local partner investment
- 5 new jobs
- 154 people reached
In the coming period there are different conditions for this partner. More information can be found here.
- The interest rate has been temporarily increased by 0,5 percentage point to accommodate the growing uncertainty associated with COVID-19.
- In addition, this investee is allowed - provided they continue to comply with the applicable covenants - to refinance future repayments to Lendahand investors with the funds raised from this project.
- Repayments occur after 12 months, not after 6 months (grace period).
Agora Microfinance was created in 2009 and began operations in 2011 after 2 years of initial research and preparatory work. Agora Microfinance N.V. is incorporated in the Netherlands as a holding company. Moringaway is an investment company that is domiciled in Mauritius. The investment companies are advised by Agora Microfinance Partners LLP, based in the United Kingdom.
With this loan the following entrepreneurs can be financed:
1. Uncle Reevs Enterprises
The business is located with Lusaka and is owned by Mr. Reeven Kandula Mwiinga. He started the general merchandise business in 2004 with capital of ZMW 20,000. The business has an annual turnover of ZMW 243,600 with 3 employees. This is the fourth loan he is getting from Agora Microfinance Zambia. The first loan was ZMW 25,000
2. Other Businesses
The other businesses being funded are Sage Auto Spares, Nkumuso Enterprises, Hamz Enterprise, Taisit Hamz Trading, Kelvin Maseka Distributors, F.N.Lufunda General Dealers, Hot Metal, Manduka Investments, Caribean Mini Mart, Pyokani Muwowo, Abichas Enterprises, Tioloke General Dealers, Panchenya Enterprises, Eagles' Nest Academy, Waliulwa Stores, Chilunda Mufuka, Tatamwi General Dealers, F.N Lufunda General Dealers, Manduka Investments, Caribean Mini Mart, Kelvin Maseka Distributors and Hot Metal Trading.
The 28 benefiting businesses have a combined annual sales turnover of ZMW 42,786,000 and employs a total of 154 people. They cover over 20,000 people in different operational area. The businesses vary from general trading, lodges & guest houses, agro-dealers, transportation, school, construction, food processing and real estates.
|Company name||Agora Microfinance Zambia 7|
|CEO||Reeven Kandula Mwiinga|
|Sector||Wholesale / Retail|
Impact of this project
- With this investment 5 jobs are created
- With this investment 154 people are reached
About the risks
What are the risks of investing money?
The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding investments at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
How does Lendahand minimize the risks?
Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.
For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via firstname.lastname@example.org.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenarios, the local partner is contractually obliged to comply with these demands.
Lendahand always conducts due diligence when companies request funding. The results can be downloaded on the project detail page. However, this analysis is not investing advice.
Does Lendahand provide a guarantee?
Usually we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason, Lendahand only selects financially solid partners based on strict criteria.
For most direct investments, there is no guarantee. However, currency risks are covered.
Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.
Does Lendahand have a license or exemption?
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
How safe are my personal details?
We adhere to strict safety requirements concerning private and payment details. All sensitive data is sent through an encrypted connection (https). Also, information is stored (encrypted) in a secured facility provided by AWS: the world’s largest hosting service. A secured connection and multi-factor authentication can only retrieve customer documents.
What happens if the local currency devaluates?
Our local partners and companies bear the exchange rate risks. We settle the investments, redemptions, and interest payments in euro.
Does Lendahand use a third foundation fund?
What happens with my money if Lendahand goes bankrupt?
If Hands-On BV (containing the brand name Lendahand) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then, in consultation with a trustee, handle all repayments between the investors and entrepreneurs until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses with trusted money and or financial instruments (such as notes or options) to a licensed bank, an investment firm, or a financial institution. In case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to €20.000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
Why is Intersolve EGI handling my money?
What happens when a local partner goes bankrupt?
|Equity / total assets||39.00%|
|Write-off ratio last 12 months||0.00%|
|% investment amount in arrears (>90 days)||0.00%|