Entrepreneur Financial Centre 13

With a loan of EUR 350,000 via local partner EFC, the Kibuye Taxi Park Association will be able to finance the purchase of new mini vans to 50 of its registered members.

  • Local partner investment
  • 10 new jobs
  • 250 people reached



36 months



Annual interest



6 months

Repayment period
Fully funded in 49 days on 30 November 2020.
+ 882 other investors

EFC Uganda Limited (MDI) is a licensed Microfinance Deposit-taking Institution in Uganda. It was created in 2011 by Développement Desjardins International to provide access to financial services for the underserved SME market segment. The company operates in Kampala with a head office, two branches and five business service centers. EFC Uganda is supervised by the Bank of Uganda and has several reputable shareholders. 

Shem Kakembo is the Managing Director since early 2018. Prior to joining EFC Uganda, Shem worked in leading management positions in financial industry in Uganda and Rwanda since 2003. His latest apointment prior to joining was as Head of Personal Markets (Retail) at Stanbic Bank (Uganda’s largest bank). 

Information document of the issuing company EFC (NL)

Information note of the issuing company EFC (BE)

Loan purpose

The Kibuye Taxi Park Association wishes to start doing business with EFC along the following dimensions;

1. EFC lending to the members of Kibuye Taxi Park Nateete Stage Drivers Association to purchase Used Cars/ Taxis recommended by the Association.

 2. For members of the Association who would like to borrow bigger loans that the Society cannot provide to them; these will be referred directly to EFC with the Associations recommendation.

This Association is made up of 100 registered members and 50 nonregistered members. And the Association is fully registered. 


As a member of the association, taxi drivers have more bargaining power for job contracts than individuals have. Membership offers a guarantee for clients, access to a savings fund to assist them in case of death of a family member, weddings or in case they need to borrow a small amount of money.

The Association has been in existence for 9 years. It was formed immediately after the closure of UTODA but fully registered their association on 30th July 2020 after being advised that it’s a requirement for them to access borrowing.

Today, the Association has a total of 100 members and are looking forward to having over 150 Members by 2021. All these members are Taxi drivers, owners and conductors.

The transport industry or sector speaks briefly about this section; its contribution to employment and financial muscle, demand and supply dynamics as well.


The association management has got rules and regulations governing them among which are highlighted below;

Monitoring of all vehicles on a weekly basis payment which will be our strong point to monitor payments the way they have been submitting top previous car owners

Failure to pay the previous week, a vehicle will not be allowed to load passengers the following week until a receipt of payment is presented to the association management

The association management will visit each member’s home and guarantor as well as the Credit officer for proper monitoring.

All cars are tracked and members come to the office for payments and monitoring everyday before starting their shift.


The Kibuye Taxi Park Nateete Stage Drivers Association management is the same management at the Kibuye stage in Kibuye.  This is a strong point to note in that cars can be tracked and drivers for payments and monitoring since they report to the stage office on a daily. 

This proposal is backed up by the fact that;

  • The target clients are daily income earners that belong to Kibuye Taxi Park Nateete Stage Drivers Association., a group that deals in transportation of people and different goods to different clients in Kampala and neighboring areas. Most of these people are Taxi drivers, owners and conductors in Kibuye and Nateete where their stages are located. They drive on fixed routes between Kibuye, Nateete, Kyengera, Mpigi up to Masaka as the furthest destination.
  • It’s proposed that EFC will finance Members of the Association but must be recommended by the Association.
  • We have 50 ready members willing to take up the loan.
  • The price of the vehicles to be purchased ranges between 25 Million to 40 Million Ugandan Shilling, 7.000 euros on average.
Company nameEFC Uganda
CEOShem Kakembo
LocationKampala Uganda

Impact of this project

  • With this investment 10 jobs are created
  • With this investment 250 people are reached

About the investment

TypeLocal partner investment
IssuerEFC Uganda
Funding target€350,000
Annual interest4.00%
Maturity36 months
Repayment periodSemiannually
Terms and conditionsShow
Note termsDownload
Information document issuerDownload

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

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?

Lendahand works with Intersolve EGI: a Dutch financial institution specializing in payment settlement and electronic money. To be able to offer these financial services, Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and owns a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve has no access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

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

Why is Intersolve EGI handling my money?

As part of the AFM license for investment firms, it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the costs. This collaboration offers you more security since your money is placed on a protected bank account immediately after making your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there’s a chance you’ll lose (part of) your money. Lendahand will try to recover outstanding payments, but the success rate is limited in such situations. For you, as an investor, there’s no possibility of taking action against the financial institution. Therefore, it is recommendable to choose several different projects.

About EFC Uganda

Portfolio Overview€1,138,790,835.84
Leverage ratio19.00%
Write-off ratio last 12 months1.40%
% investment amount in arrears (>90 days)2.99%

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