Entrepreneurs du Monde
Burkina Faso
Entrepreneurs du Monde (EdM) is a nonprofit organization that helps low-income families start and develop small businesses. To this end, EdM provides access to capital and a range of other economic, social and environmental services to help improve quality of life.
While EdM works in several countries, its operations in West Africa are based in Burkina Faso, where it facilitates Kiva-funded loans. In particular, the organization uses this funding to expand access to energy-efficient stoves and gas stoves in remote, rural areas where people have typically depended on toxic and labor-intensive traditional stoves that use up to 40% more charcoal or wood. The rising cost of fuel in these places gives energy-efficient stoves a strong competitive advantage.
Kiva provides an important source of flexible, risk-tolerant capital for several of EdM’s stove-focused loan programs, including:
1) Working capital for retailers:Prospective retailers offering gas stoves and gas refills need start-up funds to open stores. The retailers repay EdM on a flexible schedule as they sell the stoves.
Currently, less than 15% of the population in the rural regions of Burkina Faso has access to energy-efficient stoves or gas stoves, even though they are healthier, cheaper and boost productivity. This can be attributed to the high transportation costs of distributing equipment, limited access to capital for distributors, lack of information about the benefits of energy-efficient stoves, and scarce storage for gas refills in local areas. EdM’s Kiva-funded loan products are designed to eliminate these obstacles and rapidly expand market access for stove producers.
Because the “Save for a stove” project developed by EdM’s core business is not purely microfinance, there is some level of additional risk for lenders. Kiva’s partnership with the organization is unique and unprecedented. For this reason, Kiva has not assigned EdM a risk rating.
While EdM works in several countries, its operations in West Africa are based in Burkina Faso, where it facilitates Kiva-funded loans. In particular, the organization uses this funding to expand access to energy-efficient stoves and gas stoves in remote, rural areas where people have typically depended on toxic and labor-intensive traditional stoves that use up to 40% more charcoal or wood. The rising cost of fuel in these places gives energy-efficient stoves a strong competitive advantage.
Kiva provides an important source of flexible, risk-tolerant capital for several of EdM’s stove-focused loan programs, including:
1) Working capital for retailers:Prospective retailers offering gas stoves and gas refills need start-up funds to open stores. The retailers repay EdM on a flexible schedule as they sell the stoves.
2) Loans for stove buyers: Cookstove buyers in remote, rural communities need funding to afford the upfront cost of the equipment. Loans are tailored for both professional buyers, who make and sell street food, produce shea butter or prepare local beer (all these businesses require a lot of wood to boil water and cook the ingredients), and households. Many of these end users are women. Wood savings made possible by using an energy-efficient stove or a gas stove enable them to effortlessly repay the loan within about two months.
Currently, less than 15% of the population in the rural regions of Burkina Faso has access to energy-efficient stoves or gas stoves, even though they are healthier, cheaper and boost productivity. This can be attributed to the high transportation costs of distributing equipment, limited access to capital for distributors, lack of information about the benefits of energy-efficient stoves, and scarce storage for gas refills in local areas. EdM’s Kiva-funded loan products are designed to eliminate these obstacles and rapidly expand market access for stove producers.
Because the “Save for a stove” project developed by EdM’s core business is not purely microfinance, there is some level of additional risk for lenders. Kiva’s partnership with the organization is unique and unprecedented. For this reason, Kiva has not assigned EdM a risk rating.
Repayment Performance on Kiva
Repayment Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Aug 1, 2012 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $3,700 | $425,884,350 | |
| Amount of Raised Inactive Loans | $0 | $237,075 | |
| Number Of Raised Inactive Loans | 0 | 230 | |
| Amount of Paying Back Loans | $1,875 | $93,843,525 | |
| Number Of Paying Back Loans | 2 | 101,372 | |
| Amount of Ended Loans | $1,825 | $331,803,750 | |
| Number Of Ended Loans | 5 | 435,035 | |
| Delinquency Rate | 0.00% | 2.02% | |
| Amount In Arrears | $0 | $1,216,011 | |
| Outstanding Portfolio | $1,606 | $60,072,158 | |
| Number of Loans Delinquent | 0 | 9,818 | |
| Default Rate | 0.00% | 0.97% | |
| Amount of Ended Loans Defaulted | $0 | $3,220,059 | |
| Amount of Ended Loans | $1,825 | $331,803,750 | |
| Number Of Ended Loans Defaulted | 0 | 9,823 | |
| Currency Exchange Loss Rate | 0.00% | 0.02% | |
| Amount of Currency Exchange Loss | $0 | $77,435 | |
| Refund Rate | 0.00% | 0.96% | |
| Amount of Refunded Loans | $0 | $4,068,925 | |
| Number Of Refunded Loans | 0 | 4,589 |
Loan Characteristics On Kiva
Loan Characteristics On Kiva| This Field Partner | All Kiva Partners | ||
| Loans To Women Entrepreneurs | 42.86% | 74.03% | |
|---|---|---|---|
| Average Loan Size | $529 | $407 | |
| Average Individual Loan Size | $529 | $646 | |
| Average Group Loan Size | $0 | $1,743 | |
| Average Number Of Entrepreneurs Per Group | 0 | 8 | |
| Average GDP Per Capita (PPP) in Local Country | $1,284 | $3,347 | |
| Average Loan Size / GDP Per Capita (PPP) | 41.17% | 12.16% | |
| Average Time To Fund A Loan | 0.17 days | 4.69 days | |
| Average Dollars Raised Per Day Per Loan | $3,126.91 | $86.82 | |
| Average Loan Term | 6.86 months | 9.61 months |
Journaling Performance on Kiva
Journaling Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Total Journals | 1 | 203,249 | |
|---|---|---|---|
| Journaling Rate | 20.00% | 39.93% | |
| Average Number Of Comments Per Journal | 1.00 | 0.11 | |
| Average Number Of Recommendations Per Journal | 0.00 | 2.73 |
Borrowing Cost Comparison (based on 2009 data)
Borrowing Cost Comparison (based on 2009 data)| This Field Partner | Median for MFI Peers in Country | All Kiva Partners | ||
| Portfolio Yield | N/A | N/A | 35.02% | |
|---|---|---|---|---|
| Profitability (Return on Assets) | N/A | N/A | -0.38% | |
| Average Loan Size (% of Per Capita Income) | N/A | 67.30% | 46.53% |
Country Fast Facts
Country Fast Facts- Country:
- Burkina Faso
- Capital:
- Ouagadougou
- Official Language:
- French
- Population:
- 13,228,000
- Avg Annual Income:
- $1,284
- Labor Force:
- Agriculture: 90%
- Population Below Poverty Line:
- 45%
- Literacy Rate:
- 26.6%
- Infant Mortality Rate (per 1000):
- 91.35 deaths deaths
- Life Expectancy:
- 48.9 years
Field Partner Staff
Lydie BalletCharles Baloum
Diana Biggs
Armel Guenguere
Claire Le Ster
Thibaut Mary
Camille Moureaux
Fathi Nouira
Laetitia Raginel
Modeste Soubeaga
Boubakar Teguera