Status update — April 7, 2016
Kiva and BrazAfric have agreed to end their partnership after over 4 years and more than $16K in loans raised. This Field Partner has repaid its outstanding balance to Kiva in full, and these funds have been distributed to lenders. We thank BrazAfric for the years of collaboration and wish them success in their future endeavors.
BrazAfric Enterprises Limited is a for-profit social enterprise that primarily imports, distributes and sells agricultural tools and machinery with great emphasis on technological solutions that enhance energy and environmental conservation. Its major product lines that promote clean energy include solar lighting systems and energy sources for efficient cooking. These products have demonstrated high efficiency in energy costs with less harm to human health compared to traditional energy sources such as charcoal, wood, dung and kerosene.
BrazAfric was registered in 1996 under the company act CAP 486 in the republic of Kenya by Marcos R.G. Brandalise, who is also the owner and founder of the company. Currently, BrazAfric employs over 130 people in East Africa. Over the last 16 years, the organization has established a strong presence in the region through a network of offices in Kenya, Uganda, Tanzania, Ethiopia, Rwanda and Mozambique. The company has also established sub agents in Burundi, Democratic Republic of Congo, as well as the Republic of Southern Sudan. Through this network, the company has forged relationships with thousands of smallholder farmers and other cooperative groups in these territories by offering quality products and fully-fledged technical support.
With a strong grassroots presence in rural areas, BrazAfric has facilitated the advancement of modern technologies in agriculture designed to aid development in tropical countries. These new technologies are significantly more reliable with improved operational efficiency that reduce costs and increase farmer income.
The BrazAfric team believes that their smallholder farmers deserve access to financing. With this mission in mind, the company created a Vendor Financing Department (VF) in 2010 to offer its products on credit to low-income smallholder farmers. Since then, this division has provided equipment financing to farmer cooperatives that helps them purchase ecological wet mills for processing coffee. These wet mills ensure that the quality of coffee processed is maintained while consuming relatively less water. Older technologies consume a lot of water and waste coffee beans in the process, leading to high operational costs and reducing farmers’ revenues.
Through the VF program, BrazAfric is partnering with Kiva and is utilizing its internal credit expertise and capacities to offer financing to its clients to buy efficient-energy sources of lighting and cooking. To reach a wider population and significantly impact off-the-grid communities, BrazAfric is engaging Kiva funding in two ways:
1) By offering loans to SACCO’s, farmer cooperatives, women’s groups and other community-based organizations for bulk purchases of energy-efficient cooking stoves and solar lanterns. These loans are offered up to a maximum limit of US$10,000 per client. The repayments will be tied to contracts within the market value chain of the economic activities being undertaken by the respective groups. Repayment could be monthly, quarterly or annually depending on the clients’ cash flow cycles. Loan duration will range from six to 12 months.
2) By offering loans to micro-retailers who sell energy-efficient cooking stoves and solar lanterns to increase their inventories and incomes. Most of these micro-retailers are located in off-grid rural and peri-urban areas where the majority of the population has limited access to credit and financial services. These borrowers also lack collateral that traditional banks require before advancing loans. This is the greatest challenge that has inhibited demand for these products in the rural areas. BrazAfric’s partnership with Kiva bridges the financing gap critical to accelerating the adoption of clean energy for millions at the base of the economic pyramid. These loans range up to US$2,000 per client and have a monthly repayment due at the end of each month for a six to 12 month term.
BrazAfric sources solar lanterns from reputable global leaders in solar technology that also have elements of social enterprise and are dedicated to promoting adoption and use of renewable energy in place of highly inefficient sources that are commonly used in the developing world.
With the introduction of financing through Kiva loans, low-income communities will be able to access clean and affordable solar energy. Students are able to do homework for more hours with solar study lamps, improving their academic performance. And, throughout East Africa, women and mothers who spend hours collecting firewood, can save time and energy by converting to energy-efficient cooking stoves.
Solar energy also saves on the costs of other fuels like wood and kerosene, enabling households to have extra money for food and school fees for their children. Additionally, these households will be less vulnerable to respiratory and eye diseases associated with toxic fuels, improving health throughout their communities.
According to the World Health Organization, fires from kerosene and other fuel-based sources of energy cause 1.6 million deaths every year, mostly of women and children due to burns, smoke inhalation and respiratory disease. Solar lanterns and highly-efficient cooking stoves are sustainable, safe and reliable solutions to these problems. Apart from the initial cost of purchase and installation, the clients will recoup their costs through energy savings from free and clean energy associated with solar technology. With proper financing and increased market accessibility, renewable energy will be much more affordable for the off-grid population, especially low-income families in rural areas.
In the initial phase, Kiva funding will be used by BrazAfric Enterprises in Kenya before rolling out to the other country offices run by the Braz Group of Companies.
Status update — December 17, 2012
The loan to BrazAfric's first posted borrower, Knox for the purchase of solar lanterns, is shown as delinquent on the Kiva website even though it is not.
Knox's shipment of solar lights was delayed, which in turn delayed receipt of his loan. Accordingly, BrazAfric rescheduled Knox's repayments. However, we are unable to update loan schedules on the Kiva website after they have been uploaded. As a result, the loan falsely appears delinquent.
Supporters of this loan can expect their first repayment in January.
Repayment Performance on Kiva
|This Field Partner||All Kiva Partners|
|Start Date On Kiva||Aug 20, 2012||Oct 12, 2005|
|Amount of raised Inactive loans||$0||$1,225,950|
|Number of raised Inactive loans||0||246|
|Amount of Paying Back Loans||$0||$148,369,975|
|Number of Paying Back Loans||0||169,375|
|Amount of Ended Loans||$16,300||$1,301,882,775|
|Number of Ended Loans||12||1,706,896|
|Amount in Arrears||$0||$20,695,832|
|Number of Loans Delinquent||0||72,467|
|Amount of Ended Loans Defaulted||$841||$22,469,414|
|Number of Ended Loans Defaulted||2||54,461|
|Currency Exchange Loss Rate||0.39%||0.40%|
|Amount of Currency Exchange Loss||$64||$5,838,315|
|Amount of Refunded Loans||$0||$9,156,125|
|Number of Refunded Loans||0||8,490|
Loan Characteristics On Kiva
|This Field Partner||All Kiva Partners|
|Loans to Women Borrowers||50.00%||76.69%|
|Average Loan Size||$709||$395|
|Average Individual Loan Size||$1,282||$610|
|Average Group Loan Size||$2,200||$1,774|
|Average number of borrowers per group||12||7.8|
|Average GDP per capita (PPP) in local country||$1,800||$5,729|
|Average Loan Size / GDP per capita (PPP)||39.37%||6.89%|
|Average Time to Fund a Loan||1.14 days||7.45 days|
|Average Dollars Raised Per Day Per Loan||$622.65||$53.02|
|Average Loan Term||10.67 months||11.37 months|
Journaling Performance on Kiva
|This Field Partner||All Kiva Partners|
|Average Number of Comments Per Journal||0.00||0.03|
|Average Number of Recommendations Per Journal||0.00||0.70|
Borrowing Cost Comparison (based on 2011 data)
|This Field Partner||Median for MFI's in Country||All Kiva Partners|
|Average Cost to Borrower||13% APR||36.00% PY||25.38% PY|
|Profitability (return on assets)||1.9%||0.5%||-1.40%|
|Average Loan Size (% of per capita income)||N/A||56.00%||12.34%|
Country Fast Facts
- Official Language:
- English (official), Kiswahili (official)
- Avg Annual Income:
- Labor Force:
- agriculture: 75%, industry and services: 25%
- Population Below Poverty Line:
- Literacy Rate:
- Infant Mortality Rate (per 1000):
- 40.71 deaths
- Life Expectancy:
- 63.52 years