Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status update — February 23, 2016

Practical Empowerment & Network Youth Association’s (PENYA) partnership with Kiva has been closed following closure of their operations in Harare, Zimbabwe. Since joining Kiva as an experimental partner in June 2013, PENYA’s loans on Kiva have recorded high levels of borrower delinquency due challenges within their credit program as well as an unfavourable operating environment within Zimbabwe. 

PENYA joined Kiva at a time when they were transitioning from a donation based model into a credit-based organization seeking to be self sustaining in providing funding to rural youth groups. However, their inability to attract additional funding in order to build capacity in credit management and facilitate expansion of this program ultimately resulted in the failure of their program. In addition, unfavourable economic factors experienced by entrepreneurs within Zimbabwe and weather related problems, which impacted their agricultural based portfolio, were key contributors to their lack of success. 

With the closure of PENYA’s operations in Zimbabwe, no further recoveries are expected from these borrowers, and thus the remaining $12,816.67 in outstanding amounts due to Kiva lenders has now been defaulted. 

Partner Description:

Practical Empowerment and Networking Youth Association (P.E.N.Y.A.) is a youth-centered non-governmental organization founded and operated by young people since 2008. It works to address socio-economic challenges faced by youth in Zimbabwe by creating partnerships with them, their families, community organizations and government. Additionally, it empowers them through entrepreneurial skills training, savings group formation, support for youth businesses and small business management advice.

P.E.N.Y.A. works in Zimbabwe at the grassroots level in the Harare, Chegutu and Goromonzi districts. To date, the organization has trained approximately 300 youth through its ‘Start and Improve Your Business’ program, assisted 300 youth with microloans, and formed 36 School Health Clubs.

Kiva lenders’ funds will act as a catalyst to boost the organization’s impact and enable it to operate as a commercial entity. With Kiva financing, the organization will be able to reach out to more youth and provide loans to start and expand youth businesses.

A unique lending approach:

The major economic activities undertaken by youth in Zimbabwe are agribusiness and informal trading. The remainder of youth are engaged in the mining, service and textile industries. Lack of skills and knowledge are key inhibiting factors for Zimbabwe’s youth, who face challenges in accessing vocational training and other education due to lack of money, failure to meet the academic entry requirements, absence of training schools in some districts, and poorly equipped training institutions.

Kiva lenders’ funds will support Rural Youth Groups to obtain equipment to set up drip irrigation systems and bio-digesters for their horticulture businesses. The loans will be payable over six months with repayments only due after the first harvest. The clients will be be responsible for carrying out the entrepreneurial activities, but will receive training and support throughout the development of their businesses.

P.E.N.Y.A. joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 5, 2013 Oct 12, 2005
Total Loans $60,500 $864,089,775
Amount of raised Inactive loans $0 $378,925
Number of raised Inactive loans 0 245
Amount of Paying Back Loans $0 $136,644,550
Number of Paying Back Loans 0 166,002
Amount of Ended Loans $60,500 $727,066,300
Number of Ended Loans 38 903,193
Delinquency Rate 0.00% 8.22%
Amount in Arrears $0 $7,295,607
Outstanding Portfolio $0 $88,711,476
Number of Loans Delinquent 0 22,238
Default Rate 45.05% 1.32%
Amount of Ended Loans Defaulted $27,256 $9,621,719
Amount of Ended Loans $60,500 $727,066,300
Number of Ended Loans Defaulted 21 26,679
Currency Exchange Loss Rate 0.00% 0.43%
Amount of Currency Exchange Loss $0 $3,748,624
Refund Rate 0.00% 0.64%
Amount of Refunded Loans $0 $5,544,100
Number of Refunded Loans 0 5,818

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 64.10% 74.85%
Average Loan Size $766 $407
Average Individual Loan Size $1,315 $640
Average Group Loan Size $2,273 $1,805
Average number of borrowers per group 4.7 7.8
Average GDP per capita (PPP) in local country $2,000 $5,937
Average Loan Size / GDP per capita (PPP) 38.29% 6.86%
Average Time to Fund a Loan 2.03 days 6.9 days
Average Dollars Raised Per Day Per Loan $377.61 $59.06
  Average Loan Term 10.1 months 11.04 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 60 438,945
  Journaling Rate 100.00% 41.47%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.29

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 31% APR 59.00% PY 27.39% PY
  Profitability (return on assets) N/A N/A -0.64%
  Average Loan Size (% of per capita income) N/A 138.00% 19.18%

Country Fast Facts

Field Partner Staff