The last day of June marked the final day of uploads from Uganda. Henceforth, our Uganda providers will join our Tanzania providers in winding down their portfolios. MYC4 continues to search for Providers in Kenya so as to grow its portfolio. Below is an update of all the providers.
Kenya will going forward be our country of focus. The microfinance market in Kenya is huge and stable: We will thus utilize our resources to maximizing on the market.
KEEF – The PAR 30 of KEEF has suddenly deteriorated on the MYC4 system hitting 45% by end of June. Repayments from KEEF were not remitted in the month of June, KEEF had incidences of fraud by staff that involved the field staff, in some cases in collusion with borrowers. They had thus temporarily suspended operations so as to undertake forensic investigations to determine the extent of the fraud. They have now resumed operations as they finalize the investigations. We have had several meetings with the management of KEEF to find the best solution for the current impasse. They have assured us of their commitment to MYC4 investors, and we have no reason to doubt their going concern and ability to rectify the current situation. We expect repayments to begin flowing in the month of July. KEEF has 11,398 Euro of repayments that they have collected from borrowers, passed the entries on the MYC4 platform, but are yet to transfer to MYC4. Their current OLB currently stands at € 828,593.96.
YEHU – has continued to grow and has a portfolio of € 298,084.27. They have capacity to grow more on MYC4 platform, given that MYC4 funding is less than 10% of their outstanding loan book. They have remained consistent in their uploads; disbursing 34,788 Euros and making repayments totaling to 33,314.44 Euros in the month of June, their Par 30 stands at 0.00% on the platform.
Milango – Milango had a very good start on MYC4, disbursing an average of 55,000 Euros in the last three months. Milango started repaying in June even as they have reached the required OLB for a provider in the pilot phase. Their current OLB stands at € 162,045.07 and the repayment made for the month of June Total to 1,947.51 Euros with more expected later this week, their Par 30 on the platform is 0.80% We expect limited growth on MYC4 in the month of July as we require them to diversify their funding base; including injection of fresh capital by their shareholders.
SISDO -Current Portfolio stands at € 45,079.97. They continue winding down their portfolio, and in the month of June they paid a total of 18,692.03 Euros, Par 30 is 0.36%
Tanzania has 4 providers namely Tujijenge Tanzania, Fanikiwa, BELITA and Mtaji Credit Facility Ltd. The providers in Tanzania are winding down their portfolios under a new model of direct transfer to MYC4 account in Europe. This measure was caused by the sudden government cancellation of the license of our money transfer agent, INTL Global Currencies, to get money out of Tanzania. The model is more expensive for our partners, so they are doing the transfers bi-weekly.
Mtaji – Mtaji has 32,253 Euro of repayments that they have collected from borrowers, passed the entries on the MYC4 platform, but are yet to transfer to MYC4. Their portfolio at risk on the platform has deteriorated,(72.14%), because we are not allowing them to enter any repayments into our system until they remit all unremitted funds. We are pursuing them to rectify the position at the earliest. The total amount of repayments received in June is 7,082.55 Euros and their total portfolio currently is € 80,958.26, which is net of the unremitted repayments.
Fanikiwa – Fanikiwa’s monthly repayments after we pulled out of Tanzania, have increased compared to the prior period. The month of June saw them repay 21,251.56 Euros, and they are expected to continue with the weekly repayment in July up to until they finish repaying the portfolio, the current portfolio stands at € 57,005.51. Their PAR 30 is currently 17% but they are addressing it through more regular reconciliation exercise.
Tujijenge Tanzania – currently has a portfolio of € 129,498.79 with a Par 30 of 4.33% on MYC4 and the month of June saw them repay a total of 43,792.14 Euros. It is expected that they continue repaying in the month of July. They are expected to group and transfer repayments of about 40,000 Euros this week.
BELITA -– is currently repaying the defaulted portfolio, amounting to 4,068 Euros. BELITA has experienced liquidity management and collection challenges in the past, but are making good effort to repay their entire portfolio (So far they have repaid 77% of their defaulted portfolio. MYC4 is currently waiting for confirmation for an amount totaling to 636.87 Euros. MYC4 is expecting more repayment from BELITA in the month of July.
Uganda has 3 providers namely Uganda Micro-credit Limited,(UMF), Tujijenge Uganda (TUG) and Gatsby limited.
Tujijenge Uganda – Has a portfolio of € 80,815.44 and continue to remit repayments every week. For the month of June, TUG has paid a total of 11,194.33 Euros. They have no portfolio at risk more than 30 days.
Uganda Micro-credit Foundation – UMF did not upload any loans on MYC4 for the entire month of June: They have diversified their funding sources to plug the gap left by MYC4 exit of Uganda. They however have continued repaying and in June they repaid a total of 48,743.01 Euros. Their current OLB stands at € 166,848.09 and they have no portfolio at risk more than 30 days.
Gatsby -Has a portfolio of € 154,546.69 which they continue to repay every week. Gatsby repaid a total of 29,365 Euros in the month of June. Gatsby has indicated their desire to clear their entire portfolio with MYC4 at the end of July. Their portfolio at risk more than 30 days on the platform has remained a challenge, (33.60%): They are working to improve on collections from borrowers and reconciliation of repayments with the MYC4 platform.