Just before I wrote this post, I took the picture above and it clearly states that ‘Hard to access finance’ is the top scorer of the 8 possible answers. This is no surprise to me, so I won’t go down that path….
Instead I want to highlight one of the answers from ‘Other’ (H) which is a vital bottleneck to be addressed in order for Africa to go from ‘one man band’ primarily to also foster SMEs (Small and Mediumsized Enterprises) and this is; ‘Finding the right resources’ (we think that development of SMEs is key!!).
Capital is simply not enough, knowledge/skills/competences is of utmost importance in order for the businesses to manage the most important element when dealing with loans; the ability to repay.
The right resources is instrumental for us when working with our Partners too! As you might have seen, we rate our Partners with 1-5 stars in order to give you, as an Investor, an overview over the individual Partner’s performance (note: the factors are historically tied to performance, they are not a guarantee of future performance). When you dig deeper into our rating mechanism, you will see that it is divided into Will and Skill and both of them has a weight of 50% (see an example of the Partner behind the loan that will close the soonest – here you can also read a lot more about how we evaluate our Partners).
Over time we have received grants from diverse donors where the funds are specifically dedicated to invest in the skills of the Partners – it could be to raise their skills within appraisel, managing the portfolio in general, collections, etc. The improvement of skills is an addition that we are proud about that our Partners can benefit from – on top of fair priced capital to the Borrowers.
I encourage you to use your vote on the Twtpoll in order for VC4Africa to get as many answers as possible.
We have the poll functionality built directly into our blog, so do you see a relevant question or two that you think we should post here? It could be;
- Why are you investing via MYC4?
- What platforms are you investing via (using the +13 online P2P platforms that exist, as I blogged about last week)
- Or, or, or…
Have a great day,