Challenging the image people have towards the poor

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Challenging the image people have towards the poor: Challenge the image of the poor.

Mafinga, Tanzania
Year Founded:
2012
Organization type: 
hybrid
Project Stage:
Start-Up
Budget: 
$10,000 - $50,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

KickLoans attacks poverty through financial inclusion and entrepreneurship. Currently, we are focusing our efforts in Tanzania where we provide the unbanked with financing options for their microbusinesses and ideas. We do this via grants, donations, and our peer to peer lending platform.

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if 2.5 billion people living on less than $2/day are perceived as individuals with MASSIVE potential ?
About Project

Problem: What problem is this project trying to address?

Traditional aid creates a chronic dependency and does not reap sustainability and therefore perpetuates poverty. Since 1970, $4.47 trillion dollars was given in aid without fulfilling its mission. Historically, no first world countries have relied on aid to the extent that modern day third world countries have. Currently the worldwide community lacks a well-thought strategy that moves away from aid and focuses on lasting social impact.

Solution: What is the proposed solution? Please be specific!

Entrepreneurship, financial inclusion and strategic partnerships are necessary weapons in the fight against poverty. The solution is to invest in the poor with: 1) Strategic business training: Focus on sustainable economic growth by specialized education programs tailored to the region. 2) Financial inclusion: Microloans ($100-$200) reinforce the business training and education , as well as build the unbanked’s confidence and self-esteem. 3) Strategic partnerships: Organizations that collaborate to eradicate poverty must specialize in the needs of the region. For example, partners that address issue such as health, education, sanitation, child labor, etc...
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Through our strategic partnership, entrepreneur guidance and financial inclusion, the participants of our pilot project created within 8 months a marketplace for all their products and services. Now the entire community benefits for not having to travel long distances for the food and supply they need. This bolsters the local economy. In addition, the average salary of a microbusiness owner was $1.25/day, it increased above the poverty line. Moreover, these microbusiness owners used their newfound success to send their children in school. The ones who have successfully completed the pilot project have not requested additional financing thus demonstrating their businesses are sustainable.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

Within Tanzania, we created a marketplace that services over a hundred patrons daily through the financing of street vendors. Originally, it only contained street vendors selling prepared foods and produce. The participants in the our program enhanced the marketplace. Additional financing enabled a local chicken farmer to supply the vendors with more eggs and poultry. We also created opportunities for catering & decoration, vintage sellers and sheet designers who have joined the market since our programs inception.

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

Achieving social impact using a tool such as Microfinance requires time, passion and commitment. The pilot project conducted in April 2013 revealed to us shocking and unexpected facts such as high repayment rates and social impact are NOT correlated, or what works for one entrepreneur may not work for another entrepreneur. This lead us to adopt a 3 dimensional solution in March 2014: 1) Tailored business training 2) Microloans 3) Microsavings Moving forward, the strategy is to work hand in hand with the people we serve and make sure they are included along the way.
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

We will be starting side businesses that will generate income for KickLoans to keep on financing third world businesses. These side businesses will also empower the region through job creation.

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

Poverty is addressed by NGOs, bilateral and multilateral development agencies such as the World Bank, the UN, ONE, World Vision (...) Handout aid has proven its inefficiency. We empower the poor by focussing on sustainability, growth and dignity. We help them to unleash their potential by creating the right conditions and providing them with the right skills, so that they can do the hard work and defeat poverty themselves.
Team

Founding Story

Africa = poverty, hunger, conflict, disease, aid. As long as we perceive recipients of aid as a PROBLEM to solve, we will struggle our way to fulfil the mission. Stephanie Mbida founded KickLoans in 2012 after realizing that the narrative of the continent of her childhood didn’t quite fit the reality. Her early exposure to entrepreneurship at age 10, lead the young social entrepreneur to take the lead of faith, introduce a solution based on entrepreneurship and financial inclusion and deconstruct the perception of the poor in third world countries. With KickLoans, the equation takes another meaning and translate to Africa = Land of opportunity.

Team

1) Stephanie Mbida: Founder and Executive Director. She wears many hats within the organization. She works full-time. 2) Tim Roberts: Communications Director. He builds relationships and manages KickLoans’ partners. He is part time. 3) Fadhila Simon Kihwele: Project Manager in Tanzania. She oversees all activities in the field. She is full time. 4) David Edward: Multimedia coordinator working in Tanzania. He works part time.
About You
Organization:
KickLoans
About You
First Name

Stephanie

Last Name

Mbida

LinkedIn URL
About Your Organization
Organization Name

KickLoans

Organization Country
Country where this project is creating social impact

, IR, Mafinga

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Impact
Full Impact Potential: What are the main spread strategies moving forward? (Please consider geographic spread, policy reform, and independent replication/adoption of the idea or other mechanisms.)

Kickloans envisions every impoverished region having access to a major marketplace where the working poor can buy and sell goods and services. Moving forward, we believe we can help thousands of underbanked Tanzanians help themselves by December 2015, then scale our idea worldwide to exponentially create lasting solutions for 1 Million people living under the poverty line by 2021.

Barriers: What barriers might hinder the success of your project and how do you plan to overcome them?

•Funding: We overcome this by not only applying for grants and donations, but by also starting side businesses that will generate income for KickLoans to finance thirld world businesses and empower the region through job creation.
•Repayment default and social impact. We overcome this by a) providing strategic business training for microbusinesses in order for them to sustain their businesses b) implementing mobile banking so that villagers don’t have to travel the distance to make repayments.

Sustainability
Partnerships: Tell us about your partnerships.

LGBY is a youth driven Organization in Tanzania that empowers youth through quality education and skills for change. They have impacted hundreds of youth in Tanzania since they launch and equipped our participants with the necessary business skills that enabled them to expand their businesses.

Closing the Loop
How does your project primarily ensure that feedback delivers results?

Demonstrate how closed feedback loops can make a difference in people’s lives.

Please elaborate on your answer to the above question.

When serving the poor, it's not "See Me, Hear Me, Help Me". It's "See Me, Listen to Me, Include Me”. We work in conjunction with LGBY to decide what areas in Tanzania we focus on. Weekly, we meet with representatives in the field as well as the director of LGBY. At these meetings, we discuss our progress and upcoming projects. We also collect data and opinions of the participants and quarterly sum up our progress and reevaluate out metrics. For example, health and sanitation may be a better indicator than income. In addition, Kickloans will have an open forum on its peer to peer platform.

Languages: In what languages are you able to read and write fluently?

English, French.

2nd Round Questions
Thinking about your feedback loop; what information are you trying to get from whom, to whom, and to bring about what change?
What is the purpose of your feedback loop?

If other, please specify
What mediums or mechanisms do you use to collect feedback? (check all that apply)

If other, please specify
Could you briefly describe the way you collect the feedback?
What mechanisms are in place to protect people from retribution?

If other, please specify
What are the immediate benefits or incentives for people to provide feedback?

If other, please specify
How do you ensure new and marginalized voices are heard?

If other, please specify
What are the incentives for the intended recipient to act on the feedback?

If other, please specify
How does the feedback mechanism close the loop with those who provided feedback in the first place?

If other, please specify
How is feedback published/transparent?

If other, please specify
Give two concrete examples of how feedback loops have brought a program or policy more in line with citizens’ desires.
If there was one thing you could change to increase the impact of your feedback loop, what would it be?
What are your biggest challenges or barriers in “closing the feedback loop”?

If other, please specify
Are you aware of The Feedback Store?

What are the main uses you can envision for the Feedback Store?
What is the one thing you would most like to see changed to improve the competition process?
What are you doing to make sure that feedback providers know that they are empowered by the information they can give and that they know exactly what the information they are providing?