Wakibi reaches milestone: five million euros in microcredit

The Wakibi Foundation, a provider of microcredit to entrepreneurs in developing countries, has reached a milestone this month. Since its inception in 2011, five million euros in microcredit have been provided to fund a total of 87,488 projects. The microcredit is used by entrepreneurs to start and / or grow companies for the purpose of financial independence and poverty reduction.

Five million for 87,488 projects

The five million euros in loans are spread over a total of 87,488 projects by entrepreneurs, from sole proprietorships to groups and corporations – in 86 countries and 15 different sectors. The regions where Wakibi supports the most entrepreneurs are Africa (32%), Asia (30.6%) and South America (13.6%). Most microcredit goes to agriculture (29%), food (19%) and sales (13%).

Circular cash flow increases the social impact

Wakibi calls for a circular flow of money among lenders to support as many projects as possible with the funding raised. 98% of the loans granted through the fund are repaid in full by the entrepreneurs. This money flows back to lenders’ Wakibi accounts, where they have the choice of lending them again. In this way, they get more effect with one amount. A total of € 1,242,258 has been lent over the past 11 years, the vast majority of which has been used again. As a result, the milestone of five million euros in microcredit has been reached.

“We are very proud of this result. It is amazing that our lenders are giving entrepreneurs in developing countries access to microcredit. This would not have been possible without the support of our lenders and partners,” said Sylvia Siertsema, Wakibi Fundraising Director and Board Member Foundation.

Female entrepreneurs as the largest target group

80 percent of the microcredits granted go to female entrepreneurs. “Getting funding is an even bigger challenge for women than for men * for various reasons,” explains Sylvia Siertsema. “That’s why we set up the Women Empowerment Fund last year.” This fund has so far provided € 85,875 in microcredit.

The result of the efforts of lenders, partners and volunteers

The five million euros in microcredits granted are the result of the efforts of more than 4,400 lenders, business partners and 65 volunteers from Wakibi. Of the lenders, 53% are women and 47% men. Most lenders are between 25 and 34 or 65+. There are 18 entrepreneurs and foundations that actively support Wakibi, this group has made € 183,000 available for microcredit. “The collaboration with partners makes it possible, among other things, to maintain the website, use a PowerBI and set up a subscription form for lending. For these partners, collaboration with and lending through Wakibi is part of the CSR policy, ”says Sylvia.

What’s next?

Wakibi remains committed to providing microcredit to even more entrepreneurs in developing countries. The ambition is to grow further to 6 million euros this year. “We strive for the business community to find us even better. Supporting entrepreneurs in developing countries with microcredit is a way for companies to fulfill their desire to act in a socially responsible way. We are committed to increasing our brand awareness, collaborating with more companies and informing the public about the usefulness and necessity of microcredit, ”explains Sylvia. To create more awareness of the challenges facing entrepreneurs in developing countries and the added value of microcredit, the fund has launched various initiatives. For example, a free tuition package has recently been developed to inform high school students, and a podcast series will be launched in June 2022, with Maria van der Heijden, director of MVO Nederland, being the first guest. Over time, Wakibi will also arrange trips to areas where entrepreneurs are supported, so that partners can see with their own eyes the effect of the microcredit they provide.

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