We are proud of our results. By that, we mean the number of jobs we have created thanks to micro credits and the number of lives that have been changed by Afriwallet. In addition, the percentage of loans that isn’t paid back is only 2.34%
ABCP as a Safeguard.
Afriwallet reaches an ABCP (asset-backed commercial paper) agreement with the local partner. In this agreement, the borrower hands over property as a deposit for the loan. This property is 200% of the borrowed amount. That way there is little to no risk on the investment.
ABCP assessed as AAA by Moody’s.
AAA stands for a high-quality investment at a very low risk, which is due to the fact that there are always assets as deposit. In addition, the loans that are given out to local partners never exceed 30% of the total capital of the partners organisation.
Safeguard regulations for local partners
- Our loans are short term;
- In addition to deposits, we use a community-based deposit scheme where borrowers are each other’s guarantors
- Daily (sometimes weekly) repayments by borrowers;
- Within 15 days after default of payment, we can claim the deposit;
- No judicial intervention necessary in emerging economies, directly collect deposits;
- Borrower’s deposit is placed often in our warehouse.
In some cases we grant loans through local partners. To secure the safety of our investments, we thoroughly screen our partner organisations in advance. One tool we use is the Afriwallet score card. This score card contains criteria that is used when screening new local partners, some of those criteria area:
- The audiences that are being served (men/women, city/countryside and/or average income);
- The way they deal with customers and how feedback is collected for organisational growth;
- Whether the organisation has a good, responsible growth policy;
- Whether they take into account their social responsibility and the environment;
- The degree to which the investments lead to positive changes;
- Whether their books are accurate.