Daniel Kenya


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Daniel Kenya

  1. 1. Kenya<br />Daniel Edmonds <br />
  2. 2. Current Development Status Natural Factors 1: Location & Geography <br />Location: Eastern Africa boarding the Indian Ocean between Somalia and Tanzania<br />Climate: from tropical along the coast to arid toward interior <br />Arable Land: 8% (USA 18%, CH 10%)<br />Natural Hazards: reoccurring droughts, flooding during heavy rain falls<br />
  3. 3. Current Development StatusNatural Factors 2: Land Resources<br />Limestone, gemstones, zinc, wildlife etc.<br />
  4. 4. Current Development StatusHuman Factors 1: Health<br />
  5. 5. Current Development StatusHuman Factor 2: Education<br />
  6. 6. Current Development StatusEconomic Factors 1: GDP Growth <br />
  7. 7. Obstacles to DevelopmentInternal Factors 1<br />Unemployment of 40%<br /> -&gt; higher crime rate, more instability, stress etc<br /> -&gt; -&gt; poverty trap<br />Corruption in government (144th of 159 countries) <br /> -&gt; less funding from government, reduced donor support, less income distribution among the people (rich get richer poorer get poorer), less tourism, less aid, slower infrastructure development<br /> -&gt; -&gt; poor government trap<br />Political and economic hangover from violence during 2008 elections<br /> -&gt; resentments<br />
  8. 8. Obstacles to DevelopmentInternal Factors 2<br />Reliance on goods whose price has remained low<br />Recent drought <br />
  9. 9. Obstacles to DevelopmentExternal Factors 1<br />Unstable neighbors (e.g. Sudan, Somalia, Ethiopia <br /> -&gt; refugees, possibly spreading tribal conflicts and reduced trade <br />Global food crisis<br />Global financial turmoil<br />
  10. 10. Resources and Potential Internal Advantage 1<br />Relatively high literacy (85%)<br />Regional hub for trade and finance in East Africa<br />Industries:<br /> -small scale consumer goods (soap etc)<br /> -agricultural products (tea, coffee, etc)<br /> -tourism<br />
  11. 11. Formal ProposalBackground information for Micro-credit scheme 1<br />7.5 million Kenyans live in slums<br />1.5 million (60%) of Nairobi’s population live in slums(little/no access to water, electricity, basic services, infrastructure etc.)<br /> -child mortality: 15% die before 5 years old (6% for Kenya as a whole) <br />
  12. 12. Formal ProposalBackground information for Micro-credit scheme 2<br />Aaron Wegmann/Pamoja Trust (NGO): <br /> -redevelopment of slums (Kibera vs. Kambi Moto)<br /> -Kambi Moto (burnt earth), 1/10 finalist project for World Habitat 2009(UNO): 270 homes of lava stones, $3,200/house, 20% own capital<br />Challenge: building of infrastructure, shop creation, public transport etc. in redeveloped former slums<br />
  13. 13. Formal ProposalProject Goal <br />To help develop an environment for investment and sustainable growth by a micro-credit scheme for people building the infrastructure in redeveloped former slums<br />
  14. 14. Formal ProposalProject Details<br />World Bank would give loan of $5,000,000 to local microfinance institutes (e.g. Equity Bank) who then would give micro-credits for people building the infrastructure in redeveloped former slums in Kenya (preferably redeveloped “Aaron style” not “Kibera style”)<br /> -&gt; average loan balance/borrower: $280.6<br /> -&gt; $5,000,000/$280.6= 17,819 people<br />
  15. 15. Formal ProposalExample of similar successful projects1<br />Julie Amunga lives in the slums of Mathare<br />Amunga and her friends received a loan from the Jamii Bora Trust. <br />She now runs a successful business selling vegetables and fresh fruit in the local market<br />Her children can now go to school<br />
  16. 16. Formal ProposalExample of similar successful projects2<br />Anna LeoniMuschi lives in a small town close from Mt. Kilimanjaro <br />Before she received money she had to beg to provide for her family and her daughter<br />Relatives gave her money to sell fruits but not enough to survive<br />Anna received credits from the Akiba Commercial Bank, partner of responAbility<br />Now she built a shop at the foot of Mt. Kilimanjaro selling meat and is able to keep a loyal clientele <br />
  17. 17. Formal ProposalSuccess for refinancer<br />
  18. 18. Formal Proposal Financial Analysis of Project 1: Expenses & Expected Rates of Return <br />20%/day interest to informal money lender<br />responAbility: 34% interest/year to MFI<br /> -expenses: 19%<br /> -provision: 2%<br /> -refinancing: 7%<br /> -profit for MFI: 5% <br />
  19. 19. Formal Proposal Financial Analysis of Project 2Repayment Schedule<br />Proposal: payment of 7%/year interest to the World Bank on the capital of $5,000,000 for 3 years <br />Repayment of capital or renegotiation of interest rate for a new period to be determined<br />