Daniel Kenya
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Daniel Kenya






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    Daniel Kenya Daniel Kenya Presentation Transcript

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