This month I had a blodd boiling moment with Kiva again. So I lent money in July 2014 to a project run by Caritas Uganda, a global church funded charity:
https://www.kiva.org/lend/706146
Caritas Uganda seeks to enable 1,000 rural households in Masaka, Mbarara, Kabale, Kasese and Hoima dioceses to acquire and have installed Barefoot Power solar systems. This loan would enable the rural farmer households to buy and pay back using savings from the would-have-been kerosene and phone-charging expenditures as well as incomes from the sale of seasonal crops such as coffee, cotton, matooke and milk.
In 2014, we saw this update:
In this loan model, the organization Caritas chooses and refers to Barefoot, small villages where residents do not have access to electricity. Then Barefoot goes to each village (with approximately 100 households) and meets with the different Caritas groups to explain their solar home systems and gauge customer interest. If households want to buy a solar home system, they must pay 20% in advance as a down payment and then pay the rest in instalments over six months.However, not all households can pay the 20% down payment upfront. For these households, Barefoot instructs them to save up money for the down payment, and whenever they are ready with the down payment Barefoot installs their solar home systems.Barefoot and Caritas developed this arrangement in partnership, based on Caritas' experience in the communities. Caritas has reported, though, that households are struggling to pay the 20% down payment, so Caritas' sales are slower than expected. Caritas does hope that sales will pick up and intends to revolve the Kiva loan amount twice in the 12-month period. Caritas would like to say, “thank you” to all lenders for their help
On March 16, Kiva gave up on this loan:
This loan was defaulted on 03/16/2018, with $41,460.00 of $50,000.00 amount repaid.In microfinance, it's common to try to reschedule loans to accommodate eventual repayment, however sometimes loans end in default, despite efforts to be flexible. Kiva loans are defaulted at the point in time collection of future repayments is deemed unlikely, or when the loan is more than 180 days past due. This loan is being defaulted because:Barefoot has been unable to collect further repayments from Caritas. After 12months of trying to do so, we are moving them into default.Please know that even in cases of non-repayment your loans are still helping make a difference in the lives of borrowers around the globe, and with your support you're giving people an opportunity to pursue better lives.
Barefoot says this on their website:
Barefoot Power Uganda is expanding its LUAV program rapidly with a number of partners, among others Caritas Uganda. Every month more than 500 Caritas families across eight different areas of the country sign up for one of the products. Installation is done by the Barefoot Power Uganda technicians while selected members from the community are trained in both installation and after sales support.
https://www.barefootpower.com/uganda.html
Their Kiva page is a different tale:
https://www.kiva.org/about/where-kiv...s/partners/212
So Kiva lenders gave money to Caritas or to Barefoot? Then this was used for 20% downpayments? And in the end when nothing worked the committment to repay Kiva lenders was just canned? Caritas and Barefoot still exist and are well funded...