- MYC4
-
MYC4 A/S 
Type A/S Industry Microcredit Founded May 2006[1] Headquarters Copenhagen, Denmark Area served Africa Key people Employees 7[1] Website myc4.com MYC4 is a company that facilitates microcredits via the Internet to small businesses in developing countries.
Contents
History
MYC4 was founded as a joint venture in May 2006 by Mads Kjær, chairman and former CEO of the Kjær Group and Honorary Danish Consul to Ethiopia, and Tim Vang.[1][2] MYC4 is currently headquartered in Copenhagen, Denmark. As of beginning of 2011, it employs 7 people at its Danish office.[3]
Since the company's creation, 18,730 investors from 112 countries have invested more than € 14 million[4] in 7,163 businesses in seven African countries - Uganda, Kenya, Côte d'Ivoire, Rwanda, Ghana, Senegal and Tanzania.[1]
Annual reports[5] and up-to-date statistics are available.[6]
Method of operation
African businesses apply for a loan at a local credit provider[7], partnering with MYC4.[8] They specify the amount of money they need, the interest they would be willing to pay and the time they plan for repayment. Investors who have created accounts on the website can choose from these third-world businesses, which they then bid money towards supporting. They specify an amount, a target interest rate and a minimum interest rate. Depending on the amount of money offered by investors, and the interest rates, individual bids can proceed at the target or a lower interest rate, or be cancelled. A bid can be as little as €5, repayment times are usually 6 to 12 months, sometimes 2 years. Providers, Administrators and MYC4 itself all charge a fee for their services. They vary, but they are stated on each loan, in order to create transparency.
Major investments
In December 2006, MYC4 received a € 670,000 grant from the Danish Aid Agency under the Danish Ministry of Foreign Affairs.
On 29 October 2008, The Industrialisation Fund for Developing Countries (IFU) decided to invest approximately € 1.3 million in Africa through MYC4. The Minister for Development Cooperation of Denmark Ulla Tørnæs supports the decision.[9]
Risks
As any investment, lending money via MYC4 carries risk. In the past, a significant number of loans defaulted, making investments effectively donations. After major restructuring, profitability has improved, and investors may expect a moderate return on investment. The status of the loans, such as number and amount of defaults, are regularly reported on the MYC4 blog.[10]
Potential investors should carefully read the 'Risks' page of the MYC4 website.[11]
The forum[12], where investors could discuss issues, was disabled in October 2010[13], being replaced with a blog by the organizers.
See also
References
- ^ a b c d e Catherine Riungu (July 13, 2009). AllAfrica. http://allafrica.com/stories/200907131612.html. Retrieved 2009-09-03.
- ^ a b "Who is behind MYC4?". MYC4. https://www.myc4.com/About/WHO_WE_ARE. Retrieved 2009-09-03.
- ^ "About MyC4". myc4.com. http://www.myc4.com/About. Retrieved 2011-10-10.
- ^ "Countries". myc4.com. http://www.myc4.com/Invest/Countries. Retrieved 2011-10-10.
- ^ "Annual Reports". myc4.com. http://www.myc4.com/About/PRESS/. Retrieved 2011-10-10.
- ^ "MyC4 Loan Statistics and Data". wiseclerck.com. http://www.myc4stats.com. Retrieved 2008-07-07.
- ^ "Providers". myc4.com. http://www.myc4.com/Invest/Providers. Retrieved 2011-10-10.
- ^ "How does MYC4 work?". myc4.com. http://www.myc4.com/About/MAIN_FAQ#HOW_DOES_MYC4_WORK. Retrieved 2011-10-10.
- ^ "IFU investerer 10 millioner kr. igennem MyC4" (in Danish). ifu.dk. http://www.ifu.dk/dk/Menu/Nyheder/Nyheder/IFU+investerer+10+millioner+kr.+igennem+MyC4. Retrieved 2008-11-28.
- ^ "MYC4 Blog". myc4.com. http://myc4.wordpress.com. Retrieved 2011-10-10.
- ^ Risk description on MYC4 website
- ^ Link to disabled forum on MYC4
- ^ "Forum disabled". myc4.com. http://myc4.wordpress.com/2010/10/20/help-what-happened-to-the-forum/. Retrieved 2011-10-10.
External links
- MYC4 website
- "Internetlån hjälper företag i Afrika" (in Swedish) (swf). playrapport.se. http://playrapport.se/#/video/1184621. Retrieved 2008-07-07.
- "Radioavisens 18-udsendelse på P1" (in Danish) (wmv). dr.dk. 2008-07-03. http://www.dr.dk/nyheder/htm/service/asx/P1uge/Torsdag/1800.asx.
Categories:- Microfinance organizations
- Organizations established in 2006
- Peer-to-peer charities
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