- Loan Successfully Funded On 11 Dec 2023 ​
EcoTribe Waste Collection & Recycling, Zambia
Eco Tribe
- Ndola, Zambia
Menu
- 50,000 USD
Loan successfully funded
Loan funds will be used to support the stabilisation and growth of EcoTribe’s waste collection, sorting and recycling operations in Ndola, Zambia. This includes the purchase and operation of a small truck, which will significantly reduce transport costs and increase margins.
- 11 Lenders
Committed
- 24 months
Loan Period
- 10%
Interest Rate
- BACKGROUND
Loan summary
EcoTribe raised a US$50,000 loan in December 2022, but then quickly ran into very challenging circumstances, which temporarily crippled planned operations. The purchase of plastic reprocessing equipment failed because of supplier default.
Red Hat Impact worked closely with EcoTribe throughout 2023 to recover the situation and pivot EcoTribe’s business model onto direct waste collection, sorting and recycling.
Red Hat Impact supported EcoTribe to re-commence operations and to acquire a baling machine for recycled plastics and paper. After three to four months of renewed operations, it is clear that this pivot will generate greater financial stability and more impact (especially through safe employment and local environmental impact).
Because of the material change in circumstances, this new loan is being pursued to enable existing lenders to either roll over into this new loan or exit. The loan will be used to fund lenders who choose to exit and the acquisition of a small truck to greatly reduce transportation costs and increase margins.
Borrower's mission
The main impact focus for EcoTribe is to reduce, recover and recycle waste before it enters waterways, by providing much safer and better paid livelihoods for local people in waste collection, sorting and recycling.
It generates revenue through 3 streams: 1. waste collection, 2. recycled waste sales, and 3. waste bin hire.
It creates direct impact through jobs and indirect impact through outreach (cash for trash, sports enterprise, schools enterprise and CSR).
EcoTribe has established partnerships with local governments, commercial operations and aligned NGOs.
The activities funded by this loan are helping to achieve the above Sustainable Development Goals as defined by the UN.
Intermediary's experience with impact enterprises
For more than 8 years, Red Hat Impact has helped impact enterprises by raising capital and providing other kinds of business and strategy support. We have raised more than $3M from our network of impact investors, and loaned this capital to support 30 enterprises. We use a crowd-lending model to raise loan capital. As of May 2024, we maintain a 98% success rate on loan repayment. We establish close working relationships with all of the impact enterprises we raise debt capital for, and co-manage risks with them during the loan term.
- IMPACT
Impacts and how they are measured
This loan will help EcoTribe to stabilise and grow its social impact (directly via additional local jobs – number of jobs / value of wages – and indirectly through increased outreach – number of partnerships and programs) and its environmental impact (volume of waste collected, sorted and recycled).
Ready to lend?
This loan is not currently accepting subscriptions, but we invite you to check out some of the other live loans on the platform. In order to participate in loans you must be a registered lender on the LendForGood platform. If this is your first time lending with us we’ll guide you through the process to first get registered. Thank you for lending your passion!