- Loan Successfully Funded On 19 Jun 2023
Scaling Waste Management Services in Tanzania
Tanwaste
- Mwanza, Lakes Region, Tanzania
Menu
- 25,000 USD
Loan successfully funded
Waste management is a public health challenge and an essential utility that is often underdeveloped in emerging markets. Tanwaste is providing quality waste services to the people of the Lake Zone Tanzania and have been invited to expand into city and urban areas, and also bid for a number of private contracts, which will increase their fleet, staffing requirements, and their overall impact. This impact loan will enable Tanwaste to make the investments required to deliver these new contracts.
- 5 Lenders
Committed
- 24 months
Loan Period
- 12%
Interest Rate
- BACKGROUND
Loan summary
The quality of Tanwaste’s waste management services in the Kahama area has built a strong reputation, and has now attracted contracts with councils in the more lucrative urban areas of Mwanza. Tanwaste is also close to closing two major private contracts.
The Tanwaste team requires additional capital to increase and diversify their fleet, upgrade existing facilities and to gain a hazardous waste handling certification, which will create opportunities for additional private contracts including hospitals.
Borrower's mission
The first and second impact loans with LendForGood, to establish their first contract in the rural Kahama area, has allowed them to create employment for over 30 people and service over 175,000 households.
In only their 4th month of operations, Tanwaste passed their initial target of 1 million shillings per day (˜$675AUD), and are now deploying 3 trucks, including two compactors and one tipper, in their servicing of rural Kahama areas.
Tanwaste maintains a long term vision of creating cleaner environments and employment opportunities in Tanzania, with the team now expanding to service new urban environments. This includes investing in 2 new smaller trucks and a Bajahji dedicated to Mwanza city, a new compactor truck and a fleet of smaller wheelbarrows. While incorporating less waste than the current Kahama contract, the urban contracts have a higher commercial value and are more sustainable financially, with the vast majority of collection being for businesses.
The purchase of a new incinerator allows the team to service both private clients and medical facilities, and combined with a new licence to process hazardous waste materials, will further increase their revenue opportunities and financial sustainability.
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
As with the first and second impact loans with LendForGood, Tanwaste’s primary impacts are: Tanwaste expects that securing the new urban and private contracts alone will see significant increases in those positive impacts. Over the full loan term, Tanwaste will substantially grow its workforce and the volumes of waste collected. Adding hazardous waste collection after this third loan will create additional positive impacts.
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