Wokai, a US-based online fundraiser for Chinese microfinance institutions (MFIs), has announced that it will shutdown operations due to “a failed search for a new CEO in combination with funding obstacles.” Wokai will not be accepting new contributions, and the nonprofit plans to distribute its existing capital to field partners the Association for Rural Development of Yilong County (ARDY) in the Chinese province of Sichuan and Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA) of Inner Mongolia. Wokai expects the funds to reach 9,000 entrepreneurs.
Since its inception in 2007, Wokai has raised USD 500,000, providing 1,500 microloans to 961 borrowers in China.
By Brendan Millan, Research Associate
About Wokai: Wokai is a fundraiser for microfinance institutions that was launched in 2007. In 2012, Wokai announced that it was winding down its operations. It had allowed donors to contribute online to microfinance institutions (MFIs), which then made loans to low-income individuals. Contributors were not allowed to withdraw funds at any time even if the loan was completely repaid. Wokai worked with two Chinese microfinance institutions: the Association for Rural Development of Yilong County (ARDY) inSichuanand the Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA) inInner Mongolia. Wokai also had operations in Boston, Hong Kong, Los Angeles, New York City, San Francisco, Seattle, Shanghai, Toronto and Vancouver. Wokai had raised USD 500,000 to date, providing 1,500 microloans to 961 borrowers in China.
About Association for Rural Development of Yilong County (ARDY): Founded in 1996, ARDY is a microfinance institution (MFI) based in Sichuan, China. Its main activities include microlending, empowering women and forming farmer organizations. For the year 2009, ARDY reported a gross loan portfolio of USD 900,000 and 2,437 clients.
About Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA): Founded in 2001, CZWSDA is a microfinance institution (MFI) based in Chifeng in the Chinese province of Inner Mongolia. It seeks to empower women through microloans, technical assistance and financial training. For the year 2011, CZWSDA reported the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.7 million, a gross loan portfolio of USD 2.3 million, 4,500 active borrowers, return on assets (ROA) of 1.29 percent and return on equity (ROE) of 3.43 percent.
Sources and Resources:
[1] Wokai: “Announcement”, http://en.wokai.org/announcement
MicroCapital.org story, April 10, 2012, “MICROCAPITAL BRIEF: Wokai Raises $873k for Microfinance Lending in Rural China”, https://www.microcapital.org/microcapital-brief-wokai-raises-873k-for-microfinance-lending-in-rural-china/
MicroCapital.org story, May 5, 2011, “MICROCAPITAL BRIEF: 17 Websites Now Allow Individuals to Commit as Little as USD 20 as Microfinance Loans”, https://www.microcapital.org/microcapital-brief-17-websites-now-allow-individuals-to-commit-as-little-as-usd-20-as-microfinance-loans/
MicroCapital.org story, April 22, 2009, “MICROCAPITAL BRIEF: China: Facebook like Wokai Helps China’s Farmers Connect with Microfinance,” https://www.microcapital.org/news-wire-china-facebook-like-wokai-helps-chinas-farmers-connect-with-microfinance/
MicroCapital Universe Profile: Wokai,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Wokai
MicroCapital Universe Profile: Association for Rural Development of YilongCounty(ARDY), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Association+for+Rural+Development+of+Yilong+County+%28ARDY%29
MicroCapital Universe Profile: Chifeng Zhaowuda Women’s Sustainable Development Association (CZWSDA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Chifeng+Zhaouwuda+Women%E2%80%99s+Sustainable+Development+Association+%28CZWSDA%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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