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The Micro Enterprise Development Network (MED-Net) is a microfinance bank in Uganda affiliated with the large charity World Vision.1 (For more information, see our overview of microfinance.)

Our investigations of Med-Net to date (details below) have not been able to answer what we consider key questions about an organization working in this area. These key questions include:

• What is Med-Net's "true" repayment rate? (More on the "true" repayment rate on our blog)
• What interest rates does Med-Net charge and how do these compare to other available interest rates?
• How does Med-Net monitor clients' potential over-indebtedness? What steps do partners take to prevent potential intimidation of clients by loan officers?
• What are Med-Net's dropout and retention rates? (More on the importance of dropout/retention rates on our blog)
• What are Med-Net's methods for targeting the very poor, and can they demonstrate that they are successfully doing so?

Because we have not been able to answer the questions above, we cannot recommend Med-Net to donors.

Details of our evaluations

We reviewed MED-Net in late 2009 as part of our process to distribute $250,000 in funds to an economic empowerment organization in Sub-Saharan Africa. We identified MED-Net as a candidate through the process described in our overview of how we identified candidates for the economic empowerment grant.

Our review consisted of reviewing materials MED-Net submitted in response to our questions and a phone conversation and email correspondence Harriet Mulyanti, MED-Net CEO.

We believe that the documents MED-Net sent us did not adequately address our questions for microfinance charities. In particular, the documents MED-Net sent did not provide compelling evidence that it is working with poor clients.

Ms. Mulyanti asked that we keep the documents she sent us confidential. Interested donors should contact MED-Net directly.

Sources

• GiveWell. Questions for microfinance charities.
• Med-Net. Financial statements (2008) (PDF).

Updated: March 5, 2010

• 1.

  "Micro Enterprise Development Network (MED - Net) is a Micro-Finance Institution affiliated to World Vision Uganda. The principal activity of the company is provision of short-term loan facilities to rural urban micro, small and medium clients." Med-Net, "Financial Statements (2008)."