Tim Vang co-founded MYC4, a platform helping African entrepreneurs find money
It works to improve access to credit for small and medium-sized businesses
The web-based marketplace says it has helped more than 6,000 businesses
(CNN) — A Danish entrepreneur is trying to end poverty in Africa through microcredit — funding African businesses by connecting them with investors from around the world.
Tim Vang is the co-founder of MYC4, a web-based marketplace that lets investors bid to provide loans to small and medium-sized African businesses.
Bidders compete in an online auction, with those offering money at the lowest interest rates financing the loan. Typically, around 50 investors will part fund a single loan. All the businesses applying for a loan have been vetted and judged to have good growth prospects.
MYC4 says the model gives African entrepreneurs access to credit at low interest rates, while allowing lenders to make a profit from the interest. It’s a system MYC4 claims can help eradicate poverty in Africa by building its economies from the bottom up.
Over 18,000 investors from 107 countries have so far invested more than €12 million in 6,346 African businesses, according to MYC4.
Vang discussed his business-oriented approach to fighting poverty with CNN’s Max Foster. Read more