Hi, this is Taylor Moore. I am a Fellow from Kiva currently assisting LIA as they think through the new structure. First, a disclaimer, I am not a Kiva employee and in no way have authority to speak for them. My responsibility is only to aid the discussion and communication.

I have thought a little about the new NEDUganda structure and what that could look like in relation to a partnership with Kiva. I think that Cristina is right that Kiva will want one parent relationship with NEDUganda, not individual relationships with affiliate communities (Kampala, Gulu, ect.). I think that a few fundamentally questions need to be answered:

1. Who will bear the liability for defaults? NEDUganda could bear the liability or the individual communities; a third possibility is that the risk could be shared. The default liability should probably mirror the interest income generated from the loan.
2. Assuming the Kiva partnership is with NEDUganda, NEDUganda will be responsible for ensuring that its affiliates meet a certain level of performance and meet certain standards. How will this happen and what should those metrics be?
3. Would the guarantee structure continue and at what level?
4. Are there any legal incorporation issues to consider?

The concept of a franchise structure has been mentioned and I think that is a good idea. I have some questions regarding how accountability will be enforced if non-compliance occurs. I think for the concept to truly scale among multiple communities, NEDUganda needs to have systems and operating procedures in place. To do this, my guess is that would require some additional staff and capital investment.

Also, all of these issues are being highlighted with the current situation in Gulu. I think a position should be articulated as to whether or not Gulu should be extended microfinance services at this time.

I hope these thoughts are helpful.