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FAQ

1. Who we are
2. What does RDB stand for?
3. What is our objective?
4. How does the RDB work?
5. What are the risks?
6. How can I invest?
7. Can I have an influence on the choice of investment projects?
8. When can I withdraw my funds?
9. What is myc4?
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1. Who we are

We are a group of graduate students in International Economics at the Graduate Institute of International and Development Studies in Geneva, Switzerland.

2. What does RDB stand for?

RDB stands for Rigotnomics Development Bank. The name Rigotnomics derives from our affiliation with the Graduate Institute in Geneva in which our offices are located in the “Rigot” building. We labeled the bank a development bank since we are a not-for-profit organization and our aim is to contribute to the development of businesses in regions which are usually suffering from a lack of capital or have only access to capital at high interest rate premiums.

3. What is our objective?

Our objective is to facilitate the development of regions which have limited access to capital by financing entrepreneurs in these countries directly via the MYC4 platform. We believe that premiums for lending in these countries are too high and a big share of the population is severely constrained in access to capital. The lack of access to credit is an impediment to growth and it is not justified given the expected returns of projects. We believe in the strength of investment with interest which, unlike aid, automatically leads to a self selection of sustainable projects and gives the right incentives, e.g. who has a defaulted in the past will not be eligible for a second loan in the future. Our current aim is to obtain a net return on our investments of 5% on average which will be reinvested or reimbursed to depositors. Although our main objective is to strike the right risk-return balance, a share of our investment is dedicated to social projects in health and education at potentially lower rates as we also value the social reruns of our investments.

4. How does the RDB work?

The RDB takes deposits from individuals who can either donate them (in which case the RDB will perpetually reinvest the money) or become investors. Investors will then be associated with a tranche which pools the money of various investors and spreads the amount over various investment projects to reduce risk and high exposure to a single project by diversifying. The RDB advisory board chooses the investment projects on the platform MYC4 based on our objectives as described in sub-point 3.

5. What are the risks?

The main risks are that entrepreneurs fail to repay their loans. However, default has a low probability of around 5%. There is also an exchange rate risk as loans are repaid in local currency. Finally, political risks, such as the instability caused by a coup d’état or civil conflict, even though very low, need to be taken into account. The RDB does not cover for defaults or exchange rate risks.

6. How can I invest?

You can invest by making a deposit at the RDB. You can find us at the Graduate Institute, in Pavilion Rigot, 11a Av. De la Paix, Geneva office 31 or office 5. Alternatively, you may send us an email at rigotnomics@gmail.com to arrange a meeting or we can provide you with an account number to which you can transfer your deposit. All RDB clients and donors are given a free RDB sticker.

7. Can I have an influence the choice of investment projects?

We understand that investors would like to have a direct influence on the choice of projects. However, the RDB maximizes returns, social and financial, based on the expertise of its advisory board. Therefore, investors cannot influence the decisions. In the future we plan to allow investors to focus their investments, by sector or country, but not by gender.

8. When can I withdraw my funds?

Funds can be withdrawn at any time. However, any premature withdrawal implies a zero return and a haircut fee. The fee is only imposed since premature withdrawals expose the RDB to additional risk.

9. What is myc4?

MYC4 is an online marketplace that connects you directly with African entrepreneurs, who lack capital to develop their businesses. We see a huge business potential in Africa waiting to be triggered. MYC4 is the explosive. Learn more by watching the video below.