Root Capital
From Wikipedia, the free encyclopedia
| Founded | 1999 |
|---|---|
| Founder | William Fulbright Foote |
| Type | Nonprofit |
| Location | |
Region served | Africa, Latin America, and Southeast Asia[1] |
Key people |
|
| Website | rootcapital |
Root Capital is a nonprofit organization operating in poor rural areas of Africa, Latin America, and Southeast Asia.[3][4] According to its website, Root Capital "seeks to maximize the positive social and environmental impact of [its] work through a three-pronged strategy: finance, advise, and catalyze."[5]
Root Capital claims to follow a three-step approach towards making a positive impact in the poor rural areas of Africa and Latin America where it operates. The three steps are:[5][6]
- Finance: This involves making loans to rural small and growing businesses, including both short-term and long-term loans.
- Advise: This involves delivering financial training to current and prospective clients.
- Catalyze: This involves innovating on their own methodology to increase their own impact.
According to its impact page,[7] Root Capital has disbursed US$1.5 billion between 1999 and 2020 and reached 9.9 million household members in rural communities.
Root Capital is one of several money managers to pursue a gender lens investing strategy.[8] In 2012, Root Capital launched their Women in Agriculture Initiative (WAI) to address the unique challenges faced by women in rural areas.[9] The WAI uses capacity-building training and gender-lens investing to unlock growth at women-led and gender-inclusive businesses. These businesses, which represent 48% of Root Capital's portfolio, must have at least 30% women farmers and employees (or at least 20% if they are also women-led).[10]
Funding
Root Capital seeks funding from both individual donors and foundations. Foundations that have funded Root capital include Mulago Foundation,[11] Jasmine Social Investments,[12] and Peery Foundation.[13]