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Root Capital

From Wikipedia - Reading time: 5 min

Root Capital
Founded1999
FounderWilliam Fulbright Foote
TypeNonprofit
Location
Area served
Africa, Latin America, and Southeast Asia[1]
Key people
  • William Fulbright Foote (founder, CEO)
[2]
Websiterootcapital.org

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]

Operations

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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

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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]

External reviews

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Charity Navigator had given Root Capital a four-star rating (its highest possible) continuously beginning in 2005, but downgraded their rating to three stars on December 1, 2019. It has since regained its four-star rating. [14]

In 2024, Root Capital was awarded the Specialty Coffee Association Nonprofit Sustainability Award[15] for their work collaborating across geographies, cultures, and supply chain roles, and sharing the lessons they have learned for the benefit of the entire coffee sector.

Charity evaluator GiveWell had a conversation with the CEO of Root Capital in September 2011,[16] and planned to publish a detailed review of Root Capital in 2013,[17] however GiveWell's review of Root Capital was still not complete as of November 2019.

References

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  1. ^ "About Us". Root Capital. Retrieved 2012-12-05.
  2. ^ "Our Team". Root Capital. Retrieved 2012-12-05.
  3. ^ Keohane, Georgia Levenson (27 September 2016). Capital and the Common Good: How Innovative Finance Is Tackling the World's Most Urgent Problems. Columbia University Press. p. 117. ISBN 978-0-231-54166-4.
  4. ^ Immerman, Richard H.; Engel, Jeffrey A. (23 June 2020). Fourteen Points for the Twenty-First Century: A Renewed Appeal for Cooperative Internationalism. University Press of Kentucky. ISBN 978-0-8131-7903-2.
  5. ^ a b "Our Approach". Root Capital. Retrieved 2012-12-05.
  6. ^ Paladini, Stefania; George, Suresh (6 November 2019). Sustainable Economy and Emerging Markets. Routledge. ISBN 978-1-000-70905-6.
  7. ^ "Impact Dashboard". Root Capital. Retrieved 2020-12-21.
  8. ^ Sullivan, Paul (August 14, 2015). "With an Eye to Impact, Investing Through a 'Gender Lens'". The New York Times. Retrieved May 18, 2016.
  9. ^ Daniels, Donna (December 4, 2019). "With Root Capital, RSF Doubles Down on Impact—and Impact Measurement". RSF Social Finance. Retrieved 2020-12-07.
  10. ^ Ibid.
  11. ^ "Root Capital". Mulago Foundation. Archived from the original on 2013-07-26. Retrieved 2012-12-05.
  12. ^ "Who We Fund". Jasmine Social Investments. Retrieved 2012-12-05.
  13. ^ "Partners". Peery Foundation. Retrieved 2012-12-05.
  14. ^ "Charity Navigator - Historical Ratings for Root Capital". Charity Navigator. Retrieved 2019-12-05.
  15. ^ "Sustainable Business Models in Specialty Coffee: Insights with 2024 Winners Sancoffee & Root Capital". Specialty Coffee Association. 2025-02-21. Retrieved 2025-03-31.
  16. ^ "Conversation with Root Capital". GiveWell. 2011-09-16. Retrieved 2012-12-05.
  17. ^ "Root Capital". GiveWell. Retrieved 2012-12-05.
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Licensed under CC BY-SA 3.0 | Source: https://en.wikipedia.org/wiki/Root_Capital
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