Root Capital

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
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

Operations

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]

External reviews

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.[14]

Charity evaluator GiveWell had a conversation with the CEO of Root Capital in September 2011,[15] and planned to publish a detailed review of Root Capital in 2013,[16] however GiveWell's review of Root Capital was still not complete as of November 2019.

References
  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. "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. 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. "Conversation with Root Capital". GiveWell. 2011-09-16. Retrieved 2012-12-05.
  16. "Root Capital". GiveWell. Retrieved 2012-12-05.
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