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Creating our future through Social Investment
Ben Simmes, Managing Director Oikocredit
Tokyo, October 6th, 2012
Three key issues
- What is social investment?
- Trends
- Oikocredit as example of social investor
Investment perspectives
Financial return Social return
Commercial investing +++
Socially responsible ++ +/-
Impact investing ++ +
Program related investing + +
Social investing + ++
Grants +++
What is social investment?
Social return
++
modest financial return
+
What is impact investment
Financial return
++
Social return
+
Trends in social investing
• Growing interest in “social” investing
Different levels:
- Negative screens
- Positive screens
- Shareholder engagement
• Investment opportunities are limited
Growing interest
• Negative experiences through financial crisis
• Existing resources insufficient to address issues as
poverty, environmental destruction, inequality
• Positive examples of scalable business models that
create social and environmental value
Development stages
• Uncoordinated innovation
• Marketplace building (starting infrastructure)
• Capturing the value of the market place (mainstreaming)
• Maturity (steady, consolidation)
For profit, not profit maximization
Oikocredit: development finance cooperative
100% private investment capital
Capital inflow
Dual return
Investments in shares
€ 200 / US$ 200Other currencies
Objectives:
- modest dividend: 2%
- social impact
Support Associations providing capital
Latin America MexicoUruguay
Asia: Philippines JapanKorea
Europe:Germany France Spain Netherlands Belgium Switzerland
Austria Denmark SwedenItaly United Kingdom
North America: Canada USA
Capital Flow
45,000 595 42 896 26 million
Funding by region
At 30 June 2012
€ 522 million outstanding
Regional & country officesAfrica Asia Latin America Eastern Europe and
Central Asia
East AfricaKenya1, Tanzania, Uganda
Southeast AsiaCambodia, Philippines1
Mexico, Central America and the CaribbeanCosta Rica1, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua
Eastern Europe and Central Asia1
Bulgaria, Kyrgyzstan, Moldova, Romania, Russia, Slovak Republic, Ukraine
West AfricaBenin, Côte d’Ivoire1, Ghana, Mali, Senegal
IndiaIndia1
South America – northern regionColombia, Ecuador, Peru1
Oikocredit InternationalNigeria2, Mozambique2
South America – southern regionArgentina, Bolivia, Brazil, Paraguay, Uruguay1
1 Country with regional office/RDC. Oikocredit International and the RDC for Eastern Europe and Central Asia are located
in the Netherlands.
2 The country offices in Nigeria and Mozambique report to Oikocredit International.
Countries with highest capital outstandingAt 30 June 2012
1/3 of our 890 partners are cooperativesAt 31 December 2011
Githunguri Dairy Farmers Cooperative
Small scale dairy farmerAverage 3 acres, 5 cows
Reason for Oikocredit funding
• Not able to get funding from commercial banks
• Own commitment – together the farmers had already
constructed buildings
• Social relevance
– 15,000 farmers
– Job creation
– Target market
– Access to affordable pasteurized milk
Githunguri is bankable
• Rapid growth – 3rd in market share in Nairobi
• Better service to farmers
• New products
• Currently over 15,000 members
• Annual turnover € 46 million
• Over 200 direct jobs created
Cocovico, Côte d’Ivoire - the old market
- COCOVICO: Coopérative de
Commerçantes du Vivrier de
Cocody
- Created in 1993
- co-operative of female
vendors based in Abidjan,
Côte d'Ivoire
- € 80,000 in 2004
Cocovico - the new market
• Partner since 2004
• Oikocredit financing used to build the new market during civil war
• Benefiting over 5,000 traders, giving people in Abidjan access to food
• Guatemalan non-profit organization
of coffee producers
• Markets Fair Trade, organic coffee
since 1989
• Around 1500 members
• Primary focus: processing and
exporting coffee, which are certified
as both organic and Fair Trade
• Environmentally focused
• 4 loans: € 243,000 1991; 1.2 million
credit line in 2002; 66,000 in 2009
500,000 in 2012
Chajul - Guatemala
Kuapa Kokoo
• Ghanaian cooperative of 62,000 cocoa farmers
• In 2011 Kuapa Kokoo received an Oikocredit loan of GHS 5.7 million
• (€ 2.55 million)
• Kuapa Kokoo will use this loan to build its working capital to increase the purchase of cocoa beans from its member farmers.
Divine Chocolate
•Fair trade chocolate company
based in UK & US.
•Buys cocoa from the Ghanaian
cooperative Kuapa Kokoo and
manufactures the chocolate
products under the Divine
Chocolate label.
•Kuapa Kokoo owns 45% of
Divine Chocolate
•Divine Chocolate and Kuapa
Kokoo are Oikocredit partners
Kuapa Kokoo member Adwoa Asianaa
Divine Chocolate / Kuapa Kokoo
Barefoot Power
• Develops and distributes solar-powered lamps to households in developing countries
• Employs 50 people in Australia, China, Uganda, Kenya
• Empowers 2,000 entrepreneurs in Uganda, Kenya, India and the Pacific region
• Equity investment € 246,000 2007
• Credit line USD 1,000,000
Barefoot Power
400,000 households in more than 40 countries light their homes with Barefoot Power lamps
Social investment: creating your future!
Disclaimer
This document was produced by Oikocredit, Ecumenical Development co-operative Society U.A. (Oikocredit International) with the greatest of
care and to the best of its knowledge and belief at the time of writing. The opinions expressed in this document are those of Oikocredit
International at the time of writing and are subject to change at any time without notice. Oikocredit International provides no guarantee with
regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information.
This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a
recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own
judgment. The recipient is in particular recommended to check that the information provided is in line with his /her own circumstances with
regard to any legal, regulator, tax or other consequences, if necessary with the help of a professional advisor.
This document may not be reproduced either in part or in full without the written permission of Oikocredit International. It is expressly not
intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law.
Every investment involves risk, especially with regard to fluctuations in value and return. It should be noted that historical returns and financial
market scenarios are no guarantee of future performance. Investments in foreign currencies involve the additional risk that the foreign currency
might lose value against the investor‘s reference currency.
Oikocredit International is a co-operative society with limited liability (coöperatieve vereniging met uitgesloten aansprakelijkheid) under the laws
of the Kingdom of the Netherlands.