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Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
From Classic Capitalism to Social Finance GSIX | A Global Social Investment Exchange
17th November 2008Tamzin Ractliffe
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
“Poverty is not natural. It is man-made. Overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental human right, the right to dignity and a decent life”.
- Nelson Mandela, Nobel Prize-winner and world leader
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
Classic Capitalism
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
Social Finance = Sustainable Capitalism
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
We now know:
• Business and markets can no longer operate in isolation from society or the environment
• Charitable giving is not enough• Systems-change required• Need a “with” economy• Combine social values with commercial business practices• Enable effective investment, income and capitalization
strategies • Maximize value and create returns comprising equal parts
financial, social and environmental
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
Current fundamentals in social capital
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
SA Social Investment Exchange (SASIX)
A social stock exchange, listing evaluated projects in priority development sectors
Rigorous due diligence process involving intensive assessment, evaluation and reporting
Measures real impact and life-change
Hybrid Investment options provide a mix of social profits and financial returns
Continuum of social investment opportunities – SASIX Social to SASIX Financial
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
SIX SocialSocial Investment (or grant) providestraining and equipment so that anorganised group of rural blind peoplecan become income-generatingbeekeepers.
RETURN: Social –
• building the skills and independence of disabled, rural people
• enabling them to establish viable income generating sustainable businesses
• helping them to support their families
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
SIX FinancialResponsible Financial Investment providesmicrofinance services to low-incomefamilies for whom no other source offinance is available, adding value byenabling them to improve the quality of
theirhousing and begin to grow wealth.
RETURN: Financial – housing investment yields aneffective 13.79% return.
Social – low-income families add value to theirproperties, uplifting the whole community:
• Women 75%
• 61% between 40 and 60 years old
• 63% Informally employed & Pensioners
• 49% earning below R1 500;94% under R3 500
• Formal & informally employed; social security grants
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
The SIX investment continuum
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
Spectrum of practitioners by motive
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
Spectrum of investors by objective
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
GSIX Country Exchanges
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
The purpose of GSIX is to:
• create an efficient global social investment platform and intermediary infrastructure
• a comparative due diligence framework • a range of investment and financing
instruments• a three dimensional ROI measure• raise the bar• make social capital more accessible to poor
communities
Activating the Global Social Capital Market by Tamzin Ractliffe 17 November 2008
- Muhammad Yunus, Nobel Prize-winner and founder of Grameen Bank
“People can change their own lives, provided they have the right kind of institutional support. They're not asking for charity, charity is no solution to poverty.”
Thank you
