Financing the Developing World's "Missing Middle"
This solution addresses exclusion from the formal economy in developing world for rural poor
Problem DescriptionRoot Capital is a non-profit social investment fund that grows rural prosperity in poor, environmentally vulnerable places in Africa and Latin America by lending capital, delivering financial training, and strengthening market connections for small and growing agricultural businesses. Across the developing world, the rural poor are excluded from the formal economy. Most of these people depend on agriculture as their primary source of income. Without access to capital and viable markets for their crops, millions of small-scale farmers are trapped in a cycle of poverty. Root Capital clients are associations and private businesses that help create sustainable livelihoods by aggregating the products of hundreds or, in many cases, thousands of farmers. As of June 2015, Root had deployed more than $850M in credit via 1,800+ loans to 1.2M producers in Latin America, sub-Saharan Africa and Asia, sustainably managing 1.5M hectares of land.
Solution StageOne of the 7 stages of an innovation. Learn more
|STAGE||SPECIALIST SKILLS REQUIRED||EXAMPLE ACTIVITIES||RISK LEVEL AND HANDLING||FINANCE REQUIRED||KINDS OF EVIDENCE GENERATED||GOAL|
|Developing and implementing5||Strong leadership, management, implementation skills|
|A robust and detailed case developed through formal evaluation and evidence gathering – use of a control group to isolate impact||An implemented and sustainable innovation|