A $100 million contribution by Chairman of Cel-Tel Africa, Mohamed Ibrahim, helped create the “African Enterprise Private Investment Fund”. No other information is available beyond the announcement at the Clinton Global Initiative. Since the words “contribution” and “commitment” are ambiguous, we do not even know if this big check is a donation or an investment where a return on capital is sought.

Let’s hope it is not just another big donation. Mr. Ibrahim is exactly the vested leadership we need making responsible capitalistic investment to fight poverty. First, he built Cel-Tel Africa, a wireless provider spanning 13 countries in Africa. He understands large transnational operations in African markets, which is exactly what microfinance in Africa and everywhere else requires. Mr. Ibrahim is also a man with a long held commitment to the social well being of all Africans.

Cel-Tel representatives have ensured us that information is forthcoming. Let’s hope Mr. Ibrahim sees his new fund as not only socially important, but with enough money-earning potential that he takes an active role in the Fund’s operation.

Mr. Ibrahim: It’s not just your money we want; it’s your “smarts”. Only “smart money” will turn “development finance” into wealth. Remember, good sir, your money can do great damage, so unless you bring an equal portion of market discipline, we would recommend you invest your $100 million in cell phone technology, which, unlike microfinance, is actually proven to reduce poverty.

Additional Resources

1) “Rice, Clinton Discuss Poverty, Other Global Problems.”
2) “$200 Million Pledged to Clinton’s Initiative.”
3) “Celebrity ‘hyper-agents’ Transform Philanthropy.”
4) “CelTel.”
5) “Agreement to Become Strategic Investor in Tanzania Telecommunications.”
6) MicroCapital Blog: “GrameenPhone—A Hot Stock.”