MICROCAPITAL BRIEF: Acumen, Clinton Giustra Enterprise Partnership, Unilever Partner to Support Smallholder Farmers through Enhanced Livelihoods Investment Initiative (ELII) in Africa, South Asia, Latin America and the Caribbean

The US-based non-profit venture fund Acumen, along with the Clinton Giustra Enterprise Partnership, an initiative of US-based Clinton Foundation, and the British-Dutch multinational consumer goods company Unilever recently partnered to launch a three-year, minimum USD 10 million Enhanced Livelihoods Investment Initiative (ELII) that aims to boost the economic development of approximately 300,000 smallholder farmers in Africa, South Asia, Latin America and the Caribbean [1]. The initiative, which was developed out of a Clinton Global Initiative Call to Action, aims to alleviate poverty by creating enterprises that support smallholder farmers and connect them to Unilever’s global supply chains and distribution networks.

Frank Giustra, Founder of the Clinton Giustra Enterprise Partnership, said “Under this model, entrepreneurs and farmers will gain access to capital and skills training … essential tools needed to pull them out of poverty.”

As of December 31, 2013, Acumen had total assets of USD 107 million. The Clinton Giustra Enterprise Partnership has global partners including Nestlé, Vision Spring and Procter & Gamble. In 2014, Unilever’s turnover was GBP 48.4 billion (USD 72.8 billion), and emerging markets accounted for 57 percent of its business.

By Caroline Zhu, Research Associate

About Acumen

Founded in 2001 with seed capital from the Rockefeller Foundation, the Cisco Systems Foundation and individual philanthropists, the Acumen Fund is a nonprofit venture fund based in the US city of New York. The organization operates from offices in Accra, Ghana; Karachi, Pakistan; Mumbai, India; Nairobi, India; and New York, USA. Acumen raises charitable donations with the aim of investing long-term debt or equity in companies, entrepreneurs and concepts that promote the alleviation of poverty. It advocates the use of entrepreneurial approaches to tackle poverty, focusing on early-stage debt or equity investments in enterprises that provide low-income customers with access to healthcare, water, housing, alternative energy or agricultural inputs. Commitments generally range from USD 300,000 to USD 2.5 million per investee with an expected payback time frame of five to seven years. As of April 2015, Acumen has USD 368 million in follow-on and co-investment capital raised. As of December 31, 2013, Acumen had total assets of USD 107 million.

About the Clinton Giustra Enterprise Partnership

The Clinton Giustra Enterprise Partnership, an initiative of US-based nonprofit Clinton Foundation, was established by former US President Bill Clinton and Canadian philanthropist Frank Giustra. The partnership works in 3 models- distribution enterprises, supply chain enterprises, and training center enterprises to support economic development for underserved communities. Global partners include Nestlé, Vision Spring and Procter & Gamble.

About Clinton Global Initiative

Clinton Global Initiative (CGI), an initiative of US-based nonprofit Clinton Foundation, was established in 2005 by former US President Bill Clinton with the aim of bringing together global leaders to alleviate poverty, create a cleaner environment and increase access to health care and education. The annual meetings of CGI, which are held in September by invitation only, bring together heads of state, Nobel laureates, corporate executives, directors of nonprofits, philanthropists and others to make public commitments to address global social, economic or environmental challenges. CGI members have made approximately 3,100 commitments, which have reportedly impacted the lives of 430 million people in approximately 180 countries as of 2014.

About Unilever

Unilever, a British-Dutch multinational consumer goods company, was founded in 1929 via the merger of the Dutch margarine producer Margarine Unie and the British soap manufacturer Lever Brothers. The company has 13 brands and approximately 172,000 employees. With products sold in approximately over 190 countries, the turnover was GBP 48.4 billion (USD 72.8 billion) in 2014, and emerging markets accounted for 57 percent of business.

Sources and Additional Resources:

[1] Unilever Press Release: “$10 million Clinton Global Initiative Commitment to support smallholder farmers

MicroCapital Universe Profile: The Acumen Fund

MicroCapital Universe Profile: Clinton Global Initiative

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