Sustainable investment with Oikocredit for social enterprises in developing countries
Whether shopping or investing – we have a choice. Those who invest in armaments, petroleum or exploitative manufacturing often enjoy high returns. But we can also invest our money in such a way that it does not harm people and nature. We can even use it in a way that bears fruit and makes the world a little bit better.
From basket weaver to smokeless stove
Many encouraging examples can be found at the credit cooperative Oikocredit. Those who invest money with Oikocredit support low-income people in some 60 developing countries. For example, Ngo Thi Tu. Vietnam basket weaver uses microloans to expand her business, allowing her to build a small reserve for emergencies. That made them more independent of private money lenders with very high interest rates. Oikocredit also finances smallholder cooperatives such as Norandino in Peru, which is expanding its production of fair trade organic coffee with a loan from Oikocredit. Renewable energy companies are also in the financing portfolio – like Ugandan company African Clean Energy, whose smokeless cookstoves use up to 85 percent less fossil fuel and can even charge cell phones.
©Opmeer Reports: Vietnamese Ngo Thi Tu has built up her basket weaving business with microcredits.
INVESTING GOOD MONEY IN PEOPLE
Oikocredit uses its investors' money to help people in countries of the global south. To this end, the cooperative finances enterprises that create income and jobs or improve local living conditions. Through a strict set of criteria, Oikocredit selects the right partner organizations. Of course, the business model of the companies has to work economically, but also the ecological impact, the social orientation and the quality of the company organization are taken into account.
©Opmeer Reports: The around 5.000 members of Oikocredit's Peruvian partner Norandino benefit from trade in bio-fair cocoa, coffee and sugar cane.
Know-how transfer and consulting
However, Oikocredit's decades of involvement have also shown that loans alone are often not enough. To successfully expand a business, additional consulting and training services are often important. At Oikocredit, these range from risk management and conversion to organic farming to the development of a marketing strategy.