Development Crossing

Corporate Social Responsibility (CSR) and Sustainability

African Farm Investment Tops General Motors

Garrett Wyse, economist, journalist, and international activist and also VP Global Development for our organization, MicroVenture support (see: www.muicroventuresupport.org) and I published a short white paper on this site (and other places) titled: Microfinance and Philanthropy, The New Realities in the early days of the Banking and credit crisis.

In the paper we predicted that, "...an investment in a developing country SME will return more and be safer than a corresponding investment in General Motors."

Well, today we have objective proof of that seemingly courageous prediction. An investment of 10,000 EU made last year in a small fruit cooperative in Uganda (Amfri Farms) has returned more on the principal than a similar investment in GM stock, (...and will continue to do so for the next few years) We rest our case.

Views: 68

Comment by Development Crossing on January 25, 2009 at 9:30pm
Here is the full paper.
MVS_PositionPaper.pdf
Comment by Dr. SIMEON T. NUMBEM on January 26, 2009 at 10:53am
I am so proud of Mr. Garrett's predictions, which could change skeptical investors to increase the volume of investment in Africa. As an expert in microifnance and agriculture and always on the panel of the Microcedit summit with a model on 'how to make microfinance work in Agriculture, I am proud of this outcome. Africans have the opportunity now to attack foreign direct investments, especially in areas where they have better competitive advantage. I have developed models to share that integrate agriculutre and natural resources management with appropriate financing that can be useful to many investors in agri SMEs in Africa.

Dr. Simeon T. NUMBEM
s9numbem9@yahoo.com
(237) 77 75 27 30
Comment by Jerry Peloquin on January 26, 2009 at 11:24am
Yes, indeed ... and although the overall investment was in Blue Orchard ... the outcome is both true and valid. I shall send you Garrett's recent short piece on the topic from which I abstracted the above comment (by email to come) ... in fact, I believe I will post this on a the "Discussion" section here shortly.
Comment by Dr. KAMARA Nangnigui David on January 27, 2009 at 3:37am
This is true. Investing in agric in Africa would not only return more, but it would help cutting down hunger in the developing world. I am presently looking for investors interested in getting into joint venture with me for the creation and/or extension of a farm in one of the most prosperous African countries. For more information please contact me on: nangnigui@yahoo.com.

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