A group of 2016-17 Oxford MBAs go on the annual Africa Trek. This year’s destination: Nairobi and Kigali
Part 1: Nairobi
A man pushes his bicycle through Toi Market, a thriving second-hand clothing market in Nairobi that stretches multiple blocks, eventually ending in Kibera slum.
In April 2017 17 MBA’s spent an unforgettable two weeks in Kenya and Rwanda. The student-driven trek aimed to expose participants to the business context in each country. Organised by students from the region, it tapped into local networks to give an ‘insiders view’ of each city. During the April break there were three other concurrent international treks and electives taking place in Johannesburg, New York, the Middle East Singapore and Hong Kong.
I chose to join the Africa trek as I had limited experience and knowledge of East Africa (ashamedly, as I am a native South African). I was curious to learn more about the thriving economies of the region and gain a comparative understanding of Eastern versus Southern Africa.
The trek exposed us to diverse companies and business models, from a consulting firm helping international development organisations better support local SMEs to an off-grid energy company serving the bottom of the pyramid. Through each company presentation we learnt a little more about the nuances and opportunities of the region.
While the company visits were fascinating, another area of great value came from the opportunity to spend two weeks with my classmates. In the rush of a 12-month MBA there is limited time for slow, deep conversation. However, the interstitial moments of travel provided the perfect opportunity to bond; a 20-minute cab ride to the airport or sharing a meal over dinner gave each of us the opportunity to learn a little more about others’ backgrounds and future ambitions. The accrual of these small interactions created a special bond that will live on well beyond the MBA.
Open Capital Advisors
Students on the MBA Africa Trek at Open Capital consultants in Nairobi, with alumnus Holden Bonwit in the centre.
Open Capital Advisors is a management consulting and financial advisory firm with 40 employees spread across offices in Kampala (Uganda), Lusaka (Zambia) and Nairobi (Kenya). They offer consulting services to local businesses, investors and international organisations, with two-thirds of their investment work being in the social impact space. We were hosted by Oxford Saïd alumnus, Holden Bonwit (MBA 2013 – 2014).
Bonwit shared what he believes are the three of the biggest challenges for growth in the region:
Talent acquisition and lack of human capital to implement strategies
Lack of infrastructure
Lack of access to capital for SMEs (due to a miss-match between the needs of SMEs and the instruments offered by international Development Finance Institutions)
He spoke of the enjoyment he gets from working on meaningful development projects where his skills and expertise have real impact. He also introduced us to the concept of the Kenyan side-hustle (or multiple side-hustles), evidenced by the fact that a single family usually has about 11 discrete income streams.
MBA students meeting with CEO of Safaricom Bob Collymore and his team
We were honoured to spend time with Bob Collymore – CEO of Safaricom – Kenya’s largest telecom. It has a valuation of $ 8 billion and accounts for approximately 40% of the Kenyan stock market. M-PESA, the pioneering mobile money solution, is one of Safaricom’s products.
Continuing the narrative from Open Capital Advisors, Collymore spoke of how their people strategy is their biggest strategy, saying, “You can have a bad strategy but a good team and the outcome will be good, however, the opposite is not true.” With a firm belief that quality products are created by engaged staff, he spoke of how the company strives to ensure their people have a good work-life balance and get eight hours of sleep – allocating each staff member a ‘thrive-buddy’ to keep them on track and ensure they aren’t overworked.
The company takes their position as a dominant player seriously, seeing it as their responsibility to act as a good corporate citizen and set the tone for others. Safaricom was one of the first corporates to release a full sustainability report and embrace the Sustainable Development Goals, with each corporate function selecting the goals they wish to work towards and then feeding back progress directly to Collymore’s office.
Collymore’s commitment to sustainability and good corporate governance is also evidenced by his membership in the B-team, which brings together business leaders like Unliever’s Paul Polman, Richard Brandson, and Arianna Huffington to push businesses to become more transparent and sustainable, as well as sitting on the board of the United Nations Global Compact, the world’s largest corporate sustainability initiative.
Two Andela students working in the chill-out area of the Nairobi campus.
“Brilliance is evenly distributed, but opportunity is not.”
Andela’s goal is to spread tech opportunity to Africa by finding and training Africa’s next generation of tech talent and connecting them to demand in the West. This is achieved through a two-sided business model: on the supply-side, African candidates apply to join a four-year paid Technical Leadership Program designed to shape them into elite software developers. On the demand-side, a 50-strong sales team based in the US sells Andela’s services corporates looking for excellent tech talent.
Joshua Mwaniki, Country Director for Kenya, told us they receive around 2000 applications per month from people eager to join the Fellowship. With an acceptance rate of 10 – 15 people monthly, applicants have a 0.5% chance of getting in to the programme. What differentiates the Andela from other tech training programmes is their comprehensive Learning Map, which maps a Fellow’s progress against clearly delineated hard and soft skills on a daily and weekly basis.
Andela’s biggest challenge is gearing up to train enough talent, as there is currently more work available than there are programmers to work on the jobs. But upping supply in Africa, Andela is hoping to spread opportunities a little more equally. Their new campus currently under construction will house 1000 students and will go some way to achieving this vision.
Oxford Saïd Alumni Dinner
Current students met with recent alumni who are currently working in Nairobi at Burn and Dalberg.
Chad Larson, Chief Credit Officer, Co-Founder and Oxford Saïd alumnus shows students the entry-level M-KOPA solar unit.
M-KOPA is a pioneer in off-grid, pay-as-you-go solar power systems. With a team of 300 customer care agents on call 24-hours a day, and an on-the-ground salesforce of over a 1000 people, the company is growing rapidly.
Their entry level unit comprises an 8W solar panel, 3 LED lights, a LED torch, a radio and a phone charger. Customers pay an upfront payment of £22 and then pay a 40p daily instalment over a year to pay off the remainder of the unit, where after the unit is theirs. The unit comes with a one-year warranty and has an estimated battery life of four years.
On the ground sales agents help customers calculate the cost-benefit analysis of switching from kerosene to solar, by adding up how much they spend in a year on kerosene, batteries and charging their mobile phone. Once totalled, the entry level M-KOPA unit comes in around one-third cheaper during the payment year, then giving clients a further three years of energy before they need to replace the battery.
Most interesting however is how the company views solar as the foothold into a customers’ home. When a customer is nearing the end of their year-long repayment schedule they receive a call from an M-KOPA agent offering a variety of products; a solar-powered TV, a water-harvesting tank, a bicycle, a cook stove, a starter-pack for chicken farming or a smartphone – any of which can be purchased by extending their existing payment plan. Chad Larson, Chief Credit Officer, Co-Founder and SBS Alum stated, “We are a finance company, selling useful capital assets that save people money.” M-KOPA is focusing their energies on building a ladder of household products, from basic to more advanced, to improve the lives of the poor.
Students shared lunch with Dalberg staff followed by a Q&A session.
“Until the change is done, our work isn’t done”. These were the words of Edwin Macharia, Dalberg Partner and Regional Director of Africa, speaking about how the firm goes far beyond the work of traditional consultants (who are renowned for leave their strategy decks for clients to implement). Dalberg is a platform of companies committed to global development and innovation, including Dalberg Global Development Advisors (consulting), D.Capital (Investment advisory and impact investing), D.Research (data, intelligence and analysis), DIG (Design Impact Group focusing on human centred design) and an implementation support arm.
Dalberg is ten years old and currently has six offices on the continent. Their client mix is one-third governments and large international organisations (such as the UN, DIFD and the World Bank), one-third social sector organisations and foundations and one-third private businesses.
The company is also focused on creating self-driven projects where they spot opportunity areas. Macharia recognises the privileged position the company holds, with contacts in just about every major foundation and development agency in the world. He said, “We are one, maybe two phone calls away from anyone in the world. What are we going to do with that?” One such example is Unleash, an ambitious project driven by Dalberg and other partners, bringing 1000 young innovators into a global innovation lab focused on the Sustainable Development Goals.
Maua Project (Wrigleys)
Mathare Slum on the outskirts of Nairobi.
Maua project representatives speaking to MBA students in the Mathare Slum, describing the benefits of the project on the ground.
The Maua Project is a project of the Mars Catalyst, Mars Incorporated’s internal think tank. In 2014, Mars’ leadership announced their intention to become the ‘most mutual company’ in the world, delivering value to all stakeholders involved in their value chain.
Maua, Swahili for ‘flower’, is a route-to-market mutuality project in Kenya. It develops micro-entrepreneurs, called Uplifters, who act as sub-distributors connecting stockpoints to retailers, predominantly in areas where Mars currently doesn’t distribute to outlets. This creates work for the Uplifters, and increased market penetration for Mars.
The project makes use of a ‘hybrid value chain’, partnering with a range of organisations and non-profits to support various programme elements like recruitment, training and access to tools. Partners include a logistics company, World Bicycle Relief, Ashoka, a microfinance company and M&E support. In 2016 Maua had 368 Uplifters involved in the programme and aim to increase this to 590 by the end of 2017.
Oxford and Cambridge Dinner hosted by Oxford Saïd alumna, Adema Sangale
The Africa Trek group was hosted by Adema Sangale, Vice-President of World Bicycle Relief in Africa, who brought together alums from both universities who work Nairobi.
Naivasha and Nakuru
After a week of company visits we left the city to see some wildlife and have some well-earned rest.
It’s not every day that you get to summit a dormant volcano (Mount Longonot) and then get to hike around its rim.
Day safari at Lake Nakuru National Park.
Giraffes at Nakuru National Park.
Bird watching on Lake Nakuru.
Hanging with the hippos on Lake Naivasha.
Part 2 of Africa Trek 2017 coming soon where the MBAs head to Kigali…
Author: Gillian Benjamin
Gillian Benjamin is a social design practitioner from South Africa. Driven to use design to create social impact, she founded a design studio to serve social justice organisations and later worked at the Cape Craft and Design Institute running design thinking projects in healthcare, education and the built environment.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
Skoll Scholar and Oxford MBA Candidate 2016-17, Ashley Thomas, draws on this year’s Skoll World Forum theme in relation to social impact business models.
There is a fault line between models of international development financing. On one side, there is the traditional donor and philanthropic capital that utilises grant money to support projects. On the other side is the social enterprise space that seeks to create sustainable impact through revenue generation. There has been a lot of excitement in utilising grant funding for social enterprises to build and tweak their business model, but to date there has been little appetite for true hybrid models of ongoing subsidies for social enterprises.
This is a conversation that I had in numerous sessions and coffees throughout Skoll World Forum. It was also one of the key themes from the session hosted by Mercy Corps and USAID on sharing the learnings from their investments in the Innovation Investment Alliance. There is a common ground emerging; these conversations are hinting at the start of innovative new business models that allow for hybrid grant and revenue streams.
Social enterprises are addressing market failures. They bring products or services to underserved markets, often at low margins, and often at high costs. However, market failures exist for a reason; many companies are realising that even at scale, high volume low margin products are not able to generate the revenues that are necessary to be sustainable. However, social enterprises often sell themselves on this vision- that with initial capital to pilot and build systems, they will be financially sustainable at scale.
Philanthropic capital- which does not require financial returns, can help bridge this fault line, and maximise the potential impact of social enterprises. This does not mean we should revert to the large scale unsustainable development models of the 1990’s, but use philanthropic capital as way of targeting the market failure and allowing social enterprises to maintain their focus on their mission and outcomes. This hybrid model is being utilised in the FundiFix hand pump repair service designed by Dr. Rob Hope out of the University of Oxford. The model uses monthly user subscription payments to pool capital to finance prompt hand pump repairs. However, the willingness to pay only accounts for 2/3 of the cost of the service, and the remaining cost is subsidised through grant funding. This is also used in much larger social enterprises. Ella Gudwin from Vision Spring spoke about how their model has shifted from seeking to maintain cost recovery- and retailing glasses at increasingly higher prices, to minimising the “philanthropy per pair” and serving their target customer. They were able to do this under a scaling innovation grant from USAID and Mercy Corps, demonstrating that donors are also recognising the need for the pivot into these hybrid models.
It is increasingly clear that there is not one single model for social enterprise, and a single-minded focus on achieving commercial sustainability may limit the impact. Innovative hybrid models that use the social enterprise ethos of cost effectiveness in combination with smart grant funding that can subsidise the product can address the market failures preventing social enterprises achieving impact at scale. There is immense opportunity to achieve scale and impact through creating this common ground.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
Gillian Benjamin, Oxford MBA at the Saïd Business School, shares key takeaways from the Skoll World Forum session “Making Leadership Great Again: Breakthrough Educational Models”.
In the lunchtime session directly prior to this panel, Bill Drayton, Founder and CEO of Ashoka, implored audience members to help others understand the implications of the new world order in which the repetitive actions of a machinist on a factory floor, or a line manager in a multi-national company, were fast becoming redundant. He highlighted the need for a radically different skill-set and ‘growing up system’ to give young people the competencies needed to thrive in environments of constant and rapid change.
During the panel on ‘Breakthrough Educational Models’ the founders of two innovative institutions, both based in the global South, shared key ingredients of their success.
Jose Zaglul, Co-Founder and former President of EARTH University shared the story of the establishment of the institution he helped set up. The campus, based in Costa Rica, offers an innovative four-year undergraduate programme in agricultural sciences and natural resources management with one crucial difference from ordinary degree programmes – the technical and scientific knowledge gleaned on the course is just one of the four pillars that make up the curriculum. The other three pillars ensure that students leave with a deep social and environmental awareness, the attitudes and values needed to drive change and the lived experience of having set up their own entrepreneurial venture. EARTH has 430 students from 41 countries, 83% of whom are from rural communities.
Hopping across continents to South Africa, co-founded and CEO Chris Bradford shared the story of the African Leadership Academy (ALA), ALA is a two-year pre-university programme based on the UK A-Level system, combined with unique curricula in Entrepreneurial Leadership, African Studies and Writing and Rhetoric. ALA currently has 264 students drawn from 47 African countries, with many graduates going on to study at some of the most prestigious universities around the world before coming back to the continent to drive growth and development. One such example is Moroccan panelist Jihad Hajjouji who is an ALA alumn currently pursuing her MBA at the Stanford Business School.
When discussing the ALA curriculum Bradford stated with respectful veneration that Zaglul was his personal hero and had been a huge inspiration to ALA as they crafted their programme two decades after the formation of EARTH.
Three key lessons can be drawn from the success of these two institutions:
1) Create opportunities for youth leadership
Recruiting students from underserved communities can be challenging as prior academic performance can be a poor shorthand for future potential. Zaglul shared how a track-record of civic action in teenage years helped EARTH identify and recruit the most promising students, many of whom lacked the top grades of their peers from more privileged contexts, but who made up for this through exhibiting tangible leadership capabilities. Such leadership skills, developed through implementing projects to improve their immediate contexts, point to an understanding of their personal agency and a world-view that sees the status quo as malleable and open to improvement through personal action.
Youth social action projects therefore play an important role in the development of young change-makers, and serve as important identifiers to institutions who are driven to recruit talented students from underserved contexts where quality primary and secondary school instruction may be lacking.
2) Put the emphasis on learning, not teaching
Bradford shared a word association game he has tested the world-over: To begin, think of words associated with ‘school’. Then follow the same process for ‘learning’. Having played this game with educators and students from all corners of the globe the results are resoundingly similar:
When asked to think about ‘school’ people mention nouns such as headmaster, teacher, bell and test. ‘Learning’ rarely appears in the top five most-mentioned associations.
When asked about ‘learning’ people talk about things like discovering new skills through stretch experiences and the value of engaging with inspirational mentors to guide them on their journey.
The contrast in the associations is stark and points to the need to explicitly redesign our education apparatus in a way that fosters experiential learning. Bradford calls for a radical re-organisation of how we deliver the educational experience through two key shifts:
Educators need to shift from thinking about learning as the delivery of content towards the learning as nurturing the key skills students need to hone.
The learning environment needs to shift from a space where the teacher is seen as an imparter of knowledge to a peer-learning space where students learn from one another and the teacher through experiential projects.
3) Inspire teachers to rethink their positions
Passionate teachers strive to replicate the best classroom experience they had as students and in many contexts this means replicating the best lecturer who had the clearest notes on the board.
To shift to a new norm that truly serves students, institutions need to expose their faculty to radically different versions of best-practice to support them in refashioning outdated ideals they may be striving towards. This involves exposure to new teaching practices to support them re-imagine their roles.
She commented, “To tackle the many challenges that stand between us and a just and sustainable world we need a global army of young leaders who combine character, confidence and capability.” The lessons extracted from the work of EARTH and ALA highlight exciting leverage points to help transform education systems from those that merely equip students for repetitive work to those that foster the competencies, care and concern needed in our current socio-economic context.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
Avery Bang, Oxford MBA at the Saïd Business School, shares her insight from the Skoll World Forum session “Global Goals for an Uncertain World”.
The buzz of the Skoll World Forum is something any attendee is not soon to forget. I look forward to this week every year with excitement for the flood of new ideas, and dread for the lack of sleep and inevitable FOMO (not familiar with FOMO? You clearly haven’t yet studied at Oxford Saïd).
One of the sessions I most looked forward at this year’s Forum was Global Goals for an Uncertain World, moderated by Susan Myers of the United Nations Foundation. I entered to session with a genuine curiosity of how she would lead a conversation about the Sustainable Development Goals (SDGs) through a diverse panel including a Skoll Awardee, a Deputy Minister and an Oxford social entrepreneur. When the session started with a 90 second, dance-move inspiring animated video Turning Plans into Action, my FOMO melted away and I knew I had found my people.
For those who are not familiar, the Sustainable Development Goals (officially known as Transforming our world: the 2030 Agenda for Sustainable Development) are a set of 17 targets to fight inequality and tackle climate change launched in 2016. The SDGs were announced as the United Nations wrapped up the 15-year cycle of the anti-poverty Millennium Development Goals (MDGs), and launched the even more ambitious plan to banish a host of social ills by 2030. For those of you that skipped the video animation above, the MDGs got us half way over the last 15 years; the SDGs will get us the ‘rest of the way’ over the next 15.
I personally love audience participation, and really appreciated that the afternoon discussion weaved in each of the panelist’s favorite goals, invoking an audience-wide inquisition of our own (mine is #9 – comment below with yours!). I walked away with a much greater appreciation for a range of issues – access to justice for building effective, accountable and inclusive institutions (goal #16) in particular jumped out. Vivek Maru of Namati, a 2015 Skoll Awardee, painted a story of a world with access to social justice through ensuring all people ‘know law; use law; and shape law’. The panel conversation also shed light on how close several goals were from being cut, and how the world will truly be a different place in 15 years because they weren’t.
Susan framed the session with three main discussion points; how to sustain momentum for the SDG release, particularly in a time of political turnover; how to empower social entrepreneurs to work on SDGs; and how to empower action across all levels. Throughout the conversation, it became clear that there has been a fundamental shift between the MDGs and SDGs – a shift towards aligning international commitments with those right at home. Elissa Goldberg, the Assistant Deputy Ministry of Global Affairs for Canada shared her government’s commitment to develop their national plan using the SDGs as a framework, and it occurred as something of an ‘ah-ha’ moment for me – how incredible is it that we are all one, operating under one global framework, all aligned towards one (or 17, in this case) common goal. By aligning our domestic agenda with our investments overseas the global community is speaking loudly that there no longer can be an ‘us’ or ‘them’.
One common goal – one common framework – and one incredibly inspiring conversation. After another, after another, after another. With a new common vocabulary that we all can work towards, and within, I believe the SDGs will continue to ensure that social entrepreneurs, policy makers, private sectors players and everyone in between continue to contribute one common direction.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
David Sanders, Oxford MBA at the Saïd Business School, gives his perspective on the Skoll World Forum session, “Philanthropy for a Fractured World”.
On the final morning of the 2017 Skoll World Forum, simultaneous panels were offered on Impact Investing and Philanthropy. I debated whether to catch up on the latest from the former, with its sex appeal of “profit + purpose”, a proposed new kind of capitalism, or to return to the original solution for affecting positive change: strategic donations.
A simple realisation drew me to Philanthropy for a Fractured World: the most pressing, extreme problems facing society today do not lend themselves to viable business models, but through giving, these issues can be remedied.
Foundations and family offices are increasingly seeking hybrid organisational models when deploying capital, and I expected the session on philanthropy to at least touch on this growing practice. Much to my surprise, and relief, on the contrary, the panelists reminded the packed room that philanthropy has a unique, and extremely important role to play in the social impact space.
Panelists at the Skoll World Forum, from philanthropy and government, discuss the role of their organisations in an increasingly polarised society.
The speakers, who included Lillianne Ploumen from the Government of The Netherlands, Darren Walker from the Ford Foundation, Laleh Ispahani from Open Society Foundations and Pia Infante from the Whitman Institute, discussed their organisations’ respective responses to crises, with significant focus paid to the risks facing women and minorities in the U.S. under a Trump presidency. Ms. Ploumen’s department has partnered on the #SheDecides campaign, which swiftly raised €183 million to help fill the gap in maternal health provisions following the president’s drastic cuts to Planned Parenthood services. This initiative, from a foreign government to the U.S., is admirable, but indeed troublesome—it seems the U.S. is entering a period of international reliance for the protection of human rights.
Mr. Walker emphasised the importance of minority representation in leadership positions today, especially where racism and sexism persist, and he also cited specific concerns on the failure of the economy to deliver stable jobs to low-income populations. These shortcomings, coupled with a shrinking government social mandate, escalates demand for Big Philanthropy.
While the panelists focused more on the role of philanthropy than they did on specific causes, a highlight of the conversation was a recognition that there are causes that span the political spectrum. Disability issues and criminal justice-reform, to name two, are both values-based issues, and garner support from the right-leaning Koch brothers, and progressive institutions like Open Society Foundations.
The world of giving does grapple with some important questions, however, around its own identity and purpose. As Mr. Walker acknowledged, philanthropists are incredibly privileged, and it is easy for practitioners to succumb to an ivory tower mentality. One proposed solution to this, as posed by the distinguished moderator Marc Gunther from Nonprofit Circles, is to democratise the work. Like shareholders of a public company, who convene regularly to take a voice in key decisions, should not beneficiaries to causes also be gathered to express their views to donors?
In the Trump era, the culture of giving in the U.S. plays an essential role for social progress and human protections. And it seems, based on the views of those at the Skoll World Forum, philanthropy is stepping into its heightened role with a determined spirit.
– Follow David: @DavidSandersUSA
This was a special session at the Skoll World Forum, because it centered around an Oxford-style debate on the motion “Has impact investing been inflated?” Chris West and Mara Bolis argued for the motion, Cathy Clark and Lisa Kleissner argued against, and Julia Sze moderated.
It should be noted that speakers on both sides of the debate are active in developing the impact investing space, with neither of them opposed to the practice. Nonetheless, today they took a firm position either for or against the motion being debated, for the sake of creating a more thought-provoking debate.
The argument from Chris West and Mara Bolis broadly followed the one made in their recently launched report: “Impact Investing: Who are we Serving” (blog by Mara Bolis). Their key concern with the field as it stands today is that there is a mismatch between the type of capital supplied and the type of capital needed. “Because this sector is trying to behave differently, this money should behave differently”, pleads Mara Bolis. Too frequently, the social entrepreneurs who are knowledgeable about the financing needs of enterprises which serve the poor in developing countries, are left out the conversation when impact funds and other investment vehicles are designed. This has lead to unrealistic expectations about returns, and risks undermining the sector.
What can be done? Chris West argues that more patient capital is required, as well as more realistic expectations about returns. Entrepreneurs also need to ensure that they accept investment only at the right time, from the right people, and under the appropriate terms. Otherwise, enterprises can end up with “schizophrenic boards”, which cannot agree on whether to prioritize financial growth of social impact. Participants from all sides agreed that social investment finance intermediaries have a key role to play in helping entrepreneurs raise the right kind of capital, as do resources developed for entrepreneurs seeking investment, such as the CASE Smart Impact Capital toolkit.
Nigel Kershaw, OBE Chair of The Big Issue Group, addresses the panel of speakers.
On the other side of the debate, Cathy Clark and Lisa Kleissner spoke about the progress that has been made in developing this field, emphasising that there is genuine commitment to social impact among many of the funders have in the field. For instance, in the Toniic 100% impact network, over 130 individuals have pledged to use 100% of their assets for positive social and environmental impact, amounting to a total of over $4.5 billion in assets. Lisa Kleissner, who is a member of the network, shared her personal perspective: “The money that we [received] was more than we had hoped for, so we were willing to take a risk.” Her approach has been to work closely with entrepreneurs, understand their business model, and provide a combination of grants, loans, and other investments as needed.
The T100 project will provide other personal journeys and insight from 50 Toniic 100% impact members. The early findings are that 83% met or outperformed financial return expectations (in a sample of 40 portfolios), and 87% of all respondents met or exceeded their impact return expectations. However, what constitutes an annualised market rate of return varies considerably among respondents, leading 53% of respondents to state that the discussion around financial returns needs to be re-framed.
What can we conclude from this this debate? By one metric, the side against the motion won. The small group of 7 audience members who felt that impact investing had not been inflated grew to over 15 after the speakers finished their remarks. But they remained a minority in the room. Nonetheless, many audience members commented that “Has [the promise of] impact investing been inflated?” was the wrong question to ask. Inflated according to whom? And is it not too early to tell? What is clear is that the field has developed substantially in the last 15 years. Regardless of whether early results meet or defy expectations, the recently created sector infrastructure (funds, advisors, measurement experts, and other intermediaries) will enable growth, better capital placement, and better impact outcomes in the coming years.