Articles by Batool Hassan

Batool is the Pakistan Business Development Associate, managing fundraising and communications initiatives. Prior to joining Acumen Fund in Pakistan, she worked in the US in the consumer banking sector and has experience consulting in microfinance. Batool holds a Masters of International Affairs in Economic Development from the School of International Affairs, Columbia University.

A heartfelt thank you to our community for sharing the day with us at last Saturday’s Acumen Fund Pakistan Community Gathering. Thank you to Zubyr Soomro, Acumen Pakistan Advisory Council Chair for hosting the gathering and thanks to everyone who sent warm thoughts and words of appreciation for what the day represented for them. And a special thank you to our Dubai friends for joining us and really showing the reach of our community! It was a truly powerful day and we could not have been more blessed than to share it with all of you.

With an audience of over 100 individuals that was a happy mix between our wider community (old friends and new), investees, partners and advisors, we had an opportunity to really demonstrate the power of ‘patient capital.’ It included a truly lively debate on the agriculture panel, “Creating Economic Access for Small Farmers,” (hats off to our incredibly knowledgeable panelists, Dr. Rashid Bajwa, Dr. Sono Khangharani, Shahzad Iqbal, and Abdul Samad Khan) that had the audience engaged in a back and forth in way I have never seen before (who would have thought we would be arguing that aartis are good?!). It was followed by an inspirational message from the Fellows in a well choreographed and riveting session. They challenged the crowd to up their moral leadership compass to focus on dignity not dependence, solutions not sympathy, and choice not charity. It was so inspirational in fact, that we are now speaking with a local multi-national corporation on how they can support the Fellows Program and get more Pakistanis involved in joining the next generation of leaders.

We were honored to have Mr. Syed Salim Raza, Governor, State Bank of Pakistan as the keynote address who had a very strong message on what it takes to spur economic growth from the ground up. Access to finance and capital, whether for micro-entrepreneurs or for small farmers will be key in economically empowering a segment of the population that is critical to the economic health of Pakistan.

And the day was really topped off by a segment on “Honoring the Frontline.” The frontline staff of these social enterprises - the loan officers, installation, accounts, and site managers – the ‘backbone’ of all these organizations are the true inspiration for our team and we are humbled by the tireless work they do day in and day out. Nothing could have been more powerful than to have them recognized and honored. From the Kashf loan officers whose enthusiasm never wavers, to Saiban’s Akhtar sb who was so generous with his time in Acumen’s early days of investing and really taught us about housing – this was the highlight for all of us. We simply could not stop smiling.

On Saturday, through the substance and depth of the panel and the focus on the innovative business models that are really tackling poverty in Pakistan, we went one step further in demonstrating to the broader community that it can be done and patient capital can lead the way. We want to engage all of you, a community of believers and doers who do not accept the status quo and want to show the country what is possible.

We are all so proud to be part of this and hope you are too.

With gratitude and warmth,

Batool

“This looks just like South Jersey!” In true Acumen fashion, I had an “Aha” moment driving through rural Punjab on the way to see Acumen Pakistan’s newest investment, Jassar Farms. Located two and a half hours outside Lahore in Narowal, the region is surrounded on three sides by India and is only three kilometers from the border. So why did it look like South Jersey? Punjab is the breadbasket of Pakistan with a beautiful sea of green fields on both sides. As we drove deeper into the heart of Punjab, we passed fields of rice and wheat and sugar cane, all sporadically peppered with brick kilns. Even at the farm itself, spread across 250 acres of land, there were fields of sorghum, alfalfa, and corn, all being grown to process into livestock feed at the farm. At the farm, I met up with Shehzad Iqbal, social entrepreneur and CEO of Jassar Farms who had a thing or two to share about dairy farming in Pakistan and the social impact of this new line of business. Jassar Farms is a corporate dairy farming business focused on dairy and breed improvement of poor livestock farmers aiming to increase milk productivity. Here are a few interesting facts about dairy farming in Pakistan:

• Pakistan is the 5th largest producer of milk worldwide, yet one cow has the productivity level of only 1/5th of a Western cow.
• On average, the milk production of one cow is approximately 1,800 liters of milk per year.
• As a comparison, one western cow has a milk yield in the range of 8000 – 10000 liters per year.
• In the normal 9-10 year lifespan of a cow, she can give birth 9 times in her lifecycle and is lactating 270 - 305 days per year.
• The milk producing livestock in Pakistan is divided almost equally between buffalo and cow. Pakistan is among the top producers of buffalo milk globally but herds most commonly suffer from poor farm care, poor quality feed and lack breed improvement. While buffalo breed improvement could reap great benefits, breed enhancement through artificial insemination has been less studied in buffalos as compared to cows, worldwide.
• Through experiments in artificial insemination and other methods of livestock breed enhancement, there is strong potential to improve the gene pool of cattle offspring.
• If a cow is on average producing 1,800 liters of milk per year and it is artificially inseminated with a bull who’s mother and grandmother averaged, were producing for example, 10,000 liters of milk per year, then the cow’s female offspring will have the genetic potential to produce the average of the two (10,000 + 1,800)/2 = 5,900) and thereby slowly improve the milk production capability generationally.

This is where Shahzad really explained the social impact of the business idea. In the Pakistan agriculture sector, over 75% of livestock owners are poor farmers owning less than four cows.

The cost of importing high quality bull semen doses costs between $75-$100 and is essentially unaffordable to rural, dairy farmers who own 2-5 cows per household. Shahzad gave the example of a local farmer, Mohammad Butta, who owns two cows and has a family of five. Mohammad milks the cows in the morning and then sets off to work his fields. With a family of five and a household income of $75 per month, he cannot afford the high cost of imported semen dosages. So by producing semen doses locally and making it affordable to the rural livestock farmer, Jassar Farms has the potential to increase incomes of farmers from increased milk yields.

This is the first Acumen Fund investment in agriculture and specifically in the livestock and diary space and it will be interesting to see the value and impact this new business innovation may yield.

Where do you live - in a house, an apartment, a condo, a dorm room? Is that an easy question to answer? If so, you’re in the minority worldwide - especially in a country like Pakistan, where more than 30 percent of the population lives in squatter settlements and an even larger percentage is effectively shut out of the home ownership market due to speculation, land prices and a difficult bureaucracy.

Affordable housing - and how best to provide it for low-income customers - is something Acumen Fund has been exploring for years now - especially in Pakistan. Along the way, our team has discovered some things that work, and many more that don’t. While these learnings made for great intra-team discussions and e-mails, we felt it was time to start sharing what we know - and what we don’t know - with our sector at large.

Along these lines, be sure to check out the latest additions to our Knowledge Center. Aun Rahman, Pakistan Country Director, and I recently completed a paper entitled The Challenges of Expanding Saiban: Scaling Affordable Housing for Low-Income Communities in Pakistan. In it, we describe how an entrepreneur named Tasneem Siddiqui has extended land title and housing to tens of thousands of previously un-served families. We also explore how Saiban - an Acumen Fund investee - is expanding into different geographies and the early lessons learned from this expansion.

The Pakistan team is also hard at work behind the camera. We now have two new videos to share, “My Story: Jawad Aslam, Class of 2008 Fellow” and “From Squatters to Homeowners”. Both videos follow Acumen Fund 2008 Fellow Jawad Aslam as he works to help build a community at Khuda Ki Basti 4, outside Lahore.

With Pakistan often among the top headlines on The New York Times front page (and usually not in a flattering way) – we are heartened to see the most recent issue [Dec – Jan 2009] of Blue Chip Magazine, a leading business magazine in Pakistan, carry a cover story on our very own Jacqueline Novogratz and the investments Acumen Fund has made in Pakistan.

Our most recent intra-office debates revolve around the question of how to support and encourage social entrepreneurship - let alone find the solid business ideas that are providing services at the BoP - so we at Acumen Fund are excited to see positive news of on-the-ground initiatives and social businesses that often operate in the most challenging environments and landscapes. The story really is around social entrepreneurs like Roshaneh Zafar, Tasneem Siddiqui, and Dr. Sono Khangharani who “have seen possibilities where other people see hopelessness.”

Also featured in the same issue of Blue Chip is Roshaneh Zafar , President of Kashf Foundation, who recently launched Kashf Microfinance Bank Limited (KMBL) in October 2008. KMBL is an investment of Kashf Holdings Private Limited, the parent holding company in which Acumen Fund has also invested.

In the five months since operations were launched, Kashf Microfinance Bank has set up 18 branches and is serving 20,000 microfinance clients. But with the microfinance industry facing a challenging period in Pakistan due to the macroeconomic environment and political instability, the innovation of the original group lending methodology is now facing a setback. There is a need to innovate in microfinance services beyond the group lending methodology commonly used by microfinance institutions in Pakistan.

With the launch of the new Kashf Microfinance Bank, Kashf has begun individual lending and savings mobilization and now provides savings products to women from low-income communities. Roshaneh discusses the pioneering work Kashf has been doing at the BoP and Acumen is proud to support Kashf and the microfinance sector in Pakistan.

Editor’s note: This post was written by Batool Hassan, with assistance from Aun Rahman

On Thursday, August 21, Acumen Fund Pakistan hosted a half day roundtable discussion on “Innovations in Low Income Housing: Local Challenges and Global Lessons.”

The roundtable convened a small group of 20 key stakeholders representing different areas within the housing development and housing finance sectors. Attendees discussed key challenges and issues facing low-income housing development in Pakistan. The roundtable also highlighted successful models locally and globally, key challenges to scale, and what steps are necessary at the private and public sector levels to facilitate on the ground movement in the affordable housing space.

The group included:
- Representatives from the State Bank of Pakistan
- Representatives from Sindh and Punjab government housing agencies
- Stakeholders from private banks and microfinance organizations
- Affordable housing developers, urban planners and architects

The event itself was an energizing and aspirational experience for the Acumen Fund Pakistan team – we have rarely before seen such a dedicated, informed, engaged, and impassioned group of individuals who sincerely have a stake in the low-income housing space in this country. The depth of knowledge and level of commitment to catalyze change in the sector was unparalleled.

In this day and time, with so much attention on housing for the poor, we came out of the meeting with an awareness and an understanding that we have a real chance to solve some substantial problems that are global in scale but with innovative local initiatives, we can genuinely tackle.

Within the two overarching themes of Housing Finance and Housing Development, there were some key emerging ideas, possibilities and learnings that were tangible take aways.

By Priya Pandya, Acumen Fund Summer Associate (pictured at left)

In early August, Acumen Fund Pakistan held a small dinner at the Sheraton Hotel. Some of our investees, key partners and advisors - including Shaukat Tarin, Zubyr Soomro, Zaffar Khan, Ali Siddiqui, and Shahid Firoz - discussed one of the biggest challenges of social enterprise in Pakistan—developing and retaining talent.

Deepti Doshi, our Talent Manager, kicked off the evening with an overview of the Acumen Fellows Program as the search for the next class of fellows begins worldwide. Personal stories by current and previous fellows Jawad Aslam, Ayeleen Ajanee and Adrien Couton gave insight into what Acumen is looking for in hiring, but also what an experience working hand-in-hand with the investees has offered them. Each of the Fellows echoed the sentiment that the reach and power of the Acumen Fund brand and network has been invaluable. Jawad, who has spent the last year working with the Saiban low-income housing project, has been able to use this experience as a springboard to start his own commercial housing development and management company.

Zahara Khan, CEO of Sehat First, asked the million dollar question: “How do you attract employees with field experience, technical expertise, business knowledge and a passion to serve the poor? And how do you compensate them financially?” It was great to see others in the room eager to share their experiences and lessons. People brought up passion a number of times as the essential attribute for all people in this sector. Sadaffe Abad, CEO of Kashf Foundation, said it best, “You don’t need to go high-end. Why target top-ranked universities? Why not recruit from within the community, where people have a stake in the success of the project. You need long-term strategy and clear profiles. You need two or three people who really share the values that are important to your company. Leadership is critical and culture is important. Once you get a few people to lead, it grows.”

Even after the discussion and during dinner, conversations ensued on interesting topics. I was most alarmed to learn from Zahara that, in her work, she comes across mothers who chew up tobacco and give it to their children to stop them from crying! Our investees have an array of knowledge and welcome the idea of having a sounding board to discuss their everyday challenges. There is much to learn and share as the notion of social enterprise slowly gains traction in Pakistan. Acumen Fund Pakistan plans to build on the momentum started from this event with future investee knowledge sharing workshops.

This past Saturday, Sehat First held an inauguration ceremony for its first health clinic in the village of Chashma Goth, a remote fishing village on the coastal outskirts of Karachi.

Sehat First is a social enterprise that provides quality health consultation services and pharmacy services to lower income communities. Each clinic provides healthcare support to patients using an e-sehat (health) tele-consulting application that remotely links up doctors and specialists with their patients via the Internet.

Remote. That is what really resonated when I saw the location of the village. Even though it was only thirty minutes outside Karachi, the population was sparse with limited access to many social services like health facilities and education centers. These are the forgotten communities where ghost health units and primary schools are established and then neglected.

This point was further reinforced when Ms. Zahara Khan, Sehat First’s CEO, made her welcoming remarks at the ceremony. There is a strong need for access to doctors and lower cost medicines, especially in Pakistan where the number of available doctors per patient is incredibly low. In this scenario she says, “It is imperative to use emerging technologies to connect healthcare providers in far flung areas with medical experts in urban centers.” In this rural community where access to emergency services in non-existent, Sehat First is providing primary healthcare, post-natal care and innovative links to medical specialists.

While the main innovation of Sehat First remains its tele-health kiosk linking patients to doctors, what will really make this enterprise go the distance is its financially sustaining business model. Sehat First pairs a basic health facility with a pharmacy and a small general store that carries simple household goods. And while the main draw for the community are the health services, the accompanying general store help drive revenues with the potential to make the clinic center financially viable. This will be a learning experience for Sehat First and Acumen Fund on unique business models that operate in challenging environments.

This week’s Acumen Fund Pakistan Quarterly Tea event at the Sheraton Hotel - Karachi opened up with a spectacular light show – or lack thereof. Actually, the power went out in the entire hotel for 15 minutes as the event was to begin. Not so surprising when you consider that Pakistan faces an electricity shortage of 3000 to 4000 megawatts at peak times. But what was surprising and impressive was that everyone in attendance, from Acumen Fund Pakistan partners to advisors to entrepreneurs, all 50 people strong, carried right on with their conversations in the pitch black and did not miss a beat, even with the air conditioning out. Some even used their cell phones as a light source, which showed their resourcefulness and also how common these power outages are becoming in Karachi.

When the power came back on, Brian Trelstad gave an overview of the Acumen model, highlighting the importance of providing ‘patient capital for impatient people’ – those unwilling to sit on the sidelines and watch the problems of poverty. He also spoke specifically about our investment in A to Z Textiles and Water Health International (WHI) – both of which have shown an impressive ability to scale: A to Z is producing millions of bednets a year and has created more than 6,000 jobs; and WHI has 85 water systems serving 250,000 Base of the Pyramid customers, with plans to grow to hundreds of systems serving millions of people in the next 2-3 years.

When it comes to the lessons we are learning, it is within the context of how to best solve the problems of poverty. While increasing aid is important, Acumen Fund is looking at different ways to utilize philanthropic capital. Acumen Fund’s investment philosophy tests market-based mechanisms, and invests in the ingenuity of entrepreneurs and their teams.

After the brief presentation, Brian opened up the floor to questions and for me personally (as well as the Acumen Fund Pakistan team), it was incredibly exciting to see how engaged the audience members were as they asked very specific, focused questions.

Editor’s note: Batool Hassan recently joined Acumen Fund’s Pakistan office as a Knowledge & Communications Consultant. She recently completed her Masters of International Affairs from SIPA, Columbia University, and moved to Karachi late last year. Batool has microfinance consulting experience and has worked in the US consumer banking sector.

A recent article published in the World Bank’s Development Outreach, “Microfinance: Climate Change Connections,” discusses the potential relationship between microfinance and climate change. It highlights an interesting link between innovations in environment-friendly products and how microfinance can facilitate access to these products for the base of the pyramid (BoP).

The article points out that many members of the microfinance community have often viewed environmental concerns as a ‘luxury’ their low-income clients can ill-afford to consider.

But recent partnerships between renewable energy companies and microfinance institutions point to possible collaborations that will allow low-income households to gain access to cleaner/renewable energy technologies.