Author Archive

Photo of the Week from Jacqueline Novogratz, Founder and CEO

Tuesday, August 3rd, 2010

This is a picture of me hugging Mama Hamza.  Mama Hamza is a remarkable woman who lives and works in the Kibera slums.  She’s been a businesswoman for decades and has successfully raised her children - and is raising her grandchildren – through hard work and sheer discipline.  A few years ago, she realized the community needed a center where it could gather, and provide classes and a safe space for women’s groups.  She started the Mchangayiko Women Self Help Group and it has become a central gathering place in Kibera.

This picture was taken on the night of The Blue Sweater Challenge, a business plan competition in which one of Mama Hamza’s daughters qualified for a loan to start a new business.  The night was filled with energy and enormous aspiration.  You could feel it in the air, and I think that sense of hope and aspiration and solidarity and love is reflected in this strong embrace between two women of different times and places.

Once, Mama Hamza said to me publicly, “I am just like you. I have the talent and skill to lead on the international stage, and I want to do that.  But I have so many children and grandchildren and I need to take care of them.

You see, it is so hard to balance what I have to do here in the community with what I want to do out there in the world.”

I told her we were meeting at the crossroads of one of the most common predicaments of being a woman, regardless of race, nationality or religion.

Balance eludes all of us, and those who are trying to change the world may struggle the most with maintaining some kind of equilibrium.  I love this picture because it shows two women from different places bound by understanding and a shared commitment to Kibera and to releasing the energies of all people, whether they live in New York City or the Kibera slums.

I feel blessed to know her.

Jacqueline Novogratz is the Founder and CEO of Acumen Fund.

The Photo of the Week series features images chosen by Acumen Fund staff and community members — favorite photos they’ve taken in the field or pulled from the archive. Look for it every Tuesday.

An inspiring story of community in a Nairobi slum

Monday, May 24th, 2010

This blog post is the first in a series by Jacqueline Novogratz in partnership with Africa.com. The Acumen team will periodically share stories of our work in East Africa with Acumen’s and Africa.com’s readers. This post highlights our ongoing interaction with The Blue Sweater book club in the Kibera slum in Nairobi, Kenya.

As Jacqueline and team head to Africa, they will be sending back stories of their amazing work to Africa.com’s readers.  This first blog highlights the inspiring efforts of partners in NairobiKenya.

Our white van snaked through the now familiar streets of Kibera, a slum in Nairobi, Kenya, to Mama Hamza’s community center for The Blue Sweater Challenge event.  The day’s overcast sky had broken with a pounding, tropical rain and everything around us felt softer, a rosy kiss goodnight from the evening sky.  We walked through the turquoise metal door to the courtyard and the first thing I saw was a table of books written by good friends — Seth Godin, Bill Easterly, Saj-Nicole Joni — behind which stood Chris, Gerry, Dickson, Herbert and Alex – five of the seven original organizers of The Blue Sweater bookclub, all of them from the slums of Nairobi.  Kevin, the controller (and the first one to read the book and start a book club) was busy with Suraj Sudakhar, the remarkable Acumen Fellow who was responsible for making all of this happen.

Habari gani! What’s news!

We all hugged and laughed and caught up quickly.  Alex is still working with Acumen and working with Suraj to plan a path to work in media.  Herbert is working on his university degree and will graduate in October.  “I have a-ha moments every day now,” he told me. “Last night, my family was discussing the new constitution and my mother said she was going to vote for the first time in too many years.  She used to feel her vote didn’t count, but now we’re all feeling more hopeful. My a-ha is that when you start hearing things like this, there becomes room for real change.”  I couldn’t have smiled more broadly.

Herbert reads Seth Godin’s blog daily and shares it with the other guys.  “We all love Seth,” Dickson said (he’s working on getting into a university).  “I read ‘The Dip’ as well as ‘Tribes’”, said Alex.  “I love Seth!” Right now, the Blue Sweater group is reading Easterly’s “White Man’s Burden” and are finding they agree with most of what he says.  Suddenly, my world was all around me, right here in Mama Hamza’s little patch of land in the Kibera slum.

And Chris…well, Biju, our country manager, helped him get an internship with Duncan Onyango, a friend of Acumen’s who runs a business consulting company.  Prior to this opportunity, Chris was selling eggs on the street, but you can see the determination in his eyes, and he worked like a maniac.  A week ago, Duncan offered him a permanent position with a good salary, and Chris told me nothing can stop him now. As for Kevin, he is now working with Suraj who is consulting to TED to bring TEDx to the slums around Nairobi. They plan to do five in the next few months.

What a difference three months can make! What a difference Suraj has made – and not just to the lives of these extraordinary young men, but to the fabric of a community that is getting more interwoven by the day.

Three months ago, in February, I was standing in this same community center, talking to about 100 people who had read “The Blue Sweater” thanks to the hard work and organizing skills of Suraj and the seven young men.  The evening’s stories were incredibly moving – of overcoming challenges, of desires to effect real change, and of the frustration of living in a world where corruption hits the poor hardest of all.  Halfway through my speech, I shared my own a-ha moment: I was being given an honorary degree by Wofford College a few weeks hence, and the degree came with a financial award as well, though I’d not yet been to Wofford.  And there I was standing in one of the slums where, in so many ways, I had received my real education.  Yet many of its residents couldn’t go to high school, not because they weren’t smart enough, but because they couldn’t afford the bribes.  I could not have been prouder of my new affiliation with Wofford, and yet the irony could not have been starker.

On the spot, I announced The Blue Sweater Challenge.  We would use the award money from Wofford to create a challenge to individuals and groups who made the most change in their community.  We would start by choosing three groups and award them $1,000 each, and I would present the awards personally when I returned in three months. Moreover, I said, the young men would work with Suraj to figure out the details.

In the past three months, that group did a lot more than figure out details.  They decided to have a business plan competition, and then drafted members of the Acumen team and others to provide training and business plan assistance on each of three week-ends.  Nearly 80 individuals submitted plans which they then whittled to 16.  Judges from top community organizations were then brought in to analyze the finalists; and last Sunday, the judges selected five winners and gave on “Innovation Award” for the most creative idea.  Instead of grants, they insisted on making one year loans and charging nominal interest (“according to Acumen’s value system”, Gerry explained to me)….

I’m guessing the energies of at least 50 people were released in the best possible way with a catalyst of $3,000. You may ask why the judges chose six winners rather than three.  Two reasons: first, the majority of businesses needed only $500 to get started; and second, they were so inspired by the professionalism, enthusiasm and intelligence of the plans, that some of the judges pitched in their own money as well.

At 6 p.m., exactly at sundown, we were all seated again in Mama Hamza’s center. I was in front with Josiah who runs Imande Trust, a local NGO that generously agreed to make and service the loans, as well as give the team office space when they need it.  Josiah is another community organizer, a leader born and raised in Kibera.  He has a strong face, a direct gaze, and a big moustache.  Wearing a kente cloth shirt and vest, he talked about growing up on the streets where we were meeting and feeling such a sense of pride tonight because we were seeing the best of Kibera.  “Too many people think Kibera is nothing about nothing.  But tonight, we are seeing Something about Something.  And even more than that, this group did in less than four months what it takes most NGOs four years to do.” So I would say they are showing EVERYTHING about Something here in Kibera.

Kevin, of course, ran the show wearing a dark blue button down shirt and jeans.  His pride at what this group had accomplished was palpable.  He introduced Josiah and then Irfan, a soft-spoken leader who runs Honey Care and is a first-rate social entrepreneur.  I also spoke, though the honor was truly for all of the organizers and those who made this evening possible. We announced the 16 finalists to much applause. And then finally, we announced the six winners.

The biggest awardee, Edwin, just 21 years old and wearing a red Kenya t-shirt, is creating a center to show live sports and films to young people that is alcohol free and will uphold a clean environment. “Young people learn how to play football by watching their heroes on TV,” he told me. “But we can’t have them at bars with too many bad things going on.  They need a place that is theirs.”

Three women and a man were awarded loans of $500 each for trading businesses — jewelry, cothing, cosmetics, cereal and a hair salon.  And Zena, wearing a grey pantsuit, won the Innovation Loan — $500 to provide packets of food staples that she buys wholesale and then gives on a credit basis to people in the slums.  It holds the highest risk business, but the judges feel the community will learn a great deal from it.

I hugged each recipient as they came up for their certificate, and each time, was impressed with the confidence of the individual and the sense of excitement in the room.  I kept looking at the audience filled with our team, community residents, leaders of social enterprises.  To say I felt blessed is sheer understatement. If all this weren’t enough, a little girl from the community named Shaneez presented me with a large cardboard art piece she’d created, a trace and mosaic painting with my name done in tiny tiles surrounded by block prints of the continent of Africa, leaves, a child’s hand and foot.

This is what development should look like – people coming together across lines of ethnicity and class to work together on a common endeavor in which every person in the room gives what they can give, in which every person in the room shows up with their whole selves, in which every person in the room is left wanting to be a better person because of the experience.

And this is just the beginning …

I will be forever grateful to Suraj and the seven men for making a dream real, and for keeping development real.

A Random Act Of Kindness That Brightened A Long Day In The City

Thursday, February 25th, 2010

Jacqueline Novogratz is Founder & CEO of Acumen Fund. This article was first posted on The Huffington Post on February 25th, 2010.

Sitting on panels to interview candidates for Acumen Fund’s fellows program is always a highlight for me. Yesterday was no different as we met with five of 56 finalists from 600 candidates who applied from 65 countries for our one-year program. Each person at our New York City panel was engaged, alive and curious about the world. For some reason, the majority were from immigrant families — from Peru, China, India, Germany. Each told stories of struggle and all had grown up in families where hard work, discipline and a focus on giving back were core values. While all could be doing anything they wanted, coming from careers at Goldman Sachs, IBM and consulting, among others, they were hungry to serve. Throughout the day I thought about this next generation so willing to take risks, so eager to change the world; and I thought about the power of the immigrant experience in the U.S. Mostly, I felt blessed.

The day, however, was a long one, and by the time I left the group dinner in Brooklyn, I was feeling under the weather and thinking about my 4 a.m. wake-up for my early flight the next morning. I waited a long time for a taxi, and when a dilapidated yellow cab pulled up, I poured myself exhaustedly into the seat. The tall, wiry, dark-skinned African with enormous hands drove for a few hundred feet and then asked me if I minded if we drove a little out of our way so that he could pick up food he’d just ordered. I sighed and asked how far out of the way it was, and he said it would be just five minutes each way. That prospect didn’t thrill me and I asked if he was sure the food would be ready, and he told me not to worry because he’d drive back over the bridge to get his food after he’d dropped me off.

It was well past 10 and I liked the easy familiarity of the guy and so said, no, let’s go and get your food. He thanked me profusely and we sped across Brooklyn. Five or six minutes later, he pulled the car to the side of the street, and sprinted to a Halal Chinese food joint. Within a flash, he was back in the car and we were heading toward Manhattan.

The driver chatted happily as we drove through Brooklyn, telling me that he loved living in New York City, that in Congo he could never have worked his way up to buying a taxi, and that he was making money and sending it home and was now seen as a hero by his family. Everyone accepts him in New York, he said, even more than in his country where there is too much violence and mistrust. “I love the American dream”, he said, “and I am living it!” He added that he thought New York was different than other cities because everyone was accepted here, and he didn’t want to live anywhere else.

We arrived at my apartment, only 10 or so minutes later than we would have otherwise, and my fare was about $12. I handed him $20 and was about to tell him to keep it all because his spirit was so effusive, but he wouldn’t accept the bill. “Please,” he said, ” the fare is on me because I took you out of your way,” and I said, no, no, no. And he said, “OK, you can give me $5 but only $5 — that’s all I want.” And I laughed because something had made each of us want to be generous. So often, though, it is those with so much less who make the first move to offer something of themselves. This time I insisted and gave him the $20. The driver finally accepted and then insisted on getting out of the car to shake my hand.

At dinner, one of our partners had spoken about looking for light these days, and finding random acts of kindness every day in unexpected places. I thought of the hard life my taxi driver had left and his open, optimistic attitude toward the world and others. I was thankful that this man had managed to remind me that my time is not all that precious. So often when I am in Africa, people go way out of their way to help me, even if they’ve never met me before. We could use bringing some of that spirit to our fair city. It starts with taking just a moment to see one another, and it goes from there.

Update letter from Jacqueline Novogratz

Tuesday, February 16th, 2010

Dear Friend of Acumen Fund -

In the first years of Acumen Fund’s existence, the two most challenging questions we faced were “Can this scale?” and “Will you ever exit?” As I wrote in my last letter to you, we’re seeing significant scale in our investments ranging from maternal health, to public toilets and solar energy. Of course, the more we find answers, the deeper our questions become. Regarding scale, we’re now doing more intense dives into understanding the trade-offs. On one hand, how do our investees avoid corruption in partnering with government; and on the other, how do they avoid being pushed to serve a wealthier clientele by more traditional investors focused more on profitability than on serving the poor?

Regarding exits, the news is good. Indeed, we exited two investments this quarter and hope to exit a third in the coming months. Most exciting is Jamii Bora, the affordable housing development outside Nairobi, Kenya, which has fully repaid its $250,000 loan! Three years ago, we lent this money so that Jamii Bora could build a housing development for low-income slum dwellers who had proven their ability to repay, but would never qualify for a traditional bank mortgage. I remember standing on the open land an hour outside Nairobi’s slums, listening to the inimitable Ingrid Munro, Jamii Bora’s founder, laying out her vision: the organization would build 2,000 houses, each equipped with an indoor kitchen and bathroom, a garden and a place for laundry; they would use solar energy, and create an efficient water system so that the water could be treated and recycled; and they would eventually see a town of 12,000 people flourishing.

Recently, I visited a development with 750 constructed houses along with thriving shops and a full-fledged school. More than 240 families – or about 1,300 individuals – have moved in, and many have painted the trim on their block houses, and planted gardens in backyards. Most thrilling to me was visiting Jane’s home, for I had spent time with her a year ago in her temporary dwelling in the Mathare Valley slum (here’s  my TED talk on her journey). Her house was beautiful: trimmed in orange and green with sunflowers touching the roofline, it seemed a palace compared to the shanty where Jane had spent her life.

The most extraordinary moment occurred as we stood in her new indoor bathroom which contained a toilet, sink and shower. “In Mathare,” she said, “the water is dirty and the children are always sick. The little ones especially are always suffering with diarrhea and it is too far to go to the toilets and too dirty and expensive as well. My only option was flying toilets, but the diarrhea could be so bad that the children would soil the floor. But now, the toilet is right here in your house.”

She then demonstrated the ease of using a toilet and flushing waste away. Nothing has ever reminded me of the indignity of defecating in bags and then throwing the waste on rooftops like the sight of Jane and her new toilet. More than 1.5 billion people have no access to good sanitation. It needn’t be that way.

Never before have I understood in a spiritual sense the potential of patient capital. Capital can be used to draw us close or to distance us from one another. Traditional societies that forbid usury want to ensure the group stays together and supports one another. The sub-prime debt phenomenon, on the other hand, is a powerful example of using capital in a way that distances. Wall Street investors had no stake in whether homeowners repaid their mortgages as they thought they were “safe” up to a certain default rate. Borrowers had no relationship with a traditional banker. The system was bankrupt of values and accountability.

In an increasingly interdependent world, we must think of ourselves as a single tribe. In a world with so much excess wealth on one hand and poverty on the other, we need a new asset class. Patient capital is money invested not for undue profit but to support opportunities for disadvantaged communities. Money earned is used to invest in others and not for personal gain; and investors provide management support for the sake of the others’ success. In return, the investee is accountable to repay as a member of that same community.

Patient capital can be a cornerstone of a new social contract and a more nuanced type of capitalism for our 21st century world. Acumen invested a quarter million dollars in an organization focused on slum dwellers to build an affordable housing development – an investment banks would not make. Today, a hopeful, diverse community exists. Jamii Bora has repaid Acumen, and we can now invest in other organizations focused on bringing life sustaining services to the poor. Finally, Jane’s joy in what she has herself accomplished is a joy shared by every Partner and team member of Acumen. She did it herself, of course, but it was the brilliant vision and execution of Jamii Bora and the patient capital financing from Acumen and others that enabled her to realize her dream.

The week in Kenya was one of the most extraordinary I’ve experienced: I’ve detailed it in a fairly long journal. Ecotact toilets now serve nearly 15,000 people a day; Insta is producing more than 15 million packets of protein-fortified porridge and is on its way to creating a retail market; and we are engaging in an exciting new agricultural investment focused on hybrid seed production and distribution.

Finally, on a personal level, thanks to Acumen Fellow Suraj Sudakhar, over 90 people in the Kenyan slums have joined seven self-organized book clubs to read The Blue Sweater, (which comes out in paperback today)! He and seven young men from the slums organized a gathering for nearly 100 people in Kibera to discuss the ideas in the book while I was there (an event I recount in the Huffington Post.) The quality of the questions was incredible. People asked about balancing family and leadership, about financing existing projects, and about what individuals there could do to help bridge the gap between rich and poor. It was truly one of the most moving evenings of my life and I thank every one of those young men for giving so much of themselves to make it happen.

It has taken me a few weeks to understand what happened that night. First, I was struck by the generosity and organizational efficiency of the young men who encouraged people to come from five different slums, some of them traveling more than 90 minutes on buses. Second, though everyone spoke about the corruption and challenges to those living in the slums, no one put themselves into the category of being “poor.” Rather, they hungered for what they could do to overcome challenges and help others as well. Ultimately, the individuals in that room seemed to transcend a feeling of Us and Them, and moved to a place of We. It is on this shared sense that I feel an ever-deepening commitment to this work and everything that it promises.

It will take each and every one of us, rich and poor alike, to build the world we dare to imagine. But that night in the Kibera slum, for one powerful moment, I got a glimpse of what is truly possible.

I wish all of you everything that the world has to offer,

Jacqueline

P.S. As I wrote above, the paperback version of The Blue Sweater comes out today! You can help get the word out by buying books for your friends, writing reviews on Amazon or Barnes and Noble, and checking www.thebluesweater.com for promotions and supplementary materials. I’m giving all profits to Acumen and other social issues and so appreciate your support.

Ecotact’s David Kuria named African Entrepreneur of the Year

Wednesday, June 10th, 2009

Let me congratulate Acumen investee David Kuria, founder of Ecotact, for being named the African Social Entrepreneur of the Year for 2009 by the World Economic Forum! This is fantastic recognition for David and his team’s work on bringing affordable, high quality sanitation services to thousands of people every day. Currently, Ecotact serves more than 9,000 customers daily through 10 toilets operated throughout the city of Nairobi, Kenya and other nearby locations. The toilets cost 5 shillings per use, though individuals also can pay a bit more to take a shower in a clean environment – a real luxury for thousands who travel into the city from the slums and far-flung rural areas to work in offices after long, dusty bus ride. Ecotact is showing that public-private partnerships can work on behalf of all people and we are proud to be a part of this effort.