Archive for the ‘Investee News’ Category

Seen & Heard – What You Might Be Missing

Tuesday, August 17th, 2010

Seen & Heard is a collection of recent headlines in the news about our world, our work, and the spaces and places in between. With each post we ‘ll also share a list of job openings at Acumen Fund and in our sector. Seen & Heard will appear approximately twice a month and will replace the weekly News Roundups. We apologize to the legions of you who were die-hard News Roundup fans. We hope that this is an improvement. For those of you who like keeping a pulse on the latest news as it’s happening, please consider following us on Twitter! Finally, if you have ideas for how we can improve Seen & Heard, please don’t be shy and leave a comment below to let us know. Thanks for reading!

Headlines

  • The tragic flooding in Pakistan continues to take an unprecedented toll on an unimaginable scale. Over 1,500 lives have been lost and approximately 20 million Pakistanis have been directly affected. On Friday we posted a blog naming a few of the organizations we trust who need your support in their relief efforts. Read the post here to learn how you can help.

Articles of the Week

AF and AF Family in the News

  • The first episode of the new CNBC series “What the Future” features Acumen Fund founder and CEO Jacqueline Novogratz and the inspiring work of two of our investees in Kenya. Be sure to view all 3 parts!
  • A good WSJ article on Acumen Fund Advisor and Partner Amy Robbins and the work of her foundation: “I’m never going to be the biggest player in the market, but if I can go to the riskiest places which often get overlooked by larger organizations, we can add the most value.”

Kenya in the News

  • Kenyans recently passed an important constitutional referendum. Check out what’s at stake in this Salon article.
  • A provocative NY Times op-ed on slum tourism in Kibera – do tourists who visit slums actually leave more likely to help or do they strip slum residents of their dignity?

India in the News

Water in the News

  • The Washington Post reports on inefficient irrigation methods adding to the water shortages in Pakistan
  • A new UN resolution declares water a right, but what does this mean for actually delivering the water?

General Development News

Jobs

At Acumen Fund (links to all job openings at AF can be found here)

  • Chief Financial Officer
  • India Director
  • Pakistan Portfolio Associate
  • Pakistan Portfolio Consultant
  • East Africa Portfolio Manager
  • India Portfolio Associate
  • Volunteer Communications Associate
  • India Portfolio & Operations Manager

In the Sector

Many thanks to Kit Burton for kicking off our first issue of Seen & Heard! This summer Kit volunteered in Acumen Fund’s New York office managing community engagement. Next week Kit will be returning to Brigham Young University where he will be graduating this December with a degree in International Relations.

Clean Tech investing insights & Husk Power Systems

Friday, May 14th, 2010

Rajan Kundra is Director of Capital Markets & the Energy Portfolio at Acumen Fund. He recently attended the Overseas Private Investment Corporation’s Renewable Energy & Clean Technology Conference in Delhi, India.

I just returned from the OPIC renewable energy conference in Delhi, where it was amazing to witness how the renewable energy movement in India is at the intersection of so many things that matter – climate change, sustainability & resource management, new investment areas, and addressing global poverty.  Most of the conference attendees were geared towards the “more commercial” set, but the conversation did really steer across all of these areas.

There were 2 big take-aways that resonated well with some of the work that we are doing – First, the traditional fund structure of 5 year investing periods and 10 year exits will not work in many cases – the projects just get delayed by nature, the capital needs are significant for several years (unlike other sectors where they are more front ended), and the market of “aggregators” that can take a series of renewable energy projects and roll them up is an exciting but not yet fully developed sector.  Our notion of Patient Capital really hit a chord here – and while Acumen Fund’s direct focus on Poverty was interesting but not the core focus of of everyone there, the way in which we use Patient Capital was of interest.

Second, an interesting conversation on “big” vs “small” energy projects was led by Acumen Investee Gyanesh Pandey of Husk Power Systems.  So much of the scale conversation is about very big energy projects – how one can make a dent in the global climate and energy scarcity problems with megawatt and gigawatt scale projects. The trickle down assumption in these conversations is of course that these large projects will create energy access for the poor.

By contrast, Gyanesh told a very exciting story of how Husk’s systems are purposely small – about 50 Kilowatts, just enough to meet the demand of a small village cluster. Gyanesh explained how Husk Power Systems has used the small scale to innovate around low cost delivery and infrastructure to make the energy affordable, and how they have made the business model replicable to the point that they already have 26 systems up and running today. Cumulatively, these put out 1.3 Megawatts of electricity, which is the sweet spot for some of the larger systems. Finally, Gyanesh’s model was compelling because of the sheer speed at which their systems are set up, each taking less than a month.

I sincerely applaud the decision of OPIC to have included Husk and Acumen in this debate.  It was a tremendous learning experience for us and a very exciting time for the entire sector.

Acumen Fund announces investment in Western Seed Company Limited

Wednesday, April 21st, 2010

Acumen Fund is pleased to announce a new investment in our Agriculture Portfolio. Western Seed Company Limited (Western Seed), based out of Kenya, produces improved hybrid maize seeds that increase the productivity of low-income farmers. Acumen Fund will invest US$2.1 million in Western Seed to enhance the food security and economic independence of Kenyan smallholder farmers. African Seed Investment Fund, which invests in businesses to improve the delivery of quality certified seed to smallholder farmers in eastern and southern Africa, contributed another US$1.9 million.

Of the 24 million Kenyans working in agriculture, some 17 million hold plots smaller than 2 hectares in size. Maize is staple crop, serving as a primary source of food and income for smallholder farmers, but their use of inefficient technology often leads to small and irregular crop yields. In 2007, the average maize yield in Kenya was less than half the global average, and a fifth of the average yield for rain-fed maize in the state of Iowa. However, the problem is not that hybrid seed varieties do not exist in Kenya – they do, but adoption by smallholder farmers has been slow because of lack of supply and appropriate distribution strategies on behalf of producers.

Western Seed plans to use the capital from both funds to quadruple its seed output and sales over 5 years, thus boosting the number of households served from 200,000 to over 850,000, and improving the lives of over 4 million people. Western Seed has invested heavily in crop research, and their hybrid maize seeds more than double the yields of farm-saved seeds, while generating a 25% increase over their competitors’ seeds. The investment will support a Direct Access Sales Program to reach farmers in deep rural communities. In fact, 2010 Acumen Fellow Joseph Byarunhanga is currently helping to implement the Direct Sales Access Program, which will prepare locally nominated “farmer-trainers” to serve as sales representatives who can demonstrate the benefits of using Western Seed’s varieties. The Program will allow Western Seed’s productive input to reach farmers who have historically lacked access to high-yielding seed varieties, and challenge local retailers who have increasingly sold adulterated and counterfeit varieties.

This investment in Western Seed is an exciting addition to Acumen Fund’s existing Agriculture Portfolio, which includes small-scale drip irrigation companies Global Easy Water Products and MicroDrip, as well as dairy-farm business Jassar Farms. Collectively, these social enterprises are driving the adoption of technologies that will bring food security and economic independence to small-scale farmers in South Asia and East Africa.

For more information on Acumen Fund’s investment in Western Seed, please refer to the Western Seed investment page and the official press release.

Emerging trends: Toilet parties in the Nairobi slums

Thursday, March 4th, 2010


Benje meets Ecotact CEO David Kuria

“Once you don’t have it – that’s when you realize the value”

David Kuria, founder and CEO of Ecotact

When I first journeyed to Kenya in 2004, celebrating the launch of a public toilet facility was one of the last ways I imagined spending a Monday morning – or any morning (or afternoon, or evening), for that matter. In fact, unless I had enjoyed an elephant’s dose of mango juice and was on a 5 hour safari across the Great Rift Valley, I might not have had reason to celebrate a toilet at all.

Six years later, however, armed with the realization that an estimated 2.6 billion people lack access to basic sanitation and 2.2 million die each year from water and sanitation related diseases, I now have billions of reasons to attend toilet parties, an emerging trend in the Nairobi slums thanks to David Kuria and Ecotact. So when the Acumen team received the invite to attend the launch of Ecotact’s 17th Ikotoilet facility last Monday, I practically ran for my dancing shoes.

Sitting under a small tent adjacent to the about-to-be-launched Kawangware Ikotoilet, Rob Katz and I listened eagerly with the 200-plus gatherers inside and spilling out the edges of the makeshift party hall. The crowd – a mix of residents, officials and journalists – engulfed the architecturally distinct Ikotoilet structure. It was clear that Acumen wouldn’t be dancing alone at this party.

The Minister of Public Health and Sanitation and the Chief Public Health Officer also showed up for the celebration. Given the honour of Chief Guests, they both made remarks before cutting the ribbon: this day marks the launch of a noble public-private partnership initiative, as we bring necessary services closer to the people and are no longer dependent on flying toilets.

Part of the media frenzy at the Ikotact launch event

Part of the media frenzy at the Ikotact launch event

The Kawangware facility is part of Ecotact’s newly implemented slum outreach model; it is now the second Ikotoilet in the informal communities of Kenya. And according to Kuria and the Minister, there will be more Ikotoilets in Kawangware in the near future – extremely exciting news for Acumen as a BoP investor!

Ecotact is experimenting with a school model in the slums as well. After cutting the ribbon at Kawangware – and being mobbed by reporters as she toured the facilities – Minister of Public Health and Sanitation and Kawangware MP Beth Mugo led a delegation to the Dagoretti Secondary School, about 10 minutes away from the new Ikotoilet.

Darogetti students meet Ecotact CEO David Kuria

Darogetti students meet Ecotact CEO David Kuria

The school’s 150 students currently use pit latrines. But with funding from the Solid House Foundation, Dagoretti will soon inaugurate a free-for-use Ikotoilet on site. What’s more, a biodigester will generate valuable methane gas, pumped from the toilet to the school’s kitchen.

With facilities in Nairobi’s central business district, city parks, slums and schools, Ecotact is tackling the sanitation problem here in Kenya on many fronts. As an investor and partner with Ecotact, Acumen Fund is eager to continue the celebration with Kuria and his team, as they grow from 17 facilities to a target of more than double that within the next year.

Bio:

Benje is currently a Portfolio Intern in the Agriculture and Energy portfolios in Acumen’s East Africa office. Prior to Acumen, Benje was a management consultant at TecnoServe in Kenya and at PwC in New York. He is currently starting several SMEs in the Nairobi slums, and holds a BS in Business Administration from UC Berkeley.

News Round-up: MAGNUM in Motion, LifeSpring, D.Light, design thinking

Wednesday, October 21st, 2009
  • Interview with LifeSpring’s CEO: You can hear Anant Kumar, the visionary head of LifeSpring, in a podcast in the Social Innovations Conversations series.
  • Kashf on Oprah: Nicholas D. Kristof and Sheryl WuDunn’s new book, Half the Sky, includes the story of a Kashf Foundation client, which they recently shared on the Oprah Winfrey show.