Root Capital

Overview

Root Capital (formerly EcoLogic Finance) is a social investment fund that uses the tools of finance – including access to capital and financial education – to reach underserved markets in the developing world. We focus on Small and Medium Enterprises that bring economic benefits to low-income communities and responsibly manage natural resources as part of their business philosophy. Our core operational goal is to meet the financing needs of the enterprises we serve.

Mission

We help our clients develop skills and relationships to commercialize their products and ultimately become “bankable" customers of mainstream financial institutions. We envision a global finance market where mainstream financial institutions service Small and Medium Enterprises (SMEs) promoting the well being of people and ecosystems across the developing world.

Program

We manage a portfolio of $25,000 to $750,000 loans made to SMEs that are self-sustaining, scaleable, and environmentally beneficial. Rooted in rural, low-income communities of the developing world, these businesses are the “missing middle" of emerging market economies: too small for banks and too big for microcredit.

Employing billions of people who earn only a few dollars a day, these SMEs are critical to creating jobs and conserving natural resources. By providing access to affordable credit to producers of natural products such as coffee, cocoa, fruits, vegetables, honey and handcrafts, Root Capital uses lending as a tool to harness the existing entrepreneurial energy in isolated rural communities. This both enables conservation and encourages socially responsible business practices.

We further develop local workforces through Root Capital's Financial Education Initiative, a program that expands rural producer organizations’ access to export markets and to financial services through the strengthening of their financial management capacity and basic business skills. The training benefits agriculturalists and artisans who export natural products; through workshops and drills, the cooperative leaders and members become equipped to build their businesses and work effectively with suppliers, clients and financial institutions.

Impact

Access to financing strengthens producer cooperatives and thereby job creation. Overall, when SMEs have adequate access to capital, these rural entrepreneurs have enhanced revenue generation opportunities because they are able to tap into Fair Trade price premiums.

Our lending and education activities also result in stronger market linkages, thus helping shore up the producer’s position in the global supply chain for “green" products. Finally, Root Capital services result in enhanced family and community stability; conservation of natural resources; and, reduced environmental contamination.

Countries of Operation

Belize, Bolivia, Brazil, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Kenya, Mexico, Nicaragua, Peru, Ethiopia, Mozambique, Rwanda, Tanzania, United Republic of, Uganda, Indonesia, Angola, Chile, Cote D'Ivoire, Ghana, India, Malawi, Philippines

States of Operation

Massachusetts