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| IDB-Grameen Social Business Initiative (SBI) |
Introduction
Two of the most important microfinance
organizations have joined together with a new goal: create a Found to invest in Social Business projects benefitting the poor.
The main goal of SB is to solve social problems. Every social need is an opportunity to build a social business project. Nowadays,
social businesses have a wide range of action, given the amount of social problems existing worldwide. Therefore, the IDB-Grameen
SBI has a great challenge ahead.
The joint venture
The IDB-Grameen SBI will be a joint
venture between IDB and Grameen Trust, in the form of an offshore company, headquartered in Dhaka. Its objective will be to
improve the quality of life of the poorest segments of societies by supporting social businesses and making available essential
services and products, at affordable prices. As it is a Social Business, IDB-Grameen SBI will be a profit-making but not profit-taking
initiative (no payment of dividends), with the aim of becoming self-sustainable.
As a start-up, IDB will provide
US$ 10 million while Grameen Trust will contribute a token amount of US$ 10,000 equity participation, to cover the investment
opportunities, operational and administrative costs, auditing, etc.
The company shall have a Board with equal representation
of both parties (shareholders), and Grameen will be entrusted to fully manage and operate the SBI and will decide what does
and doesn’t qualify as an SBI. Grameeen will be the Investment Agent and will facilitate the related processes
of setting-up and running the social business.
The selection of potential Social Businesses will be determined
by the SBI Board. Areas of priority focus will be the Health Care for the Poor, Clean Drinking Water, Production Materials
for the poor, etc.
Next steps
Given that the Concept of Social Business is relatively
new, exposure and on-the-job capacity building sessions will be built into the design and implemented to serve both the Partners,
as well as IDB staff themselves.
Replication in different Regions such as Middle-East; Africa and Asia are expected.
Consequently, other interested Share-Holders , Sponsors, Waqf, etc. could be integrated. |
| IDB-Grameen Social Business Iniciative (SBI) |
Introduction
Two of the most important microfinance organizations
have joined together with a new goal: create a Found to invest in Social Business projects benefitting the poor. The main
goal of SB is to solve social problems. Every social need is an opportunity to build a social business project. Nowadays,
social businesses have a wide range of action, given the amount of social problems existing worldwide. Therefore, the IDB-Grameen
SBI has a great challenge ahead.
The joint venture
The IDB-Grameen SBI will be a joint venture between IDB and Grameen Trust, in the form of an offshore company, headquartered
in Dhaka. Its objective will be to improve the quality of life of the poorest segments of societies
by supporting social businesses and making available essential services and products, at affordable prices. As it is a Social
Business, IDB-Grameen SBI will be a profit-making but not profit-taking initiative (no payment of dividends), with the aim
of becoming self-sustainable.
As a start-up, IDB will provide US$ 10 million while Grameen Trust will contribute
a token amount of US$ 10,000 equity participation, to cover the investment opportunities, operational and administrative costs,
auditing, etc.
The company shall have a Board with equal representation of both parties (shareholders), and Grameen
will be entrusted to fully manage and operate the SBI and will decide what does and doesn’t qualify as
an SBI. Grameeen will be the Investment Agent and will facilitate the related processes of setting-up and running the social
business.
The selection of potential Social Businesses will be determined by the SBI Board. Areas of priority focus
will be the Health Care for the Poor, Clean Drinking Water, Production Materials for the poor, etc.
Next steps
Given that the Concept of Social Business is relatively
new, exposure and on-the-job capacity building sessions will be built into the design and implemented to serve both the Partners,
as well as IDB staff themselves.
Replication in different Regions such as Middle-East; Africa
and Asia are expected. Consequently, other interested Share-Holders , Sponsors, Waqf, etc. could be
integrated. |
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