Since its launch in 2010, Alquity Investment Management has changed the lives of over 12,000 people in Africa by reinvesting at least 25% of fee revenues from its investment funds into social projects. It is proof of the company's determination to transform the investment management industry, along with the lives of some of the world's poorest people.
Alquity intends to produce attractive returns through sustainable investment in some of the world's most exciting emerging and frontier markets – not simply because sustainability is good ethics, but also because it can improve profitability and help manage risk.
Alquity believes investment should not be just about taking – it is also about putting something back into the communities where it invests. The company uses a proportion of its revenues to provide low-cost microfinance loans to small businesses. This encourages entrepreneurship, which in turn helps create jobs and grow local economies.
The first fund to follow the company's model, the Alquity Africa Fund, is an example of Alquity's philosophy in action. An experienced investment management team invests in companies with long-term growth potential from the Cape to Cairo, across different countries and sectors. After that, 25% of the fee revenue goes back to Africa.
Since its launch Alquity has donated over $200,000 (£119,000) through its microfinance partners. Each $90 donated creates one job in Africa, with a single loan transforming at least five lives. That is a great result in itself. But, on top of that, 2013 was also a successful year for the company, with the fund providing great returns for investors. Longer term, giving a helping hand to entrepreneurs will help drive consumer demand, creating the economic conditions to generate better returns for investors.
For Alquity, this approach is about creating shared value – where profits are high and sustainable, and the bottom line is also a lifeline.
Lorna Thorpe is part of the wordworks network
The Guardian Sustainable Business Sustainability Case Studies contain articles on all the initiatives that met the criteria for the GSB Awards.
This article was removed on 22 April 2014 as it was launched early in error.
