From Classic Capitalism to Social Finance  GSIX   | A  Global Social Investment Exchange 17th November 2008 Tamzin Ractliffe
“ Poverty is not natural. It is man-made.   Overcoming poverty is not a gesture of charity.   It is an act of justice. It ...
Classic Capitalism
Social Finance = Sustainable Capitalism
We now know: <ul><li>Business and markets can no longer operate in isolation from society or the environment </li></ul><ul...
Current fundamentals in social capital
SA Social Investment Exchange (SASIX) <ul><li>A social stock exchange, listing evaluated projects in priority development ...
SIX Social <ul><li>Social Investment (or grant) provides </li></ul><ul><li>training and equipment so that an </li></ul><ul...
SIX Financial <ul><li>Responsible Financial Investment provides </li></ul><ul><li>microfinance services to low-income </li...
The SIX investment continuum
Spectrum of practitioners by motive
Spectrum of investors by objective
GSIX Country Exchanges
The purpose of GSIX is to: <ul><li>create an efficient global social investment platform and intermediary infrastructure <...
-  Muhammad Yunus,  Nobel Prize-winner and founder of Grameen Bank  “ People can change their own lives, provided they   h...
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From Classic Capitalism to Social Finance GSIX: A Global Social Investment Exchange

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Speaker: Tamzin Ractliffe
From Classic Capitalism to Social Finance GSIX | A Global Social Investment Exchange

From the Social Entrepreneurship Summit at MaRS, 17th November 2008

Published in: Business, Economy & Finance

From Classic Capitalism to Social Finance GSIX: A Global Social Investment Exchange

  1. From Classic Capitalism to Social Finance GSIX | A Global Social Investment Exchange 17th November 2008 Tamzin Ractliffe
  2. “ Poverty is not natural. It is man-made. Overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental human right, the right to dignity and a decent life”. - Nelson Mandela, Nobel Prize-winner and world leader
  3. Classic Capitalism
  4. Social Finance = Sustainable Capitalism
  5. We now know: <ul><li>Business and markets can no longer operate in isolation from society or the environment </li></ul><ul><li>Charitable giving is not enough </li></ul><ul><li>Systems-change required </li></ul><ul><li>Need a “with” economy </li></ul><ul><li>Combine social values with commercial business practices </li></ul><ul><li>Enable effective investment, income and capitalization strategies </li></ul><ul><li>Maximize value and create returns comprising equal parts financial, social and environmental </li></ul>
  6. Current fundamentals in social capital
  7. SA Social Investment Exchange (SASIX) <ul><li>A social stock exchange, listing evaluated projects in priority development sectors </li></ul><ul><li>Rigorous due diligence process involving intensive assessment, evaluation and reporting </li></ul><ul><li>Measures real impact and life-change </li></ul><ul><li>Hybrid Investment options provide a mix of social profits and financial returns </li></ul><ul><li>Continuum of social investment opportunities – SASIX Social to SASIX Financial </li></ul>
  8. SIX Social <ul><li>Social Investment (or grant) provides </li></ul><ul><li>training and equipment so that an </li></ul><ul><li>organised group of rural blind people </li></ul><ul><li>can become income-generating </li></ul><ul><li>beekeepers. </li></ul><ul><li>RETURN: </li></ul><ul><li>Social – </li></ul><ul><li>building the skills and independence of disabled, rural people </li></ul><ul><li>enabling them to establish viable income generating sustainable businesses </li></ul><ul><li>helping them to support their families </li></ul>
  9. SIX Financial <ul><li>Responsible Financial Investment provides </li></ul><ul><li>microfinance services to low-income </li></ul><ul><li>families for whom no other source of </li></ul><ul><li>finance is available, adding value by </li></ul><ul><li>enabling them to improve the quality of their </li></ul><ul><li>housing and begin to grow wealth. </li></ul><ul><li>RETURN: </li></ul><ul><li>Financial – housing investment yields an </li></ul><ul><li>effective 13.79% return. </li></ul><ul><li>Social – low-income families add value to their </li></ul><ul><li>properties, uplifting the whole community: </li></ul><ul><li>Women 75% </li></ul><ul><li>61% between 40 and 60 years old </li></ul><ul><li>63% Informally employed & Pensioners </li></ul><ul><li>49% earning below R1 500;94% under R3 500 </li></ul><ul><li>Formal & informally employed; social security grants </li></ul>
  10. The SIX investment continuum
  11. Spectrum of practitioners by motive
  12. Spectrum of investors by objective
  13. GSIX Country Exchanges
  14. The purpose of GSIX is to: <ul><li>create an efficient global social investment platform and intermediary infrastructure </li></ul><ul><li>a comparative due diligence framework </li></ul><ul><li>a range of investment and financing instruments </li></ul><ul><li>a three dimensional ROI measure </li></ul><ul><li>raise the bar </li></ul><ul><li>make social capital more accessible to poor communities </li></ul>
  15. - Muhammad Yunus, Nobel Prize-winner and founder of Grameen Bank “ People can change their own lives, provided they have the right kind of institutional support. They're not asking for charity, charity is no solution to poverty.” Thank you

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