FALL 2015 | EXPANDING OPPORTUNITY FOR PEOPLE LIVING IN POVERTY
An Update on Health by Peter Bladin, chief impact and research officer, Global Partnerships
“While I was away from home working in Totonicapan, my wife called me and told me my son had died,” said Pedro Chacaj Chacaj, fighting back tears. Pedro’s family lives in a small, rural village called Xebe in Guatemala. Because of how difficult it was to access quality, affordable health care, Pedro’s wife took their son to see a village healer, who misdiagnosed him and prescribed the wrong medication. No parent should have to endure the pain of losing their child, especially not for illnesses that are treatable.
Pedro Chacaj Chacaj
Today, Pedro is a client of CDROREFICOM, a Global Partnerships health partner who provides affordable health programs, treatment and education along with a credit and savings program, in his village. It is estimated that 1.3 billion people worldwide have no access to health services. Many are like Pedro; they live in areas where lack
of access is due to high cost and weak infrastructure (e.g. difficult roads, broken healthcare systems). Death is an extreme outcome. More often, people remain trapped in the cycle of poverty when they are forced to miss work to travel to a hospital or pay high health costs.
social impact, financial sustainability and potential for scale of their health services offerings. I’m pleased to announce that GP’s inaugural case study, Sustainable Health Solutions for People Living in Poverty in Latin America, does just that.
To improve access, we need to explore financially sustainable models. In 2012, GP launched the Health Services Initiative to test out market-based health solutions. We teamed up with four social enterprises in four countries who were each interested in either launching a new health education or services package, or fixing an existing offering to become financially sustainable and scalable.
One of the biggest lessons we learned is this: there is no onesize-fits-all solution. To deliver market-based health solutions, we need to address client wants and needs, form partnerships, balance impact and sustainability, monitor results and adjust our approach. Each country also has different legal challenges. It is hard to do but we believe that harnessing the power of markets is the only way to reach the billions of people in need of better health— the basis of building a better life.
Delivering comprehensive health care was not the goal; rather, we worked together to co-design, pilot and scale the delivery of services targeted towards specific local health needs. For example, the World Health Organization estimates that 80 percent of annual cervical cancer deaths are in developing countries; patients diagnosed with cervical cancer in Latin America are three times more likely to die from the disease than those in the U.S. and Canada. As cervical cancer is one of the most easily detectable and treatable cancers, three of our HSI partners provide cervical cancer education as well as access to PAP tests. Our goal was to also share our experience to help other social enterprises think critically about the
The lessons we have learned enable us to ask better questions as we examine new health initiatives. We continue to get smarter about how we create impact with our investments. I invite you to join us by exploring our case study at: www.globalpartnerships.org/hsi.
IN THIS ISSUE 2
Impact in Action
The Round Up
From the Field
Quiz: How Well Do you Know GP?
IMPA CT IN A CTION
T HE R O U N D U P GP named on ImpactAssets 50 For the fifth consecutive year, Global Partnerships has been selected for the ImpactAssets 50, a database of outstanding impact investors that have demonstrated social and/or environmental impact.
GP and Greenlight Planet Featured on New Day Northwest
Better Health for Maria and Her Family Maria Eugenia Sanchez, age 46, is the mother of three children. She lives in Monimbo, a small town about 15 minutes from Masaya, the third largest city in Nicaragua. She is a client of Pro Mujer in Nicaragua (Pro Mujer), a microfinance institution that provides access to financial services, training, as well as health education and services for women living in poverty. Two years ago, a Pro Mujer loan officer offered the Vida Sana (Healthy Life) program to Maria’s village bank group. For an annual fee of $35, the women would receive unlimited primary care consults for themselves or a family member. They would also have the option of obtaining other services like cervical cancer screenings, preventive dental care, dental fillings/extractions, vision exams and more. Maria eagerly added the Vida Sana package to her next loan. Because the cost was added to her monthly payments, she says the additional cost was manageable. Since purchasing the program, her nieces have been able to see a pediatrician, and she has received several dental treatments and an ultrasound. The most important component of the Vida Sana program, though, has been the unlimited medical consults. “In the hospital, they didn’t explain anything and they would send me home without doing anything,” Maria says. “In the Pro Mujer clinic, the doctor calls you by your name. She’s patient and she treats you very well.” GP has long invested in Pro Mujer. In 2012, we deepened our partnership when Pro Mujer joined our Health Services Initiative. GP provided guidance to Pro Mujer as they fine tuned the design of their health education and services packages (including Vida Sana) to better serve clients like Maria.
JOIN US on an Impact Journey to ECUADOR! June 25 - July 3, 2016 Call Peter Solar 206.456.7834
Rick Beckett, President and CEO of Global Partnerships, and Desh Mallik, Vice President of Business Development at Greenlight Planet, a GP partner, were featured on New Day Northwest. They spoke with host Margaret Larson about the impact of solar lights on off-grid communities.
GP Opens Office in Nairobi, Kenya GP has opened a new office in Nairobi, Kenya in a strategic move to begin making impact investments in Africa. We anticipate making our first investments in East Africa in the first half of 2016. GP also has an office in Managua, Nicaragua and will continue making investments in partners in Latin America and the Caribbean. More info to come in early 2016. GP Invests in Two New Partners In the third quarter of 2015, GP invested in two new partners: CEPESIU and FADEMYPE. CEPESIU is a nonprofit that provides credit and training to marginalized communities in Ecuador. FADEMYPE is a nonprofit that provides credit, and agricultural and commercial business training in El Salvador. GP currently has 50 partners in 11 countries. (Reports, articles and highlights on impact investing. Accompanying links for The Round Up may be found online in the e-version of IMPACT at www.globalpartnerships.org/ newsletter)
F ROM T H E F I E LD
Aguas Marias, Nicaragua: Sixta, a GP portfolio 3 director, hiked through muddy hills with an FDL credit officer (left) to ask Leonardo, a coffee farmer, about his next harvest.
Philanthropy is critical to our work. It funds much of the research, learning and innovation in the field. Here is a glimpse at what our team has been up to over the past few months.
Vicente Guerrero, Mexico: GP assesses new partners for social and financial performance. Due diligence visits, like this one pictured, are critical to the process. Gerardo, portfolio director, and KJ, impact evaluation officer, meet with the potential partners’ clients to see how the organization is serving them.
Santiago, Chile: GP staff (Nathalia, Vanesa and Mark, among others) held 100 meetings with current and potential partners at FOROMIC, the largest conference for the microfinance sector. It’s an opportunity to get updates from partners like Reficom, represented by their GM Cesar Tocón (far right).
Chinandega,3Nicaragua: Aaron (left), VP of GP’s Nairobi office, conducts due diligence with a fair trade exporter.
La Paz, Bolivia: GP and our HSI partners shared insights on a conference panel. GP associate Agnes is pictured with ESPOIR, Friendship Bridge and Pro Mujer reps.
How Well Do You Know Global Partnerships? We turned some of our most frequently asked questions into a true-or-false quiz. Test your knowledge about Global Partnerships. 1. Global Partnerships’ (GP’s) mission is to expand opportunity for people living in poverty. T / F 2. GP is a microfinance organization that provides loans directly to people living in poverty. T / F 3. When we say we work with “partners,” we are referring to the social enterprises in which we invest. And by “invest,” we mean providing loans and sharing knowledge about best practices. T / F 4. GP is funded by two types of capital: philanthropy (funds research) and investment capital (to provide loans to partners). T / F
5. We invest in partners using our Social Investment Funds (SIFs), which are primarily funded by development banks, institutions, and high-networth individuals. We use the revenue earned from our SIFs to form new funds, ensuring that we maximize social impact. T / F
Answer Key 1. True 2. False; GP is a nonprofit impact investor. We make investments with the intention of generating social impact alongside a financial return. We do not directly provide loans to people living in poverty. We provide working capital in the form of loans to social enterprises that provide people living in poverty with access
6. We invest in social enterprises, which is a synonym for microfinance institutions. T / F
to financial services (loans & savings accounts), health care, education/training, markets and solar technology. 3. True
7. We invest in partners that are aligned with one or more of our four impact areas: health, rural livelihoods (agriculture), microentrepreneurship (loans & education) and green technology. T / F
4. True 5. True 6. False; A social enterprise is a business or organization that uses market-based approaches to address social and/or environmental problems. GP invests in different kinds of social enterprises, including microfinance institutions,
8. We have two offices—our headquarters in Seattle and a field office in Managua, Nicaragua. T / F
cooperatives and social businesses. 7. True 8. False; we have 3 offices. Our newest office was opened in Nairobi, Kenya in 2015. We anticipate making our first investments in Africa in the first half of 2016.
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IN THIS ISSUE GP’s first-ever health case study Meet Maria, a client of our partner Pro Mujer in Nicaragua See what our team has been up to in “From the Field”
TRAVEL WITH GP Ecuador in 2016 June 25 - July 3 GO GREEN Sign up for e-newsletters at www.globalpartnerships.org/signup
What is it like to live without electricity? Nearly 700 guests at GP’s 13th annual luncheon, experienced just that during an immersive solar light demonstration. There were also inspiring talks from GP CEO Rick Beckett and Desh Mallik, VP at Greenlight Planet, a GP partner. Relive the program: www.globalpartnerships.org/luncheon.