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Asia - Asia Impact Fund
Background
Lenity has made a substantial investment in a major Asian Impact Investment Fund which invests in companies that enable poor people, living at the base of the economic pyramid on approximately USD60 per week, to achieve a basic standard of living which promotes their ability to engage in sustainable business opportunities.
The Project
In China, through the development and production of blueberry seedlings which are being supplied to farmers to replace rice and other less income-producing crops. Blueberries have surged in popularity and farmers are benefitting through growth of this industry as well as receiving training and technical support, resulting in enhanced opportunities for meaningful employment and reliable incomes.
In Vietnam, polymer-coated controlled release fertilizers that optimize crop nutrition and require fewer applications than conventional fertilizers are being produced. This is resulting in savings in time and labour, degradation of the environment and increased crop yields. As well, the establishment of a mobile e-commerce platform which connects buyers and sellers in rural areas to a wider market of consumers is creating commercial opportunities for small traders.
In Myanmar opportunities for finance to low-income borrowers where decades of isolation have resulted in underdevelopment of financial services and the consequent risks of irresponsible lending. This has been combined with a strong focus on client solvency and retention and financial education.
What Is Lenity Australia’s Involvement?
What type of investing is Lenity supporting?
The initial projects represent the first tranche of investing. Further projects are being considered.
The following data (approx.) illustrate the positive outcomes of impact investing for the most vulnerable and disadvantaged.
USD$18.7million from a total of USD$54million has been invested or has been committed to projects
5.81million people have been reached through Fund investments
1.13 million infants (out of a potential 4 million impoverished infants) in China, up to 2 years old, have had access to infant nutrition packs in over 300 poverty-stricken counties resulting in a decline in the incidence of childhood anaemia from 32.9% to 24.7% in those receiving the supplements. In addition, the incidence of general malnutrition has fallen from 30% to 10%.
2.7 million youth in Indonesia have gained access to quality education through an interactive digital educational content platform. With a population of 260 million over 18,000 islands covering an area of 3,000km, Indonesia lags in educational outcomes. This initiative has resulted in the delivery of quality education and resources previously challenged by the country’s geography. Life options, post school, have increased and are helping to reduce the demographic divide and inequality.
1.9 million have gained access to goods and services, fundamental to securing a livelihood that can meet basic needs.
Lenity is proud to be an investor in this initiative.