Root Capital
# Root Capital

Root Capital is a nonprofit organization operating in poor rural areas of Africa, Latin America, and Southeast Asia. According to its website, Root Capital "seeks to maximize the positive social and environmental impact of [its] work through a three-pronged strategy: finance, advise, and catalyze."

## Operations

Root Capital claims to follow a three-step approach towards making a positive impact in the poor rural areas of Africa and Latin America where it operates. The three steps are:

* Finance: This involves making loans to rural small and growing businesses, including both short-term and long-term loans.
* Advise: This involves delivering financial training to current and prospective clients.
* Catalyze: This involves innovating on their own methodology to increase their own impact.

According to its impact page, Root Capital has disbursed US$1.5 billion between 1999 and 2020 and reached 9.9 million household members in rural communities.

Root Capital is one of several money managers to pursue a gender lens investing strategy. In 2012, Root Capital launched their Women in Agriculture Initiative (WAI) to address the unique challenges faced by women in rural areas. The WAI uses capacity-building training and gender-lens investing to unlock growth at women-led and gender-inclusive businesses. These businesses, which represent 48% of Root Capital's portfolio, must have at least 30% women farmers and employees (or at least 20% if they are also women-led).

## Funding

Root Capital seeks funding from both individual donors and foundations. Foundations that have funded Root capital include Mulago Foundation, Jasmine Social Investments, and Peery Foundation.

## External reviews

Charity Navigator had given Root Capital a four-star rating (its highest possible) continuously beginning in 2005, but downgraded their rating to three stars on December 1, 2019.

Charity evaluator GiveWell had a conversation with the CEO of Root Capital in September 2011, and planned to publish a detailed review of Root Capital in 2013, however GiveWell's review of Root Capital was still not complete as of November 2019.

