Acumen Blog


Letter from Jacqueline Novogratz – May 2014

Springtime. A day trip to speak in Washington, D.C. coincided with the peak of the city’s prized cherry blossoms, a gift from Japan to the United States in 1912. I walked at dawn, mesmerized by those venerable trees, their gnarled trunks and knotted branches adorned with fragile blushing flowers, promises of a renewal at once beautiful and fleeting. Life is so short: if not of purpose, then of what?

Purpose. I think of two of our latest investments and the entrepreneurs who drive them. David Ellis arrived in Ethiopia from the U.S. four years ago and was offered to take over a failed government chicken farm in the north of the country, near the border of Eritrea, an economically depressed area due to many years of war. It is not the easiest place to live but he and his business partner Joseph Shields are determined to build an industry that will change at least a corner of the world.

David Ellis and Joseph Shields started Mekelle Farms

David Ellis and Joseph Shields started Mekelle Farms

Having the courage to start, experiment, sometimes fail and start again for four years, Mekelle Farms is now on track to sell more than 2 million day-old chicks to “growers” who typically buy them in batches of 1,000. The growers care for the chicks for 35-40 days before selling them to small-holder farmers who raise them to lay eggs for home consumption and sale at local markets. At scale, Mekelle has the potential not only to re-establish a broken poultry and egg industry but provide income and livelihoods to tens of thousands.

Shamrawit, 24-years old, a college graduate with a degree in journalism, is one of Mekelle Farms’ growers. Articulate and thoughtful, Shamrawit describes how she cares for her chickens in their vulnerable first month. On the floor is a folded mat: her bed to ensure she’s there for nighttime emergencies. I ask about her dreams.  Her eyes well up. “One day, I hope to raise 10,000 chicks at a time.” I cannot tell whether her tears come from a sense of hopeful pride or a dream deferred. Still, she is now making her way in the world. Her sense of purpose inspires.

Shamrawit owns her own chicken farm through Mekelle

Shamrawit is a chicken grower with Mekelle Farms

I cannot help but think of Shamrawit’s story as well in terms of the world’s challenges around the future of work. This is especially urgent on a continent like Africa where in several countries, 50% of the population is less than 25 years old.

In Nairobi, I meet Dr. Ernest Mureithi, founder of Miliki Afya, an affordable healthcare model bringing care to low-income communities in Kenya. A trained doctor and survivor of the 1998 U.S. Embassy bombings, Ernest’s purpose is to build a sustainable health company offering affordable healthcare to all. Rather than start with the goal of maximizing profits, Miliki Afya considers the price point their patients can afford, based on what a typical patient pays all-in (medicines included) at government hospitals. The company then re-engineers its cost structures to offer efficient, quality care.

Christine Kapkusum from Acumen along with Ernest Mureithi

Christine Kapkusum from Acumen along with Ernest Mureithi

The Kawangware clinic, newly opening just behind a bustling street market filled with crowded matatus, sturdy women roasting corn, vegetable sellers and second-hand clothes hawkers, is well-organized, clean and ready to serve. The operation reflects a culture of efficiency and focus on the patient as customer, with services that include diagnostics, x-rays, primary care and dental treatment. The doctors share their sense of pride in the company, shining as they speak. The dignity we seek is not simply for the poor.

In our enthusiasm, we issued a press release announcing that this new investment would specifically serve low-income communities. In response, Miliki’s new customers felt insulted. Their feedback was clear: they are seeking quality services that happen also to be affordable. They do not want the care poor people usually receive. This is a critical nuance.

Pioneering the creation of markets to reach low-income communities is neither easy nor quick. Both companies have tough rows to hoe as they modify their business models, understand their customers, and help build ecosystems needed to thrive. Mekelle Farms has had to import its breeders from Europe, train an entire work force, and build a new system of growers. Miliki Afya must build trust in areas where both government and private clinics have failed local communities time and again. Success will take time, requiring technical support as well as patient capital.

As an early stage impact investor, we increasingly understand the need for nuance in building a vibrant, effective investment ecosystem. Time is required – often 10 years or more – to build those ecosystems. We also see afresh how different pools of capital are required to enable different stages of organizational growth.

The challenge for impact investing as a sector is to integrate this nuance into how we structure funds, build needed ecosystems and measure impact as well as financial sustainability. What worries me is too often impact investors see this work only through traditional private equity lenses, rather than putting impact front and center. I was recently asked whether, when the chips were down, we would make decisions for the poor or on behalf of our financial investors.

This is the wrong question.

It is possible to stand with the poor and invest in solutions that in the long-term, not only become profitable but will provide a fair return to investors. This will take a mix of capital, ranging from grants to patient, pioneering investments to growth-oriented impact investments. If the world is serious about ending poverty – and it must be in our increasingly unequal world – then we must be willing to combine significant amounts of philanthropy and technical support with long-term investments to build sustainable solutions.

Happily, this understanding is growing. We see this at Acumen through our work in providing technical assistance with corporate partners like Dow, Unilever, Barclays and Bain.  We see it in the government partnerships like a loan guarantee facility supported by USAID. We consistently see it through the Acumen Fellows, now numbering almost 200 around the world.  And we see it through more than 47,000 unique participants in the +Acumen courses.

Part of putting impact first also means getting serious about understanding who we are serving. Just last month, in partnership with Grameen India, we completed a study at Ziqitza Health Care Limited (ZHL), our ambulance company in India. The study used the Progress out of Poverty Index developed by Grameen Foundation to see who ZHL is serving, and it showed that more than 75% of their customers are living below $2.50 a day. ZHL is succeeding in building a scaled, profitable company that truly is reaching the poor, and we seek more such data as we invest for change.

zhl ambulance.jpg

ZHL is an affordable emergency medical services provider

Finally, we cannot invest enough in leadership for the long-term. Benje Williams, a Global Fellow, class of 2011 returned to Lahore, Pakistan this year to start a vocational training company Amal Academy. Abbas Akhtar, Global Fellow, Class of 2013, has remained in Pakistan to create an alternative to YouTube in the country, Together, these two leaders are committed to raising funds and creating 100 videos of Pakistani leaders for Amal’s courses, starting with interviews of Acumen advisors, team members, entrepreneurs and fellows.  On many Saturdays, Benje and Abbas meet with a number of others from different Fellows classes, sharing ideas, collaborating on possibilities.

In 15 years, Acumen Fellows, whether in South Asia, Africa or across the world, will be not only learning but leading at the edge of innovation, bound to one another across lines of nationality, race, ethnicity, class and religion. They will learn from our companies teaching one another and the world what is possible. With 200 Fellows today, this vision is just getting started.

Everywhere I sense a shift in the seasons, a yearning for greater purpose, for moving with empathy as well as pragmatism, a growing understanding that we are all in this together. This, more than the fleeting cherry blossoms, is a harbinger of renewal.


Dispatch from Pakistan: Hope in Place of Fear

There is fear in the streets of Pakistan. I sit in traffic, just a few hundred feet from my hotel where my next meeting is scheduled. I could arrive at my destination in five minutes if I walked, but it is not advised to walk. On the right side of my car, four men pointing automatic weapons stand in the back of a police van. Just in front is a black SUV with four commandos in the back, each with AK-47s, I think, though I’m no expert in guns. Let’s just say they are very big and look very menacing. A few cars to the left is another gun-filled vehicle pushing other cars out of its way, presumably to join the caravan of the armed. Sirens are wailing. [Read More]


Acumen announces its new investment in First Access, a data analytics company improving access to formal financial services for low-income East African communities. In East Africa, only 22 percent of the population has access to formal financial services with the region’s poor having even less at 10 percent. First Access presents an opportunity to increase the ability of these low-income communities to save, manage risk responsibility, invest in such critical services as education, and ultimately rise out of poverty. [Read More]


Acumen is proud to announce the selection of our third cohort of Pakistan Fellows. After a competitive application process, we’ve chosen a diverse group of 20 leaders working in provinces across the country. This year’s Fellows are fighting poverty and changing lives across Pakistan through unique initiatives that range from advocating for vulnerable prisoners’ rights, to creating solutions to address low-quality education, to developing branchless banking channels for low-income customers, and more. Read more about each Fellow and their inspiring work below. [Read More]

Lean Data Goes Deeper

One of the most interesting questions we’re grappling with right now on the Impact team at Acumen is how to develop a more robust, rigorous, and transparent form of quantifying the social value our companies create. While I don’t believe we will ever fully understand all the social value created – and while there will always be room for debate and interpretation – I do think today we have the tools to get a lot closer to customers and hear how they value products. [Read More]


Acumen is proud to announce the selection of our second cohort of India Fellows. After a competitive application process, we’ve chosen a diverse group of 20 leaders working in 13 states. This year’s Fellows are fighting poverty and changing lives across India through unique initiatives that range from providing affordable menstrual hygiene products to marginalized women, to making quality education available to children in conflict zones, to designing innovative sanitation solutions for the urban poor, and more. Read more about each Fellow and their inspiring work below. [Read More]


Fast Company today announced its 2015 ranking of the World’s Most Innovative Companies in Not-For-Profit, honoring leading organizations and rising newcomers that exemplify the best in social and philanthropic innovation. Acumen earned the No. 7 spot on the annual list in recognition for its Lean Data Initiative—a project launched in 2014 to find more efficient, cost-effective ways to measure and evaluate social impact. [Read More]


Acumen is proud to announce the selection of our fourth cohort of East Africa Fellows. After a competitive application process, we’ve chosen a diverse group of 21 leaders from five different countries in the region: Kenya, Uganda, Tanzania, Rwanda and, for the first time, Ethiopia. This year’s Fellows are fighting poverty and changing lives across East Africa through unique initiatives that range from providing much-needed ambulance services to helping make hygienic sanitation more accessible and affordable to empowering young women to start viable agro-enterprises and more. Read more about each Fellow and their inspiring work below. [Read More]

We Are Each Other’s Destiny

To reflect on the life of Dr. Martin Luther King, Jr. is to consider deeply our human interconnectedness and the world we want to build. Each year on this day, I re-read his extraordinary, elegiac “Letter from Birmingham Jail” to remember his commitment to human equality and the price he paid. I read it to remind myself of the power of idealism grounded in pragmatism. I read it to renew my belief in our individual and collective abilities to help bend the moral arc ever more toward justice. [Read More]