Being one of the first professions in the world, and still making Maslow's 'hierarchy of needs' pyramid relevant in this day and age - Agriculture is the single driving force behind the sustenance of many a continent. With the need to eat still being the single primary determinant, the profession of agriculture is here to stay, and with a major chunk of the world's population, especially those at the bottom of the pyramid not being able to afford the basic equipment needed to farm Citi Group's entry into the social enterprise market can be seen as a milestone, an overture to more substantial investments.
With an initial $2M loan, Citi has not only disrupted the world of corporate social responsibility in a positive way, but also indirectly puts pressure on other large banking corporations to follow suit (by choice or otherwise). The challenge Citi Group will now face, is in ensuring that KickStart International - the not-for-profit organization that manufactures and sells irrigation pumps to small-time farmers across sub-Saharan Africa, utilizes this money appropriately in investing in high quality design and technology to further reduce the cost of irrigation equipment available to farmers. With the $2M available to them through Citi's loan, KickStart International should not only look to further economies of scale for their existing line of irrigation pumps, but also invest a major chunk of it in research and development to increase their product line. With wise investment policies in place and committed leaders to drive the organization, KickStart International can perhaps introduce other farming equipment that can potentially increase the yield of crop and instill distribution channels for farmers to get to their end customer more efficiently. If indeed the $2M loan is a sign of bigger things to come, then further capital can be used to educate farmers in how to improve their yield through better farming techniques and availability of higher quality equipment. A large number of farmers also tend to get duped by money-grabbing middle men, so they can be trained on handling such situations (or avoid them entirely).
The biggest challenge perhaps like in every other socio-economic initiative will be to ensure that money and power does not fall into the wrong hands. Citi Group should set up a supervisory board that monitors the progress KickStart International makes in its investments and set up timely milestones. With the precedence set by Citi Group in taking this risky yet necessary plunge into the social enterprise scene, hopefully more banking institutions follow suit and set up larger avenues for organizations like KickStart International to pursue engineering and technological innovations geared towards creating social impact without having to worry about running out of business. The question is, can Citi avoid falling into a money laundering trap and set the stage for a global change.
With an initial $2M loan, Citi has not only disrupted the world of corporate social responsibility in a positive way, but also indirectly puts pressure on other large banking corporations to follow suit (by choice or otherwise). The challenge Citi Group will now face, is in ensuring that KickStart International - the not-for-profit organization that manufactures and sells irrigation pumps to small-time farmers across sub-Saharan Africa, utilizes this money appropriately in investing in high quality design and technology to further reduce the cost of irrigation equipment available to farmers. With the $2M available to them through Citi's loan, KickStart International should not only look to further economies of scale for their existing line of irrigation pumps, but also invest a major chunk of it in research and development to increase their product line. With wise investment policies in place and committed leaders to drive the organization, KickStart International can perhaps introduce other farming equipment that can potentially increase the yield of crop and instill distribution channels for farmers to get to their end customer more efficiently. If indeed the $2M loan is a sign of bigger things to come, then further capital can be used to educate farmers in how to improve their yield through better farming techniques and availability of higher quality equipment. A large number of farmers also tend to get duped by money-grabbing middle men, so they can be trained on handling such situations (or avoid them entirely).
The biggest challenge perhaps like in every other socio-economic initiative will be to ensure that money and power does not fall into the wrong hands. Citi Group should set up a supervisory board that monitors the progress KickStart International makes in its investments and set up timely milestones. With the precedence set by Citi Group in taking this risky yet necessary plunge into the social enterprise scene, hopefully more banking institutions follow suit and set up larger avenues for organizations like KickStart International to pursue engineering and technological innovations geared towards creating social impact without having to worry about running out of business. The question is, can Citi avoid falling into a money laundering trap and set the stage for a global change.
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