Green Mountain Coffee Roasters will work with Root Capital to strengthen the financial management of rural businesses and prepare them for infusions of capital and growth. Root Capital will build local talent and business capacity on both the capital demand and supply sides through:
- Enterprise-level workshops and consulting engagements: Financial Education and Training will improve the operations of farmer and artisan associations by developing the bookkeeping and financial management skills of grassroots business leaders, and preparing them to manage larger and more complex operations; and Pre-Investment Technical Assistance enables grassroots enterprises that would otherwise not qualify for a loan to prepare and present their financial information to potential social and commercial lenders.
Bank Advisory Services will encourage local financial institutions to enter rural markets. Root Capital will demonstrate compelling lending opportunities and transfer market knowledge and risk mitigation techniques for sourcing and monitoring these loans to grassroots enterprises.
Working to build long-term financial management capacity at grassroots enterprises, Root Capital will offer its financial education and training program in Latin America and Africa. After piloting their financial education training program in six countries in northern Latin America in 2007 and 2008, Root Capital will launch it in South America and Africa from 2009 through 2012.
Northern Latin America: From 2009 through 2012, Root Capital will build on the initial pilot program and provide training to 55 enterprises in northern Latin America, benefiting a total of 25,000 farmers and artisan cooperative members.
South America: Between 2009 and 2011, the program will be offered in Bolivia, Ecuador and Peru to 24 grassroots businesses that represent 12,000 farmers and artisans. In 2012, another group of 24 grassroots businesses representing roughly 12,000 members will be selected to participate in the program. Therefore, a total of 48 South American enterprises representing 24,000 farmers and artisans in Bolivia, Ecuador and Peru will participate in Root Capital's financial education and training program through 2012.
Africa: Beginning in late 2009, Root Capital will expand financial training to 24 grassroots businesses representing 24,000 farmers and artisans in three countries in Africa. This first phase of this expansion in Africa will last through 2011. In 2012, they will select a second group of 24 organizations, representing an additional 24,000 members. Root Capital will therefore provide training at 48 organizations representing 48,000 farmers and artisans in Kenya, Rwanda, and Tanzania between 2009 and 2012.
Green Mountain Coffee Roasters Suppliers: In addition to the general education and training program, Root Capital will provide specialized training to eight GMCR suppliers in a fee-for-service arrangement. This would include pre-investment advisory work as well as comprehensive training.
Consolidated performance metrics include:
- 43 grassroots enterprises to have functioning automated accounting systems.
- 43 grassroots enterprises to have prepared management and board of directors using basic quarterly financial statements for short- and long-term planning, management, and management evaluation.
- 24 grassroots enterprises to begin issuing, distributing, and discussing financial statements during their annual meetings and board meetings.
- 43 grassroots enterprises to begin systematically preparing plans for production and/or harvest, sales, and financing.
- 20 grassroots enterprises to implement internal sources of financing that have formal policies and procedures and management information systems that support business growth.
- 20 grassroots enterprises with financial service providers to better understand the financial viability of participating organizations.
- 7 grassroots enterprises to be offered financial services from other financial service providers.
Currently, the pilot program develops financial and managerial skills among members and leaders of 50 grassroots businesses in six countries in Central America and Mexico. Twelve of these enterprises are Green Mountain suppliers, representing over 10,000 members. The Root Capital-Green Mountain partnership is critical to the success of the program and ensures the curriculum is particularly relevant for the participants.
Expanding Green Mountain's financial education and business training program in northern Latin America, South America, and Africa will lead to the efficient management of grassroots enterprises. This supports the organizations' shared visions of alleviating poverty and hunger while improving the health of the local ecosystems. Green Mountain looks forward to furthering its partnership with Root Capital to build local talent that will permanently strengthen coffee communities in the developing world.