More About the Clinton Giustra Enterprise Partnership
The Clinton Giustra Enterprise Partnership (CGEP) was co-founded by President Clinton and Frank Giustra in 2007 and is supported by Fundación Carlos Slim in Latin America. CGEP built and currently manages agribusinesses in El Salvador, Colombia, and Haiti with plans to further replicate in Central America and the Caribbean.
There are an estimated 500 million smallholder households globally, accounting for 2.5 billion livelihoods. Smallholders provide more than 80% percent of the food consumed in most of the developing world and are critical to food security. However, they make up a significant portion of the world’s poor who live on less than $2 a day; moreover, they operate below global levels of productivity and most are not connected to formal markets.
CGEP’s agribusinesses are built to create strong market linkages and to bridge the gap between farmers, fishers, and local retailers, supermarkets, fast food chains, and other quality buyers. Our agribusinesses provide technical assistance to farmers and supply inputs such as seeds and fertilizer to increase agricultural production and quality to meet the standard of high value markets. The agribusinesses then purchase and aggregate the products and sell them directly to buyers, improving the incomes of farmers and fishers relative to what they previously earned. Robust operational platforms and strong market linkages allow us to create sustainable impact for farmers and farming communities.
How we build businesses
CGEP’s expert team of business builders includes private sector professionals with extensive experience in logistics, finance, consulting, accounting, and law, as well as international development. This team leads the business development process and works case-by-case with local experts – such as specialist agronomists and aquaculture technicians – who have specific in-country technical knowledge to support the business development phase.
Once established, CGEP identifies best-in-class local, entrepreneurial management teams to take on the day-to-day management of the agribusiness, with strategic support and guidance from CGEP.
From the outset, our team works directly with buyers (local and multinational companies) who are aligned on our social goals and who can guarantee offtake at prices that benefit poor communities. We build businesses that are market-driven based on a systematic process that reduces risks.
How we manage businesses
We employ the best local talent and our team of experts provide rigorous central guidance and support using systems that allow real-time intelligence on business activities to ensure performance and take actions to minimize risk. This goes beyond regular monitoring of financial and social performance to taking an active role using management dashboards that guide commercial decisions and driving social impact through central monitoring and evaluation (M&E). This keeps the businesses on their path to profitability. We leverage the scale of our portfolio to identify synergies and drive efficiency.
Being market-driven, we also lead business development and establish global partnerships. We identify potential investors to raise capital for the businesses and secure grant funders to increase social impact. In addition, we provide regular central support functions including legal, finance, and communications and marketing.
How we measure social impact
Across our agribusinesses, we have impacted more than 10,000 farmers and farm workers, generating more than $19m in farmer income as of 2017. Social impact is embedded into CGEP’s agribusinesses’ core operations through sustainable, direct sourcing from farmers as well as local jobs created at the management level, on technical assistance teams, and in the collection centers. Our goal is not only to improve farmers and fishers’ livelihoods and to lift them out of poverty but to train and empower them to become entrepreneurs who are sustainable in their own right.
The most important indicators we measure include incremental income of direct beneficiaries and aggregate incremental income of direct beneficiaries relative to capital invested (CGEP’s measurement of social return on investment). We also prepare tailored impact reports/evaluations based on donor requirements. The next phase of our social impact measurement will involve evaluating the catalytic effect that CGEP agribusinesses have contributed to economic development in the broader communities where we operate.