Socially Responsible Investors
We want to engage ourselves only in enterprises, projects and transactions that are structured or based on long-term
and sustainable development and are beneficial for all involved stakeholders (companies, managers, employees, investors,
Therefore, we like to work together with:
- Ethic oriented institutional investors,
- Impact investors,
- Non governmentalorganizations,
- Charity organizations,
- Churches and missions,
that are donating money to social projects in Africa on a regular basis, as well as with
- Companies with regard to their social and environmental responsibility
Social projects can be divided into three categories:
- Non-commercial projects (income 〈 expenses; often no income at all) exist as long as the cash flow persists. When the capital flow stops the project has to be cancelled. This is true for most classical aid projects. In certain areas (e. g. construction and operations of hospitals, schools, orphanages) and special situations (earthquake, flood, drought, tsunami, epidemic) aid is indispensable. However, aid is not suitable for poverty reduction because of corruption and lack of sustainability.
- Economically viable projects (income = expenses) do not depend on further capital inflows. Such projects are sustainable. They have long lasting positive effects, but only within a narrow sphere of influence (a single village, a small area of arable land, a limited number of entrepreneurs).
- Only profitable projects (income 〉 expenses) can grow and flourish. Projects of this category have clear impacts on social and environmental aspects.
Trans Africa Invest is focusing on projects of the third category.