_How one Wealth Report contributor is working to empower female entrepreneurs and alleviate poverty

In the 2017 edition of The Wealth Report I interviewed Percy Barnevik, a Swedish businessman and philanthropist. We talked about his charity Hand in Hand International, which operates in Eastern and Southern Africa, and India and Afghanistan. Hand in Hand focuses on lifting people out of poverty by helping them to set up small businesses and create employment opportunities.

It’s not unusual for wealthy people to have their own philanthropic projects, but speaking to Mr Barnevik I was struck by two things. First, the sheer number of lives he has touched – with the charity’s help almost 1.6m businesses have been created in India alone. And, second, his no-nonsense approach to philanthropy.

Tight control

Hand in Hand is run on similar lines to the global businesses - Astra Zeneca and ABB, to name but two - that Mr Barnevik led during his career. Overheads are kept under tight control (over 90% of donations go directly to programmes), transparency is key and there is zero tolerance of corruption of any kind.

Given the increasingly cynical view that many people have about overseas aid, this approach seemed like a sensible template that other donors and NGOs should be following. But having worked in Africa and seen the extent to which “graft” governs daily life, I was interested to see how things actually worked on the ground.

Luckily, I had the opportunity to do just that while I was in Kenya last year helping to launch the 2017 edition of The Wealth Report. With a day spare between presentations, I asked Hand in Hand’s local team if it would be possible to visit some of their projects near Nairobi.

So early one morning – it pays to start early in Nairobi these days as the rush hour traffic is grindingly slow; taxi drivers will even arrive in the middle of the night and sleep outside your house to ensure they can pick you up on time – I find myself in a suitably modest SUV heading north out of the capital to Kiambu County with Hand in Hand’s head of PR and Marketing in Kenya.

^{Above: Wealth Report Editor Andrew Shirley with one of the women helped by Hand in Hand}

Dirt roads

Soon off the paved road, we drive along dusty red dirt roads heading deeper into the countryside. Tea gardens used to line the fertile rolling hills of the area, but a slide in profitability has seen their numbers decline. Trying to provide replacement sources of income is one of the reasons Hand in Hand has targeted this area.

Eventually we arrive at a small settlement where we’re ushered into a one-windowed workshop to meet the members of the Kahuruko Vision Women’s Group. It’s about now that I start to get a sense of why the Hand in Hand model is so effective. The room is packed with the 16 member of the group, all of whom who have turned up at short notice to proudly share their experiences and successes.

Self governance

A collective sense of responsibility and self-governance is the foundation of the six-stage, two-year Hand in Hand programme that every group follows. As the ladies tell me their stories in turn, it is clear that this is not “something-for-nothing” philanthropy. Participants have to show a serious level of commitment before they are provided with any kind of loans.

The training is all based around the group rather than the individual. To begin with it focuses on how people can work together by looking at leadership and group dynamics. “People have to show they can work together,” explains my Hand in Hand guide.

Once this they have done this, the group registers with the local Kenyan authorities as a legally recognised self-help group, which provides legitimacy and transparency to its objectives.

Those taking part have to show a serious level of commitment before they are provided with any kind of loans and, even then, the amount of money advanced is really only intended as seed capital to help unleash their own entrepreneurial talents.

Balance sheets

Almost without fail, it is not the loans that the group’s members highlight as being most useful, but the basic skills they have been taught, including how to do simple balance sheets. Looking at some of the businesses the women have set up, including agricultural enterprises, retail units and hairdressing salons, it’s clear the programme is working.

One year on and I’m back in Nairobi to help launch the 2018 edition of The Wealth Report, appropriately on 8 March – International Women’s day. In this year’s report as part of the Attitudes Survey we asked the respondents what philanthropic causes their clients were most likely to support. In Africa education and job creation were top of the list. 

If Hand in Hand’s example is anything to go by, such targeted philanthropy can make a real difference.

We hear from former Afghan politician Seema Ghani on why wealth creation models fall apart in failing states in the full Wealth Report. In addition, the publication features research into global wealth trends and flows, explores the world’s wealthiest regions, the best performing cities for Ultra-High-Net-Worth investors, and the fluctuations of the world’s luxury residential property markets.