Improving Livelihoods, Removing Barriers: Investing for Impact in Mtanga Farms
This case study documents the decisions and activities of these four investors and Mtanga Farms’ management as they balanced diverse appetites for financial and social returns. Calvert Foundation and the Tony Elumelu Foundation, two members of the Global Impact Investing Network (GIIN) Investors’ Council, and their partners, Heirs Holdings and Lion’s Head Global Partners (LHGP), were attracted by the opportunity to invest in Mtanga Farms because it offered great potential to help smallholder farmers, or those who typically cultivate less than two hectares of land, improve their quality of life. The investors’ emphasis on the long-term social impact possibilities of this deal substantially influenced the structure of Mtanga Farms’ underlying business model, which is designed to ensure that the farm can remain commercially viable to create sustained impact after the investors exit. These impact goals are also reflected in both the investors’ and farm management’s commitment to developing a performance measurement framework that can help evaluate the social returns generated by the seed potato initiative.