News — black investments

Siebert Williams Shank & Co.‘s(SWS) Clear Vision Impact Fund announced Thursday it will begin making small loans to small businesses that are either minority-owned and operated or serve underperforming communities that experienced a lack of support.

The Clear Vision impact Fund was started last year by the financial services firm and received capital commitments from Microsoft, Apple, Comcast, eBay, and Constellation Brands. Each brand has made a significant financial commitment to advance racial equity and economic opportunities.

The funds will go toward small businesses that employ, train, and serve minority and underserved communities and the people that live and work in those communities. The effort will not only help businesses in these communities thrive by partnering them with their community. It will also help by growing those businesses from the closest proximity to them outwards into other areas.

Mike Cavanagh, the chief financial officer for Comcast, said in a statement that the Clear Vision Impact Fund provided an opportunity that was too good to pass up.

“Suzanne Shank, Chris Williams, and team have created an incredible platform to provide minority-owned
businesses operating in underserved markets with immediate and much-needed capital at a
critical time,” Cavanagh said in a release. “We hope that our $25 million investment in the Clear Vision Impact Fund and ongoing great partnership with Siebert Williams Shank & Co. will have a meaningful impact on diverse communities nationwide, as our company continues to accelerate its efforts to address systemic
inequality and create a more equitable society.”

Small business owners that qualify can apply for a grant at contact@clearvisionimpact.com.

Apple Vice President and Corporate Treasurer Gary Wipfler said the Clear Vision Impact Fund will provide multiple windows of opportunity for those who have great ideas but do not have the capital to see them through.

“Providing capital to minority-owned businesses is critical to ensuring economic growth and job
opportunities for the future across communities nationwide,” Wipfler said. “Apple is proud to be part of the Clear Vision Impact Fund and support their work to address inequality by expanding access to economic
opportunity.”

While it seemed everyone rushed to stock up on toilet paper at the start of the pandemic, a group of Black men saw it as an opportunity to launch a startup that brings a new toilet tissue line to the market.

Five Black men from Ohio, who call themselves “mogul minds,” created a toilet paper brand called “Leafy.” With the company motto, “Go Green, Stay Clean,” Leafy is an eco-friendly brand that focuses on the betterment of the environment through the benefits of bamboo.

According to the company website, the founders say, “We look to educate and elevate consumers to be more socially conscious through the use of biodegradable paper products. We partner with organizations centered on environmental solutions and organizations that elevate underserved communities to build sustainability.”

In addition to being good for the environment, the brand is intended to benefit local communities.

“We wanted to bring in a product that would have a direct impact on the community, co-founder D’Andre Martin told WBNS. “Proceeds from our toilet paper company are going back to minority communities,” added co-founder Charles Peaks.

While the group launched the business only a few months ago, Leafy is already thriving. The brand can be found in local grocery stores in Ohio, the Hyatt, and on the company’s website.

“We feel amazing about it,” Marvin Green, another of the founders, told WSYX. “It’s exciting, we look forward to watching it grow.”

Leafy now joins a short nationwide list of Black-owned paper product brands and is the first in the state of Ohio. In fact, the state of Ohio is reporting that 2020 was a record year for new businesses in the state, with around 160,000 new businesses that launched.

While the founders say they enjoy the success so far, it’s about more than making money.

“We’re not even thinking about money right. It’s about growing our communities, being able to help, educate people, and get them more aware of what they’re using,” the group told WSYX.

Ulta Beauty wants to invest in Black-owned beauty brands. The beauty retailer announced that it will invest $25 million into driving more access to the industry for BIPOC brands as well as provide more Black-owned brands on the store shelves.

The company has also appointed Tracee Ellis Ross to serve as its new Diversity and Inclusion Advisor. In her new role, the actress and hair entrepreneur will “provide counsel and insight, and drive accountability to Ulta Beauty–with a specific focus on BIPOC brand development, diverse leadership development, and supplier diversity.”

“I look forward to formalizing an already existing dialogue and partnership around diversity and inclusion with Mary Dillon and the Ulta Beauty team,” the black-ish star said in a press statement. “This work requires commitment and accountability from Ulta Beauty to ensure measurable goals are achieved. I am hopeful and optimistic our work together will create foundational change.”

Ulta also announced that it will feature more inclusive branding in its marketing campaigns with dedicated beauty initiatives geared toward different marginalized communities.

“As the country’s beauty retail leader, we believe we have the power to shape how the world sees beauty and as such, we have a responsibility to inspire positive change and drive greater diversity, inclusivity, and equity. We are deeply committed to leading purposefully with and for underrepresented voices across retail and beauty on our D&I journey,” said Mary Dillon, CEO, Ulta Beauty in the statement.

“Authenticity as an inclusive brand with welcoming experiences for all and an approachable assortment are tenets of how we champion diversity at Ulta Beauty,” continued Dillon. “We have mapped these commitments to impact every facet of our work. We look forward to sharing more as we continue on this journey with steadfast commitment from our teams and our newly established advisory Tracee Ellis Ross, who brings passion, experience, and perspective to this important work.”

The Atlanta Hawks and the Ressler Gertz Family Foundation, the philanthropic arm of Hawks Principal Owners Tony Ressler and Jami Gertz, are committing $40 million into Black-owned businesses to create sustainable wealth and economic opportunity in the Black community.

The investment plan includes a long-term, comprehensive plan to provide financial, marketing and educational resources to Black-owned businesses and entrepreneurs throughout the city of Atlanta.

The Ressler Gertz Family Foundation has committed to giving $5 million to the Herman J. Russell Center for Innovation and Entrepreneurship (RCIE), the largest non-profit centre for Black entrepreneurs in the nation, to expand its reach and provide financial support to local Black-owned businesses through increased access, opportunity and exposure as well as expanding future RCIE programming.

According to the foundation, the gift will also increase RCIE’s ability to provide Black entrepreneurs access to corporate partners and capital as well as utilization of all Hawks marketing channels. 

The Hawks, on the other hand, announced a plan to expand their diversity and inclusion program with a $25 million commitment over the next decade. The NBA Players Association and the Hawks Foundation have also pledged to commit $10 million to provide economic opportunities within Atlanta’s Black community.

“Systemic barriers have prevented the Black community from pursuing the educational, employment, and business opportunities necessary to fully contribute to and benefit from our growing local economy,” said Ressler in a written statement.

“Jami and I take our responsibility as owners of a professional sport franchise in the great city of Atlanta very seriously—and with that responsibility is a commitment to devote resources to organizations that are making tangible, impactful change. In my career, I have built and supported many businesses, and I believe that the access to mentors and capital, opportunity to market products and services, and exposure to customers that RCIE provides is invaluable to the growth of the Black business community in Atlanta. We look forward to adding our resources, connections, and platform to this brilliant organization and its mission,” he added.

“Forging pathways to equitable opportunities that help create and accelerate Black-owned businesses across our nation matters more than ever before. That’s why the partnership between the Ressler Gertz Family Foundation and Russell Center for Innovation and Entrepreneurship is momentous,” said H. Jerome Russell, president of H. J. Russell & Co. and chairman of RCIE.

This is not the first time the Ressler-Gertz Family Foundation has donated to support Black businesses. The foundation recently teamed up with Atlanta Hawks center Dewayne Dedmon to invest $65,000 in small Black-owned businesses that have been impacted by the coronavirus pandemic.

South Sudanese oil marketing giant Trinity Energy Ltd is set to inject $10 million worth of new investments in its Kenyan operations and also plans to build a $500 million crude oil refinery in South Sudan to serve the region with refined petroleum products.

The firm, which controls close to 40 per cent of the South Sudanese oil market, is planning a 40,000 barrels per day (bpd) modular refinery at Paloch in the oil-rich Upper Nile State, with the potential of expanding capacity to 200,000bpd, as well as petroleum storage facilities at Nesitu, in the south of the country.

South Sudan has the third-largest oil reserves on the continent after Libya and Nigeria, estimated at 3.5 billion barrels, with much of it yet to explored.

The refinery, to be built by American firm Chemex, is expected to be operational in two to three years, with plans to start distribution of refined petroleum products to Kenya, Uganda, Tanzania and the Democratic Republic of Congo by road, owing to the absence of railway and pipeline connectivity between these countries.

The EastAfrican has learnt that the feasibility study and the designs for the proposed refinery have already been concluded with Afreximbank together with big regional banks operating in Juba expected to provide financing.

"We are already making steady progress towards our refinery project. We have already identified and secured land for the refinery in Paloch. We have engaged Chemex of the United States as the project manager for this project. Separately we are close to tying up project preparatory work financing from Afreximbank and this will aid in the engineering and design work for the facility," the firm's chief executive Robert Mdeza told The EastAfrican in an interview.

"Various discussions are ongoing with financiers for the various facets of our business. We have opted for segmented approach so that we can kick off with the low-hanging opportunities such as our working capital requirements as we work our way towards financing for the larger projects like the refinery," he added.

Competition

Trinity's refinery will upstage Uganda, where the commencement of the construction of the $4 billion refinery at Kabaale in Hoima district has been pushed to 2025 following the delay in the conclusion of the Final Investment Decision on the basin-wide upstream oil development project.

Initially, the FID was expected to be reached in September and the projected completed in three years.

The Kabaale refinery is expected to process an estimated 60,000 barrels of oil per day with an initial output of 30,000 barrels per day at the time of the commissioning of the project.

Uganda, Kenya, Tanzania, Rwanda and Burundi had been allocated a combined 40 per cent shareholding in the refinery, translating into an eight per cent stake for each, with 60 per cent of the shares reserved for private investors. However, only Tanzania took up its full share of eight per cent while Kenya took up 2.5 per cent.

Rwanda and Burundi had not expressed interest in the facility by the expiry of the extended period set aside to do so in 2016. As a result, Uganda was compelled to take up an additional 11.5 per cent shareholding in the Hoima-based refinery, bringing its total shareholding to 19.5 per cent, with French oil giant Total SA taking up a 10 per cent stake.

Trinity Energy is not new to the region, and was incorporated in 2013 with majority ownership by Trinity Holdings which is 90 per cent owned by a local South Sudanese businessman Akol Emmanuel Ayii.

Currently, the firm supplies substantial volumes of refined products to South Sudan, effectively stabilising domestic supply and demand for refined oil products.

"We are now embarking on our next phase of growth with major projects lined up in South Sudan including a 40,000bpd refinery as well as growing our footprint outside of South Sudan. This will be instrumental in our plans to enhance energy stability particularly for South Sudan and our landlocked neighbours," said Mr Mdeza.

The country is seeking to increase crude oil production to pre-conflict levels of 350,000bpd, which is expected to significantly contribute to economic growth and sustainability.

Last year, Africa accounted for more than 7.9 million bpd in oil production, an output level that has significantly dropped from nearly 10 million bpd in the period between 2005 and 2010 largely due to lower global oil prices.

The construction of the refinery in Paloch is expected to strengthen the firm's bid of expanding its operations across the East and Central African region through a combination of acquisitions and greenfield investments as part of its five-year (2020-2024) growth and expansion plan.

Amid a pandemic, a civil rights reckoning, and the heat of the Los Angeles summer, three young brothers are helping to cool the place down with a hip-hop-inspired healthy frozen pop business that donates a portion of its proceeds to charity.  

The brothers, 10-year-old Shiloh, 12-year-old Judah, and 14-year-old Nas Accius, started Jiggy Popp with the idea of introducing a healthy treat to their community. Through their all-natural-ingredient products, the boys aim to provide an accessible gateway to a vegan lifestyle while also giving back. Shiloh, Judah and Nas plan to donate a portion of their proceeds.

The boys’ musical backgrounds influenced their decision to donate their money to inner-city arts programs. The Fernando Pullum Arts Center in Leimert Park, where the boys often vend, is one of the chief recipients of nearly $6000 the boys have contributed so far.  

“It’s not only about just having access to art programs, it’s beyond that. It’s more about having a creative mindset and creative solutions,” Judah explained. “But for that to happen, people need to be creative. That’s where the idea popped in: Why not give back to arts programs. They help children, so why not help them help children.”  

Crediting music with enabling them to start their business in the first place, these lifelong musicians have infused their products with some hip-hop culture.

“Before, I was a street performer. I was bussing on the streets, I was playing my guitar,” explained eldest brother Nas. The money he earned there, matched by a gift from the trio’s dad, made up the $700 start-up cost for Jiggy Popp. Everything else, including the names of the pops, was the result of collaboration.  

“The flavors for our pops are Black culture-related,” Judah explained.  “We have things like Mango Unchained – Django Unchained – like the movie. We have Strawberry Better 23, like Strawberry Letter 23, which is a Prince Song,” he pointed out. Other flavors like Georgia Peach on my Mind, Blackberry Gordy and Tropic Like its Hot are also a nod to Black culture.  

One expert says that what these young men are doing is not only important for development but vital for the Black community. Will Campbell, professor of Entrepreneurship at Southern University and VP of Commercial Services and Mortgage Retail at Essential Federal Credit Union, pointed out the alarming wealth gap between black and white families. “Entrepreneurship is the only way we’re going to make up the wealth gap.” He added, “Creating those entrepreneurs with very innovative, creative, and bright minds. Training that mindset at an early age will help them develop that financial responsibility. It teaches stewardship early.”

The boys understand and accept their collective responsibility. “When people buy our pops it’s not just about more money,” Judah said.  “Most people we encounter are like ‘look at my young black kings out here hustling’. I feel like I’m inspiring people.” 

Each boy has hopes for the future of their business and their community. Shiloh hopes the business will grow and people will share it with their friends. Nas can’t help but think about a potential reality — that they may never have to work a 9 to 5.  “Once this is fully sustainable, this could be our life,” he said. “If I had to say what we wanted to do when we grow up, it’s this business.” 

Meanwhile, Judah hopes to continue to inspire people. “Every other kid could do this as well,” he pointed out. “I want to inspire people to be able to do what we do: Have their own company and thrive the way that we have. Moving forward I want to keep inspiring people.” 

A startup in East Africa has created a digital service that appeals to thousands of small shopkeepers across the region while finding innovative ways to lend to the traditionally risky sector. Tom Collins reports. 

While most of Africa’s well-known ventures into e-commerce have been designed to appeal to the continent’s burgeoning middle class, Sokowatch is aiming to bring goods and services to the millions of informal shop owners across the East African region. 

Much of the population live on less than two dollars per day, meaning that many are unable to benefit from the ever-expanding range of online delivery and shopping platforms that market higher-end goods and charge fees.

Raising $14m in Series A funding in February, the fast-growing tech company delivers essential goods like oil, rice, and soap to over 16,000 informal shops across Kenya, Tanzania, Uganda, and Rwanda. 

Making the bulk of its money on the margins between the wholesale purchase of items and the sale of those goods to each individual business, the delivery service is free and functions through an app or SMS. 

Running a fleet of over 200 delivery tuktuks, the service also reduces costs for small business owners who typically spend money when sourcing goods. 

“Shopkeepers no longer have to physically go themselves to wholesale markets, paying for transport to go there and back,” says Daniel Yu, Global CEO. 

“In addition to being costly, wholesale shopping in crowded markets is not safe with the ongoing Covid-19 pandemic.” 

Throughout the health crisis, most of the region’s lower-income families continue to rely on local shops to buy basic necessities – something those with higher wages can prevent through the use of home delivery services. 

Offering an e-commerce service to this segment of local shops, Sokowatch – along with many other online services – has seen “a significant uptake in new customers” over the Covid-19 period, according to Yu. 

Finding another use for its platform during the pandemic, the startup has partnered with KCB Bank and several foundations to distribute digital food vouchers worth between $7 and $15 via SMS to thousands of families in need of assistance. 

The vouchers can be redeemed at Sokowatch-affiliated outlets, helping support local stores while reducing food insecurity for over 10,000 people.  

Building on another aspect of its business, the East African firm has continued extending credit lines to its small business customers where most other lenders in the marketplace have dramatically reduced lending as a result of Covid-19. 

Having lent more than $1m over the last year, Sokowatch’s CEO believes their unique model allows them to capably de-risk lending without resorting to charging interest rates or requiring collateral. 

Shopkeepers have the option to pay when goods are delivered or up to a week later for a small fee. 

“We realized that embedding these financial services on top of the existing e-commerce relationship we have with our customers is actually something fundamentally different from a digital lending type of model,” says Yu. 

“We are a significant counterexample to what is going on with lending in the market. By continuing to supply stores with essential goods we provide a solid foundation for providing credit services.” 

Around 15% of Sokowatch’s order book is supported by credit, and although it began as a value-added service alongside its core business the startup is beginning to focus more of its attention on creating various financial products for its customers, Yu says. 

Most of the money raised at the beginning of the year will be used to increase the profitability of its core business and to invest in financial services. 

Though its presence in multiple countries allowed Sokowatch to offset the loss of revenue in some areas due to quickly changing lockdown regulations, Yu cautions against using the funds to expand into different markets during a pandemic. 

That said, securing a relatively large ticket size in only several years the next round of post-COVID funding will probably see the firm looking to scale across the wider region and to even greater potential beyond.  

In East Africa alone, the size of the essential goods market in the informal sector is around $180bn increasing to $600bn throughout the rest of Africa, Yu estimates. 

Generational wealth is a core component in the Black community’s fight to close the racial wealth gap.