|Approval Date||24 Jun 2013|
|Signature Date||24 Jun 2013|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||11232|
The AfDB is taking the lead in promoting Social Business in Africa. In December 2012, financed by a first grant from the Japanese Trust Fund, the AfDB has embarked on a pilot program to set up a Holistic Social Business Movement (HSBM) in Tunisia, Togo and Uganda.
The HSBM aims at creating a supportive environment within which Social Businesses can thrive. Its objective is to build a strong ecosystem of institutions, policies, networks, activities, resources and culture to promote and enable the creation and development of Social Businesses. A Social Business is a company created for social benefit rather than private profit. Like an NGO, it has a social or environmental mission, but like a business, it generates its own revenues to cover its costs. To ensure that the focus of a social business does not drift towards personal enrichment at the expense of its social mission, investors may recoup their initial investment, but all further profits are reinvested for growth and innovation, or to seed new Social Business ventures. In this way, Social Business introduces an additional business model where serving society is the sole objective of the company. Since social businesses have to compete in the free market to provide their goods or services, they are efficient and effective at meeting customer needs. The HSBM in Tunisia consists of two phases. The first phase, started in December 2012 will aim at awareness raising, capacity building via training of Bank staff and key stakeholders in Social Business, and the development of an ecosystem conducive to social businesses. The second phase, the implementation phase, starting in July 2013, will support the creation and growth of Social Businesses in Tunisia via a Social Business Incubator and a Social Business Investment Fund.
Multi donor Trust Fund for Countries in Transition
|Last Update||22 Nov 2020|