Photo by Mathieu Stern on Unsplash
The Christian faith is paradoxical.
by Efosa Ojomo
One evening, Jesus and his disciples were spotted having dinner with a whole bunch of sinners and tax collectors. When the “teachers of the law” confronted his disciples about their conspicuously bad decision to fellowship with “bad people,” Jesus said to them, “It is not the healthy who need a doctor, but the sick. I have not come to call the righteous, but sinners.” And just like that, what seemed to be a bad decision takes on new meaning. Clearly, it is only by helping the sick that everyone can become healthy.
Similarly, innovation, and more specifically, investing in innovation, is also a paradox. True investing seeks to create goodness, wealth, and value from a place where there is little; in some cases, where there is nothing. Good investors see opportunity where others see problems; they see potential and promise where others see poverty. Faith driven investors, often motivated by their Christian beliefs and the opportunity to create value for others, are a powerful force for good in a world that so desperately needs it. Consider Philip Osafo-Kwaako’s story.
Philip’s path to entrepreneurship and investing may seem unconventional, but it’s motivated by his singular vision to transform poverty to prosperity. Precocious from a young age, Philip earned engineering and economics degrees from MIT and completed graduate studies at Oxford and Harvard. After his doctorate, he worked as a consultant, and advised at the highest level of government in Zambia, Nigeria, and the Middle East. Although he was successful, he couldn’t help but be burdened by the opportunity to make life better for hundreds of millions of people in Africa. And so he quit his incredibly lucrative job, pooled some resources together and purchased Akosombo Industrial Company Limited (AICL), a producer of traditional African wax prints based in Ghana. AICL currently employs more than 700 people, the largest employer in Akosombo, and counts Joann Fabrics and Craft Stores as a client. Although Philip is motivated by his faith to do good in his community, as an economist, he understands the numbers.
By 2030, there will be more than 1.5 billion potential customers in Africa for African print fabric. As Africa’s population increases, and as the continent implements the African Continental Free Trade Agreement, this market alone could reach ten billion dollars by 2030. West Africa, where Ghana is located, is also the 6th largest cotton producing area globally and has close proximity to American and European markets. The potential for Philip’s AICL to create a business that changes thousands of lives is apparent. But this is neither a Ghana nor Africa phenomenon. It is a global phenomenon that presents a unique opportunity for faith driven investors and entrepreneurs to create value for billions of people.
Why this is important
Before the Covid-19 pandemic wreaked havoc across the globe, only 15% of people globally lived on more than $8 a day ($2,920 annually). Predictably, wealthy economies spent more to provide relief to the citizens in their economies while poorer economies spent significantly less. Since the pandemic, economists estimate that around 100 million people will slide back into extreme poverty. While this might signal doom and gloom for the average reader, it should point to opportunity for the faith driven investor.
For example, when millions of people in wealthy economies were receiving stimulus checks, those in low-income economies were asked to shelter in place, with nothing. In some countries, like Honduras, the pandemic was followed by natural disasters that left hundreds of thousands homeless. In East Africa, swarms of locusts exacerbated an already difficult harvesting season that doubled the number of people who would experience food shortages. Could these signal an opportunity to create a low-cost insurance product for the billions of people globally who lack access? Could this be the kind of problem a faith driven investor decides to solve, not only because it will help people, but also because it will generate returns, create wealth, and unlock value for the world?
There are no easy solutions to the many problems the world faces. But, for the faith driven investor, there is a template. Just like Jesus, who sought out those whom society had cast out, the faith driven investor must equally seek to invest in places where there seems to be little to no opportunity; at least on the surface. It is not until we change the lens with which we assess opportunities, that we will begin to see differently.