Development Ratings

Click here for a guide to why investors see Africa as an attractive destination for investment. Although foreign investment remains small, new funds devoted to Africa are, for example, being raised by New Star Asset Management, Charlemagne Capital, Zephyr, T Rowe Price and Investec on the back of renewed interest in the second most populous continent on earth. Renaissance Capital is looking to deploy $1bn in Africa in 2008.

We recommend reading Lucy Bernholz’ “Creating philanthropic capital markets” – a book that illustrates the need for players such as Development Ratings. The central tenet of Development Ratings is to create an ‘investment bank’ or a ‘broker’ that links donors with the developing countries. Read the introduction by clicking here.

Private giving from developed nations to poor people abroad is bigger than ever. US private assistance alone, at $95bn is 3.5x official US government aid. In the UK, private giving to developing countries is $2.4bn, only about one-fifth of official development assistance – leaving a lot of room for growth in UK private giving ! See more data in The Index of Global Philanthropy 2007.

Number of philanthropists on the rise

Slate magazine published its list of 60 biggest philanthropists in the US in 2006. Warren Buffet leads the pack having pledged $43.5bn - an amount equal to the GDP of Slovakia or the market value of McDonalds…food for thought. See the full article by clicking here.

Charitable giving is also gaining momentum in the UK as more of the wealthy view themselves as "new philanthropists" and look to direct large chunks of their fortunes to worthy causes before they die. In the Sunday Times Rich List published in April 2007, The "Billion Pound Giveaway" giving index saw David and Heather Stevens (David is founder of Admiral - the insurer) top the UK list with donations over the past year equivalent to 87% of their combined wealth. In July 2007, Sir Tom Hunter, Scotland's richest man pledged to donate €1bn to charities in the UK and Africa over the next 10 years.