Rating

9

Qualities

  • Innovative

Recommendation

An old English proverb warns against the futility of aid – “give a man a fish and you feed him for a day” – and praises the virtues of microcredit – “teach a man to fish and you feed him for a lifetime.” But despite microcredit’s good intentions, it is unable to generate the kind of large-scale trickle-down economics required to lift masses of Africans out of poverty. Entrepreneur Sangu Delle refutes the notion that microcredit is the answer to Africa’s prayers. In this provocative, contrarian presentation, he concludes that “macrocredit” is the only viable solution. Though he doesn’t discuss corruption or Africa’s weak institutions and governance, getAbstract recommends Delle’s refreshing ideas to disenchanted aid workers seeking a better way and to venture capitalists in pursuit of new business opportunities.

Summary

Approaches to addressing Africa’s poverty crisis have evolved rapidly in recent years. Initially, direct aid attempted to tackle poverty and inspire growth. Yet 60 years and $1 trillion later, direct aid has achieved little. In fact, real per capita income in Africa was lower in 2014 than it was in the 1970s. Identifying the shortcomings of the aid model, the International Monetary Fund and the World Bank experimented with free trade, yet that, too, fell short of expectations. Next came microcredit, a fundamentally flawed concept; while microcredit...

About the Speaker

Entrepreneur Sangu Delle founded Golden Palm Investments, a venture capital firm that extends financing to ambitious African start-ups in high-growth industries.


More on this topic

Customers who read this summary also read

How Africa Is Becoming China’s China
8
Let’s Create the Third Wave of Poverty Reduction
8
How Rwanda Is Becoming the Singapore of Africa
5
Reducing Corruption Takes a Specific Kind of Investment
8
How Online Marketplaces Can Help Economies, Not Hurt Them
7
The Anti-CEO Playbook
8

Related Channels