Charity or Investing? Zula and Co chooses to invest…
How do people in developing countries create prosperity for themselves, their families and communities? There are two common ways that individuals and organizations have looked to have an impact in helping developing nations and impoverished communities; either through Charity or Investing.
With Charity, goods and/or monetary gifts are often given in the wrong places or for the wrong things. These items are directed by people outside the country looking in. Many times, the causes or objects of the gifts are causes important to the giver, and not necessarily the most critical needs of the recipient. The gifts don’t always address the underlying needs.
But with investing in local businesses or people the funds or the jobs are given to the right people. Helping create jobs creates stability. Families get to stay together, parents can afford to provide for their children.
A second consideration is when charity is given by an individual or organization, then removed suddenly because another cause or disaster occurs elsewhere. This can leave a gap in the local economies, put people out of work, or leave goods and donations exposed to corrupt groups or governments.
“After the Rwandan genocide, a church from Atlanta started sending over eggs, and ended up just distributing eggs in a small community outside of Kigali. And this seems like a great thing to do, right? The church wanted to help after the genocide, but Jean, a few years before, had started a small egg business himself. His business was starting to grow, was starting to take off. And then, all of a sudden, in one summer, there become this surplus of eggs that were flooding the market in his area. So, Jeano described that he couldn’t compete with a free good. And so, this desire that the church had, to really take care of a need, it did take care of a need, but the problem is that it put Jano out of business.” – Peter Greer, President of Hope International
When you invest in local businesses or individuals then you are investing in people that are working hard for their families and themselves. They are using their skills and knowledge of their local resources. They have roots in their community and create an impact in their local economies.
Lastly, giving charity can often ignore human dignity. It can create a mentality of people or a culture being “less than” another. Furthermore it can allow for the “white savior” mentality. There have been many instances in the news where someone meaning to do good has done more harm because they felt their skills or knowledge of a people or area was superior to the locals.
One example that was in the news was about Renee Bach, the young American who felt called to open a nutrition center in Uganda, without any training or credentials to do so, and despite the fact that a Uganda Nutrition center staffed by Ugandan medical professionals was in the nearby area.
Instead, investing in local talent and skill creates strong communities. Providing entrepreneurial opportunities can help create sustainable jobs. Investing in people can create jobs, and flourishing economic growth.
Zula and Co hopes to have an impact by investing in individuals and small businesses in Uganda. By working with skilled individuals and paying fair amounts for goods and services, Zula is helping Ugandan small businesses grow. This helps create liveable income and expands job growth. By investing in Ugandan businesses that have like-minded goals of helping lift their own community and train employees with skills they can use to support their family. Zula and Co is proud and honored to work with these talented Ugandan craftsmen and women.
