Dr. Kim Tan's Trillion Dollar Question: Aid or Social Impact Investing for Africa?

Aid has been a long-term failed concept. Africa has received about US$1 trillion in aid from 1949 to 2008. That is roughly the equivalent of six Marshall Plans. Dr. Kim Tan points out: it doesn’t work.

In fact, there is evidence that aid is counterproductive to the GDP of recipient countries. Further, evidence indicates that good governance and policies help economies grow and reduce poverty whether or not countries receive aid. So what do we do if we want to help?

Dr. Kim Tan offers a solution. He spoke at the ELO Oxford Leadership Program on July 12th, 2024. His core message: social impact investing is the best option to address pressing needs, such as poverty alleviation, around the world.

Dr. Tan is Chairman of SpringHill Management, a private fund management company specializing in biotech and social venture capital investments. He has been a pioneer of social impact investing for over 20 years and is a partner of several social impact funds including Inqo Investments (South Africa), Novastar Ventures (Kenya), and Garden Impact Investment (Singapore). He is an advisor to Johnson & Johnson Impact Ventures. He is a co-founder of the Transformational Business Network and a trustee of the John Templeton Foundation, Templeton Religion Trust.

Dr. Tan was the chairman and founder of NCI Cancer Hospital (Malaysia) and is the inventor of sheep monoclonal antibodies. He developed the first rapid tests for Salmonella in chickens and atrazine pesticide in drinking water. He is a pro-chancellor of Surrey University (UK) and a Fellow of the Royal Society of Medicine (UK). He was the former Chairman of the Surrey & Hants Innovation Growth Team, a former board member of the APEC Life Science Innovation Forum, and the Saracens Rugby Club. He has a PhD in Biochemistry and three post-doctoral fellowships from the Medical Research Council (UK). He has received the Guildford Roll of Honour (2014) and the UK Beacon Award for Impact Investment (2017).

Addressing the ELO cohort, Dr. Tan discussed Social Impact Investing and how he became interested in the concept. Impact investing is rooted in biblical jubilee principles. The Old Testament describes the year of jubilee as a 50-year cycle (Leviticus 25) which includes cancellation of all debts, release of all slaves, and return of all properties bought. This allowed a fresh start for wealth creation, private ownership, and re-discovery of family and community.

What are the “Jubilee Principles” for today? According to Dr. Tan, they include the following: Love your neighbour (the “great commandment” and the “great commission”); care for the poor; freedom to develop our full potential; human flourishing; restoration; forgiveness; mercy; stewardship of land and animals; creation care; and private ownership with community responsibilities.

Dr. Tan talks about Jesus’ “Nazareth Mandate:” “The Spirit of the Lord is upon me because he has anointed me to preach good news to the poor. He has sent me to proclaim freedom for the prisoners and recovery of sight for the blind, to release the oppressed, to proclaim the year of the Lord’s favour. Today this scripture is fulfilled in your hearing” (Luke 4:17-21).

There is a continuation of the Jubilee concept in Acts, which is practiced on a large scale (more than 5,000 people), is only possible after Pentecost with the advent of the Holy Spirit, promotes the discovery of family and a sense of ‘belonging,’ allows for shared meals, had daily distribution of food, and encourages voluntary contributions (i.e., Barnabas, Ananias & Sapphira). What was the outcome of this approach? “There were no poor among them” (Acts 4).

Dr. Tan sees a modern manifestation of jubilee concepts as “Impact Investing.” How is it defined? Dr. Tan defines it as investments that are intended to create direct positive social and/or environmental impact in addition to financial return. There is intentionality in terms of designing businesses to tackle social issues instead of just using charity.

He describes three classes of investments. At the base level, there are Ethical Investments which “Do No Harm.” Next, there are Environmental Sustainability and Governance (ESG) Investments which “Do Less Harm.” Lastly, and at the highest level are Social Impact Investments which “Intentionally Do Good.”

Dr. Tan’s focus has been on social impact projects. He has experienced the frustrations of simply giving aid. He shared his passion for social impact investing with us. He has a long track record of social impact projects. One notable example is the Kuzuko Game Reserve, a 5200-hectare Spekboom Reforestation, Jubilee, and Social Justice initiative. Another example is the Agape Prison contact centre, Changi Prison, Singapore.

In short, Dr. Tan’s message to the ELO Oxford Leadership Program cohort was to provide a great challenge to believers to be jubilee-inspired and be more generous. Further, he invites us to proactively consider more effective ways to pursue jubilee-inspired objectives to eradicate poverty through social impact investing. Dr. Kim Tan will be speaking at the ELO Forum Vancouver on November 13th.

 


For further information on Dr. Tan and some of his initiatives please see:


Interview: Investec Bank with Kim Tan

Video: The Kuzuko Game Reserve Story

Video: 5200 Hectare Spekboom Reforestation

Book: Jubilee and Social Justice by Kim Tan

Book: Social Impact Investing: New Agenda in Fighting Poverty by Kim Tan & Lord Brian Griffiths

Video: The Agape Prison Contact Centre Business in Changi Prison, Singapore

Categories: Forums, Oxford, Speakers