Robin Bruce serves as President of the Dovetail Impact Foundation. Credit: Robin Bruce
Since 2009, Root Capital and the Dovetail Impact Foundation have partnered to navigate the evolving landscape of poverty alleviation and economic development with an unwavering commitment to innovation and impact. For Robin Bruce, President of the Dovetail Impact Foundation, a defining feature of this collaboration has been the open and candid exchange of ideas.
“One of the things we really value is being able to hold up ideas and not hold anything too precious from the intervention design perspective,” Robin reflects. “We really interrogate strategies, ideas, concepts, and push on things. Being able to have that conversation with one another as partners has been really, really meaningful.”
The Challenge
Dovetail Impact Foundation is focused on the ongoing need for creative solutions in markets that are often overlooked or deemed “failed” by conventional standards. “We’re excited to continue exploring these frontier markets and populations that have been left out of core interventions,” she says.
Agriculture, she emphasizes, remains at the heart of global poverty alleviation. “Most of the world’s poor are farmers,” Robin points out, “so if you’re talking about poverty alleviation at scale, you have to be deep into agriculture.”
However, as rural-to-urban migration increases, and younger generations turn away from farming, the future of the agricultural sector is uncertain. This shift presents both challenges and opportunities for organizations like Root Capital that are willing to push the boundaries of what’s possible.
Our Collaboration
In sub-Saharan Africa, local food crop value chains–like sorghum–represent a key source of livelihoods and nourishment. Credit: Root Capital
Over the years, Root Capital has carved out a unique space in the funding ecosystem, particularly in areas where others might hesitate to venture. According to Robin, Root Capital’s true impact lies in providing opportunities for people and communities that would otherwise be excluded from the funding ladder.
“It’s really about bringing people into markets and opportunities they wouldn’t have access to otherwise,” she says. This additionality—that is, creating opportunities that wouldn’t exist without Root Capital’s intervention—has become a key part of our mission, allowing Root Capital to play a significant role in opening up funding channels for underserved communities.
Dovetail Impact Foundation has been instrumental in helping Root Capital reach these underserved communities. Through a $1M first-loss Program-Related Investment (PRI), the Foundation provided an incentive for Root Capital to be bolder in our agricultural lending. This PRI enables Root Capital to extend credit to high-impact, “riskier” agricultural enterprises that many traditional lenders avoid, particularly in challenging markets like sub-Saharan Africa. The capital is directed toward local businesses and helps us bridge a critical financing gap for smaller, more vulnerable agricultural businesses. Additionally, Dovetail Impact Foundation’s support has been essential in advancing Root Capital’s broader lending and advisory efforts in Africa, helping to drive sustainable livelihood development.
The Impact
The success of our approach has not gone unnoticed. As more players enter the market, competition has increased, but Robin sees this as a positive sign for the sector, and the businesses we serve.
“It’s a win for the sector overall,” she notes. “Root Capital’s willingness to innovate and engage in new markets, often in places considered too risky or challenging by others, has made them a lender of choice. The fact that more competition exists today speaks to the success of Root Capital’s model.”
This spirit of innovation is particularly evident in Root Capital’s work in hard-to-reach markets, such as the Democratic Republic of Congo (DRC), where the challenges are daunting but the potential for impact is enormous.
Root Capital’s willingness to embrace risk and step into new, uncharted spaces, continues to set us apart. As Robin puts it, “When you become a leader in a sector, you have to keep pushing on the boundaries of what’s accepted as best practice.”
For us, the work is far from finished, but the partnership with organizations like the Dovetail Impact Foundation remains a driving force in shaping the future of global development. With its continued focus on innovation and its bold approach to tackling some of the world’s most pressing challenges, we are poised to remain a transformative force in the sector for years to come.