What Companies Are Worth Backing?

Since the pandemic, economies have witnessed a great deal of disruption, one that has never been since World War II. Supply and demand have been affected, prices keep surging and the most innovative companies are having to key into newer models to thrive. Even with all these happenings investors seem to still be placing bets on companies, albeit slowly and after careful consideration of certain criteria that largely revolve around sustainability, equitability and scalability (personally coined, SES). Here’s why…

In the last year, there was a record showing that approximately 340 million companies and over 10 million nonprofits were in operation, globally. These numbers will certainly go higher this year even though progress being made towards sustainable development is not advancing at the speed required where key stakeholders will truly be able to say that actions geared towards impact have been met. In the world today, we still have millions of people displaced, millions more with livelihoods destroyed and the escalating rise of diseases. Africa and the world at large are at an inflection point. If we truly desire to see a world worth living in, businesses must consider operating on sustainable models to produce more equitable outcomes and scalable impact as much as they desire to maximize shareholder value. 

Investors are rapidly adopting sustainable investment frameworks (siFs) that prioritizes companies that will be able to generate positive, measurable social and environmental impact alongside a financial return. ESG (Environment, Social and Governance) themed investments are expected to exceed $40 trillion worth of assets this year which will further entrench the adoption of siFs in global markets. Now more than ever, there is the need for businesses to start to build upon four essential factors: a clear strategic vision, a well-defined and compelling value proposition, an ambitious and targeted growth plan, and a fit-for-purpose operating model, adopting corporate sustainability and responsible business practices.

Focusing on the economy and development can empower populations, transform the health and prosperity of families, communities, and societies and this is why I will now be advocating for creating businesses and building infrastructure that can positively contribute to our communities. With the birth of Yalanda, a consulting fit, I alongside my partners will also be offering strategic, innovative and research-driven solutions geared towards driving growth and increasing profitability for businesses around the world.

Also, I will be devoting the next few years of my life to provide capital and support to companies addressing the world’s most pressing challenges in diverse sectors, agriculture, renewable energy, conservation, microfinance, affordable and accessible basic services like housing, healthcare, and education. 

Author: Lauretta Hamza.