Shell Foundation

Shell Foundation is an independent charity that applies a business approach to the global development challenges of access to energy and sustainable mobility.

Shell Foundation (SF) provides business support, grants and market connections to help pioneering social entrepreneurs prove new business models in low-income communities.

SF selects partners with the potential to benefit 10 million people within a 10-year timeframe, achieve financial independence and spur international replication.

Since 2000, SF has deployed $279 million in grants to early-stage businesses and new market builders operating in Africa, Asia and Latin America.

2017 social enterprise partner highlights

Sistema Biobolsa logo (logo)

Sistema.bio makes biodigester equipment that converts farm waste into renewable energy. This can be used for cooking, heating or electricity. The process also reduces greenhouse gas emissions from livestock farming. So far, more than 4,100 units have been installed across Mexico and Latin America, improving the lives of 24,600 people. In 2017, SF supported Sistema.bio to expand their operations into Kenya and India, where 800 units have been sold to date.

M-KOPA logo (logo)

M-KOPA provides low-income consumers in East Africa with financing to purchase solar energy products on a pay-as-you-go basis. M-KOPA acquired over 600,000 products to date, benefiting more than 3 million people. In 2017, it raised a new working capital facility of $55 million with a consortium of commercial lenders that will help the company to reach 1 million more homes by 2020.

Tugende logo (logo)

Tugende offers affordable finance to motorcycle taxi drivers in Uganda, most of whom have limited access to banking products and services. Tugende enables these drivers to buy vehicles and increase their earnings. The company also offers road safety training, safety equipment and insurance. In 2017, Tugende doubled its loan portfolio and revenue and has served more than 10,000 customers in seven locations. In total, Tugende has transferred $2.6 million in funds to customers and improved their credit. Around a third of customers used their improved financial status to start new ventures or invest in existing businesses.

Shell Foundation’s six-step theory of change

Market resources and SR resources in 1. Catalyse, 2. Pilot, 3. Create Pioneer, 4 Scale (Operational break-even) 5. Tackle market barriers (Financial sustainability) and 6. Market building – red lines showing Market impact and Pioneer impact (infographic) Market resources and SR resources in 1. Catalyse, 2. Pilot, 3. Create Pioneer, 4 Scale (Operational break-even) 5. Tackle market barriers (Financial sustainability) and 6. Market building – red lines showing Market impact and Pioneer impact (infographic)
1
Catalyse

Identify the market failures that underpin issues related to energy, mobility and job creation and seek high-potential yet high-risk solutions that could impact millions of lives.

2
Pilot

Work with innovative entrepreneurs to test a range of new solutions to find evidence for market demand and consumer preferences, as well as the viability of the business model.

3
Create a Pioneer

Develop long-term partnerships with entrepreneurs who have proven skills and experience, then create new organisations that aim for large-scale impact and financial independence.

4
Scale

Once partners have proven the viability of their models in a particular region, SF supports them to build operational capacity for global expansion.

5
Tackle Market Barriers

Identify structural barriers that prevent sustainable growth for businesses and work to address them through the creation of specialist supply chain intermediaries and financial organisations.

6
Market Building

Creating one pioneer simply is not enough. To help others replicate and adapt these models the SF creates neutral institutions and industry associations to provide data, standards and coordination of public and private support.

Shell Foundation’s impact to date

Man with briefcase and tie (icon)

294,184

jobs created

Clouds (icon)

19.30 million

tonnes of carbon reduction

Stacked dollar coins (icon)

$6.69 billion

funding leveraged

Family (icon)

119.64 million

livelihoods improved