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Sustainable development generates the highest returns
“The business world in developing countries is an endless treasure trove offering a wealth of investment opportunities.”
DURING THE 12 YEARS I worked as an entrepreneur in Tanzania I saw major differences in how businesses approached corporate responsibility. In effect, responsible companies competed against those who did not pay taxes or care about accountability Kärkkäinen and sustainability. Irresponsible practices Jukka-Pekka CEO, FCA Investments fuelled corruption, and corruption fuelled PHOTO: TATU BLOMQVIST irresponsibility. Examples of irresponsibility are not hard to find because they are constantly featured in the news: It is cheaper to damage the soil by managing waste irresponsibly than to invest in proper waste treatment. It is less costly to cut down natural forests than to plant trees and look after the plantations. It is more profitable to fish with dynamite on the shores of Africa and transport the catch illegally to Asian markets than to fish responsibly, provide fish for the domestic market and pay local taxes. We must put an end to this vicious circle, which is why we need to help responsible companies. They must be given a competitive advantage to help turn corporate culture into a responsible one and to create decent jobs. The work of Finn Church Aid’s FCA Investments (FCAI) is all about providing this competitive advantage. We offer expertise and funding to companies operating responsibly in developing countries. As the CEO, my firm belief is that accountability and sustainability will overcome irresponsibility. It will happen when responsible companies beat their competitors in size, efficiency and quality. In sub-Saharan Africa, the working-age population will increase by 712 million by 2050, creating an urgent and growing need for responsible employment. By way of comparison, there are currently 223 million jobs in the EU and the UK. Without access to significant new income opportunities, African nations will spiral into despair, which will cause more conflict, unsustainable use of resources and cross-border movement. FCAI is funding accountable and sustainable fishing, organic farming, a chicken farm, a software package for small-scale financing operations, a leather factory and a dairy producing ice cream. The business world in developing countries is an endless treasure trove offering a wealth of investment opportunities. But investors prefer investments with the highest return relative to risks involved. As investing in companies located in developing countries exposes investors to risks, the production of goods and services shifts towards rich countries for financial reasons. This creates a vicious circle in which the weakest countries are being left behind. Through FCAI, money is spent on investments that generate the highest return relative to risk. But our idea of return on investment is different from the mainstream. It is not just about money; it is about achievements that bring us closer to the UN Sustainable Development Goals. And we think it is this kind of sustainable development that generates the highest returns. STOP
Finn Church Aid 2020
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