Safia and the People Tree team jump for joy
It has been three years in the making and People Tree has finally got the finance it so desperately needed to scale-up it’s support to organic cotton farmers and artisans in the developing world.
We have finalised a £300,000 loan from Oikocredit. The funds will be used primarily to make advance payments to People Tree’s producer groups around the world. People Tree’s expansion in the UK has meant increased production throughout the supply chain, from organic cotton farmers in India, to weavers in Bangladesh and to small producers of the finished clothing in India, Nepal and Peru.
The new investment comes at a time of increased Fair Trade Fashion promotional activity including People Tree launching their Spring Summer 2008 collection at London Fashion Week in September, hosting a press event to celebrate the second designer collaborations and an international Organic Cotton Campaign.
People Tree’s growth in direct sales (catalogue and website) and in-store sales has also brought increased financing requirements. Later this year, Oikocredit is planning a further, equity investment in People Tree Fair Trade Group, which will be reorganized to own both People Tree UK and the more established sister company in Japan.
“We are very pleased to have Oikocredit on board as partners”, said Safia Minney, People Tree Director and Founder, “and we appreciate their commitment to help us scale-up our Fair Trade business.”
Stefan Harpe, Oikocredit’s Manager of Equity Investments, commented that “We expect People Tree’s dedication to organic farming and artisan producer groups, and its commitment to people and the environment will generate a dual social/investment return, and we look forward to the partnership with People Tree.”
Mirjam Schoning, Director of the Schwab Foundation for Social Entrepreneurship, made the following comment:
“When it comes to raising funds, even high profile social enterprises like People Tree seem to fall through the cracks. Commercial banks, despite their talk of ethical investment, find them too risky. Charities are focused on smaller amounts given as donations. We need to see more investors willing to combine a financial and social return - so that social entrepreneurs like Safia can get on with going what they do best - changing the world - not constantly looking for finance.”
Go People Tree, go!! And thanks to all for your support,
Saf x
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