How can I profit by helping to reduce poverty in Africa?

[molopesml]

I am from Angola, and I would like to build a company that solves the problems in Angola by reducing poverty, unemployment and improving life conditions of the people, without relying that much on the government.

Angola just changed presidents in 2017, after having the same president for 38 straight years. The new president shows willingness to help improve the country's condition, however, he has a military background and most of what he's done is to fire ministers who do not show work, which is a good thing. However, he seems to lack ideas on how to improve the country, which is understandable given his background.

Now, I plan on opening a company that helps to reduce poverty, and accelerate social and economical development in the country, since the president has shown that he wants to help the country but does not know how.

My company would consist in researching and finding the problems the country faces, this would include famine, unemployment, high rates of imports, education, etc. And then open companies that solve these problems, thus, generating jobs and improving life conditions at the same time.

The problem is that I can't find a suitable business model that would help generate profits enough to continue to run the company. For instance, how would a company that helps to clean the streets make profits, or an hospital that cure diseases from the poor profit? Any help would be appreciated…

Thanks!

[rahimnathwani]

You probably want to focus on things that have a multiplier effect on people (e.g. education and health) but where the main benefits go to one person, who would then be willing to pay.

So, the street cleaning example is tough. It's a classic 'public good' that can't easily be solved without tax-funded cleaning.

But there are for-profit healthcare companies in other parts of the world which aim to serve poor people whilst still making a profit. But of course this requires every part of the business to be very efficient, and this isn't easy. Perhaps this example will inspire you: https://www.bloomberg.com/news/features/2019-03-26/the-world...

[al2o3cr]

    how would a company that helps to clean the streets make profits

Here in the US, the leading model is "win the government contract to clean the streets and then do as little cleaning as possible and outsource that to the cheapest people possible", but I suspect you're looking for a model that actually delivers services well :(

[gitgud]

One way to "profit from the poor" is to operate a successful business in the region.

This can result in a reduction of poverty from employing people and producing something of value.

The important thing is to oppose exploitation of the people and the environment in those desperate regions...

[thiago_fm]

Hello, I'd like to talk about this, please contact me on my E-mail. I have the same challenge for myself for my home country.

I'll share some of my own observations:

It's a better idea to instead of fixing a problem with a top down vision such as Polio or water treatment(like Bill Gates), to enable people to think for themselves and fix their own problems.

The problem with a lack of food, services, unemployment etc, I see it as the lack of a market. If you can create a business of any kind, you will be helping with that. If you want to strike directly at a problem, I recommend that you become a politician instead. If you want to create a business, any business that employs people and doesn't do any kind of abuse will help greatly.

Many of the undeveloped places on my home country without good living conditions are due to a single reason... it is jobs!

For instance, if people like buying Angola soap, you can produce it, that will generate jobs because people will need to produce it, you will need to do accounting for your business etc. Your employees and partners will live around your area and also buy goods and services from it, with a healthy market, that will also bring taxes to governments/politicians that can also give something back to people.

You need to step up as an entrepreneur and look around with the people you know, the country you live in etc, how could you make something that either people in the internal market need, or that people abroad would buy. I'd favor international trade because that brings a lot of positive things to your country, not only money, but makes it more recognisable and make it easier for other businesspeople to create opportunities and invest on it.

About your last comment, a company that cleans the streets or a hospital that cures diseases from the poor can profit by charging money. You can't solve poverty in the long run by providing free services, you should instead strive to have a product people use(could be a cheap hospital, so more poor people could afford), so you create a market for it.

Undeveloped areas usually have many possible markets and a lack of $(or people with time and skills).

[chillacy]

Profit and good are not always aligned, that’s why the government exists in the first place. Many of these examples in education, immigration, etc are typically government problems, or nonprofit.

[PaulHoule]

Taxes.

If people want clean streets, they get some benefit from it, say $1 a year per head, but it costs 0.10 cents a year to provision it, so it makes sense to provide but you have to get that 10 cents from everybody.

[muzani → PaulHoule]

Yeah, governments are often willing to pay consultants for research.