Reinventing Microfinance in Emerging Markets: From Subsidies to Sustainable Investment | Rochus Mommartz, responsAbility (#057)
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Rochus Mommartz has spent decades creating opportunities for people in emerging markets. Today, he's with us to share his insights and his experiences from that incredible journey.
Rochus is the CEO of responsAbility, a pioneer in impact investing that has evolved from a leader in microfinance to a prominent force in impact investing across Latin America, Africa, and Asia. It is known for its investment approach, using sustainability-based assessments that have been proven and refined over many years.
ResponsAbility has played a crucial role in building financial inclusion frameworks, helping microfinance institutions evolve into sustainable, profitable businesses that serve the underbanked.
As part of the founding team and later as CEO in 2016, Rochus has been instrumental in shaping responsAbility's success.
Few people were involved in microfinance before it even became an industry, but Rochus was pivotal in working with governments to create the frameworks that turned it into a profitable business that was financially sustainable in emerging markets. He had a front-row seat, witnessing firsthand how microfinance evolved from a charitable initiative into a sustainable, for-profit sector empowering the underbanked.
With such a wealth of experience, our conversation ended up being so packed with insights that we’ve split it into two episodes.
In this first part, we talk about Rochus' journey in impact investing, in microfinance, and the development of microfinance regulatory frameworks in emerging markets. He explains how creating opportunities for underserved populations through responsible investments can drive sustainable change.
In the next episode, we'll dive even deeper into responsAbility's expansion beyond financial inclusion, and how the firm has managed billions in assets to drive lasting impact in sustainable agriculture and climate finance.
Tune in today, and don’t miss the next episode – I promise it’ll be worth it!
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About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes. In my interviews, I cover everything from their early personal journeys to insights into how they developed and executed their investment strategies and what challenges they face today. Each episode is a chance to go way below the surface with these impressive people and gain additional insights and useful lessons from professional investors.
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Key Takeaways:
Rochus Mommartz's background (00:00)
Education – “Rochus wins the lottery!” (06:12)
The early days of microfinance and the challenge of sustainability (12:07)
Importance of regulatory frameworks for microfinance institutions (17:48)
Founding responsAbility and rising to CEO (28:18)
Impact investing philosophy (41:42)
Response + Ability = responsAbility (46:44)
ResponsAbility’s theory of change and the problems it solves (48:14)
Three key impact investment themes (51:25)
Addressing the ESG backlash and its difference from impact investing (53:44)
The themes driving future impact (59:02)
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Additional Resources:
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