For Annona, measuring returns has a dual significance. Our starting point is always the same: to find an appropriate balance between financial returns and socio-economic impact, the so called development returns.
We strongly believe in the private sector as the primary driver behind growth and macro-economic development. As an investor, our objective is to step in where local access to finance is difficult to obtain. Sustainability is the key to lasting success - and a precondition is setting realistic profitability targets. That applies to the ventures that we work with, but also to the Fund itself. Annona aims to achieve a return on investment in the range of 12-20% p.a. Our exact requirement varies for each participation and is influenced by the associated risk of the underlying company, the markets that it operates in and last but not least the stability of prevailing foreign exchange rates.
But we look far beyond financial returns. What we find important is building communities that participate in economic activity where none existed before.
The creation of employment opportunities. Growing a fiscal base that allows for the realization of better education and medical facilities. Providing people with the means to invest in food- and water security. In short, promoting a sense of self reliance that continues long after we have moved on.
This is what we call "impact", and we are very serious about it. In fact, we devoted a special part of our website to explain how we measure the results of our involvement.