CDFI Serving African Immigrants in the Twin Cities Increases Capacity With Help From LISC
Dr. Gene Gelgelu founded African Economic Development Solutions (AEDS) in St. Paul, MN to help fellow African immigrants build wealth through entrepreneurship and homeownership. LISC has been by his side, offering guidance and support, since the organization’s inception. Our latest contribution: nine LISC AmeriCorps - Economic Mobility Corps members who enhance the capacity of AEDS while getting a taste of what it’s like to work in community development.
Minnesota is home to hundreds of thousands of East African immigrants, and they don’t need to travel far to get a taste of the food and culture that reminds them of their homeland.
The Little Africa district in St. Paul is a popular destination for many, boasting an assortment of immigrant-owned businesses, restaurants and cultural facilities. Little Africa is also home to African Economic Development Solutions (AEDS), a community development financial institution (CDFI) that helps build wealth within African immigrant communities by supporting business development and homeownership.
Last month, AEDS held its annual Little Africa Festival and Parade, attracting more than 10,000 people to the district to experience the cultural heritage of Africa through live music and dance performances, authentic cuisine and a parade. Just days before, the CDFI hosted its annual National African Leadership Conference, bringing together about 200 leaders from across the U.S. and Africa for two days of learning and networking.
For an organization with 14 employees, planning and hosting two large events in the same week is a tall order, especially when it must also continue its day-to-day work providing business development training, lending, financial coaching and homeownership education. Fortunately, AEDS had the workforce to pull it off thanks to LISC AmeriCorps and its Economic Mobility Corps (EMC) program, which places individuals in service positions with CDFIs for up to 11 months. Over the past two years, AEDS has benefited from nine EMC members, including five this year.
“We were so overstretched and the added capacity from LISC helped us deliver both the conference and the festival,” said Dr. Gene Gelgelu, who founded AEDS in 2008 and remains its president and CEO today. “Our EMC members helped substantially increase the number of volunteers for these events.”
With support from Citi Foundation and the AmeriCorps federal agency, LISC leverages the EMC program to enrich the work of CDFI partners while nurturing a new generation of diverse community development professionals. LISC emphasizes recruiting members from the communities they will ultimately serve.
“Investing in our youth is critical, and the families thank us for supporting them,” said Dr. Gelgelu. “For most of our EMC members, this is their first professional environment, and it helps build up their resume.”
Dr. Gelgelu’s own path to community development started through LISC. Dr. Gelgelu, who came to the Twin Cities from Ethiopia nearly 30 years ago, had worked a variety of jobs, including in the hospitality and insurance industries, before participating in a LISC Twin Cities program designed to introduce mid-career professionals to opportunities in community development. Dr. Gelgelu quickly fell in love with the industry and saw an opportunity to help fellow African immigrants build wealth through entrepreneurship and homeownership. That’s when the idea for AEDS was born, and LISC has been by his side, offering guidance and support, ever since.
“LISC has been part of everything we do,” said Dr. Gelgelu. “They’re part of supporting the festival every year. They’re part of supporting our creative placemaking work. And they’re part of our leadership, with [LISC employee] Kate Speed serving as my board chair for many years. Under her leadership, AEDS substantially increased our lending and staffing capacity.”
LISC is also involved in Dr. Gelgelu’s latest venture, the Little Africa Plaza. LISC provided more than $200,000 to help AEDS purchase and renovate a century-old, 8,400 square foot building into a cultural entrepreneurship center with a grocery store, retail spaces for startup businesses and the African Museum. AEDS will use the second floor as its headquarters, which will allow the group to expand its programming.
Little Africa Plaza is set to open later this fall. For Dr. Gelgelu, the project represents another significant milestone in his relationship with LISC. “Working with LISC has been the best thing,” he said. “They not only provide resources, but the staff are fantastic human beings.”