BUILDING A FAIRER WORLD ANNUAL REVIEW 2016
SHARED INTEREST FOUNDATION CHANGES LIVES ACROSS THE GLOBE BY HELPING PEOPLE TO CULTIVATE RESILIENT BUSINESSES 1 AND BREAK THE CYCLE OF POVERTY. WELCOME / 3 LATIN AMERICA / 4 MALAWI / 6 AFRICA / 8 SWAZILAND / 10 CASE STUDY / 12 BENEFICIARIES OF SWIFT PROJECT / 13 USING MONEY WISELY / 14 BOARD OF TRUSTEES / 15 LOOKING FORWARD / 16 COVER IMAGE: ECOOKIM, IVORY COAST, COCOA CANN, IVORY COAST, COCOA / 01
WELCOME SHARED INTEREST FOUNDATION HAS WORKED IN SEVERAL COUNTRIES THIS YEAR IN ITS BID TO HELP PEOPLE CREATE A BETTER LIFE FOR THEIR FAMILY AND COMMUNITY. 2 Our Access to Finance project in Africa continues to reap results for the agricultural organisations involved. We believe that the roots of an organisation have to be strong before it can thrive and this business training is designed to cover the basics in financial controls. Inside, you can read about how Kenyan coffee co-operative, Kabuboni has been able to fund a dairy project, and farmers are able to earn an additional income thanks to diversifying in this way. This year we reached the mid-point of our four-year Swaziland project, which focuses on the development of Swaziland Fair Trade (SWIFT). Their Country Manager described us as more than just a partner in supporting and guiding SWIFT in their role as advocates for fair trade. In Rwanda, we have been able to help improve the livelihoods of almost 300 women by launching a crowdfunding campaign for the first time and raising 5,000 through the support of donors. 3 Following this success, the Access to Finance project has now been replicated in Latin America, with 25 farming co-operatives in Peru and Colombia benefiting from financial training. In Malawi, eight tea and sugar co-operatives have drawn closer to achieving their longer term goals through financial planning. Shortlisted at The Charity Times Awards in the Charity of the Year category, Shared Interest Foundation has continued to demonstrate its belief that helping someone to build a strong business is a sustainable and respectful way to fight poverty. Together with Shared Interest Society, we look forward to progressing our vital combination of business training and fair finance to those communities that need it most. SWAZI CANDLES, SWAZILAND, HANDCRAFTS SHARED INTEREST CHAIR, MARY COYLE
Credit: Tessa Jol HELPING BUSINESSES GROW IN LATIN AMERICA 4 WE BELIEVE THAT EVERYONE DESERVES THE CHANCE TO PROVIDE FOR THEMSELVES AND THEIR FAMILY. AS PRIVATE ENTERPRISES CREATE NINE OUT OF TEN JOBS IN DEVELOPING COUNTRIES, IT IS VITAL THAT THEY HAVE THE NECESSARY FUNDS TO GROW. 5 Following the success of our Access to Finance training in Africa, this year we delivered two training and mentoring programmes in Latin America. Together with Shared Interest Society, we provide a vital combination of business training and fair finance. Using a donation of 50,000 from our sister organisation and the Allan & Nesta Ferguson Charitable Trust, we helped small businesses in Colombia and Peru to improve their financial awareness. Working with the Latin American and Caribbean Network of Small Fair Trade Producers (CLAC), we were able to support 25 co-operatives. By training key staff in how to teach financial management techniques, they have been able to support their farmers, whose products include cocoa, fruit, and vegetables. Coobamag, a banana producing co-operative supporting 160 people, attended basic financial record keeping and planning workshops. Administrators became more confident in their roles and the co-operative improved financial processes and business efficiency. Attendees said the training was very practical and gave them many tools to apply within their businesses. All 25 organisations developed their own strategic plan and several are now making preparations to apply for loan finance in the coming year. COOBAMAG, LATIN AMERICA, BANANAS
FINANCIAL MANAGEMENT TRAINING IN MALAWI 6 LAST YEAR WE DEVELOPED A COMPACT PROGRAMME OF ACCESS TO FINANCE TRAINING SPECIFICALLY FOR TEA AND SUGAR FARMERS IN MALAWI. EIGHT CO-OPERATIVES WERE IDENTIFIED AS NEEDING SUPPORT, AND THANKS TO THE MALAWI FAIRTRADE NETWORK, WE WERE ABLE TO HELP. This year, we evaluated the impact of the project to see if our aims had been met. This included ensuring farmers were managing their financial record-keeping at the level required to reach Fairtrade certification. We also wanted to help the businesses start conversations with potential social lenders so they could begin to understand their requirements. Finally, we believe that by improving their financial management techniques, we could help the farmers achieve higher productivity levels, and subsequently increase their income. Financial statements are now prepared on a monthly basis. This has led to farmers knowing the financial standing of the organisation. If our association is successful, it translates to sustainability, our children will be able to benefit from the co-op too. Businesses taking part in training and mentoring Individuals that received training Staff members of local support networks that received training Peru Colombia Malawi 15 10 8 82 100 47 3 3 1 256.5 Hours of training delivered (28.5 days training x 9 hours per day) 7 EASTERN OUTGROWERS TRUST
DEVELOPMENT OF KABUBONI IN AFRICA 8 ALTHOUGH OUR ACCESS TO FINANCE PROGRAMME IN AFRICA CAME TO A CLOSE LAST YEAR, WE ARE STILL SEEING THE IMPACT THE TRAINING HAD ON AGRICULTURAL BUSINESSES SUCH AS KABUBONI COFFEE FARMERS CO-OPERATIVE. We began working with Kabuboni in October 2014, when they were struggling to make a living by growing coffee alone. Their location on the eastern slopes of Mount Kenya, meant that they were working in a saturated market as most farmers in the area realy on coffee as their main crop. Coupled with this, falling coffee prices were taking their toll, and Kabuboni farmers were struggling to survive financially. Shared Interest Foundation worked with Fairtrade Africa to offer specialist Access to Finance training and mentoring. This gave the co-operative the skills and knowledge to enable more of their farmers to create an extra source of income through dairy farming. It was discovered that most of the farmers already kept cows, but some did not have the facilities required to sell the milk their herd provided. A loan from Shared Interest Society financed a cooling plant, vital in storing the milk at the right temperature. The co-operative now employs five additional staff and has set up three milk collection centres. There are now 718 dairy farmers at Kabuboni co-operative, compared to 199 before the training began. Our farmers are better off today; they are better off many times than they were before, they have a regular source of income, and are able to pay school fees freely SALES DAIRY SALES VOLUME VOLUME 34 2015 345 metric tons 2016 915% growth rate NUMBER OF DAIRY PRODUCERS 199 718 2015 2016 SALES VALUE INCREASE Thousand ($) 150 120 90 60 30 0 $13,918 $128,896 2015 2016 826% growth rate AVERAGE MONTHLY WAGE KES 7,374 2016 KES KES 5,808 2015 GROSS PROFIT 2015 $11,888 TRAINING 2016 $29,284 TOTAL ASSET VALUE 2015 48,283 60 producers trained producers in husbandry 2016 88,220 STAFF INCREASE ATTENDING EXHIBITIONS TRAINING 26 +5 Five more permanent staff 56 producers attended an exhibition about increasing milk production trained in good agricultural practices and gender related issues 9 KABUBONI CHAIRMAN KABUBONI, KENYA, COFFEE/MILK
BUILDING STRONG NETWORKS WITH THE SUPPORT OF COMIC RELIEF, WE BEGAN WORKING IN SWAZILAND IN 2010, PROVIDING BUSINESS TRAINING FOR THE HANDCRAFT SECTOR. We helped establish a business support network known as SWIFT (Swaziland Fair Trade), which has a board of experienced business leaders from the local community. increasing antiretroviral treatment, however many businesses continue to be affected. By training key members of each member 10 organisation as Peer Educators, this follow-on This project came to a close in 20013. However project is designed to help improve business last year we were granted new funding from productivity by focussing on wellbeing in Comic Relief to help SWIFT further develop, the workplace. Each business now has a and improve livelihoods of the crafts people representative who can respond to employees involved. An important element has been on health issues and signpost them to the relevant promoting wellbeing in the workplace with the organisations. As some issues raised revealed help of Swaziland Coalition on Health and AIDS a lack of facilities in the local community, (SWABCHA). Over the last decade Swaziland projects have subsequently been set up to has helped curb the HIV epidemic by address these needs. Shared Interest is more than just a partner to SWIFT; it is through their continued support and guidance that SWIFT has been able to create a sustainable path in business where our end destination is to be a leading sustainable Fair Trade Country Network for Swaziland. It has been incredibly rewarding to see our members continuously grow their revenue year on year. SWIFT COUNTRY MANAGER MANZINI MARKET, SWAZILAND, HANDCRAFTS
BENEFICIARIES OF SWIFT PROJECT THIS YEAR WE REACHED THE HALF-WAY POINT OF OUR FOUR-YEAR PROJECT IN SWAZILAND. 12 CASE STUDY THOLAKELE SIBINDI RUNS A LEVEL 0 BUSINESS. SHE DESIGNS AND CREATES HAND KNITTED AND CROCHETED GARMENTS, ACCESSORIES AND HOME DECOR. SHE SAID: SWIFT s membership structure is based on four levels, and businesses are placed at a specific stage because of their annual turnover. This helps SWIFT to tailor the training on the needs, size and capacity of each organisation. Level 3 This project has four main outcomes: Swazi micro-enterprises (Level 0 & 1) have grown and are operating as sustainable businesses providing local employment. Medium and higher level enterprises (Level 2 & 3) have expanded their businesses and contribute to the improvement in the livelihood of their producers and employees. SWIFT operates as a viable and sustainable membership network providing quality services to members and advocating for fair trade in Swaziland. Key Male Female 4061 indirect beneficiaries 100 individual artisans trained 343 3718 25 75 13 My life has changed since the training, my business is now in good hands and has a bright future. Crocheting was just a hobby for me but now it has become a business which I am proud of. Annual turnover more than ZAR 100,000 Level 2 Annual turnover more than ZAR 50,000 Employees and producers of SWIFT membership businesses have improved support for HIV/AIDs and wellbeing issues in the workplace. 77 Peer educators trained 5 72 To the donors I want to express my deep gratitude, thank you for giving us such a great opportunity. This project is really helping my business to grow. Level 1 Annual turnover more than ZAR 50,000 40 businesses received business skills training and mentoring Level 0 BACKGROUND IMAGE: A SAMPLE OF THOLAKELE S HAND KNITTED GOODS Newly registered fledgling businesses
USING MONEY WISELY KABUBONI, KENYA, COFFEE/MILK Shared Interest Foundation receives grants from donor organisations such as Comic Relief and the Commonwealth Foundation, which enable us to deliver our larger projects. Over the last six years these funds account for around half of our income, with the balance coming from the generous donations of individuals, groups, and legacies. These donations are vital as they allow us to develop and grow new projects based on robust needs analysis. In 2016, we received support from the following trusts and would like to thank them for their contribution to our achievements this year: Souter Charitable Trust Allan and Nesta Ferguson Charitable Trust Ashworth Charitable Trust C.B. & H.H. Taylor 1984 Charitable Trust St Mary s Charitable Trust Madeline Mabey Trust Dorema Charitable Trust Rothley Trust Tisbury Telegraph Trust Fitzer Lacy Trust Nelson New Forest Foundation 000 Unrestricted Year ended 30 September 2016 Year ended 30 September 2015 Restricted Total Unrestricted Restricted Total The Board of Trustees role is to determine and monitor the implementation of the strategy for the Foundation, make sure that risks are managed appropriately and provide a proper account to donors of the financial and social results of the Foundation. 15 Donations & grants 101 137 238 130 258 388 Interest income 1 1 1 1 Total income 102 137 239 131 258 389 Cost of fundraising 28 28 42 42 Charitable activities Governance costs 106 202 308 3 3 114 116 280 3 3 Patricia Alexander David Bowman Pauline Cameron Paul Chandler Total expenditure 137 202 339 159 166 325 Net (deficit)/surplus -35-65 -100 (28) 92 64 brought forward 135 142 277 163 50 213 carried forward 100 77 177 135 142 277 Mary Coyle Martin Kyndt Keith Sadler
16 LOOKING FORWARD WE HAVE ALREADY BEGUN CONSULTING OUR STAKEHOLDERS AS PART OF OUR STRATEGIC REVIEW PROCESS, WHICH WILL SET OUR STRATEGIC DIRECTION FOR THE NEXT FIVE YEARS. 17 Our new three-year project in Malawi, funded by the Marr Munning Trust, begins in October 2016. Working once again with Malawi Fairtrade Network, this project will enable us to provide business support to five co-operatives producing tea and nuts. We will continue to support the membership networks we helped establish in Rwanda and Swaziland so that more crafts people can benefit from their guidance. TINTSABA, SWAZILAND, HANDCRAFTS
KABUBONI, KENYA, COFFEE/MILK FIND OUT HOW YOU CAN SUPPORT OUR WORK SHARED-INTEREST.COM/FOUNDATION Shared Interest Society, Pearl Assurance House 7 New Bridge Street West, Newcastle upon Tyne NE1 8AQ, T +44 (0)191 233 9100 Shared Interest Foundation is a company limited by guarantee, registered in England, company number 4833073 and a registered charity, number 1102375 Printed on paper from sustainable well managed sources certified by the Forest Stewardship Council