RISING TOGETHER: 2021 ANNUAL REPORT
Creating business solutions to poverty
Who We Are MEDA—Mennonite Economic Development Associates—is an international economic development organization that creates business solutions to poverty. For over 65 years, MEDA has been creating business solutions to poverty that are sustainable, scalable, measurable and replicable. MEDA began as an association of Mennonite business people who believed they were called to be faithful in generously sharing their abilities and resources. Continuing in that Christian tradition, MEDA welcomes all who share our values and want to join us in our mission.
What We Do MEDA has worked in over 70 countries and brings a unique market systems approach to project design that integrates technical assistance and access to capital. We work alongside our partners and clients, funded by both private and institutional donors, striving to alleviate poverty by creating sustainable livelihoods for women and men. Success is measured by income, improved processes, increased knowledge and the creation of more jobs.
On the front cover: Teresa de Jesús Palacios is a Nicaraguan producer who benefited from a coffee pre-dryer to improve post-harvest processes through a grant awarded by the Technolinks+ project to the Soppexcca union of cooperatives. On this page: Shabani Pila is a registered cassava seed producer in Tanzania. Through his 5 acre plot, he has produced enough cassava seed material to plant over 50 acres enabling other farmers to increase their cassava yield—and household income. 2
Vision Vision That Thatall allpeople peoplemay mayunleash unleash their God‑given potential their God-given potential to to earn earn aa livelihood, livelihood,provide provide for families and enrich for families and enrich communities. communities.
Mission Mission MEDA creates MEDA createsbusiness business solutions to poverty. solutions to poverty.
Letter from the Board Chair and President & CEO The world is working together to fight a healthcare crisis that has had an unprecedented impact on businesses and economies. It has also had a profound impact on our personal and professional lives, and we are adapting to new ways of working, fostering our network connections as we support our employees and clients. As we reflect on fiscal year 2021, we are grateful and pleased that we are making tremendous progress at advancing MEDA’s vision, mission, and strategic goals. More farmers and small business owners are using the technology, finance, and resources they need to grow, create, and expand their farms and businesses. Jenny Shantz
We are immensely proud of our employees for their efforts during this period. Our resilience has been tested and we are confident that we continue to emerge from this past year stronger than before. We remain committed to fostering an inclusive environment where all can thrive. While progress has been made towards this goal, we also recognize there is more work ahead and we are committed to further advancing the policies and processes that address inequality across MEDA. The unwavering support from our donors, institutional partners, and the dedication of our staff during the COVID-19 crisis, brought us to a solid financial position as of June 30, 2021. You can find the complete 2021 financial statements at the end of this report.
Dr. Dorothy Nyambi
“Every believer has received grace gifts, so use them to serve one another as faithful stewards of the many-colored tapestry of God’s grace.” – Peter 4:10
As you read on, you will discover people defying the odds to start new businesses, improve their farms, and overcome social norms. These stories reflect the steps that we are making to create enduring change. By harnessing our deep knowledge in agri-food market systems alongside the talent, energy, and generosity of our staff, partners, and donors, we will create or sustain decent work for half a million farmers and entrepreneurs in the Global South in the next five years. By achieving this goal, we will contribute to fulfilling the UN Sustainable Development Goal #8: Full and productive employment and decent work for all. We invite you to work with us as we build a future where entrepreneurs are equipped to thrive in business and prosper with their families. Wishing you health, happiness, and success this year! Sincerely,
Jenny Shantz
Dr. Dorothy Nyambi
Chair, Board of Directors
President & Chief Executive Officer 3
Our FY21 Impact
209,000
FY21 DIRECT CLIENTS (INDIVIDUALS AND BUSINESSES)
1.1M
FY21 INDIRECT CLIENTS
$6.1M USD PRIVATE DONATIONS
$22.7M USD MRCF ASSETS
99% OF DONORS TRUST MEDA TO USE THEIR DONATIONS WISELY
MEDA is committed to measuring lasting impact. Gathering data on the work we do to create business solutions to poverty informs our decisions, adaptations, and interventions.
By collecting and analyzing data, we can best contribute to our clients’ economic empowerment and prosperity.
Photo: Larisa Pushkova is a member of the Fresh Hub group of fruit and vegetable producers, part of the UHBDP project in Ukraine. As an agronomist by education, she controls all technological processes related to growing and plant protection. Today, the main crops grown by the Fresh Hub group are pickling cucumbers and strawberries in the greenhouse and in the open field during the season. The group received a grant to install a refrigerating chamber to cool and temporarily store fresh produce from their own production and neighboring farmers. 4
Check out our Impact Page: meda.org/impact
MEDA partners with local private, public and civil society actors, strengthening individuals, institutions, communities and ecosystems, and thereby contributing to sustainable and inclusive systemic change. We gratefully acknowledge the generous support of our donors.
Major Funders
2,500 individual MEDA donors
Networks
Aspen Network of Development Entrepreneurs
Canadian Coalition on Climate Change & Development
AVPN
Center for Sustainable Climate Solutions (CSCS)
Canada Forum for Impact Investment and Development (CAFIID)
Partners
Alitheia Capital ANDE Business Partners International
Cooperation Canada
Canadian Association for International Development Professionals
Gender Smart Global Impact Investing Network (GIIN) Humentum
University of Waterloo (Interdisciplinary Centre on Climate Change (IC3))
SEEP Network SouthBridge Investments Criterion Institute
Microvest
GroFin
Women’s World Banking
Sarona Asset Management
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Where We Work
Programs (long-term) Consulting Assignments
MEDA’S AREAS OF EXPERTISE
Inclusive Financial Services
Impact Investments (data from FY20) Impact Investment
Market Systems
Gender Equality & Social Inclusion
Environment & Climate Change
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To explore each of MEDA’s projects, check out our interactive map and project pages online: meda.org/where-we-work
23 PROJECTS Country
Funder
Direct Clients Expenses
Bangladesh; Cambodia; Emerging Markets Impact Investment Fiji; Indonesia; Laos; Papua Fund (EMIIF) New Guinea; Philippines; Sri Lanka; Vietnam
DFAT
—
$109,000
Ethiopia
Agricultural Transformation through Stronger Vocational Education (ATTSVE)
Dalhousie
17
$102,780
Ethiopia
Ethiopians Motivating Enterprises to Rise in Trade and Agribusiness (EMERTA)
GAC
3,184
$2,740,917
Ghana
Farmers’ Economic Advancement Through Seedlings (FEATS)
GAC
43,545
$1,605,855
Haiti
Supporting High Potential MSMEs (ATTAIN /ATTEINDRE)
USAID
467
$1,362,092
Jordan
Jordan Valley Links (JVL)
GAC
636
$1,520,959
Kenya
Equitable Prosperity through Private Sector Development (M-SAWA)
GAC
12,488
$2,438,553
Kenya
Virus Resistant Cassava for Africa (VIRCA Plus)
USAID Danforth
—
$276,384
Kenya; Rwanda
Second Chance (INVEST 101)
DAI
—
$664,003
Kenya; Tanzania; Uganda
Expanding Access to Supply Chain Finance in East Africa (EASE)
NORAD
—
$275,000
Multi-Country
Trading Up
GAC
11
$373,230
Myanmar (formerly Burma)
Improving Market Opportunities for Women (IMOW)
GAC
73,479
$1,034,280
Nicaragua
Technolinks+
GAC
1,460
$2,295,792
Nigeria
Youth Entrepreneurship and Women’s GAC Empowerment in Northern Nigeria (WAY)
2,048
$2,564,286
Nigeria
Promoting a Sustainable Business Model for Women Shea Collectors in Nigeria
Danida
6,564
$750,000
Senegal
AVENIR (Adaptation et Valorisation Entrepreneuriales en Irrigation (et Agriculture) Rurales)
GAC
—
$1,898,510
Senegal
Initiative pour la Résilience Economique des Micro, Moyennes et Petites Entreprises (IREM)
mastercard 7 foundation
$1,518,797
Tanzania
Building an Economically Sustainable Seed System for Cassava in Tanzania (BEST Cassava)
BMGF
597
$1,189,322
Tanzania
Feminist Entrepreneurs Growing Greener Economies (FEGGE)
GAC
—
$10,218
Tanzania
Strengthening Small Business Value Chains in Tanzania (SSBVC)
GAC
7,850
$1,839,878
Tanzania; Uganda
RAPID Banana
BMGF
—
$1,257,904
Ukraine
AGRO-ReAdapt
MCIC
—
$10,159
Ukraine
Ukraine Horticulture Business Development Project (UHBDP)
GAC
48,501
$2,280,703
New projects in FY21
Project Name
Mother Realizes Dream of Becoming Landowner in the Face of COVID-19 Kaltume is a mother of seven children and a businesswoman processing and selling rice in Bauchi, Nigeria. Her market challenges intensified during COVID-19: “Business has been tough as I wasn’t making profit and I had to sell large quantities of my rice on credit [as people didn’t have cash during the pandemic.]” Combined with her lack of cash flow, the devastatingly high price of commodities made life even more challenging. Though MEDA’s Nigeria WAY project, Kaltume became a member of a Savings and Loans Group (SLG) which taught her to save, plan for her business and protect her capital. “During this period, I was able to save, and bought a plot of land. I previously did not give much attention to saving since I didn’t have a structured way of doing it. Now, I sell shea butter and shoes as an additional business,” Kaltume said. Without the knowledge needed to recover financially and care for her family, Kaltume’s business would not have survived the pandemic. Kaltume has recognized the power of education and has become a peer trainer for the Gender Action Learning System, a community-led program she participated in that seeks to improve income and food security of people living in poverty. To date, she has trained 13 of her community members. Kaltume’s journey shows resilience and determination to grow her business. “I plan to build a house in my community and move in by the end of 2021. I desire to further my education; these things would not have been possible if I did not know how to plan and carve a career path for myself. Part of my vision is to start exporting my products outside my community with time.” Women play important roles in informal agri-food markets but gender barriers make it even more difficult for them to enter the formal market system. The Nigeria WAY project is designed to ensure that women and youth can overcome gender and social norms, save money, and receive the training that they need to build successful businesses.
Photo: Kaltume shows off her plot of land: “I plan to eventually build a house here in my community, so I can move into it by the end of 2021.”
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Read more about the Nigeria WAY project, including our recently-launched Learning Series, online at meda.org/projects/nigeria-way
Recently Completed Projects and Lessons Learned We are committed to creating lasting impact—ensuring strong supports exist for our clients which remain long after projects close.
This involves the monitoring and measurement of impact throughout the duration of our projects so that we can share learnings across our projects and adapt as needed to shape and inform our approach. Data collected from our projects empowers us to make informed decisions, identify problems, be strategic in our approach and is used to ensure current and future projects are sustainable, scalable, measurable, and replicable.
Here are three examples of recently closed projects and the lessons we learned: Project
Budget
Donor
Clients
Focus
Jordan Valley Links (JVL) Jordan, 5 years
$17.0m
Global Affairs Canada
18,000
Community-based tourism, food processing, clean technology, and access to financial services
Strengthening Small Business Value Chains (SSBVC) Tanzania, 6 years
$30.8m
Global Affairs Canada
22,500 Small Enterprises, 250 Small Growing Businesses
Agriculture, manufacturing, and construction
Improving Market Opportunities for Women (IMOW) Myanmar, 6 years
$18.4m
Global Affairs Canada
25,000
Rice and vegetables in Shan and Kayin States
The JVL project exceeded its target of 18,000 clients, 79% of whom were women. Many reported they experienced fewer obstacles in their businesses, an improved ability to bring their products to market and invested in new or expanded activities.
The SSBVC project exceeded its small enterprise target by over 25% and over three quarters of participating firms reported increased income.
What we learned: While we focused on strengthening supply chains, we were not as focused on the market demands—we need to analyze each sector and find the ones with high growth potential and limited participation of women. Extensive consultation demonstrated respect for local culture; trusted partnerships allowed us to quickly respond to COVID-19 challenges.
What we learned: The lead firm approach enhanced the reach of many small enterprises enabling us to exceed the target. Lead firms were able to improve their business infrastructure and production capacity because of matching grants. Access to global markets improved, but there were challenges with access to domestic markets. We learned that we need to invest in coaching and mentoring lead firms for more than the planned three years.
Learn more about the JVL project
Learn more about the SSBVC project
Many IMOW project clients reported an increase in their net income primarily by adopting good agricultural practices and reducing their costs. Some found they were able to conduct better business transactions with suppliers and purchasers. This additional income helped send children to school and improved household diets with emergency reserves. What we learned: We can improve our work by establishing better connections among partners, farmers, the private sector, and women producers. Women farmers noticed improved relationships, more participation in decision making, and greater community recognition. Learn more about the IMOW project
Towards an Equal World STRATEGIC PLAN UPDATE Our strategic plan Towards an Equal World 2020-25 outlined three guiding principles that we will focus on over the course of the plan. Here is a summary of progress made towards each of these over the past year.
AGRI-FOOD MARKET SYSTEMS • MEDA took a major step towards building new partnerships in Central America, by hosting a dialog related to the United Nations Food Systems Summit. #UNFSS2021. Read more • Participation and content creation leading up to the UN Food Summit to begin to position MEDA more intentionally in the agri-food systems sector dialog with thought-leaders around the world. • Several new proposals were submitted in FY21 (Mastercard Foundation Fund of Funds, and GAC RIISA (Philippines), LEGEND (Kenya), and FEGGE (Tanzania) and proposals in progress in FY21 (Mastercard Foundation Northern Ghana and Senegal, GAC Ethiopia, GAC Honduras) are all agri-food focused.
NORTH-SOUTH EQUILIBRIUM
PARTNERSHIP FOR SYSTEMS-LEVEL IMPACT
• We conducted two workshops on donor diversification to begin planning to broaden our appeal to diaspora groups in North America and eventually fundraising in the Global South.
• We engaged private donors in shaping our next comprehensive fundraising campaign, Towards an Equal World—to accompany institutional funding for MEDA’s strategic ambitions.
• MEDA signed the Cooperation Canada Anti-Racism Framework and charted a plan to accomplish our commitment to the framework. Read more
• MEDA deepened its engagement with local partner organizations during the initiative design stage. Our local partners have greater input into defining problems and developing solutions, raising their profiles in proposals and attending donor discussions.
• MEDA staff attended various learning opportunities, such as OPEX365, Cooperation Canada events, and webinars on antiracism and the decolonization of development. • We created a Gender, Diversity, Equity and Inclusion committee to fulfill our commitment to becoming a more inclusive and actively antiracist organization Read more
• We launched country strategy workstreams (Ghana, Ethiopia, Guatemala/Honduras) that use a market-systems approach that analyzes the broader policy and business environment, actors and influences. Country strategy teams are comprised of representatives from country teams, Regional Directors, Technical Directors and Business Development.
DECENT WORK—FY21 STATS:
41,846
64,242
106,088
DECENT WORK SMALL ENTREPRENEURS
DECENT WORK BUSINESS EMPLOYEES
TOTAL DECENT WORK
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Read the full plan online meda.org/about/strategic-plan
Cooperation and Determination Build Stronger Berry Business Olga is a small-scale entrepreneur who lives in Zaporizhia, Ukraine. In 2018, Olga became the leader of a berry production business called Makartet Cooperative. Running a business in Ukraine as a woman entrepreneur can be challenging. Women entrepreneurs often lack access to effective harvest techniques and market knowledge. This results in less productive harvests and businesses. When Olga got involved with MEDA’s Ukraine Horticulture Business Development Project (UHBDP), which is funded by the Government of Canada, she learned better business practices and how to increase her farm’s production, harvest, and postharvest capabilities.
cooperation with the buyers, with whom we still work today, supplying our berries to the resort area and even supermarkets,” Olga said. Her confidence and business success has grown. Cooperation of efforts through the UHBDP project has given Olga and other members of the cooperative opportunities for growth and development. But they wish not only to improve themselves, but also the community as a whole—for their children and grandchildren. At MEDA, we recognize that women are frequent drivers of economic and social change at the community level, and we design our projects with them in mind, equipping them with access to the resources they need to create lasting change in their communities.
“Thanks to the Canadian project, we attended marketing courses where we studied our target audience, competitors, search for new sale markets and finally found, it all came together. We started
Photo: Olga Mizina, UHBDP, Ukraine. Olga once lost her whole crop to frost but chose to rise to the challenge of building her business back stronger. 11
To learn more about the UHBDP project and watch many client videos, visit: meda.org/projects/uhbdp
Financial Statements Combined Balance Sheet—Audited As at June 30, 2021 (stated in ‘000s US Dollars) MEDA Risk Capital Fund 2021
MEDA Operations 2021
Total 2021
Total 2020
Cash and short term investments—unrestricted
3,521
4,198
7,719
8,565
Cash and short term investments—donor restricted
—
8,479
8,479
10,252
Accounts receivable and other current assets
110
2,286
2,396
977
Advances to MEDA Country Programs and partners
—
2,622
2,622
878
MEDA member current portion of loans receivable
—
—
—
50
Current portion of loans receivable
1,023
—
1,023
346
4,654
17,585
22,239
21,068
Investments and loans receivable
20,671
—
20,671
20,642
MEDA member loans receivable
—
—
—
25
Capital assets
—
1,628
1,628
1,234
20,671
1,628
22,299
21,901
25,325
19,213
44,538
42,969
Accounts payable and accrued liabilities
161
1,167
1,328
861
Deferred grants and contracts
—
10,948
10,948
10,866
Deferred contributions
—
153
153
265
Due to MEDA Country Programs and partners
—
98
98
89
Current portion of notes payable
3,382
—
3,382
3,082
3,543
12,366
15,909
15,163
5,898
—
5,898
6,152
MEDA Risk Capital Fund
15,884
—
15,884
14,516
Unrestricted
—
6,847
6,847
7,138
15,884
6,847
22,731
21,654
25,325
19,213
44,538
42,969
Assets Current assets
Non-current assets
Liabilities Current liabilities
Long term liabilities Notes payable
Net Assets
Note: Audited Financial Statements, comprising MEDA’s North American-based operations are available upon request.
Combined Statement of Operations and Changes in Unrestricted Net Assets—Audited For the Year Ended June 30, 2021 (stated in ‘000s US Dollars) MEDA Risk Capital Fund 2021
MEDA Operations 2021
Total 2021
Total 2020
Charitable contributions
1,152
5,102
6,254
6,485
Grants and contracts
—
19,435
19,435
21,986
Consulting and program management fees
—
3,910
3,910
4,921
Convention and tours
—
24
24
179
Realized investment income
294
18
312
592
Unrealized investment income
1,008
—
1,008
—
Other
—
114
114
260
Total Revenue
2,454
28,603
31,057
34,423
Development programs
—
26,371
26,371
29,769
Resource development
—
1,613
1,613
1,765
MEDA Risk Capital Fund operating costs
1,086
—
1,086
1,086
Constituency engagement
—
887
887
1,188
Unrealized investment loss
—
—
—
1,432
Other
—
23
23
286
Total Expenses
1,086
28,894
29,980
35,525
Excess of revenues over expenses (expenses over revenues) for the year
1,368
(291)
1,077
(1,102)
Unrestricted net assets—beginning of year
14,516
7,138
21,654
22,756
Unrestricted net assets—end of year
15,884
6,847
22,731
21,654
Revenue
Expenses
Revenue
Expenses
MRCF Portfolio
Charitable contributions (20.1%)
Constituency engagement (3%)
Direct Debt (11%)
Grants and contracts (62.6%)
Development programs (88%)
Direct Equity (31%)
Program management fees (12.6%)
Resource development (5.4%)
Equity Funds (53%)
Convention and tours (0.1%)
MEDA Risk Capital Fund (3.6%)
Liquidity Portfolio (5%)
Realized investment income (1%)
Unrealized investment loss (0%)
Unrealized investment income (3.2%)
Other (0.1%)
Other (0.4%)
Your Engagement There is no doubt that 2020/21 will be remembered in history. At MEDA, we look back on this past year with gratitude. Gratitude for a community of faithful supporters, who give generously of their time, talent and treasure, even in the face of personal hardship and struggle. We are truly grateful for you, our MEDA community, who care deeply about enabling individuals around the globe to find success in business, provide for their families and enrich their communities. Thanks to your support, entrepreneurs in the Global South are not just surviving, they are thriving.
2020 VIRTUAL CONVENTION HIGHLIGHTS In November 2020, MEDA hosted its first ever virtual convention, providing an opportunity to connect with donors, colleagues, clients and partners from around the globe—all dedicated to exploring the intersection of work, faith and international development. Convention 2020: Towards an Equal World hosted 333 attendees from 15 different countries, streaming over 1,240 hours of sessions, plenaries, networking events and virtual tours.
THE MEDA NETWORK We are proud of our MEDA community—our network of members and volunteers, actively engaged in and passionate about MEDA’s mission to provide business solutions to poverty. Over this past year, many events were postponed or cancelled due to COVID-19 restrictions, yet our MEDA network still found a way to participate! 320 people tuned in from their computers to engage in conversations of faith and work virtually throughout the year and there were 14 events held, raising a total of $116,500 in support of entrepreneurs around the world! If you haven’t already checked out this incredible networking opportunity, we invite you to learn more by connecting with a MEDA Network Hub near you! meda.org/network Photo: Hannah Hill & Alroy Almeida, Toronto Islands, August 2020
CONNECT WITH US! • Stay up to date on what’s happening at MEDA by subscribing to our MEDAzine.
• Looking for a way to engage your congregation with MEDA’s work? Subscribe to the Church Connections e-newsletters.
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Find all these ways to connect meda.org/about/subscribe
• Explore the intersection of faith and business by subscribing to The Marketplace magazine.
FY21 BOARD OF DIRECTORS Officers Jenny Shantz, Chair, Human Capital Committee Chair ONTARIO, CANADA
Karin Krahn, Treasurer and Finance Committee Chair ALBERTA, CANADA
Gregory Gaeddert, Vice Chair KANSAS, USA
Gary Leis, Secretary ONTARIO, CANADA
Board of Directors Andreas Quiring BONN, GERMANY
Jim Miller, Audit Committee Chair FLORIDA, USA
Bethany Fosdyck ILLINOIS, USA
John Schroeder BRITISH COLUMBIA, CANADA
Crystal Weaver, Nominating Committee Chair PENNSYLVANIA, USA
Joyce Bontrager Lehman NEW HAMPSHIRE, USA
Dallas Steiner OHIO, USA
Marianne Unruh CALIFORNIA, USA
Donovan Nickel COLORADO, USA
Myrl Nofziger INDIANA, USA
Elke Horsch SCHWANDORF, GERMANY
Rick Martin ONTARIO, CANADA
Jeremy Showalter WASHINGTON, USA
Verda Beachey FLORIDA, USA
Jim Alvarez INDIANA, USA
Yvonne Sieber KANSAS, USA
MEDA PEOPLE
THANK YOU
MEDA brings together a committed group of multi-faith staff, institutional, and private donors from around the world, including a large segment of Christian donors that collectively align around the following values:
It has been a very challenging year for our employees, and we are so grateful for each staff person’s individual contribution. Your commitment to our mission is helping us to achieve our strategic plan.
• Collaboration
• Respect
• Accountability
• Entrepreneurship
IN MEMORY OF ORVIE BOWMAN
Orvie Orvie Bowman Bowman
Orvie Bowman served as MEDA’s Chief Financial and Investment Officer for 13 months before his passing in a tragic accident on April 23. He played a leading role in shepherding MEDA through the COVID-19 pandemic. Orvie was respected and admired for his skills, hard work, enthusiasm, and interest in everyone he worked with. Orvie will be long remembered for his wisdom, warmth, wit, caring nature, and passion for helping others. He was devoted to service, committed to MEDA’s mission, and is deeply missed. 15
Read more about our values online meda.org/about
For a current list of our Executive Leadership Team meda.org/our-team
Photo: These women are with Shwe In Thu, one of MEDA’s key facilitating partners in Shan State, Myanmar. They are planting a demonstration plot of garlic and vegetables to encourage new farming methods and drip irrigation. Other women in the village have followed these techniques and increased their incomes growing garlic, chili, cauliflower, pepper and corn.
meda.org
meda@meda.org
1.800.665.7026
For a list of all our offices, visit meda.org/about/contact