Appendix 10 ~ SWIFT end of year 1 report by Shared Interest

International Annual Report Form N.B. Please refer to the ‘Guidance notes for completing the International annual report form’ before you complete this form.

Grant summary Comic Relief (CR) goal(s):

Trade, enterprise and employment

UK and local partner representatives:

Shared Interest Foundation – Kate O’Dell, Project Manager SWIFT – Cebile Dlamini, Project Manager

Grant ID:

508539

Date submitted:

1st February 2016

Organisation name :

Shared Interest Foundation

Duration of grant:

48 months

Project title:

Improving producer livelihoods in Swaziland

Grant year and period covered by report:

Year 1

Project start date:

1st January 2015

CR contribution to the overall project budget:

£427,595

Partner organisation(s):

Swaziland Fair Trade (SWIFT) Swaziland Business Coalition on HIV and AIDs (SWABCHA)

Planned total project expenditure for this year (£):

£137,814

Contact person who submitted the form:

Kate O’Dell, Project Manager, Shared Interest Foundation

Actual project expenditure for this year (£):

£114,029

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Period covered: January 2015-December 2015

Section 1: Reflections on overall progress during the reporting period - what has been achieved, what are the challenges and what changes have you made? Section 1.1 Successes: what are the most significant achievements this year? (max 500 words) This has been a successful year for SWIFT’s members with six level ones graduating to level two after their turnover exceeded the ZAR 50,000 threshold. Success was also seen with the new micro enterprises as 100 were recruited, 79 trained and, as planned, 30 selected to graduate onto the full training programme. SWIFT were also able to attract five new members in addition to this project, illustrating the quality of SWIFT’s services on offer. The new members continue to add to the current diversity of SWIFT’s members, improving the SWIFT shop’s prospects by constantly having new items on show. SWIFT is proud of their achievements this year as all levels of training were conducted smoothly including modules on ‘Your Business and Marketing’, ‘Know Your Business’; ‘Business Plan’; ‘Costing and Pricing’ and ‘Product Development’. Additional highly specialised training was conducted for Level two and Level three on ‘Branding with a Purpose’. The follow up visits were also a success, helping participants apply their new knowledge into their businesses. The attendance at Regional trade shows and national events, presented a platform for members to market their handmade products and increase sales. All businesses that attended these events were able to experience first-hand an increase in sales and thus see the merit in paying their membership fees. 17 level one artisans took part in a market access trip to South Africa to attend 100% Design. This is a prominent international exhibition related to different designs for home and furnishings. The trip presented a unique platform to the Level ones to learn more about product design and the importance of creativity as a value to competitiveness. All these successful events supported SWIFT’s members to rethink their current business strategy and become more self-reflecting on what they need to do to become a more successful business. The experience of collecting data for this project report has resulted in SWIFT improving its internal Monitoring and Evaluation Systems. This is a useful achievement for SWIFT and their members as their new approach will enable the utility of evidence in the ongoing management of the current project. This learning will also improve future interventions as training can be adapted according to ongoing monitoring and evaluation to ensure relevant and efficient training delivery. Another achievement for SWIFT was the inclusion of SWIFT members in a new partnership with Microsoft’s new initiative called Biz4AFrika. This is an Africa wide network of SMEs designed to enable a sustainable and connected community that will have a meaningful impact on job creation, global competitiveness and wealth creation in the long run. The online hub will provide the SME network with world class learning experiences to boost skills and make the businesses a global model of professionalism. Through this partnership SWIFT and Microsoft joined the world in Celebrating SMES for Global Entrepreneurs week (November 16-20) where the new micro-enterprises and level ones took part in an online workshop. This was an excellent opportunity to raise SWIFT’s profile and also the profile of their members.

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Section 1.2 Challenges: what didn’t work as planned? (max 500 words) The baseline study conducted by ActivQuest (the local M&E provider) took much longer than originally agreed. The ActivQuest process was not fast enough to meet the June deadline; instead it wasn’t until December that the final report was produced. This delay impacted the project delivery as training planned to be delivered in the second quarter could not take place until the baseline data had been collected. SWIFT are pleased to have learned a lot from ActivQuest, however due to continued delays including the data collection for this report, another provider is currently being approached to act as a consultant on M&E for the remainder of this project. The new provider will act mainly as a support role to increase the capacity of SWIFT to manage and conduct its own evaluations. SWIFT are keen to be involved in every aspect of monitoring and evaluation and so are keen to use this opportunity to learn as much as possible for future implementation of M&E. The loss of Swazi Secrets due to their own internal organisational changes reduced the beneficiary numbers for year one. Whilst this was disappointing for this year’s figures, Swazi Secrets have since restructured and are in negotiations as to whether they can join the project in year two. In the meantime SWIFT has been building a relationship with a large sugar cane producer association who are keen to take part in the project. This will ensure the beneficiary numbers are dramatically improved for year two as well as assist in the diversification of SWIFT’s membership. (Traditionally their training has been aimed at the handcraft sector. This value added business will allow SWIFT to provide support to another type of business increasing their capacity further). SWIFT has experienced some staff changes this year which saw the recruitment of a new Country Manager who has since left. Whilst SWIFT have been able to bridge this gap with the Business Development Manager taking on the duties of the Country Manager as well as her own, the position has since been advertised with recruitment set to begin in January 2016. Parallel to this, the current Business Development Manager role has now been replaced by a new member of staff in December 2015. The previous Business Development Manager has agreed to remain in post as Country Manager until April to ensure a smooth induction of both the new Business Development Manager and Country Manager. All of these changes, whilst unsettling have not impacted the delivery of this project which is a credit to the staff at SWIFT. Capacity building is currently being developed for the Board to assess how staff turnover can be reduced. A visit by Shared Interest Foundation staff is also being scheduled to work with the new staff members on this project. Section 1.3 What have you changed or stopped doing? (max 500 words) As part of SWIFT’s capacity building, financial training was provided by Shared Interest Foundation and system reviews completed. The recording system has since been updated to allow for greater internal control in producing accurate and reliable financial reports. SWIFT are now also able to produce monthly management accounts which they send to an accountant. This has streamlined SWIFTs financial reporting system to an extent but still requires further adjustments which will be worked on in year two. The new M&E procedure has streamlined SWIFT’s approach to delivering training. Now, records are taken ahead of delivering training which provides the facilitator with information on how many participants to expect and with what level of expertise. This has improved the ability of SWIFT to deliver effective and efficient training. Whilst this element of internal M&E has been successful, SWIFT now need to learn how to analyse and utilise data collected on the progress of their Interim offline international grant annual report form valid from 19 th December 2014 Grant holder organisation name: Grant code: Page 3 of 29

member’s businesses as a result of training. This is will be a focus of change for year two. Initially the SWABCHA training on HIV and AIDs and wellbeing was going to be offered to one member of staff per business. Having spent time with the businesses, SWIFT are now aware of their high staff turnover rates and in an act to mitigate this issue, are offering multiple training places for each business. This will ensure that the learning lasts beyond the project. This has however restricted the number of businesses who have received training this year as the budget did not account for these extra participants. As such the budget next year will be adjusted to allow for extra participants. These extra funds will be redirected from savings made this year under training. At the beginning of this project, SWIFT staff were managing businesses according to who has first contact with each business. In order to support streamlining and improve communications, staff are now responsible for specific levels of businesses. This change in operation has ensured consistency in messaging to members and improved staff efficiency at SWIFT. In an effort to increase profitability for SWIFT and ensure that they are able to hit income targets, they have begun to transition away from the consignment model for some of the best-selling products at the retail shop. This will allow the purchase of stock at a wholesale price so that a mark-up can be added to generate more income for SWIFT. Section 1.4 Relationships: how have they helped and/or hindered your work? (max 500 words) Strategic relationships have enriched the project and ensured the success of this year’s activities. For example, when recruiting and advertising for the new 100 Micro Enterprises, SWIFT’s limited resources did not allow them to visit every region to distribute application forms. However, the Ministry of Commerce, Industry and Trade Regional Officers offered to distribute the application forms and then collect the completed forms. This ensured that the project reached rural communities where most of the Swazi population living below the poverty line are located. Without this relationship, the application process could have stalled. Another strategic partner engaged in this project is the Swaziland Investment Promotion Authority (SIPA). Through this partnership, SWIFT members benefited immensely in local trade shows and International Trade. SIPA provided a free space for the handcraft sector during the Annual International Trade Show conducted in August, and the Consumer Fair held in December 2015 (it was mainly Level ones who benefited in these events) whilst a Level three business, Ngwenya Glass, was supported by SIPA to attend New York Now. All of these connections are helping to build SWIFT’s profile as well as those of their members. In 2014, SWIFT applied to work with Crossroads International, an organization that works in capacity building and development by sending Volunteers to be hosted by Organizations in the developing world. SWIFT’s application was approved in 2015 with a Market Research Volunteer appointed to research on producer models and offer advice on capacity building for SWIFT. The research conducted by Crossroads has helped identify areas that SWIFT can improve its capacity. Future research will help inform how the producer clusters will be formed and coordinated in the future.

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Strengthened relations with the Ministry of Commerce, Industry and Trade have resulted in a commitment to support the project throughout its lifespan. The Minister of Commerce, Industry and Trade is now informed of the project activities and has been represented at all our events. For the first time, SWIFT members alongside Ministry of Commerce Officials attended the Botswana 2015 Global Expo Handicraft fully supported by the Ministry. At this event, Swaziland was awarded the Best Country with Handicraft (The Expo was conducted on the 23-27 November 2015), this EXAMPLIFIES SWIFT’s efforts in improving the handcraft sector in Swaziland. The Minister himself stated that SWIFT is directly improving the handcraft sector in Swaziland and is therefore proud to support SWIFT by attending events and keeping open communications. The partnership between Shared Interest Foundation and SWIFT has enabled learning for both partners. This year has provided Shared Interest Foundation an opportunity to continue it’s learn how best to support a partner of SWIFT’s size who is striving to become self-sufficient. For SWIFT, this partnership has ‘provided vital support in strengthening its foundations as a membership network. Through the continual staff support, from feedback on reports and budgets to financial support offered through the training visit, Shared Interest has improved SWIFT’s self-confidence as it strives to become self-sufficient’. 1.5 Numbers of people benefiting Type of people benefiting People directly benefiting :

Frontline workers:

Narrative description 5328 rural producers

Grant duration target Total M F 5,328 373 4,955

25 existing individual artisans

People helped to date

Total 4,061

M 343

F 3,718

Total 4061

M 343

F 3,718

100 new entry level artisans

100

Total number of people directly benefiting

5,453

192 peer educators

192

154

SWIFT staff

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People helped this year

4,161

Total number of frontline workers Other people benefiting:

199

750 youth in schools (Planned for year 2)

750

375

SWIFT board

Producer clusters (200 people) (Planned for year 2)

200

160

Total number of other people benefiting

957

1.6 How have you calculated the numbers helped this year and numbers helped to date? The numbers above are calculated from data gathered during the baseline study and the annual data collected annually from the businesses. The level two and three companies are required to accurate records of the producers they are using; allowing us to disaggregated this number by gender. For the new entry level artisans and level one, SWIFT keeps records of their numbers as it is not expected that these levels of business would keep records like this yet. SWIFT has three Business Development Officers, each officer is responsible for keeping records of the businesses the work with. It is this combination of data collection that has enabled SWIFT to calculate the numbers above.

Section 1.7 Progress towards grant-specific conditions attached to this grant (if applicable). Condition Progress No Grant Conditions.

N/A

Section 1.8 Overall grantee rating: please rate your grant below and give a brief explanation for your rating in the box underneath. (max 400 words for each

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rating) Grant performance 3 2 1 Despite the delay encountered with the baseline study, 95% of planned activities were successfully conducted. The Living Wage Study is currently in progress and will be completed in March 2016. The only activity not conducted this year was the Mentorship sessions.  For the new entrants we recruited 100 Entrepreneurs; however it was noted that most Entrepreneurs did not personally fill in the application form. Literate representatives from other organisations completed the application forms on their behalf. Shortly after shortlisting, the new entrants were invited to attend the first training and most of them did not continue. Illiteracy is a huge challenge among the handcraft sector, however for this SWIFT Business Training Development Programme; participants must be literate in order to be able to write assignments.  For the Level two/Level three businesses some are no longer active (due to circumstances out of SWIFT’s control) and this has contributed to a decrease in the numbers. We are confident that the numbers will improve as we have five new members who have joined SWIFT as Level twos. Discussions are currently underway with these businesses to identify how SWIFT can best support them Grant compliance 3 2 1 Shared Interest Foundation has kept open communications with Comic Relief and has met with the Portfolio Manager ahead of preparing this report. The new Project Manager at Shared Interest Foundation has also been introduced to the Portfolio Manager at Comic Relief to ensure continued good relations. SWIFT has been sending regular reports to Shared Interest Foundation in regard to activity delivery as well as monthly financial reconciliations. Both Shared Interest Foundation and SWIFT have kept good communications with regular meetings via Skype to ensure all learning opportunities are grasped. Grant learning 3 2 1  The focus on M&E is strategically linked to ensuring that the project produces sustainable results that benefit the target groups and their larger communities. The utility of data has not been used to its full capacity this year due to issues with the M&E contractor. Leaning from this year will enable a more detailed contract to be drawn up with another provider to better suit the needs of this project and SWIFT.  Launching the project to stakeholders ensured their participation and support throughout year one. This enabled SWIFT to draw out the interests of stakeholders in relation to the problems which the project is seeking to address.  In class training combined with follow up visits proved vital to applying new knowledge. Learning from the first project, we employed the concept of scheduling appointments with businesses in the order in which the groups were trained. This directly effects how the content is understood and presents an opportunity for tailored discussion based upon the needs of the individual businesses.  The need to refine our recruitment process of new businesses – most entrants did not personally fill in the application form; literate representatives from other organisations completed them on their behalf. As a result the participant numbers reduced to 79 from a possible 100. It is a learning point for the future that SWIFT may need to provide an entry point service for illiterate members to take part in projects such as this. For now, clear criteria for further Interim offline international grant annual report form valid from 19 th December 2014 Grant holder organisation name: Grant code: Page 7 of 29

  

advancement should be identified to all participants at the beginning of the program. These applicant will however be engaged in year two for the producer cluster training program. Since most of the new entrants are affiliated with other organisations, SWIFT needs to publish a training calendar in advance to reduce the possibility of participants being unavailable. Providing reminders three weeks prior to the date should also help to improve attendance. Rather than focusing on top management, the project was extended by inviting the middle management to attend the training sessions as well. This allowed them to take on more responsibilities and implement systems across different levels of the organisations. New members are starting to attend the training sessions following positive feedback and testimonials from other members. This is vital to increase the buy in from new members, and ensure that they are not only taking advantage of the market access, but gaining knowledge as well.

Section 2: Outcomes – what difference have you made? Your contribution to changing people’s lives Section 2.1 Planned outcomes Outcome 1 description Swazi micro-enterprises are operating as sustainable businesses providing local employment Please reflect on the progress you have made towards this outcome, and what you have learnt about the effectiveness of your approach. (max 500 words)

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SWIFT recruited 100 new enterprises who were invited to take part in a three month training programme. Unfortunately, it quickly became apparent that despite the business owners being asked to complete the application form, many of them sought help from others due to low literacy levels. As such, only 79 businesses completed this course. All of the 79 now have business development plans in place; this in itself will support the businesses in becoming more sustainable and improving profits. The most promising 30 of these 79 businesses then graduated to enrol onto the full training programme and are referred to as Level zeroâ&#x20AC;&#x2122;s. This project has offered the 79 participants a unique experience to explore business concepts through more practical activities and training in order to help improve their businesses. For the 30 Level zeroâ&#x20AC;&#x2122;s, their continued training will increase their chances of becoming sustainable and increasing their employment figures. This will continued to be monitored throughout the project. The remaining 49 businesses will be contacted when there is an opportunity to intake additional Level one members. We will also approach them for our producer cluster recruitment, as they may want to be involved in that training program. As well as receiving training, the Level one businesses were encouraged and actively supported to take part in a regional market access trip to the 100% Design Show in South Africa. The trip presented a unique platform and opportunity to Level oneâ&#x20AC;&#x2122;s to learn more about product design, the importance of creativity as a value to competitiveness and to identify some trends for the upcoming year. All of these aspects are vital in increasing profits and being able to adapt their business in times of change. The Level ones were also supported to sell their products through market access initiates hosted by SWIFT, which included attending events such as MTN Bushfire and The Christmas Market. At both events participants recorded an increase in sales. The SWIFT Retail Shop presents a further platform for the artisans to sell their products. Additionally, there were negotiations with a buyer from France who wished to purchase from two Level one Members; however her lead times were too short to deliver. She is considering placing an order in 2016 with ample time to produce. SWIFT will help to facilitate that order. In summary the Level ones have been supported to increase sales and grow their businesses. This is illustrated as six Level one businesses have created new opportunities for producers which contribute towards the overall reduction of unemployment in Swaziland. These six Level ones have graduated onto Level two as they recorded an annual turnover exceeding ZAR 50,000. The success of this approach is reflected in the membership subscriptions being paid by artisans as they can see the benefit in being a member. In order to improve the number of businesses accessing the training, SWIFT need to have a more refined application process setting out literacy as essential for participation.

*Data not correct so omitted from table. We have been unable to deduce why ActivQuest figures were different to SWIFT records as such these figures have been removed for this report.

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Quantitative indicators

Indicator

% changes in sales

Description

Baseline and targets from Start-up Form Baseline Target Target % number change (if total applicable

Total change in sales growth (in ZAR) from the baseline to end of Year 4 for the 55 micro-enterprises

L0: N/A L1: 327,959

# new producers employed

Engagement of new producers working for micro-enterprises on a regular basis

L0: N/A L1: *

# producers employed paid above minimum daily rate

Number of producers earning above 31.20 ZAR per day working for the micro-enterprises

(regular being employed for more than 3 months of the year as per Swazi employment definitions. Producers expected to be recruited from the producer clusters formed by the project)

L0: N/A L1: *

55 (x20 male and x35 female business owners) 200 (186 female, 35 male)

People benefiting this year

People benefiting to date

% change (if applicabl e)

Data collection methods

Total numb er

Monthly book keeping as programmatic tool to aid business development

L0:75 L1:17

Annual business review

L0:28 L1: 9

Annual business review

Total number L0: 278,420 L1:339,260

% change M 9 8

F 21 12

(if applicable)

30% average for level 1.

200 (186 female, 35 male)

Qualitative indicators Indicator

Description

Progress towards target (if appropriate)

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Data collection methods

Level of business resilience

Score on the sustainable business checklist, a tool that rates perceptions of resilience (such as governance, system development and profitability)

Confidence of business owners in the future of their business

Tool measuring perceptions of social capital results of business growth (confidence, morale, outlook, community status)

Due to staff availability issues with the M&E provider at this crucial time we are unable to provide a score for each level of business resilience. This analysis is based upon the trends SWIFT and SIF can identify from the raw data compared from the baseline to the end of Year one for Level one businesses. Level zero only completed a baseline at this point which will be compared at the end of Year two. Under the theme of ‘Corporate Governance and ethics’, Level ones improved in all areas covered by the training. Other areas that saw a reduction in the level of understanding such as ‘the number of businesses with a clear code of conduct’ are not a surprise. Participant’s perceptions are expected to change as a result of the new information given. This is often recorded as a regression as participants feel they know less once they fully understand the topic, before then going on to make an improvement which we expect to see in Year two. This is also the case under the theme of ‘Business Compliance’ where the ‘owner’s knowledge of taxes that apply to their businesses’ has initially reduced following the training. Under the themes of ‘financial strength and sustainability’ and ‘strategic planning’ Level one businesses improved in every area. For both level zero’s and level one’s the highest scores on the star tool are around self-worth and business outlook (interestingly, mirroring the highest scores for levels two and three), whilst the lowest scores are around commitment and flexibility. Overall there has been no significant change for the baseline data collected for the level ones on the elements measured by this tool. There have been small increases in the reported level of commitment and community status but not to a degree that is significant. Overall the baseline total of 5.1 for the level one businesses is the same as the average for all level zero and one businesses now.

Sustainable business checklist – a tool designed by SWIFT that measures elements of business sustainability and gives a rating

Star tools – completed during interactive interview sessions with participants where ratings are given on the star diagram according to the answers to prompt questions

Outcome 2 description (delete if not applicable) Medium and higher level enterprises have increased incomes for producers and created new jobs through increased sales Please reflect on the progress you have made towards this outcome, and what you have learnt about the effectiveness of your approach. (max 500 words)

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Level two and three businesses continue to perform well increasing their producer numbers by 151 this year and employing an extra 86 staff. Their turnovers are also generally increasing although there are some expected differences due to market fluctuations. They are making good progress and are already achieving the outcome of creating new jobs through increased sales. As for increasing producer incomes, businesses have expressed concerns that they are unable to actively pursue this goal whilst there is no agreed goal to aim at. SWIFT aims to push this outcome in year two once the ‘minimum wage research’ has been complete. The report is due to be finished by April which allows the businesses time to reflect on their current financial status and adjust their producers incomes accordingly. SWIFT’s approach in supporting Level two and three’s to improve their businesses was through offering tailored training that specifically addressed their individual needs. This approach was received well by the businesses as they are now sending middle management to attend training as they can see the benefit of applying the training across the different levels of their business. One of the highlights of the training provision was industry wide training conducted by experts from Canada, the United States of America and El Salvador on ‘Branding with Purpose’. This enabled the Level two and three’s to improve their knowledge on the changing landscape of consumers and what they expect from the brands they purchase. The training is proving to be a popular part of this project with the members, but is also being accessed by non-members who are paying. This would suggest that the training aspect of SWIFTs approach is a success. Another approach to improving income was through the market access opportunities The subsidising of trade shows enabled members to attend these events and experience first-hand the opportunity of increased sales as a direct result of participation. Trade shows enable the businesses to access new markets, network and share ideas. Members were able to minimise their costs in attending 100% Design, Indaba and Bushfire, with SWIFT covering the cost of overheads such as the cost of the stand. Trade shows have boosted the incomes of businesses who attended them thus proving the success of this approach and is where there is great opportunity to increase member’s sales in the coming years SWIFT’s direct marketing of members businesses to potential customers has also proved a useful tool to provide access to new markets. As the business environment is constantly changing, demanding organisations be more creative in how they adapt, SWIFT is supporting Level two and threes to develop a stronger purpose behind their brand and be able to communicate it to consumers. The general trend towards consumers wanting to be a part of a movement is continuing to increase. SWIFT is aiming to improve its own approach to fair trade advocacy in year two which will influence how it further supports with this aspect of business development. *Data not correct so omitted from table. Not enough businesses answered these questions making the data unrepresentative of the cohort.

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Quantitative indicators

Indicator

Description

Baseline and targets from start-up form Baseline Target Target % number change (if total applicable

% change in sales

Total change in sales growth (in ZAR) from the baseline to the end of Year 4 (29 businesses)

L2: 1,849,592 L3:165,094,539

29 (5 male, 29 female)

# new producers employed

Engagement of new producers working for the medium and higher level businesses on a regular basis

L2: 63 L3: 87

150 (4 male, 146 female)

% change in incomes of existing employees

Change from the baseline for contracted employees working for the businesses

L2: * L3: *

% change in income of producers

Tracking the change in incomes of the producers who are engaged by the businesses on a semi-regular basis (more than 3 months of a year according to Swazi employment act 1980) A new market will be geographically defined as South Africa, Africa Region and outside Africa as per the baseline report

L2: * L3: *

(373 male, 4955 female)

L2: N/A L3: N/A

29 (5 male, 24 female)

# businesses accessing and growing new markets

25%

People benefiting this year

People benefiting to date % change

% change (if applica ble)

Total number L2: 2,464,783 L3:109,338,445

M 2 3

F 10 8

(if applicabl e)

Total numb er

L2: 96 L3: 55

151

15%

L2: * L3: *

30%

L2: * L3: *

L2: 6 L3: 8

Qualitative indicators Interim offline international grant annual report form valid from 19 th December 2014 Grant holder organisation name: Grant code: Page 13 of 29

Data collection methods

Annual data gathering from business records

Producer surveys and company wage records(both methods will triangulate the information to check with both producer and employee on wages paid and income received) Producer surveys and company wage records

Sales reports, company records

Indicator

Description

Progress towards target (if appropriate)

Data collection methods

Level of business resilience

Business score on the sustainable business checklist, a tool that rates perceptions of resilience (such as governance, system development and profitability)

Sustainable business checklist – a tool designed by SWIFT that measures elements of business sustainability and gives a rating

Outcome 3 description (delete if not applicable) SWIFT operates as a viable and sustainable membership network providing quality services to members and advocating for fair trade in Swaziland Please reflect on the progress you have made towards this outcome, and what you have learnt about the effectiveness of your approach. (max 500 words)

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SWIFT’s newly developed ‘for profit’ arm, SWIFT PTY is a business model striving towards financial sustainability. The PTY arm manages income generated from training non-members and profits generated by the SWIFT Retail shop. In this year the income generated from trainings amounts to £22,696.98 and £6,477.36 from the shop. SWIFT is making good progress toward operating as a sustainable membership network and has achieved its target of 5% contribution toward costs this year. As part of SWIFT’s capacity building, two staff attended courses to improve effective operations. The Office Administrator attended a course on Financial Management while the Business Development Officer attended a course to improve the needs assessments of SMEs and to equip her with skills in providing effective support to new entrants. Further opportunities for staff training have been highlighted by an external evaluation by Crossroads International, a Canadian Volunteer Organization who has partnered with SWIFT for the next five years. In this report, it was highly recommended that staff attend training on ‘labour laws’ for use internally, as well as disseminating to their members. Shared Interest Foundation staff also highlighted a training gap in book keeping whilst delivering the financial management training. Both of these areas have been added to year two’s capacity building plan. It is also essential that increased training occurs with the SWIFT team to ensure sustainability and succession planning – going forward, it will be essential that SWIFT gain knowledge in the area of proposal writing, needs assessments and program development for increasing their non-member income. SWIFT’s current offer of training, trade access and advocacy matches SWIFT’s activities. Advocacy however is the lowest featuring activity which needs further development. This is another area highlighted in the Crossroads International report which stated ‘SWIFT does not have the expertise or resources currently to conduct the level of advocacy needed to put them on the map locally and internationally’. It was suggested that this should form part of the Board Development Plan in year two and assist its move away from operational tasks to strategic planning. This is strongly supported by both Shared Interest Foundation and SWIFT who agree that the Board needs additional support in improving Governance and Strategic Planning. It is hoped that this work will also identify the cause and solution of current high staff turnover. In the meantime it has been suggested that SWIFT develop a formal staff induction process to enable consistent messaging and enforce standardized procedures for new staff to be inducted in their new role, the organisation and also the wider picture of fair trade. SWIFT’s current training programme is very strong, with five new members joining the network this year. Their training manuals have been developed and updated ensuring the content is industry specific and relevant. The offer of support in both soft skills and formal business operation training has given SWIFT a good position within the training sector which is witnessed by the income generated by non-members paying for this training.

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Quantitative indicators Indicator

Description

% SWIFT core costs from nondonor sources Level of member satisfaction

Income generated that contributes towards running costs and salaries for SWIFT (both NGO and Pty), coming from sources other than the current Comic Relief funded grant Member satisfaction with SWIFT as a relevant, useful network providing desired services

# of new SWIFT members

Number of new businesses that join SWIFT and pay the membership fees regularly (meaning annual payment made on time). New members must sign up to fair trade principles

Baseline and targets from start-up form Baseline Target Target % number change (if total applicable

80%

75%

People benefiting this year % change (if applicable)

Total number

People benefiting to date % change

(if applicable)

Total numb er

Data collection methods F SWIFT financial records

6.7

7.6

Annual membership survey

SWIFT annual project records

Qualitative indicators Indicator

Description

Progress towards target (if appropriate)

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Data collection methods

Recognition of SWIFT as a credible partner

Opinions of key stakeholders on the credibility of SWIFT These will include the SWIFT membership, Investment promotion bodies such SIPA, small business development companies, SEDCO,SWABCHA, Banks and Business community including suppliers and distributors, the Funders and Government.

Confidence in SWIFT staff to deliver services to international customers.

Measured using SWIFT’s internal Perfect Order checklist which measures whether services to customers contain the right paperwork, correct quality, quantity, correct products etc.

Five stakeholders were interviewed; Ministry of Commerce, Industry and Trade- Principal Handicraft Officer, Swaziland Investment Promotion Authority (SIPA), Swaziland Arts and Culture, Swaziland Business Coalition on HIV and AIDS (SWABCHA, Swaziland Enterprises Development Company (SEDCO), The consensus amongst stakeholders was that SWIFT is an effective trade facilitator. It was also stated that trade facilitation is necessary for businesses in both the primary sector and secondary sector. Trade facilitation allowed businesses to gain access to opportunities that they would not have been able to access either through a lack of knowledge and/or resources. “…Getting your product known international is very important…” “…they as businesses need to know that they have to expand, explore…” The Perfect Order checklist wasn’t used last year as SWIFT didn’t have more than one order a month to develop a metric. The orders were too sporadic to do so. There is a metric at the end of each month where the number of orders sent vs how many were received perfectly match with the right paperwork and with no damage. This has started to be used early in 2016 with the first order shipped in late January.

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Semi-structured interviews

Perfect order checklist

Outcome 4 description (delete if not applicable)

Employees and producers of SWIFT member businesses have improved support for HIV/AIDs and wellbeing issues in the workplace Please reflect on the progress you have made towards this outcome, and what you have learnt about the effectiveness of your approach. (max 500 words)

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Companies were invited to attend HIV and AIDS and gender based violence training aimed at guaranteeing that addressing HIV and AIDs becomes part of the core business ethics of the private sector institutions. The project aims to extend the support to include producers who are working with the businesses to be sensitized on HIV and AIDS and gender based violence. It was a new experience for producers to leave work and focus on their wellbeing. To some, it was a therapy with quotes from participants including; “surely production will increase, having time to learn on HIV and AIDS and Gender Based Violence? It’s unbelievable I really appreciate the support”. Through the partnership with SWABCHA, the project is assisting companies to develop and implement an HIV and AIDs workplace policy. This is central to developing and implementing an effective workplace programme as it provides a framework for action within companies beyond this project. All the member businesses are encouraged to appoint a person to be trained as a Peer Educator. Peer education plays a crucial role in the dissemination of information regarding HIV and AIDs issues. It is an effective behavioural change strategy whereby people of equal standing are able to influence the behaviour of each other due to mutual respect. In this reporting period, 47 new individuals were trained in how to be an effective Peer Educator. The project also provided a refresher training to 30 existing Peer Educators to be sensitized on gender based violence, an area they were not trained on in the previous project. This means that the project has trained a total of 77 Peer Educators in year one. The Peer Educator as per SWABCHA’s requirements, conduct monthly workplace forums that promote open discussions not only about HIV/AIDs but other pertinent health and social issues of concern among employees. Requesting employees to suggest health and wellbeing topics to discuss is a great way to identify the needs of employees. Furthermore, discussions build a sense of ownership and responsibility regarding a healthy lifestyle and HIV prevention, as the combination of information dissemination and experience sharing enables employees to reflect on the social and health issues affecting our society today and explore the root of adverse behaviours and generate ideas on alternative behaviour. The success of this approach is seen in the active reporting of gender based violence incidents through Peer Educators. Through the peer education programme most level three businesses have initiated community projects that address poverty, health and education. In Swaziland it is estimated that more than half of the total population are orphaned and vulnerable children. Young girls seek help from men to get food for their younger siblings which often results in teenage pregnancy and many abandoned babies. The El Roi Baby Home initiated by Khutsala Artisan provides a home for babies who have been abandoned by mothers who could not care for them. This is just one example of how the peer education programme is impacting the communities as well.

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Quantitative indicators

Indicator

Description

Baseline and targets from start-up form Baseline Target Target % number change (if total applicable

People benefiting this year % change (if applicabl e)

Total number

# businesses establishing HIV and wellness committee

Number of businesses who have implemented the first vital step of implementing an HIV and wellness policy; to set up a wellness committee. For sole traders they will be given the opportunity to join a wellness committee co-ordinated by the SWIFT peer educator

N/A

# sick days taken

Tracking the number of sick days recorded (businesses with regular employees) to look for a reduction in days taken due to enhanced support in the workplace Employees or producers reporting an incidence to the peer educators. A decrease is expected over the course of the project

391

484

N/A

# employees /producers reporting incidences of genderbased violence

People benefiting to date % change

M 5

F 9

(if applicable)

Total numb er

Data collection methods F

Existence of the committee SWABCHA records

484

Business absenteeism records

2 committees 17 peer educators 2 have both.

Peer educator statistics (anonymised) Producer survey

Qualitative indicators Indicator

Description

Progress towards target (if appropriate)

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Data collection methods

Business leader awareness & understandin g of HIV/AIDs and wellbeing Employee/pr oducer knowledge and perceptions of HIV/AIDs and wellbeing

The owners and managers of SWIFT member businesses displaying an awareness and understanding of HIV/AIDs and wellbeing in the workplace

Not needed for end of year 1.

Knowledge, attitudes, perceptions and behaviours survey amongst employers (end Yr 2 and end of project)

Knowledge and perceptions of the producers and employees working for SWIFT businesses, of HIV/AIDs and wellbeing issues

Not needed for end of year 1.

Knowledge, attitudes, perceptions and behaviours survey amongst employers (end Yr 2 and end of project)

Section 2.2: Unplanned outcomes. (max. 350 words) Microsoft launched the 4Afrika initiative in 2013 to contribute to Africaâ&#x20AC;&#x2122;s economic development and improve its global competitiveness. It focuses on three pillars: world-class skills, access to technology and innovation. Microsoft Biz4Afrika is an online portal/hub that provides access to entrepreneurs around the African continent. The portal acts as an aggregator of content, offers, services and solutions for SMEs. Through this partnership all of the 79 new entrants, including Level ones, have email addresses and are registered by Microsoft into the BizAfrika online hub to have access to the freemium offers, networking opportunities, promotion of businesses product/services and to gain access to resources on how to start, grow and expand their business market. They will also be assisted to develop websites with Microsoft offering to host them for free.

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Section 3: Outputs â&#x20AC;&#x201C; what have you delivered? 3.1 Planned outputs delivered within the reporting period and to date since the grant began. (add more rows if needed) People benefiting this Output Description of output year Total M F 1 100 new micro-businesses recruited onto a 3 month training programme 79 16 63 2 Top achieving 30 new micro-businesses graduated onto full training programme 30 9 21 3 First 4 modules of 3 year training package for 25 existing micro-enterprises completed 21 9 12 4 Regional market access trip aimed at the micro-enterprises carried out 17 7 10 5 First 4 modules for the medium and higher level enterprises completed 23 11 12 6 SWIFT presence at the New York Now gift show 2015 1 0 1 7 Mentoring programme for medium and higher level enterprises 0 8 Research brief agreed on the living wage in the Swazi context. Research scheduled for early 2016 n/a 9 World Fair Trade day event hosted 1 event 10 First 12 session of HIV/AIDs and wellbeing training completed with 100 producers 47 5 42 11 First 6 session of wellbeing training completed with all 3 levels of business 43 13 30 12 First 4 training sessions with new peer educators completed 77 5 72

People benefiting to date Total M F 79 16 63 30 9 21 21 9 12 17 7 10 23 11 12 1 0 1

47 43 77

5 13 5

42 30 72

Section 4: Learning â&#x20AC;&#x201C; how and why has change happened? Your lessons learnt about creating change. 4.1 Your analysis: What have you learned this year? (max 400 words) The larger impact of increasing SME capacity on the wider issues of poverty relief and increased employment will be seen as the project progresses, with small changes already being witnessed this year including increased employment of staff and producers. SMEs in Swaziland still encounter problems of developing business plans, managing their businesses and keeping records. Because of poor record-keeping and other limitations, the economic impact of SMEs in GDP may not be easily ascertained. None-the-less, SMEs contributions economically and in terms of employment is significant. Research evidence has proved that SMEs have a significant role in a countryâ&#x20AC;&#x2122;s economic development process (Carland et al., 1984; Joubert and Akinnusi, 1993; Trevisan, 1997). They can serve as a seedbed for big businesses, generate wealth, offer employment opportunities, and generate new

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business ideas and concepts and many other valuable uses. In view of their immense contributions, SME’s have to be consistently monitored to enhance further their contribution to the society. This requires consistent review of the business ideas generated for relevance and assessment of their potential to strive and/ or survive in the contemporary world. As learning, SWIFT has identified that working one on one with the businesses will be important moving forward, especially to tailor training requests as per the changing business environment. Venturing into value added products is a great opportunity to diversify SWIFT’s member base and increase their capacity. They are however aware that as part of their membership offer, they must provide market access to these new members. This is an area SWIFT will focus on in year two. Productive networking has provided SWIFT with the opportunity to learn from some key influencers in the international handcraft sector, who expressed that some of their greatest growth was through non-traditional channels (corporate gifting, collaborations with technology brands, conferences) which allows for better margins and greater visibility if the brand is strong in itself. SWIFT will explore this opportunity and develop a program in which their members can access these opportunities. In the past SWIFT have, worked towards a corporate gift program – they aim to increase this program in year two. SWIFT has had many success stories this year including the graduation of six level one to level twos. This reinforces the fact that SWIFT’s current operational style is working well for its members, with members moving smoothly from one level to another.

4.2 Use of learning to change your strategy or activities. Describe the key lessons learned that have influenced your thinking. Switching from using paper-based record keeping system into electronic record keeping system - making it easier to capture information, generate reports Staff turnover is high within membership businesses making the training of one peer educator per business unsustainable.

What significant changes have you made to your strategy and/or activities during the course of this year or for next year based on what you have learned? For the new 30 Graduates and the Level one Businesses, will be trained on using computer to capture monthly sales electronically– one computer will be procured that will be used by the businesses to update the sales information to ensure that businesses get used to use computer for recording sales. Businesses are encouraged to invite multiple members of staff on the SWABCHA training programme to ensure life beyond the duration of this project.

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4.3 Use of learning to bring about change. (max 400 words) Traditionally, the methodology SWIFT uses is as follows: In Class Training: Once a month, SWIFT Business Development Officers conduct training for all the businesses according to their levels. These training sessions are interactive and engaging and provide a platform for information sharing. Homework and Field Visits: Following each training session, the SWIFT Training Team assigns homework to all artisans and companies. The team then conducts follow up field visits with each individual artisan and company to ensure comprehension of the modules and implementation of the concepts and theories. The homework is marked and scored and is one of three key metrics used to track the performance of the individual artisans and companies. On-Site Company Mentoring –Best Practices in Action: In addition to in-class training, the SWIFT Artisan Program also includes On-Site Company Mentoring – delivering Best Practices in Action. Some of our most successful members open their doors to allow lower level businesses to learn about their operations. Each organization specializes in a different area which was covered in the Modules i.e. Production Planning, Quality Control, Operations. This allows the companies participating in the training to learn from their peers and see these concepts in action. 4.4 Please list any learning resources produced during the year. (max 200 words) SWIFT L0 & L1 Training Manuals  M1: Your Business + Marketing  M2: Business Planning I  M3: Business Planning II SWIFT L2 & L3 Training Manuals  M1: Your Business + Marketing  M2: Production Planning Tools  M3: Costing, Pricing & Finance  M4: Sales Reporting & Forecasting SWIFT Training Templates  Product Specification Sheet  Production Planning Schedule  Sales Analysis Templates (By Customer, By Product, Year to Date)  Quality Control Checklist  Marketing Plan Outline SWIFT Marketing Materials Interim offline international grant annual report form valid from 19 th December 2014 Grant holder organisation name: Grant code: Page 24 of 29

 Pull Up Banner – Mission/Vision  Pull Up Banner – 10 Principles of Fair Trade  Pull Up Banner – Infographic  Christmas Market Banners & Social Media Templates  SWIFT Brochures Producer Organization Models & Market Report – compiled by Crossroads Volunteer 4.5 Sharing learning. (max 200 words) It is important to note that beyond improving the core capabilities of SWIFT and providing training opportunities for businesses, there is a need to increase synergy and coordination among stakeholders to improve communication and information sharing. It is in this regard that SWIFT convened a Stakeholder Information Dissemination event to share project success and learning. On December 10th 2015 stakeholders were invited to attend the Annual Stakeholder Information Dissemination event, in this event the 30 new graduates were formally introduced. In total there were 101 attendees made up of members and stakeholders. This event presented a unique opportunity to SWIFT to disseminate key learnings of the project to improve knowledge among the stakeholders on how the project is contributing towards the improvement of the economy. SWIFT also disseminate information through the media so to keep the general population informed about the training programme and trade events.

Section 5: Budget 5.1 How to submit the budget  Grants which were awarded before September 2013  Provide a financial report on the grant for the past year, based on the budget you presented to Comic Relief as part of your grant application.  Note original budgeted costs and actual expenditure. Describe the reasons for any major variances between your original budget and your actual expenditure in the column adjacent to the expenditure column. If your budget was under or overspent by 20% or more, please provide additional information in the box 5.2 below.  Complete the proposed budget for next year taking any changes, underspends or overspends from this year into account.  When the report is due you will receive a task to complete in GEM. Upload the budget file into GEM using the separate financial report upload section (question 1.2).

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 Grants which were awarded after September 2013  Download the budget from the Documents tab for your grant in GEM. Please read the notes on the Cover sheet and the Guidance tab as a first step.  On the Project information tab click the button relating to the year for which you are providing the report. Then enter your Actual figures on the Income and Expenditure tabs, describing the reasons for any major variances between your original budget and your actual expenditure in the Notes column. If your budget was under or overspent by 20% or more, please provide additional information in the box 5.2 below.  When the report is due you will receive a task to complete in GEM. Upload the budget file into GEM using the separate financial report upload section (question 1.2). 5.2 Reasons for under and overspend by 20% or more. (maximum 250 words) The overall spend for year one was 83% thus under the 20% threshold. Please see the budget lines for specific details of under/overspends exceeding the 20% limit.

Section 6: Future plan 6.1 Future outputs – what will you deliver in the next 12 months? (add more rows if needed) Output Description of output Output numbers for next year (if relevant, e.g. number of sessions)

Number of people for next year Total M F

First 4 modules of 3 year training package for 30 new microenterprises completed 30

Second 4 modules of 3 year training package for Level 1 microenterprises completed Training package for 20 producer clusters Craft and Create (formerly Design Indaba) for Level 1 microenterprises

200 15

160 10

40 5

3 4

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5 6 7 8 9 10 11 12

Seed funding for new 30 micro enterprises and Level 1 Second 4 modules for medium and higher level enterprises completed Mentoring programme for medium and higher level enterprises Fair Trade Advocacy Trainings in 25 schools Trade and impact SWIFT attendance (formerly ABW) Research completed into the living wage in the Swazi context World Fair Trade Event Hosted First 4 training sessions with new peer educators completed

45 23

31 15

14 8

2 sessions 750 5 1 report 1 event 45

23 750 5 114

15 375 4 23

8 375 1 91

6.2 Proposed changes to indicators. (if relevant, max. 500 words) Whilst there are no current plans to change any of the indicators for this project, a change in M&E consultant planned for early 2016 may result in some changes. The proposed new consultant is known by Comic Relief and Shared Interest Foundation and has a reputation as an excellent consultant. SWIFT and Shared Interest Foundation are looking to terminate the contract with ActivQuest as soon as possible and have the new consultant in place to support SWIFT collect any attainable missing data from the project up to date.

Section 7: Information for Comic Reliefâ&#x20AC;&#x2122;s marketing and communications needs 7.1. Case studies: real life examples of people helped "My name is Sibongaliphi Manana. I am a guy aged 26-years. I was born 22 September 1989. I live at Gebeni Community, which is an hour drive from Khutsala Artisan. I attended my primary school at a nearby school, Gebeni Primary School. This is where my parents decided that I stop schooling in Grade 5 due to lack of Interim offline international grant annual report form valid from 19 th December 2014 Grant holder organisation name: Grant code: Page 27 of 29

support for my school fees. I come from a family of seven children (five boys and two girls) and I am the fourth born. Both my parents were unemployed, they were only making traditional sandals, which didn't have a good market. As I was staying home I started helping my father when designing the sandals and that is where I got skilled. Without realizing I was talented, life was hard at home and so I decided to look for a job on the farm at Khutsala Artisan. Luckily I was employed in July 2015. Knowing I was talented, I decided to apply for a job and move from the fields to join the Artisans. From there I was able to help my family with food and paying for my little brothers school fees. I realize I belong to Khutsala Artisans because I come up with new designs. I am currently building a house for my parents. I am also attending driving school lessons I hope to drive a car one day”.

"My name is Nelsiwe Mndzebeli and I am a lady aged 29 years. I got married to a Nhlabatsi family at the age of 20 year. I have been married for nine years now. I started working for Khutsala Artisan in September 2014. I had no job before and I was a housewife. I had nothing to support my family of 15 people stay at home without a job. When I got the job in 2014 my husband was already working for Khutsala Artisan, but he became very sick and stopped working. Getting a job at Khutsala helped me a lot in feeding my family and taking care of my sick husband until he passed away in December 2014, leaving me without anything, but still living with his family. It was the same time whereby my only daughter was supposed to start attending her first primary school. Life wasn't easy afterwards with the family without my husband, such that it came to a point whereby I decided to move a little bit from their home and build my house away from them with the salary I got from Khutsala Artisan. It took me a long period of time to finish it because I was also using the same salary to pay for my six-year old daughter's school fees. In conclusion, Khutsala has been so beneficial to me and I have achieved a lot in life an in my family. Such that today I stand as a brave woman who fought poverty through a job I got at Khutsala Artisan." 7.2. What project money could buy £1

£20

£5

£50

Will pay for a craft producer to create a new product for market.

£10

Will pay for a craft producer to attend a craft fair.

£100

Will pay for one year’s worth of training for a craft producer.

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……

7.3 Did you or your partners receive any awards during the year? No awards for SWIFT however through SWIFT’s efforts in improving the handcraft sector, the Level ones who attended the Annual Handicraft Expo held in Botswana on the 23-27th November resulted in Swaziland being awarded the best country with handcraft

7.4 Social media: which social media do you use? SWIFT uses Facebook to share or exchange information, career interest or special events Level ones have what’s app group to share or exchange information

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