BUILDING A FAIRER WORLD ANNUAL REVIEW 2016
SHARED INTEREST FOUNDATION CHANGES LIVES ACROSS THE GLOBE BY HELPING PEOPLE TO CULTIVATE RESILIENT BUSINESSES AND BREAK THE CYCLE OF POVERTY.
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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
SWAZI CANDLES, SWAZILAND, HANDCRAFTS
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.
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 fromfinancial training. In Malawi, eight tea andsugar 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.
SHARED INTEREST CHAIR, MARY COYLE
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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. 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 ÂŁ50,000 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
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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
No. 6
FINANCIAL MANAGEMENT TRAINING ACCESS TO FINANCE TRAINING
IN MALAWI
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.
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This year, we evaluated the impact of the project to see if our aims had been met.
so they could begin to understand their requirements.
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
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.” EASTERN OUTGROWERS TRUST
Peru
Colombia
Malawi
Businesses taking part in training and mentoring
15
10
8
Individuals that received training
82
100
47
Staff members of local support networks that received training
3
3
1
256.5
Hours of training delivered (28.5 days training x 9 hours per day)
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DEVELOPMENT OF KABUBONI
IN AFRICA
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. 8
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 rely 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” KABUBONI CHAIRMAN KABUBONI, KENYA, COFFEE/MILK
No. 42
No. No.4242
DAIRY DAIRY SALES SALES DAIRY SALES DAIRYSALES SALES VOLUME VOLUMESALESSALES SALES VALUE DAIRYDAIRY SALES VOLUME VALUEVALUE INCREASE INCREASE INCREASE
2016
345 345 345 metric metrictons tons
metric tons 2015 2015 2015
2016 20162016
120
120 120
90
90 90
60
60 60
30
915% 915% growth growthrate rate 915% growth rate
0
NUMBER OF NUMBER OFDAIRY DAIRY NUMBER OF DAIRY PRODUCERS PRODUCERS PRODUCERS
2015
2015 2015
Five Five more morepermanent permanent staff Five more permanent staff staff
30 30 $13,918 $13,918$13,918 00
2015 2016 2015 2015 2016 2016
TOTAL ASSET VALUE TOTALTOTAL ASSETASSET VALUEVALUE 2016
2015
2015 2015
KES7,374 7,374 KESKES 7,374 2016
2015 2015
718 718 718 2016
2016 2016
ATTENDING ATTENDING EXHIBITIONS EXHIBITIONS ATTENDING EXHIBITIONS
56 5656
producers producersproducers attended attended anattendedanan exhibitionabout about exhibitionexhibition about increasingmilk milk increasingincreasing milk production production production
2016 2016
KES KES KES KES KES5,808 5,808 KES 5,808 2015
2016 2016
£88,220 £88,220 £88,220
826% growth 826% growthrate rate 826% growth rate
AVERAGE AVERAGE AVERAGE MONTHLY MONTHLY WAGE MONTHLY WAGEWAGE
2015
+5 +5 +5
$11,888 $11,888$11,888
£48,283 £48,283£48,283
199 199 199
2016 2016
$29,284 $29,284 $29,284
Thousand Thousand ($)($) Thousand ($) 150 150 150 $128,896 $128,896 $128,896
34 34
34
STAFFINCREASE INCREASE STAFFSTAFF INCREASE
GROSS GROSS PROFIT PROFIT GROSS PROFIT
2015 2015
TRAINING TRAINING TRAINING
TRAINING TRAINING TRAINING
producerstrained trained producersproducers trained ininhusbandry husbandry in husbandry
producers trained iningood goodagricultural agricultural producersproducers trained in trained good agricultural practices and and gender gender related relatedissues issues practices practices and gender related issues
60 6060
26 2626
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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. 10
increasing antiretroviral treatment,however many businesses continue to be affected.
By training key members of each member organisation as ‘Peer Educators’, this follow-on This project came to a close in 2013. However, project is designed to help improve business last year we were granted new funding from productivity by focusing 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 ast decade Swaziland projects have subsequently been set up to has helped curb the HIV epidemic by address these needs.
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“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 No. 6
No. 7
THIS YEAR WE REACHED THE HALF-WAY POINT OF OUR FOUR-YEAR PROJECT IN SWAZILAND.
IMPACT OF FINANCIAL MANAGEMENT TRAINING
CASE STUDY
THOLAKELE SIBINDI RUNS HER OWN BUSINESS. SHE DESIGNS AND CREATES HAND KNITTED AND CROCHETED GARMENTS, Business taking part in training ACCESSORIES AND HOME DECOR. and mentoring.
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SHE SAID:
Individuals received training
“My life has changed since the training, my business is now Staffa members of in good hands and has a bright future. Crocheting was just local support networks received hobby for me but now it has become a business which I am training proud of.” “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.”
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 Colombia Peru No. 46 organisation.
15 82
10 Level 3
100
Annual turnover more than ZAR 100,000
3
This project has four main outcomes: •
•
•
•
3
Level 2
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 Malawi improvement in the livelihood of their producers and employees.
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SWIFT operates as a viable and sustainable membership network providing quality services to members and advocating for fair trade in Swaziland.
256.5
Hours of training delivered
Annual turnover less than ZAR 50,000
(28.5 days training x 9 hours per day)
Level 0 BACKGROUND IMAGE: A SAMPLE OF THOLAKELE’S HAND KNITTED GOODS
Newly registered fledgling businesses
343
Key
Male
Female
4061
indirect beneficiaries
1
3718
25
100
individual artisans trained
47
Employees and producers of SWIFT membership businesses have improved support for HIV/AIDs and wellbeing issues in the workplace.
Annual turnover more than ZAR 50,000
Level 1
BENEFICIARIES OF SWIFT PROJECT
75
5
77
Peer educators trained
40
businesses received business skills training and mentoring
72
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USING MONEY WISELY 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.
KABUBONI, KENYA, COFFEE/MILK
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
No. 43
Tisbury Telegraph Trust
USING MONEY WISELY
Fitzer Lacy Trust Nelson New Forest Foundation
Year ended 30 September 2016
Year ended 30 September 2015
Unrestricted Funds
Restricted Funds
Total Funds
Unrestricted Funds
Restricted Funds
Total Funds
101
137
238
130
258
388
1
–
1
1
–
1
Total income
102
137
239
131
258
389
Cost of fundraising
28
–
28
42
–
42
Charitable activities
106
202
308
114
116
280
Governance costs
3
–
3
3
–
3
Total expenditure
137
202
339
159
166
325
Net (deficit)/surplus
-35
-65
-100
(28)
92
64
Funds brought forward
135
142
277
163
50
213
Funds carried forward
100
77
177
135
142
277
£’000 Donations & grants Interest income
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.
Patricia Alexander
David Bowman
Mary Coyle
Pauline Cameron
Martin Kyndt
Paul Chandler
Keith Sadler
15
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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. 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.
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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 In memory of Tintsaba founder, Sheila Freemantle
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, Tel: +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