HELPING BUSINESSES GROW 2014 ANNUAL REVIEW
Shared Interest Foundation works with partners across the globe to help businesses grow
What we Do 2 Welcome 3 What We Stand For 4 Access to Finance 6 Swaziland 10 Rwanda and Peer Learning 12 The Board of Trustees 13 Using Money Wisely 14 Looking Forward 16 Photos: (front cover) Kabuboni, Kenya, coffee/milk; (right, clockwise from top left) Kabuboni, Kenya, coffee/milk; Kabuboni, Kenya, coffee/milk; GOIG, Tanzania, handcrafts; a Swazi wood carver
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Shared Interest Foundation provides support to fair trade businesses in the developing world: We provide financial management training. Tailoring our courses to suit businesses from start-ups to large co-operatives, we train on how to price goods, maintain good financial records and apply for finance. We build business support networks. Helping fair trade businesses break into new markets, increasing incomes and employment for producers. We help when disaster strikes. Channelling funds quickly to get businesses back on their feet when something such as natural disaster threatens their survival. We believe helping to build strong businesses is a sustainable way to fight poverty.
In 2014 we helped businesses in 8 countries
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Kabuboni, Kenya, coffee/milk
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WELCOME
Shared Interest Chair, Kate Priestley
This review of the year is a real milestone as it marks my final year as Chair at Shared Interest. When I arrived in post five years ago, the Foundation had just received its first major grant of £236,000 from the Big Lottery Fund to work in Rwanda for three years. I was fortunate to be able to visit Rwanda in 2011, when we were building a support network there, now known as RWAFAT (Rwandan Forum for Alternative Trade). Fifty handcraft co-operatives were able to grow their business because of our training and mentoring. This year, one of the trainers became RWAFAT’s Business Manager. Oliver Habiambez will help us seek funding for RWAFAT’s future development. In 2010, we secured £502,000 from Comic Relief for another three-year project, this time in Swaziland. Here, we created a fair trade support network called SWIFT (Swaziland Fair Trade), which continues to provide training support to the Swazi handcraft sector. This year, a project evaluation revealed that we have helped improve the income of over 5,000 Swazi people. Our Access to Finance project began in 2013. Partnering with Fairtrade Africa, we aim to train 150 businesses over two years. Comic Relief is providing the vital funding to help us engage with farmers and handcraft makers across five countries in East and West Africa.
Already, we have facilitated £2m of loan finance. This is double the target we set for ourselves, with six months of the project still to go. Thanks to funding from The Commonwealth Foundation, a two-year peer learning programme is bringing together partners in Swaziland and Rwanda with the Malawi Fairtrade Network, via Fairtrade Africa. Back in the UK, we were delighted to see another positive year in terms of individual donations. We also received highly commended in the International Aid and Development category at The Charity Awards 2014. Judge, Dorothy Dalton said: “For such a tiny charity with little money I was blown away by the thoroughness of their research and planning.” Shared Interest Foundation may have a small UK team but our in-country partners, a combination of local knowledge and experienced staff, along with crucial help from donors and other supporters here in the UK, means that our impact is significant. By helping businesses grow, we believe we can truly change lives, and it has been a pleasure to be part of the Foundation’s growth too. As we move beyond the Foundation’s first decade, we can already see the legacy of our training and mentoring, and the lasting impact it will have for generations to come.
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WHAT WE STAND FOR SHARED INTEREST FOUNDATION AND SHARED INTEREST SOCIETY WORK TO A JOINT MISSION: to provide financial services and business support to make livelihoods and living standards better for people as they trade their way out of poverty.
We work collaboratively and innovatively with those who share our commitment to fair and just trade. With a community of investors and the support of donors and volunteers, we seek to contribute to a world where justice is at the heart of trade finance.
OUR VALUES MEAN THAT WE:
Work co-operatively with our members as we take and share risk Value and engage our donors and supporters Encourage the commitment, talents and energy of our staff in an environment of mutual respect Work to recognised fair trade standards Respect the diversity of different cultures Place partnership at the heart of what we do
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GOIG, Tanzania, handcrafts
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ACCESS TO FINANCE Helping fair trade businesses grow across Africa
Funded by Comic Relief, our Access to Finance project works with farmers and handcraft makers in Kenya, Tanzania, Ghana, Uganda and Ivory Coast. With our partners Fairtrade Africa, we use local trainers to offer practical training and mentoring in financial management. This tailored approach is designed to help these businesses source the finance they need to grow.
Kabuboni Coffee Farmers’ Co-operative is a Fairtrade coffee producer situated on the eastern slopes of Mount Kenya. Farmers in the area usually rely on coffee as their main cash crop. However, in order to strengthen their business as reduced coffee prices continued to take their toll, Kabuboni were looking to diversify into milk production. After receiving specialist training and mentoring from our Access to Finance project, Kabuboni members have been able to find an extra source of income from dairy farming. A loan from Shared Interest Society has financed a cooling plant, which is used to store the milk at the correct temperature after it leaves Kabuboni’s collection centres. Philip Murithi Agostino said: “We were in dire need of funds for diversification. The training has helped us access this finance and subsequently increase the number of female employees as the majority of dairy farmers tend to be women.”
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In the first 18 months:
31 producer
organisations have been supported to apply for loan finance and in lending facilities has been approved.
ÂŁ2m Kabuboni, Kenya, coffee/milk
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ACCESS TO FINANCE Helping fair trade businesses grow across Africa
OF THOSE ACCESS TO FINANCE BUSINESSES SURVEYED IN A MID-TERM EVALUATION:
89% felt that it had filled a gap in their knowledge
82% had implemented
something new in their co-operative as a result of the training Altogether 16 businesses producing coffee, cocoa, cashews and handcrafts have become customers of Shared Interest Society The Access to Finance project will conclude in March 2015.
“It was very practical and allowed us to learn by dealing with our organisation’s challenges so we could come up with tangible results.” RSTGA (Rungwe Smallholders Tea Growing Association) Chief Executive Officer, Uganda
Getting Old Is to Grow (GOIG) is a fair trade certified handcraft organisation working in Dar es Salaam. GOIG provides women with vocational training and a vital livelihood, especially those living with grandchildren orphaned by HIV. They recently introduced a nursery and primary school, which has 50 children enrolled. This provides a lifeline for children whose families couldn’t otherwise afford education, to attend free of charge. Shared Interest Foundation worked closely with GOIG, offering them mentoring and business support to help them grow. Misana Manyama said: “The Shared Interest Foundation mentoring made a big difference. It has assisted us to know how to manage our finances, and how to keep our records.” Since receiving support from Shared Interest Foundation, GOIG has gone on to receive fair finance from Shared Interest Society. These funds have enabled the organisation to buy six new sewing machines, recruit 24 weavers, and re-employ 18 people who had previously been made redundant.
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GOIG, Tanzania, handcrafts
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Changing lives in
SWAZILAND With support from Comic Relief, we provided business training for the Swaziland handcraft sector over three years, and at three different levels – from individual artisans to exporting businesses. We helped establish business support organisation, SWIFT (Swaziland Fair Trade), with a board of experienced fair trade business leaders from the local community.
THIS YEAR, A PROJECT EVALUATION DETERMINED THAT WE HAVE:
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Supported businesses to increase their sales on average by between 10 and 29%, leading to the creation of jobs
267
Helped increase the income of their 5,328 rural handcraft employees by an average of 30% The evaluation concluded:
“There is a high likelihood that the project’s achievements will have a lasting impact in the lives of the project beneficiaries in the long term.”
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“ SWIFT has broken barriers, barriers between whites and blacks, barriers between millionaires and the poor, barriers to markets for entrepreneurs.” Comment from Level 1 artisan
Gone Rural, Swaziland, handcrafts
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Working together in
RWANDA We seek to continue working with our partners, even when funding isn’t immediately available. This year, Shared Interest agreed funding for a Business Manager post at RWAFAT (the Rwandan Forum for Alternative Trade). Head of Foundation Chris Pay went to Rwanda to assist in the recruitment of Oliver Habiambez who will dedicate his time in the coming year to develop member co-operatives. He will also assist us in seeking funding opportunities for RWAFAT’s future development.
Encouraging best practice through
PEER LEARNING With support from the Commonwealth Foundation, we’ve developed a peer-learning programme with our partner organisations in Malawi, Rwanda and Swaziland. This included best practice exchange visits for staff from these organisations. Organisations involved in the peer learning programme have also explored issues such as how to build a business support network, what fair trade means in their region, and how to develop sustainable income. As a result, they are now implementing business development plans. We have benefitted from being able to learn alongside our partners; this learning will be implemented when planning future projects. Sukumani, Swaziland, handcrafts
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The Board of Trustees role is to determine and monitor the
implementation of 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
Martin Kyndt
David Bowman
Kate Priestley
Pauline Cameron
Keith Sadler
Paul Chandler
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Financial Overview
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 five years these funds account for around half of our income, with the balance coming from the generous donations of individuals, groups, and legacies. These donations are vital as they allow us to develop and grow new projects based on robust needs analysis.
In 2014, we received support from the following trusts and would like to thank them for their contribution to our achievements this year: Dorema Charitable Trust Madeline Mabey Trust Morel Trust Rothley Trust SMB Charitable Trust St. Mary’s Charity Tisbury Telegraph Trust
INCOME AND EXPENDITURE Year ended 30 September 2014
Donations & grants Interest income Total income Cost of fundraising Charitable activities Governance costs Total expenditure Net (deficit)/surplus Transfers Funds brought forward Funds carried forward
Unrestricted Funds £’000
Restricted Funds £’000
Total Funds £’000
Year ended 30 September 2013 Unrestricted Funds £’000
180 89 269 130 1 - 1 1 181 89 270 131 43 - 43 31 115 176 291 106 3 - 3 3 161 176 337 140 20 (87) (67) (9) 4 - - (4) 139 141 280 148 163 50 213 139
Restricted Funds £’000
177 - 177 - 176 - 177 1 - 140 141
Total Funds £’000
307 1 308 31 282 3 316 (8) 288 280
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“ For such a tiny charity with little money, I was blown away by the thoroughness of their research and planning.” Dorothy Dalton, Charity Awards 2014 Judge
Kabuboni, Kenya, coffee/milk
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Beyond 2014
LOOKING FORWARD Thanks to further Comic Relief funding, we are looking forward to building on the success of our Swaziland project and we will launch a second programme with SWIFT in 2015. The plan for this stage is to ensure that in another four years from now, SWIFT can continue their important work without external donor funds. This year we developed a Theory of Change for Shared Interest Foundation. This involved consultation with project partners, businesses and beneficiaries in Swaziland, Malawi and Kenya, as well as Shared Interest staff and stakeholders. The end result forms a shared understanding of how we effect change to achieve our mission.
We see ourselves helping cultivate resilient businesses in a number of different ways: • Our Access to Finance work helps organisations grow their business sustainably. • By continuing to build business support networks in developing countries, we can help organisations become stronger in the face of adversity thanks to peer support and shared knowledge. • Where external shocks such as natural disasters threaten the ability of a business to continue operating, we provide small scale financial support through our Livelihood Security Fund. Fortunately this year we have not had cause to use this fund, however the fund continues to be there if required in 2015. These services are based on the ethos that providing business support for disadvantaged communities will allow them to harness the power of trade to improve their quality of life.
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“ We can help organisations become stronger in the face of adversity thanks to peer support and shared knowledge.” Ecojad, Ivory Coast, coffee
HELP US MAKE A DIFFERENCE Find out how you can support our work: www.shared-interest.com/foundation @SharedIntFdn
Shared Interest Foundation 2 Cathedral Square Groat Market Newcastle NE1 1EH
T: (0)191 233 9129 F: (0)191 233 9110 foundation@shared-interest.com www.shared-interest.com/foundation
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