BUILDING A FAIRER WORLD ANNUAL REVIEW 2015
Shared Interest Foundation changes lives across the globe by helping people to cultivate resilient businesses and break the cycle of poverty. Welcome 3 Swaziland 4 Sharing Best Practice 9 Access to Finance 10 Malawi 13 Using Money Wisely 14 Board of Trustees 15 Looking Forward 16
In 2015 we helped
263 businesses in 7 countries
TradeAID Integrated, Ghana, Handcrafts
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015 3
Welcome Shared Interest Chair, Mary Coyle
Welcome to Shared Interest Foundation’s Annual Review 2015, and the first since I became Chair of Shared Interest.
Farmers in Malawi have already benefited from improving their business and financial support skills thanks to our work with Malawi Fairtrade Network.
Throughout my career I have been involved in work that has been about helping people reach their full potential, both personally and professionally so it is a delight and an honour to join an organisation that has entrepreneurialism at its core.
We had been working with the Malawi Fairtrade Network for just over a year when they were hit by the worst flooding seen for centuries. Farmers saw crops washed away, and homes destroyed. Shared Interest Foundation’s Livelihood Security Fund – which helps organisations to start trading again when disaster strikes – became a vital means of support in helping Malawi Fairtrade Network’s members replant their crops and rebuild their livelihoods.
This year, an evaluation was carried out of Shared Interest Foundation’s Access to Finance project, which has been crucial in helping businesses in Africa get the finance they need to survive. Funded by Comic Relief, the project worked with farmers and handcraft makers in Kenya, Tanzania, Ghana, Uganda, and Ivory Coast. With partners Fairtrade Africa, we offered in-country practical training in financial management, followed by individual mentoring. This enabled the producer organisations to have loans approved, collectively totalling £2.5m. This will benefit 31,260 members of 24 organisations, bringing improved trading opportunities, new equipment and product diversification. We are now planning to roll this out in other countries and with the help of a donation of £50,000 from our sister organisation, Shared Interest Society, we can begin this work with co-operatives in Latin America.
We have not allowed geography to hamper organisations sharing knowledge and skills. Thanks to the Commonwealth Foundation, our peer support network now spans Swaziland, Rwanda and Malawi. This means that people can share learning and develop best practice, helping them become more sustainable; even though their businesses are based miles apart. This year Shared Interest Foundation was shortlisted at The Charity Times Awards in the Charity of the Year category. The organisation is enabling the entrepreneurs of tomorrow with that first foot on the ladder and that is something that is close to my heart.
4 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015
SWAZILAND
Changing Lives With support from Comic Relief we provided business training for the Swaziland handcraft sector over a three year period. We also helped establish business support network Swaziland Fair Trade (SWIFT), with a board of experienced fair trade business leaders from the local community. This year we were granted new funding from Comic Relief for a four year follow-on project beginning in January 2015 to continue working with SWIFT.
The new project has four main aims: 1 S wazi entrepreneurs are operating as sustainable businesses providing local employment 2 Medium and higher level businesses have increased incomes for producers and create new jobs through increased sales 3 SWIFT is operating as a viable and sustainable membership network providing quality services to members and advocating for fair trade in Swaziland 4 Employees and producers of SWIFT member businesses have improved support for HIV/AIDs and wellbeing issues in the workplace Through this project we will continue to focus on the development of SWIFT as an organisation, as well as looking at improving livelihoods for the artisans and producers. READ MORE www.shared-interest.com/foundation/swaziland
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015 5
“ S WIFT has broken
barriers between whites and blacks, barriers between millionaires and the poor, barriers to markets for entrepreneurs.
“
Raymond Mhishi - Artisan
Spoko Design, Swaziland, Handcrafts
6 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015
ABIGAIL LUKHELE NGIYAKHULA CROCHET Inspired by her mother as a child, Abigail’s career started off by crocheting doilies. Following her training, Abigail has developed her business to make more fashion-led items such as tops and skirts, and accessories such as beanie hats and berets. “I am now in a better position to price my products and calculate how much profit I make. Working this way has helped my business tremendously and I no longer run out of money for stock. “The training changed my life – after learning the importance of saving for my business, I started to save for my family. This enabled me to support my children without so much financial strain.”
ROBERT MKHONTA ROBERT & FAMILY CREATIONS Robert & Family Creations is a family business that was founded in 2006 by Robert Mkhonta of Nhlangano. The company creates unique wooden jewellery from neckpieces to earrings and has truly evolved following the product development sessions with experts. “This training has really opened my mind in terms of managing your business and how to treat your customers. I learnt that you must consider trends, customers, and seasons before making products. “I am gaining profit and using my money wisely. Most vitally, my sales are gradually improving so I am able to feed my family.”
DELSILE VILAKATI MAMA V Delsile Vilakati, a self-taught sisal weaver, founded Mama V handcrafts in 2004. Using sisal collected from the mountains, the dye for her products comes from the beautiful trees of Swaziland’s Mantabeni area. Delsile makes jewellery as well as accessories such as hats. She also makes jewellery boxes and placemats. “I have learnt quite a lot to grow my business, but what stands out for me is the importance of record keeping, including sales tracking. I am now able to use sales forecasting to set targets for my forthcoming months. My mind has been transformed after the product development training. I am able to think out of the box now and keep an open mind when it comes to developing new products.”
BHEKANI DLAMINI SPOKO DESIGN Bhekani was a weaver for many years before taking an interest in paper mâché. In 2009 he was inspired to make abstract sculptures using recycled paper. He now specialises in beadwork, metal work and painting. “What stands out for me is learning how to value my products. After this training, I discovered I was cheating my business. I reviewed my pricing and started monitoring my inventory and properly planning and budgeting how much raw material I needed. “The training has improved my life enormously. The highlight is being able to sell at the annual Bushfire festival that gives us an opportunity to make a volume of sales we wouldn’t normally Gone Rural, Swaziland, handcrafts make in one weekend.”
“ 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
“ We can help
organisations become stronger in the face of adversity thanks to peer support and shared knowledge.
“
Head of Foundation, Chris Pay
Satemwa Tea, Malawi Photo: Fairtrade Africa
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015 9
Sharing Best Practice The work undertaken by Shared Interest Foundation would be impossible without our international partners’ support. Over the past year we have worked with a number of different organisations, which have enabled us to increase our impact. The Commonwealth Foundation allowed us to bring together three of our core partners; Swaziland Fair Trade (SWIFT), the Rwandan Forum for Alternative Trade (RWAFAT) and Malawi Fairtrade Network (MFTN) into one project to facilitate greater learning and support. A number of different activities have taken place between the networks: •M FTN undertook a strategic planning process, helping them plan for the future. • SWIFT visited RWAFAT’s Business Manager and trained them on preparing businesses for trade shows. • RWAFAT took nine businesses to trade shows. This was the first exhibition for the majority of businesses. • SWIFT attended two South African trade shows with five businesses.
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. READ MORE www.shared-interest.com/foundation/sharing-best-practice
10 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015
ACCESS to FINANCE
TradeAID Integrated Established at the turn of the millennium, TradeAID Integrated in Upper East Ghana is hoping to help people improve their lives through farming and handcraft production. Previously the organisation was eroding its profit margins by depending on commercial vehicles to transport handmade baskets to port for shipment. TradeAID Integrated participated in the Shared Interest Foundation’s Access to Finance project. The project which was funded by Comic Relief and delivered in partnership with Fairtrade Africa provided the organisation with training in financial management enabling them to apply for a loan for a new truck. It is predicted that the truck will now reduce transport costs by half each year, and a dual use has already been established at the opposite end of the process for transporting straw to the craft centres.
Shared Interest Foundation provide financial services and business support to make livelihoods and living standards better for people as they trade their way out of poverty. READ MORE www.shared-interest.com/foundation/access-to-finance
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015 11
“ T he income I earn
from basket weaving has doubled per month and has enabled me to support my husband in the upkeep of the family.
“
Basket Weaver, Rhoda Apana
TradeAID Integrated, Ghana, Handcrafts
12 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015
Through the Access to Finance project producer organisations had loans approved totalling
ÂŁ2.5m
Cann, Ivory Coast, Cocoa Photo: Fairtrade International
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015 13
Malawi Financial Training This year we have been working with eight Malawian tea and sugar co-operatives, all members of the Malawi Fairtrade Network, to improve their financial management capacity. The project was developed following a needs analysis by the Malawi Fairtrade Network (MFTN). It identified tea and sugar producers as the weakest members of the network and most in need of improving their systems for managing finances, as a result we developed a short programme to meet this need. Thanks to the Malawi Fairtrade Network and the Charles Hayward Foundation, we have been able to help farmers look to the future with hope.
Livelihood Security Fund This year Malawi was hit by the worst flooding in centuries. Farmers from five MFTN co-operatives saw crops washed away and homes destroyed. Shared Interest Foundation’s Livelihood Security Fund, which helps organisations to start trading again when disasters strike, became a vital means of support. Thanks to our donors and the SMB Charitable Trust, we helped MFTN members replant their crops and rebuild their livelihoods. READ MORE www.shared-interest.com/foundation/malawi
14 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015
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 2015, we received support from the following trusts and would like to thank them for their contribution to our achievements this year: Charles Hayward Foundation Dorema Charitable Trust Gunter Charitable Trust Rothley Trust Tisbury Telegraph Trust
INCOME AND EXPENDITURE Year ended 30 September 2015
Unrestricted Funds £’000
Restricted Funds £’000
Total Funds £’000
Year ended 30 September 2014 Unrestricted Funds £’000
Restricted Funds £’000
Donations & grants 130 258 388 180 89 Interest income 1 - 1 1 - Total income 131 258 389 181 89 Cost of fundraising 42 - 42 43 - Charitable activities 114 166 280 115 176 Governance costs 3 - 3 3 - Total expenditure 159 166 325 161 176 Net (deficit)/surplus 92 64 20 (28) (87) Transfers - - - 4 (4) Funds brought forward 163 50 213 139 141 Funds carried forward 135 142 277 163 50
Total Funds £’000
269 1 270 43 291 3 337 (67) 280 213
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2014 15
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.
DAVID BOWMAN
PATRICIA ALEXANDER
Rose Craft, Swaziland, Handcrafts
MARTIN KYNDT
PAUL CHANDLER
PAULINE CAMERON
MARY COYLE
KEITH SADLER
16 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015
Looking Forward Thanks to a donation of ÂŁ50,000 from our sister organisation, Shared Interest Society, we are looking forward to building on the success of the Access to Finance project, by rolling a similar project out in Latin America. Small and medium sized producers in Latin America lack capital and have limited access to cash flow. Working with our partner, the Latin American and Caribbean Network of Small Fair Trade Producers (CLAC), our project will work with 10 co-operatives in Colombia and 15 in Peru in order to improve their financial capacity and understanding of how to access loan finance. Another key focus for the coming year is to continue our work in Rwanda. Working with our partner RWAFAT we aim to work with handcraft producers to develop their business and identify market oppportunities.
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2015 17
Shared Interest Foundation Pearl Assurance House 7 New Bridge St West Newcastle upon Tyne NE1 8AQ T: (0)191 233 9129 F: (0)191 233 9110 foundation@shared-interest.com www.shared-interest.com/foundation @SharedIntFdn
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
Ecojad, Ivory Coast, coffee TradeAID Integrated, Ghana, Handcrafts
Find out how you can support our work shared-interest.com/foundation
BUILDING A FAIRER WORLD