ANNUAL REVIEW 2012
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Welcome to Shared Interest Foundation Review of the Year Financial Overview Craft Industry Development Programme, Swaziland Skills for Sustainable Livelihoods Training, South Africa Coffee Co-operative Project, Ethiopia
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
WELCOME TO SHARED INTEREST FOUNDATION International development charity Shared Interest Foundation has been providing practical support to businesses in the developing world since 2004. Working with both successful fair trade businesses and individual entrepreneurs that are just getting started, Shared Interest Foundation runs projects that help businesses to thrive and create sustainable employment in their communities. The Foundation’s support goes beyond business training. Environmental projects have helped businesses to raise awareness of climate change and to operate in an environmentally sustainable way. Where natural disasters such as landslides and lightning strikes have threatened their very survival, Shared Interest Foundation has stepped in with a lifeline of financial assistance when businesses need it most. And in areas severely affected by HIV/AIDS, the Foundation has helped businesses to adapt and grow.
Through its focus on nurturing businesses, Shared Interest Foundation aims to help people achieve real and tangible outcomes for their communities. Š Henrique Wilding
YOU CAN CHANGE LIVES. NO MATTER HOW BIG OR SMALL YOUR DONATION IS TODAY, ITS LEGACY WILL BE PRICELESS. www.sharedinterestfoundation.com/donate
Š Henrique Wilding
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
REVIEW OF THE YEAR
SHARED INTEREST CHAIR, KATE PRIESTLEY
This has been another year of growth and development for Shared Interest Foundation as we continue to harness the power of trade to create thriving communities. We have seen real results through our work in the heart of communities across Swaziland, South Africa and Ethiopia. In Swaziland alone, 129 Swazi handcraft businesses have benefited from the business skills training project we are running in collaboration with Swaziland International Fair Trade Association (SWIFT), with funding from Comic Relief. We have continued to operate the Livelihood Security Fund to complement our business training programme. This supports producer groups who have experienced a natural disaster or other shock that could impact their chances of sustainability. This year we made a grant of $3,000 to Aprainores, a cashew nut co-operative of over 60 families in El Salvador. In October 2011, the farmers endured ten consecutive days of rain. The nearby river burst its banks, resulting in the warehouse being flooded, leaving over 40% of their stock damaged. Our funding helped the group to get back on its feet after the waters had subsided. Although our previously funded work in Rwanda has been concluded, we have been in contact with our partners to explore possible future support. We were encouraged that our partner in the project, Rwanda Forum for Alternative Trade (RWAFAT) secured capacity building support from the Belgian development agency BTC and we are considering the best way to continue to support these organisations and their producer groups.
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
In April this year we appointed Chris Pay as Head of Foundation and since then we have gone on to recruit two more members of staff. As part of his induction, Chris travelled to Swaziland to meet with our project partners SWIFT and a number of handcraft producers that have joined our main training project. Finally, we are currently carrying out a strategic review, which explores what type of work the Foundation should focus on in the future. As part of the process, a significant number of partner organisations and producer representatives are being consulted. This will ensure that our future project work responds to the needs of beneficiaries and is appropriate in the local context. The outcomes from this review will be available in early 2013. We are at a vital stage of the Foundation’s development and as we move into 2013, we look forward to encouraging entrepreneurialism, helping people reach their true potential and earn the fair living that everyone deserves.
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handcraft businesses have benefited from our training in Swaziland
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
FINANCIAL OVERVIEW Shared Interest Foundation relies on two funding streams, restricted and unrestricted. Our larger projects are funded by organisations such as Comic Relief. This is restricted income as the donor specifies which project it can be used on. Whilst Shared Interest Foundation retains control of the delivery of the project, we are not able to use this type of funding to develop the charity. Unrestricted funding comes from individual and group donors. Unrestricted funds are much more flexible and can be used to support a variety of projects of our choice. We are grateful for the generous support of a number of donors again this year and would like to say thank you to all those who donated unrestricted funds to Shared Interest Foundation through regular giving, one-off donations and legacies. We have been able to build our reserve of unrestricted funds by about £40,000 and this is vital if we are to take the work of the Foundation forward and grow and develop.
INCOME AND EXPENDITURE Year ended 30 September 2012 Unrestricted Restricted Funds Funds £’000 £’000
Donations & grants Total income Cost of fundraising Charitable activities Governance costs Total expenditure Net (deficit) /surplus Funds brought forward Funds carried forward
132 132 17 74 2 93 39 109 148
120 120 175 175 (55) 195 140
Total Funds £’000
252 252 17 249 2 268 (16) 304 288
Year ended 30 September 2011 Unrestricted Restricted Funds Funds £’000 £’000
82 82 31 121 2 154 (72) 181 109
68 68 234 234 (166) 361 195
Total Funds £’000
150 150 31 355 2 388 (238) 542 304
CRAFT INDUSTRY DEVELOPMENT PROGRAMME, SWAZILAND In 2010 we launched a three-year training project in Swaziland, funded by Comic Relief. The project was designed to include training in business and financial skills, market access and fair trade, as well as HIV/AIDS in the workplace.
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
CRAFT INDUSTRY DEVELOPMENT PROGRAMME, SWAZILAND Three levels of handcraft enterprises, ranging from those starting out to those who are already exporting, are benefiting from training and mentoring, with the most promising businesses graduating to the next level at the end of each year. The project is being delivered through our in-country partner, Swaziland International Fair Trade Association (SWIFT), by maintaining close relationships with those taking part; SWIFT has been able to adapt the programme to best suit the specific needs and abilities of participants. We have recently completed the first full year of training and so far:
SWIFT has built a strong fair trade network with a growing reputation The average income of producers has increased by 10% 24% of Level One businesses have graduated to Level Two Within Level One and Two businesses, sales have increased by an average of
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87%
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
CASE STUDIES
LEVEL ONE BUSINESS: Del’silse Del’silse lives in the hills of rural Swaziland. She sees her time best spent at home in the village, tending to the vegetable plot that feeds her family and weaving grasses from the hillside to make tablemats and coasters. However, it is vital she travels to the market every couple of weeks in order to sell these goods and earn a small income. The money goes towards the cost of fertiliser for her vegetables to improve the crop, medicines for the family and school uniforms for the children. Del’silse would love to earn more and invest in a goat or expand the range of food she is able to grow. A big dream of hers is being able to save some money for the future. Part of our Swaziland project training is learning about diversifying product range. Following her training, Del’silse discovered that by stitching several small coaster-sized mats together she could make a beautiful belt; a matching handbag was soon to follow. Empowered by knowledge and inspiration there are a range of choices that Del’silse is now making about her future. These include whether to sell through a retail outlet rather than making regular trips to the market and how to further develop her product range.
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
LEVEL TWO BUSINESS: Baobab Batik Batik is the art of decorating cloth using wax and dye, selected areas of the cloth are blocked out by hot wax. When the cloth is dyed the waxed areas resist the dye and remain the original colour.
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In 1991, Els Hooft established Baobab Batik with the purpose of sharing her passion for the craft and providing rural women with the opportunity to earn a sustainable income and achieve a better life for themselves and their children. Baobab Batik works with 25 women who all have a remarkable story to tell: Xolisile joined Baobab Batik in 2009 and is one of the newest members of their creative team. Xolislile’s mother © Henrique Wilding sold handcrafted goods to South Africa and as a result was able to pay for her children’s education. Inspired by her mother, Xolisile established a tuck shop in her local community, selling snacks. With the income she has earned from working at Baobab Batik, Xolisile has gone on to start a new business, importing goods from South Africa. She has handed over the tuck shop to her younger sister to give her the opportunity to develop her business skills. Xolisile’s entrepreneurial spirit has enabled her to commission a four-roomed house with electricity. Speaking of her success Els Hooft said: “Her determination, profound work ethic and vision point to a very bright and prosperous future. She offers true inspiration to other women across Swaziland.”
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women with a remarkable story to tell
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
CASE STUDIES LEVEL THREE BUSINESS: Coral Stephens The development of Coral Stephens is a story of partnership. Before moving to Swaziland in the late 1940s, Coral lived in Pretoria where she took up weaving as a hobby. Coral kept a loom in her garage that was noticed by a local maid, Sylvia Mantanga. The two struck up a friendship and when Coral moved to Swaziland because of her husband’s work, Sylvia came with her.
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Coral wove initially for herself using mohair to make curtains and other household items. Sylvia had been educated at a missionary school where a large proportion of the curriculum involved weaving. Sylvia provided much of the expertise that helped Coral to set up a weaving project. Together they established spinning groups within the local communities, providing looms and other equipment for the women that took part. The spinning groups gave the women an opportunity to earn an income and learn a valuable skill. These skills have been passed on through the generations and today over 60 years later, many of the staff members are related to those that made up the original spinning groups. In addition to developing their own business skills through the SWIFT training, Coral Stephens also hosted the “Best Practices in Action” mentoring sessions. The group invited SWIFT members into their workshop to discuss their operations and how they have managed to become one of the top exporting handcrafters within Swaziland, encouraging other businesses to learn from their wealth of experience.
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SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
SKILLS FOR SUSTAINABLE LIVELIHOODS TRAINING, SOUTH AFRICA Last year, in collaboration with the Cape Town-based social and economic development agency, Fetola, we launched the Skills for Sustainable Livelihoods programme. The project aimed to address the social and economic issues still faced by black communities in South Africa following the collapse of Apartheid. By providing practical business skills and raising fair trade awareness amongst black-owned businesses and social enterprises, we aimed to create a pool of local expertise that could be shared within the community for years to come; creating sustainable livelihoods for all. Over the course of six months, between January and July 2012, 19 craft producers completed the integrated training scheme. The group had access to business skills workshops, e-learning, individual support, mentoring and media/PR support. Between them, the 19 businesses employ a total of 243 individuals who have all benefited from the training – 79% are women and 82% black. The feedback at the end of the project shows a very high level of overall satisfaction.
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people have benefited from the training
SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012
COFFEE CO-OPERATIVE PROJECT, ETHIOPIA Two years ago, Shared Interest commissioned research into the potential scope for projects in Ethiopia. Following this research, Shared Interest Foundation felt that it could provide the most sustainable support by educating farmers on climate change and help them adapt to the real effects this could have on their crops and their livelihoods. As a result, this year we worked with climate change expert, Nick Virr to facilitate a climate change workshop with Yirgacheffe Coffee Farmers’ Co-operative Union. Yirgacheffe is made up of 24 producer groups, which between them represent 27,000 coffee farmers in southern Ethiopia. Representatives from each of the groups attended the three-day workshop, which highlighted the potential issues of climate change and how farmers could use the practical solutions explored to increase their own adaptability. The training also showcased the benefits of working together to share information and best practice techniques. This discussion reached further than climate change and showed how sharing information on costing and pricing, market access and other areas of business development could be of benefit to the whole co-operative. Government agricultural personnel and members of trade unions were also present at the workshops to discuss collaborative approaches. Shared Interest Foundation is exploring ways to assist this group further in 2013.
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YOU CAN CHANGE LIVES. NO MATTER HOW BIG OR SMALL YOUR DONATION IS TODAY, ITS LEGACY WILL BE PRICELESS. www.sharedinterestfoundation.com/donate facebook.com/sharedinterestfoundation twitter.com/si_foundation
Shared Interest Foundation No 2 Cathedral Square Groat Market Newcastle upon Tyne NE1 1EH T: (0)191 222 9129 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 is a registered charity, number 1102375 Cover photo Š Henrique Wilding