Shared Interest Foundation Annual Review

ANNUAL REVIEW 2012

CONTENTS

2 Welcome to Shared Interest Foundation4 Review of the Year 6 Financial Overview7 Craft Industry Development Programme,

Swaziland 12 Skills for Sustainable Livelihoods

Training, South Africa 13 Coffee Co-operative Project, Ethiopia

2 SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012

WELCOME TO SHARED INTEREST FOUNDATION

International development charity Shared InterestFoundation has been providing practical support tobusinesses in the developing world since 2004.

Working with both successful fair trade businesses andindividual entrepreneurs that are just getting started, SharedInterest Foundation runs projects that help businesses to thriveand create sustainable employment in their communities.

The Foundation’s support goes beyond business training.Environmental projects have helped businesses to raiseawareness of climate change and to operate in anenvironmentally sustainable way. Where natural disasters suchas landslides and lightning strikes have threatened their verysurvival, Shared Interest Foundation has stepped in with alifeline 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 onnurturing businesses, Shared Interest Foundationaims to help people achieve real and tangibleoutcomes for theircommunities.

YOU CAN CHANGE LIVES.NO MATTER HOW BIG OR SMALLYOUR DONATIONIS TODAY, ITS LEGACY WILL BE PRICELESS.www.sharedinterestfoundation.com/donate

© Henrique Wilding

© Henrique Wilding


REVIEW OF THE YEAR SHARED INTEREST CHAIR, KATE PRIESTLEY

This has been another year of growth and development forShared Interest Foundation as we continue to harness thepower of trade to create thriving communities. We have seenreal results through our work in the heart of communities acrossSwaziland, South Africa and Ethiopia. In Swaziland alone, 129Swazi handcraft businesses have benefited from the businessskills training project we are running in collaboration withSwaziland International Fair Trade Association (SWIFT), withfunding from Comic Relief.

We have continued to operate the Livelihood Security Fund tocomplement our business training programme. This supportsproducer groups who have experienced a natural disaster orother shock that could impact their chances of sustainability.This year we made a grant of $3,000 to Aprainores, a cashewnut co-operative of over 60 families in El Salvador. In October2011, the farmers endured ten consecutive days of rain. Thenearby river burst its banks, resulting in the warehouse beingflooded, 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 beenconcluded, we have been in contact with our partners toexplore possible future support. We were encouraged that ourpartner in the project, Rwanda Forum for Alternative Trade(RWAFAT) secured capacity building support from the Belgiandevelopment agency BTC and we are considering the best way to continue to support these organisations and theirproducer groups.

SHARED INTEREST FOUNDATION ANNUAL REVIEW 2012 5

In April this year we appointed Chris Pay as Head ofFoundation and since then we have gone on to recruit twomore members of staff. As part of his induction, Chris travelledto Swaziland to meet with our project partners SWIFT and anumber of handcraft producers that have joined our maintraining project.

Finally, we are currently carrying out a strategic review, whichexplores what type of work the Foundation should focus on inthe future. As part of the process, a significant number ofpartner organisations and producer representatives are beingconsulted. This will ensure that our future project workresponds to the needs of beneficiaries and is appropriate in the local context. The outcomes from this review will beavailable in early 2013.

We are at a vital stage of the Foundation’s developmentand as we move into 2013, we look forward to encouragingentrepreneurialism, helping people reach their truepotential and earn the fair living that everyone deserves.

handcraft businesseshave benefited from our training inSwaziland

129


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 specifieswhich project it can be used on. Whilst Shared InterestFoundation 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 tosupport a variety of projects of our choice.

We are grateful for the generous support of a number of donorsagain this year and would like to say thank you to all those whodonated unrestricted funds to Shared Interest Foundationthrough regular giving, one-off donations and legacies. We havebeen able to build our reserve of unrestricted funds by about£40,000 and this is vital if we are to take the work of theFoundation forward and grow and develop.

INCOME AND EXPENDITURE

Year ended 30 September 2012 Year ended 30 September 2011

Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds Funds Funds Funds Funds£’000 £’000 £’000 £’000 £’000 £’000

Donations & grants 132 120 252 82 68 150Total income 132 120 252 82 68 150Cost of fundraising 17 - 17 31 - 31Charitable activities 74 175 249 121 234 355Governance costs 2 - 2 2 - 2Total expenditure 93 175 268 154 234 388Net (deficit) /surplus 39 Funds brought forward 109 195 304 181 361 542Funds carried forward 148 140 288 109 195 304

(55) (16) (72) (166) (238)

In 2010 we launched a three-year trainingproject in Swaziland, funded by ComicRelief. The project was designed toinclude training in business and financialskills, market access and fair trade, aswell as HIV/AIDS in the workplace.

CRAFT INDUSTRY DEVELOPMENTPROGRAMME, SWAZILAND

© Henrique Wilding


Three levels of handcraft enterprises, ranging from thosestarting out to those who are already exporting, are benefitingfrom training and mentoring, with the most promisingbusinesses 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), bymaintaining close relationships with those taking part; SWIFThas been able to adapt the programme to best suit the specificneeds 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 Twobusinesses, sales haveincreased by an average of

87%

CRAFT INDUSTRY DEVELOPMENTPROGRAMME, SWAZILAND

© Henrique Wilding

© Henrique Wilding


CASE STUDIES

LEVEL ONE BUSINESS: Del’silseDel’silse lives in the hills of rural Swaziland. She sees her timebest spent at home in the village, tending to the vegetable plotthat feeds her family and weaving grasses from the hillside tomake tablemats and coasters. However, it is vital she travels tothe market every couple of weeks in order to sell these goodsand earn a small income. The money goes towards the cost offertiliser for her vegetables to improve the crop, medicines forthe family and school uniforms for the children.

Del’silse would love to earn more and invest in a goat or expandthe range of food she is able to grow. A big dream of hers isbeing able to save some money for the future.

Part of our Swaziland project training is learning aboutdiversifying product range. Following her training, Del’silsediscovered that by stitching several small coaster-sized matstogether she could make a beautiful belt; a matching handbagwas soon to follow.

Empowered by knowledge and inspiration there are a range ofchoices that Del’silse is now making about her future. Theseinclude whether to sell through a retail outlet rather than makingregular trips to the market and how to further develop herproduct range.


LEVEL TWO BUSINESS: Baobab Batik Batik is the art of decorating cloth using wax and dye, selected areas of the cloth are blocked out byhot wax. When the cloth is dyed the waxed areasresist the dye and remain the original colour.

In 1991, Els Hooft established Baobab Batik with the purpose of sharing her passion for the craft andproviding rural women with the opportunity to earn asustainable income and achieve a better life for themselves and their children.

Baobab Batik works with 25 women who all have aremarkable story to tell:

Xolisile joined Baobab Batik in 2009 and is one of thenewest members of their creative team. Xolislile’s mothersold handcrafted goods to South Africa and as a resultwas able to pay for her children’s education. Inspired by hermother, 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 goodsfrom South Africa. She has handed over the tuck shop to heryounger sister to give her the opportunity to develop herbusiness skills.

Xolisile’s entrepreneurial spirit has enabled her to commission afour-roomed house with electricity. Speaking of her success ElsHooft said: “Her determination, profound work ethic and visionpoint to a very bright and prosperous future. She offers trueinspiration to other women across Swaziland.”

25women witha remarkablestory to tell

© Henrique Wilding

© Henrique Wilding


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 inPretoria where she took up weaving as a hobby. Coral kept aloom in her garage that was noticed by a local maid, SylviaMantanga. The two struck up a friendship and when Coralmoved to Swaziland because of her husband’s work, Sylvia came with her.

Coral wove initially for herself using mohair to make curtains and other household items. Sylvia had beeneducated at a missionary school where a large proportion of the curriculum involved weaving. Sylvia provided much ofthe expertise that helped Coral to set up a weaving project.

Together they established spinning groups within the local communities, providing looms and other equipmentfor 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 thegenerations 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 skillsthrough the SWIFT training, Coral Stephens alsohosted the “Best Practices in Action” mentoringsessions. The group invited SWIFT members intotheir 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 theirwealth of experience.

CASE STUDIES

© Henrique Wilding

© Henrique Wilding


SKILLS FOR SUSTAINABLE LIVELIHOODSTRAINING, SOUTH AFRICA

Last year, in collaboration with the Cape Town-based social andeconomic development agency, Fetola, we launched the Skillsfor Sustainable Livelihoods programme. The project aimed toaddress the social and economic issues still faced by blackcommunities in South Africa following the collapse of Apartheid.

By providing practical business skills and raising fair tradeawareness amongst black-owned businesses and socialenterprises, we aimed to create a pool of local expertise thatcould 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 243individuals who have all benefited from the training – 79% arewomen and 82% black. The feedback at the end of the projectshows a very high level of overall satisfaction.

243people havebenefited fromthe training


Two years ago, Shared Interest commissioned research into thepotential scope for projects in Ethiopia. Following this research,Shared Interest Foundation felt that it could provide the mostsustainable support by educating farmers on climate changeand help them adapt to the real effects this could have on theircrops and their livelihoods.

As a result, this year we worked with climate change expert,Nick Virr to facilitate a climate change workshop withYirgacheffe Coffee Farmers’ Co-operative Union.

Yirgacheffe is made up of 24 producer groups,which between them represent 27,000 coffeefarmers in southern Ethiopia. Representativesfrom each of the groups attended the three-dayworkshop, which highlighted the potential issues of climate change and how farmers could use the practical solutions explored toincrease their own adaptability.

The training also showcased the benefits ofworking together to share information and best practice techniques. This discussionreached further than climate changeand showed how sharing informationon costing and pricing, market access and other areas of businessdevelopment could be of benefit to the whole co-operative.

Government agricultural personnel and members of trade unions were also present at the workshops todiscuss collaborative approaches.Shared Interest Foundation is exploring ways to assist this groupfurther in 2013.

COFFEE CO-OPERATIVE PROJECT, ETHIOPIA

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Shared Interest FoundationNo 2 Cathedral SquareGroat MarketNewcastle upon TyneNE1 1EH

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Shared Interest Foundation is a company limited by guarantee, registered inEngland, company number 4833073 and is a registered charity, number 1102375Cover photo © Henrique Wilding

Documents

Shared Interest Foundation Annual Review