globaleye malawi report slide

18
1 MALAWI 2012 Alquity Insight Trip

Upload: globaleye

Post on 19-Jan-2015

176 views

Category:

Travel


0 download

DESCRIPTION

Globaleye’s MD Scott Balsdon and Corporate Communications manager Katy Glover travelled to Malawi to see first-hand the sustainable projects funded by Alquity Investment Management and The One Foundation. Alquity, in partnership with UK registered charity The One Foundation, helps people in developing countries who struggle to earn a living and who do not have access to credit and savings services from large banks and financial institutions. Alquity donates a minimum of 25% of their net fund management fees from the Alquity Africa Fund to The One Foundation, which directly supports microfinance programmes to create jobs and lift people out of poverty. They also had the opportunity to visit schools supported by The One Foundation and help with their school feeding program. http://www.youtube.com/watch?v=xR1ZlzWrYeE

TRANSCRIPT

Page 1: Globaleye Malawi Report Slide

1

MALAWI 2012Alquity Insight Trip

Page 2: Globaleye Malawi Report Slide

2

Did you know...

• that there are over 61 million children living without education in the world?

• the average salary for a working male in the UK would build a school block in Malawi?

• that many children in the developing world have to walk many miles in order to attend school, sapping their precious energy, with no food at the end to sustain their brains?

• that it costs $650 per annum to educate a child in developing Africa?

• that 40 million children in Africa do not have access to any kind of education?

Page 3: Globaleye Malawi Report Slide

3

Introduction

Page 4: Globaleye Malawi Report Slide

4

Introduction

Globaleye’s Managing Director Scott Balsdon and Corporate Communications ManagerKatyGlover,spentfourdaysinMalawiinSeptember2012toseefirst-hand the sustainable projects funded by Alquity Investment Management and The One Foundation.

Alquity Investment Management, in partnership with UK registered charity The One Foundation, helps people in developing countries who struggle to earn a living and who do not have access to credit and savings services from large banks andfinancialinstitutions.

Alquity donates a minimum of 25% of their net fund management fees from the AlquityAfricaFundtoTheOneFoundation,whichdirectlysupportsmicrofinanceprogrammes to create jobs and lift people out of poverty.

Page 5: Globaleye Malawi Report Slide

5

Alquity-Anewtypeofinvestmentmanagementbusiness

Alquity Investment Management Limited (Alquity) is an exciting, vibrant and fast growing investment management company with a difference. Alquity represents the coming together of altruism and equity to form a new approach to investment management that aims to generate attractive returns for investors through a rigorous, sustainable investment process, whilst positively transforming the lives of people in the areas in which we invest.

Alquity believes that it is time for a shift in thinking that will revolutionise investment inemergingmarkets. Inafinancialmarketshakenbythepursuitofshort-termgain,it istimeforaninvestmentphilosophythatcompletelyredefineswhatweunderstandby long-term gain. That grows roots, instead of pulling them up.Where profit isn’ttheonlyreturn.Wherethebottomlineisalsoalifeline.Allthiswithoutcompromisingtheinvestment itself. That reinforces it, in fact. An investment that strengthens the economy in which it operates long term, and strengthens practices within it, thus is strengthening itself. This is that shift in thinking. This is our way of seeing the world:

Commercial sense + Common sense + Conscience = Fair prosperity = Alquity

Attractive returns from emerging markets = the Alquity Africa Fund

Africaisoneofthemostexcitinginvestmentstoriesontheplanetatthemoment.Withsignificantresources(20%oftheworld’slandmass,60%ofdiamonds,12%ofprovenoil reserves, 9% of natural gas and 40% of the world’s gold), a young and growing population, and low debt and high GDP growth, the continent is being talked about by everybody.

Financier George Soros recently described Africa as “one of the few bright spots on the gloomy economic horizon”; Bob Geldof has said that “Africa is a continent of extraordinary business and investment opportunities”.

Investing in the Africa investment story through Alquity offers investors a number of advantages:

• Africa specialists. Our fund managers are highly experienced. Led by David Mcilroy who has over 17 years’ experience of managing emerging market equities, they have beenspecificallyselectedtomanageourAfricaFund.

• Diversifiedone-stopaccesstotheexcitinggrowthpotentialoftheAfricancontinent-weinvestinthecompanieswethinkwillofferthebestlong-termgrowthopportunities-regardlessofcountryorsectorsowearenotconstrainedbyanindex.

• Astraight-forwardapproach.Thefund issimpletounderstandas itdoesnotusegearing nor derivatives and hence avoids unnecessary risks.

• Sustainable investment. The fund takes a sustainable approach to investing, ensuring that we are not investing in unethical businesses.

• Transforming lives - we donate aminimum of 25% of our netmanagement feerevenue to help people in Africa set up businesses to support their families over the long term.

Page 6: Globaleye Malawi Report Slide

6

The One Foundation is Alquity’s charity partner and all donations from their net management fee to OIBM are run through them. The One is a UK registered charity working with communities in Africa to address the most pressing humanitarian needs, such as clean drinking water, nutrition and sanitation.

The One Foundation funds projects in those countries where the need is greatest, working to positively and permanently change lives in the following ways:

WaterOne provide a range of sustainable water projects, using technologies that are appropriate to the communities they serve and that can be easily maintained. Now, instead of walking forhourstocollectwater,childrencangotoschoolandentirecommunitiesbenefitfromaccess to fresh drinking water. Hygiene & Sanitation Focusingonlargerschools,Onefundsbrick-builtventilatedpitlatrinesforgirlsandboyswithhand-washingfacilities,replacingunhygienicnon-reinforcedsandypitswithgrassscreen surrounds. This is supported with an education programme for the children and localcommunities thatcovershand-washingandbasichygiene,whichwill reducethespread of disease. NutritionOne works with the poorest farming families in rural African communities, helping them grow enough food to feed themselves, plus a little bit extra to sell. That way they can earn enough to see them through times when the crops fail. To this end, they fund vegetablegardenprojects-providingfamilycommunitieswithstart-upkits,equipmentandtrainingtoenablethemtobeself-sufficientandgrowmorenutritionalfood.

Sustainable LivelihoodsWorkingwith poor communities, One funds chicken-farming projects and a range ofmicrofinance initiatives.Theprovisionofcapital,materialsand trainingaspartofoursustainable livelihoods projects assists families in developing strategies to grow income andassets,helpingtostrengthentheirresiliencetodistresscausedbymarketfluctuationsand seasonal trends.

Community Health Targeting those communities that are grossly underserved by public health initiatives, One funds bicycle ambulances and community medical kits in remote African communities.

HIV/AIDSTo help address the issues associated with the HIV and AIDS pandemic, One funds Voluntary Counselling & Testing outreach clinics. The programmes take teams of nurses and counsellors to visit rural communities to help educate and raise awareness of HIV andHIV-relatedissuesaswellastestforHIV.

Page 7: Globaleye Malawi Report Slide

7

Opportunity International

Page 8: Globaleye Malawi Report Slide

8

Opportunity International Bank of Malawi OpportunityInternationalBankofMalawi(OIBM)offervitalmicrofinanceservicesto some of the poorest communities in Malawi, concentrating on those who are excused from the financial system. This includes female headed households,those affected by HIV/AIDS and those with no collateral. Interestingly 80% of the loans are given to women who have proved they invest the money more wisely than their spouses.

In Malawi people face innumerable barriers to growth, in particular access to credit. Few have access to safe saving facilities and insurance to build assets, increase income and reduce vulnerability caused by food shortages. OIBM currently has morethan250,000clients-themajorityofwhomliveonlessthanUS$2perday.

OIBM offers Microcredit programs to Trust Groups and individuals. These are tiny loans (as small as £35) which enable people to grow their businesses and break the cycle of dependency. Each microloan comes with a Microsavings Account to provide people with secure places to keep their money, protecting them against daytodaycrisesandevensoutseasonalincomefluctuation.OIBMalsoprovidesinsurance services to compliment this.

Many of OIBM’s Clients live in rural locations where they have no access to transport and in turn banking facilities, so OIBM runs multiple mobile banking units throughout the country which visit rural clients so they can deposit and draw out money.

In addition OIBM promotes HIV/AIDS awareness and provides leadership training in order to assist clients in maximizing their loans and making a success of their business ventures.

Page 9: Globaleye Malawi Report Slide

9

Doriska JomboDoriska is part of the Ndife Amodzi Trust Group and is now on her 10th loan cycle with Opportunity International Bank of Malawi.

Doriska owns a small market stall selling drinks and building materials such as nails.

Before she enrolled with OIBM Doriska used to borrow money from loan sharks with up to 100% monthly interest repayment rates.

Doriska’s first loan was 30,000 kwacha ($95) and she used this money to buy stock to grow her business. Her loans gradually increased as she proved reliable with her repayments.

Her expanding business capital provided enough profit to allow Doriska to purchase a refrigerator to aid beverage sales.

The profit delivered by her business will allow Doriska to send her 6 young children to school.

Mary BandaMary owns a tailoring business based in Ndirande, near Blantyre. Before becoming an Opportunity client, Mary had unsuccessfully tried to take out loans with other banks, but they would not consider her due to her lack of credit history.

Mary took out her first loan with Opportunity in 2008 when she borrowed 15,00 kwacha ($47) so that she could buy more stock for her shop. Mary is now in her 12th loan cycle, and after gradually building up the size of loan she receives, she is currently on her 5th repayment installment of a 45,000 kwacha loan.

Mary found the training given to her by the Opportunity International loan officer extremely valuable. She has adopted the business strategy taught to her and understands the importance of maintaining capital and keeping profits separate.

Profits gained from her tailor shop have allowed Mary to buy land and build her own house. Due to the financial and business support given to Mary, she has been able to put her 3 children through school and her daughter now owns a hairdressing business of her own.

OIBM Client Profiles

Page 10: Globaleye Malawi Report Slide

10

Ian SerutuIan owns a stall in Blantyre market selling cosmetic goods such as earrings, shampoo and make up.

He first learned of Opportunity International in 2008 when he joined the Tughanane Trust Group.

Victoria, Grace, Ian, Fortunate & Elliot make up the Tughanane Trust Group based in Blantyre. They have the largest loan pool of any of the trust groups in the area, totaling 2,270,000 kwacha. The group have a joint savings account to hold a proportion of the profits for the individual businesses to go toward repayments and to support any businesses that are not hitting their targets.

The group assist each other in their individual business ventures providing a trusting business support group and lasting friendships. In the future, Tughanane Trust Group hope to start a group business strategy in the financial services sector, providing a loan pool from which other business owners will borrow from.

Ian buys a lot of his stock from Tanzania and so has experienced difficulties purchasing new stock due to the devaluation of the kwacha. However, through the support of his trust group Ian has been able to keep up his loan repayments and with profits from his business he has bought a plot of land on which he plans to build a house for his wife and 2 children.In the future, Ian hopes to expand his business and own a number stalls in different towns.

Page 11: Globaleye Malawi Report Slide

11

On the Ground Following a visit to a local branch of OIBM and speaking with the bank manager to understand in greater depth OIBM’s structure, Scott and I are taken to meet several of their clients whose lives have been transformed by loans.

Thefirsttwoladieswemeet,DoriskaandMary,havebeenabletogrowtheir existing businesses with an OIBM loan. Numerous loan cycles later they are now able to support their entire family and educate their children.

One of the ladies, Doriska, has been able to buy a second hand refrigerator with her loan which has pride of place in her tiny house. Althoughitmayseeminsignificanttous,thisrefrigeratorhasallowedher to store her homemade drinks which she sells on her market stall. Doriska now has enough money to build herself a new house.

WhenIaskthembothwhatlifewouldhavebeenlikewithouttheloanthey both immediately reply “appalling”.Without a credit rating theonly option was to borrow from a loan shark who charged up to 100% interest. OIBM charges normal bank interest rates with the idea being that their clients can eventually reintegrate into the normal banking system without having to rely on charity.

Weleavetheirhousesandwalktheshortdistancetothelocalmarketto visit Doriska’s market stall where she sells her drinks. The market resembles a shanty town and stretches as far as the eye can see, but despite its size Doriska has been able to make a success of her stall thanks to stock purchased with her loan.

Page 12: Globaleye Malawi Report Slide

12

WeleavethismarketandtraveltovisitasecondgroupoffiveOIBMclientswhohavetakenoutagroupmicro-financingloanandwhoareOIBM’s most successful clients to date.

One of the stall owners, Ian, sells cosmetics which he imports from Tanzania. The recent devaluation of the local currency, kwacha, has meant that importation of goods has become more expensive and times are harder than they were before, but the OIBM loan cycle has kept his business afloatwhenwithout it he’s sure that his businesswould not have survived.

The trust group works as a team; if one of the group defaults on a loan repayment then the whole group is liable for the repayment. This forges a strong relationship of trust between the group members and they all strive to make their repayments on time so as not to let the other group members down. Obviously if one of the group does get in financialdifficulties thentheyaresecure intheknowledgethat theywill be supported until the situation recovers

Whatstrikesmewithalloftheclientswemeetistheirpalpablesenseof pride; they feel a sense of worth and self respect, secure in the knowledge that their children will have a better future than they had envisaged and that maybe one day the poverty cycle will be broken.

Katy

Page 13: Globaleye Malawi Report Slide

13

School Feeding Programme

Page 14: Globaleye Malawi Report Slide

14

One Porridge & Mary’s Meals

One Porridge is a collaboration between morning foods, Global Ethics Investment andTheOneFoundation,with100%oftheprofittoTheOneFoundationfromthe sale of this porridge going towards funding school meals in rural Africa.

Mary’s Meals, a charity which feeds the world’s poorest children in a place of education, receives a donation from each packet of One Porridge sold in UK supermarkets and manage the school feeding programme on the ground.

The Mary’s Meals campaign started in Malawi 2002 and the charity is now feeding over 470,000 Malawian children each school day, which is more than 17% of the primary school population. They are fed Likuni Phala, a locally sourced, maize based, porridge type mix.

Page 15: Globaleye Malawi Report Slide

15

On the Ground

We spend one morning helping with a school feeding programme. Theschool location is extremely rural; the 4x4 we are travelling in struggles to negotiate the rough terrain and it takes us a good 45 minutes to reach the school from the main road.

En-routewepassmanyofthechildrenwalkingtoschoolbarefoot,aswellas the school’s headmaster, all who have already walked for at least an hour. Wefeelguiltyfortravellinginavehicle,butthekidsallwavecheerfullyandrun after the car for a short distance.

Whenwearriveattheschoolmanyofthechildrenarealreadythereandthey crowd round us excitedly. They are soon called into line, separated by theirdifferentclasses,andaseachclasswalkstotheirfirstlessonthewholeschool bursts into song.

A huge vat of porridge is already cooking which will, in many cases, be the kids one main meal of the day. The porridge is made each school morning and Mary’s Meals have trained local mothers how to make it; however at least once a week a representative from Mary’s Meals visits the school to make sure the porridge is being made correctly. It’s easy to burn the porridge or for it to be the wrong consistency. It takes at least 4 hours each morning to make enough porridge to feed the entire school.

Whisttheporridgecookswesitinonseverallessons,thefirstofwhichisEnglish.Theclassroomsaretiny,withmudfloors, thatchedroofsandnoglass in the windows. Leaning against the back wall we feel it move, so it certainly isn’t a safe environment for anyone, let alone children.

The rudimentary benches are made of earth and there are no desks. Each child has one text book and two pens which they treat with care and respect.

Page 16: Globaleye Malawi Report Slide

16

Despite the conditions, all the children love to learn and are impeccably behaved. Speaking to the teachers regarding the impact the school feeding programme has made, they all said that the change in the children has been remarkable as they now have the energy and concentration to enable them to learn.

Theporridgeisreadytoservebymid-morningandwehelptodishitouttotheschool.The children wait patiently in line for their turn, each have been issued with their own plastic mug and spoon. It takes a good half an hour to serve all the porridge, after which we get to sample some leftovers. The porridge is warming, has a sweet taste and a thick consistency,andbytheendofthemugwefeelsatisfied,althoughit’shardtoimaginethat being our only meal of the day.

Oncetheporridgeisfinishedallthechildrengotothenearbywaterpumptorinsetheirmugs clean in preparation for the next day.

After porridge, and as a special treat in our honour, we spend several hours playing football, netball and singing games, a reminder that despite the poverty these children are no different from any other school children around the world. They are full of happiness and laughter and their enthusiasm and energy is humbling.

Whenthetimecomestoleavethereisarugbyscrumfortheemptywaterbottleswehave in our car – our rubbish is precious treasure for the children with the water bottles meaning they can easily carry and store the water from the pump.

Our journey back from the school is quiet and thoughtful one. It’s not exactly a feeling of sadness, as the kids seem happy and they know no other alternative. Maybe it’s a sense of hopelessness that whilst we go back to our nice lives they will continue the same struggle for existence, but we’re also thankful that at least they are receiving food and nutrition thanks to the wonderful work of The One Foundation and Mary’s meals.

Katy

Page 17: Globaleye Malawi Report Slide

17

Page 18: Globaleye Malawi Report Slide

18

PO Box: 24592, Dubai, United Arab EmiratesTel: +971 4 4043700 | Toll Free: 800 4558 | Fax: +971 4 3489331

Email: [email protected]

www.globaleye.com

For more information please visit:

www.alquity.com

www.onedifference.org

or call Globaleye on +9714 404 3700