The Enterprise Development Programme.

e
s
i
r
p
r
e
t
n
E
e
h
T
t
n
e
m
p
o
l
e
v
e
D
.
e
m
m
a
Progr
11
w 20
Annual Revie
Annual Review 2011
CONTENTS
For further information contact:
Hugo Sintes EDP manager
01865 472 221 or hsintes@oxfam.org.uk
Kyle Johnson EDP contact
01865 473 915 or kjohnson@oxfam.org.uk
Annie Lewis EDP contact in Scotland
0141 285 8873 or alewis@oxfam.org.uk
www.oxfam.org.uk/edp
Proud to be different
People Director’s introduction A snapshot of the portfolio Manager’s review Interview with a supporter
Current portfolio: Colombia (dairy)
Ethiopia (food oil) Ethiopia (honey) Haiti (dairy) Honduras (vegetables) Indonesia (vanilla) Liberia (rice) Nepal (seeds) Pakistan (dairy) Pakistan overcoming the odds
Occupied Palestinian Territories
(natural foods) Philippines (moringa leaves) Rwanda (mushrooms) Sri Lanka (dairy) Tanzania (sisal) New projects: Ethiopia (food oil) Nepal (seeds) Interview with a mentor
4
5
6
8
10
12
15
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
47
48
49
50
“With Oxfam’s support our
enterprise is growing stronger.
Also our farmers have become
more self reliant, accessing
markets directly, making new
investments and earning more.”
Naul Singh Khatri,
Chair Pavitra Cooperative,
Nepal
3
Proud to be different
The Enterprise Development Programme (EDP) adopts
a private equity approach to building sustainable
businesses. We invest where others don’t go and
where the potential for social impact is highest.
Advisers to
the Committee
The EDP Board provides both
direction and financial oversight,
shaping EDP’s long-term
strategy and making informed
decisions concerning specific
businesses. Board members
also support fundraising
activity on an ongoing basis.
The EDP Investment Committee
(IC) of experts analyses
potential new EDP investments,
assesses the risk and return
of each proposal, and makes
considered recommendations
to the Board. For enterprises
that join the programme, the
IC monitors performance
and risk, whilst supporting
their development in order to
ensure ongoing commercial
viability and sustainability.
All EDP enterprises benefit from
the support of specialist global
and regional staff, covering
issues such as climate change
and gender equality, as well
as monitoring and evaluation.
Joss Saunders
EDP Chair, Legal Counsel and
Company Secretary, Oxfam
Vincenzo Morelli
TPG Capital, founder
But it’s not just about providing
capital. It’s about identifying business
opportunities, and helping entrepreneurs
develop and implement viable business
plans. It’s a pioneering, businessbased approach to development.
4 > Proud to be different
Investment
Committee
Penny Lawrence
EDP Director, International
Director, Oxfam
With your support, Oxfam provides an
intelligent mix of loans and grants to
small and medium enterprises throughout
the developing world, helping people
to work their way out of poverty.
EDP is unique and it works. It combines
Oxfam’s international presence and
experience with the finance and expertise
of our supporters and partners.
It creates wealth and drives change in
poor communities. Crucially, it helps
many thousands of people – especially
women – to work their way out of poverty.
EDP Board
David Gait
Maitri Trust, founder
Andrew Nicholson
Virgin London Marathon
“I joined the Oxfam
Enterprise Development
Programme as soon
as I heard about it and
looked into it.”
Vincenzo Morelli,
EDP Board Member
Jo Barnett
Virgin London Marathon
Sandy Arbuthnot
Private Supporter
Gita Patel
Stargate Capital Investment
Group
Chris West
Shell Foundation
David Irwin
Irwin Grayson Associates
David Pitt-Watson
Hermes Focus Asset
Management
Rachel Crossley
Broadwaters
Karl Hughes
Global Adviser, Programme
Effectiveness, Oxfam
Thalia Kidder
Global Adviser, Labour and
Gendered Economics, Oxfam
Alan Doran
Business and Finance
Adviser, Oxfam
Timothy Chambers
Business Adviser, Latin
America, Oxfam
Amit Vatsyayan
Regional Manager,
Asia, Oxfam
David Bright
Global Markets and
Enterprise Adviser, Oxfam
Sarah Marioni
Account Manager, Oxfam
Nicholas Colloff
Director, Strategy and
Innovation, Oxfam
Hugo Sintes
EDP Manager, Oxfam
5
Director’s introduction
This report marks the closure of the third year of the Enterprise Development
Programme (EDP). It also represents the halfway milestone in this pilot
initiative, which focuses on the promotion of viable rural enterprises
that create economic opportunities for women and poor farmers.
To date, the initiative has
supported sixteen enterprises
emerging from Oxfam’s
programmes in fifteen
countries; of which two
enterprises have now been exited.
The initiative is influencing the
way in which Oxfam conducts
programmes – increasing
business approaches at all levels –
from our country programmes
to the EDP Board, where the
programme’s strategy is defined.
EDP’s investees are all small rural
enterprises – often cooperatives
involved in agriculture or food
processing – which operate
in some of the world’s poorest
countries. Although they are
1
far from markets and business
support, with EDP’s help they
are selecting business and
market strategies that give them
a strong chance of success.
Critically, Oxfam works with local
organisations and authorities to
create an enabling environment,
and much-needed links to markets
and key services. Finally, Oxfam’s
investment is the first time that
enterprises have received funding
that is not a grant, an indicator
of their and our commitment
to business sustainability.
Their total (unaudited) revenues
amounted to £623,0001 in
As described in the Manager’s
review (page 10), seven of
fourteen enterprises are now
trading.
a total of 24,000 farmers, 32%
the last financial year, an
average increase of 39%
compared to last year.
In terms of social impact, our
poverty measures showed, for
example, that 89% of farmers
supported in Assosa, Ethiopia
lived on less than £0.50 a day
before our investment started;
a measurement that we will
repeat on project completion.
As Table 1 illustrates, portfolio
enterprises have so far reached
of whom are women. That this
has improved from a baseline
figure of 21% is positive, with
almost one in every two new
farmers joining these enterprises
being women. However, it is
also a clear reminder of the
challenging contexts in which
these enterprises operate, where
women’s access to land, services
and cooperative membership
is extremely low, even though
women grow most of the food.
Women’s representation on
enterprises’ boards has also
grown to 26.7% (compared to
12.5% in FTSE 100 companies
in 2010). It is our priority to
continue strengthening women’s
meaningful representation,
and we are working hard to
improve our learning and
performance in this area.
Various challenges have been
encountered during the running
of the programme. First and
foremost remains the
vulnerability of the environment.
Last year, it was earthquakes in
Indonesia and Haiti, and flooding
in Pakistan. This year, Pakistan
again, as well as the Philippines,
Colombia and Sri Lanka faced
their worst flooding in years; and
drought and parasites affected
crops in Honduras, Ethiopia
and Nepal. Oxfam recognises
the need to learn from these
challenges, and develop strategies
to better support enterprises in
adapting to, and mitigating, the
contextual risks they face.
For this coming year, I identify
a series of priorities. The first
of these is to maintain the
emphasis on the quality of the
programme, making sure that
businesses are growing and
delivering on their economic
and social objectives. We know
we have to redouble efforts on
business-skill development and
mentoring, for example. We also
want to continue growing the
size of the programme. There is
indeed a high level of excitement
among our staff and partners in
Asia, Africa and Latin America,
within Oxfam GB and in other
Oxfam affiliates, that EDP is
providing an excellent mix of
funding and capacity development.
Finally, we maintain our
commitment to share the
lessons from this initiative, and to
advocate for more and better
investment in small and rural
enterprises. Our joining of the
Aspen Network for Development
Entrepreneurs (ANDE) is already
proving critical for raising our
voice in this space. Oxfam has
also recently launched the GROW
campaign, our biggest ever
effort to drive a fairer food and
agricultural system
(see www.oxfam.org.uk/grow).
Our work through EDP is
providing a valuable example of
economic development that fights
poverty and empowers women.
In my final words, I would like to
thank again all supporters, without
whom none of this would have
been possible; as well as all
Oxfam staff and partners involved.
Penny Lawrence
Director, Enterprise
Development Programme
Penny is International Director at
Oxfam GB, a post she has held since
2006. She was previously Director
of International Programmes at VSO
(Voluntary Service Overseas) and
Vice-Chair of BOND, the leading
network of UK-based INGOs.
See Table 1, page 6: EDP Global Indicators. Sales figures are unaudited and include all trading companies except for Haiti. Other data are based on available figures.
6 > Director’s review
7
Table 2: Commitments and disbursements per country as of 31st March 2011
A snapshot of the portfolio
GBP 000’s
Table 1: EDP global indicators
Indicator
–
Enterprise revenues
(GBP 000’s)
Total
448
623
64
89
Increase
–
39%
Baseline*
2010/11
18,757
23,954
Total
Farmers supplying to enterprises in last
six months
Full-time equivalent (FTE) jobs in
enterprise only
2010/11
Average
Indicator
Farmer members of the
enterprises
2009/10
Average
1,340
1,711
Average
205
642
Total
32
69
Total
Disbursed
%
Business
grant
Project
grant
Loan
Loan
disbursed
Indonesia/KWMY, vanilla
117
89
76%
78
39
0
–
Palestine/NFC, food
119
119
100%
89
20
10
->
Liberia/AMENU, rice
150
150
100%
126
24
0
–
Haiti/Let Agogo, dairy
100
30
30%
50
16
34
->
(Unaudited) Adjusted data from 7 enterprises
which are trading – not Haiti – (for the 3 trading for
one quarter, revenues were adjusted to 1 year)
Subtotal cohort 1
486
388
86%
343
99
44
0
Tanzania/Sisal suppliers
152
54
36%
45
44
63
19
£2.9k unrealised
exchange loss
Ethiopia/Assosa, edible oil
201
184
91%
27
67
107
94
1st £4.4k repaid,
£72k provisioned*
Note
Honduras/Aproalce,
vegetables
176
150
85%
55
21
100
93
Rescheduled
£69k provisioned*
Used data from all 14 projects
Sri Lanka/Vavuniya, dairy
125
19
16%
51
20
54
0
Loan on stand-by
Colombia/Dairy suppliers
132
61
46%
77
55
0
–
Based on data from 10 enterprises (for which
information is available)
Subtotal cohort 2
786
468
60%
255
207
324
206
Palestine/NFC, food (Phase 2)
263
173
66%
0
140
123
26
Based on data from 9 enterprises
Pakistan/Chenab, dairy
165
36
22%
63
63
39
0
Ethiopia/Zembaba, honey
237
24
10%
85
63
89
0
40
Nepal/Pabitra, seeds
152
56
37%
42
35
75
Libas/Philippines, moringa
107
17
16%
27
21
59
0
Rwanda/BN, mushrooms
79
0
0%
24
25
30
0
Farmer members
21%
32%
Based on data from 13 enterprises
Full-time equivalent (FTE) jobs in enterprise
34%
42%
Based on data from 9 enterprises
Subtotal cohort 3
1,003
307
31%
241
347
414
66
General Managers
17%
22%
Based on data from 11 enterprises
Ethiopia/Assosa, food oil (Phase 2)
252
0
0%
32
65
155
0
Directors on Board
24%
27%
Based on data from 11 enterprises
Nepal/Dafacos seeds
174
0
0%
35
64
75
0
Subtotal cohort 4
426
0
0%
67
130
230
0
Total all cohorts
2,701
1,163
51%
906
783
1,012
272
53
46
60
89%
N/A
89% farmers lived under £0.5/capita/day [Ethiopia
oil survey only]
*‘Baseline’ refers to the point in time before Oxfam EDP’s support. Oxfam measures indicators such as household income, food security and
women’s empowerment through quantitative surveys. A more complete report will be available next year.
32%
Women’s
participation
across EDP’s
portfolio
42%
34%
21%
22%
17%
24%
27%
Average all cohorts
2010/11
Farmer members
8 > A snapshot of the portfolio
2009/10
2010/11
FTE jobs in enterprise
2009/10
General Managers
2009/10
Value 31/3 net of
provisions: 128k
St Lucia/Belle Vue, fruit
50
50
100%
33
17
0
-
Russia/FORUS, microcredit
169
169
100%
47
0
122
->
Fully repaid
(£2.4k exchange loss)
383
71
19%
986
800
1,134
412
Includes repaid loans
Global costs
Management salaries,
other costs [6 years]
2010/11
159
£8k disbursed repaid
Exited investments
Contingency fund [3 years]
2009/10
Fully repaid
(£1.2k exchange loss)
Note
Women participation (%)
Household income
Note
2010/11
Directors on Board
300
10
3%
Total commitments
3,603
1,463
40%
Fundraising income
3,533
3,143
89%
*Provisions include allowance for exchange losses (£22k for Ethiopia, £3k for Honduras)
9
Manager’s review
At the halfway point of Oxfam’s Enterprise Development Programme, smallholder
producers and enterprise leaders are really beginning to see the impact of their
hard work. It is my pleasure to be reflect on the last 12 months, what has been
working, where we’ve faced challenges and what we’ve done to overcome them.
This year, the EDP Board
recommended a slower growth
of our portfolio in order to
consolidate existing enterprises
and identify key lessons, so
this has been our priority. Our
target remains to double the
number of investments in the
next three years, but we welcome
the opportunity to learn and
continuously adjust our model.
The programme is supporting
fourteen enterprises, after two
were exited (FORUS in Russia and
Belle Vue in the Caribbean). Seven
of these are trading. One of the
businesses that started trading
this year is Assosa (Ethiopia),
whose sales of seed oil in its
10 > Manager’s review
first quarter of operations
equalled the value of seeds sold
the year before. Of the seven
that are not trading, five have only
just joined the programme; one
(ULBCS in Sri Lanka) suffered
delays linked to the post-conflict
situation; and another (Amenu in
Liberia) prioritised expanding its
rice production for farmers’ own
consumption to meet high levels of
food insecurity. We have learned
lessons from these experiences
that will help us in the future.
On average, enterprises’
revenues grew by 39%, ranging
from a 0% growth in Colombia
(where national milk production
dropped by 50%) to a 200%
growth in Honduras (where a
newly-appointed mentor led a
major business review). These
results are still, however, below
our expectations. We know that
growing enterprises in regions
where markets and policies are
weak takes time, but I would like
to highlight two other factors:
> Enterprise capacity.
The enterprises have capacity
gaps. After carrying out Enterprise
Diagnostics, we supported the
appointment of new posts,
mainly general Managers and
finance officers and assigned
additional mentoring when the
enterprises (which are small and
remote) couldn’t find specialised
staff. We also placed, together
with Challenges Worldwide
(www.challengesworldwide.com),
highly experienced individuals
in two enterprises, and will
roll out this scheme this year.
Whenever needed, we used
the Contingency Fund set up
this year to cover for these.
> External factors.
From this year, we are carrying
out stronger risk assessments
with the aim of reducing
vulnerability to natural disasters
and other risks. This prompted
Libas in the Philippines to plant
trees higher than flood-risk areas
and Pabitra in Nepal to plan for
better water management. More
work is needed in this area, too.
Regarding new investments, this
year we only reviewed eight
proposals, and are in the final
stages of due diligence with two
of them: another vegetable seed
business in Nepal and a follow-on
investment in Assosa, Ethiopia,
which will allow the business
to consolidate and expand.
As for the loan fund, the first two
loans were repaid in full, albeit
generating a 3% exchange loss.
As shown in Table 2, EDP has
disbursed a further £272,000
which, as of March 2011, had
an adjusted value of £128,000.
The difference is explained by
unrealised exchange losses,
and provisions for loans from
Assosa (which has since started
repaying its loan) and Aproalce
in Honduras (with whom we
agreed a new repayment
schedule). We are also still
improving the timing of the loan
agreements, working with more
formalised financial institutions
and – thanks to the support
of Advocates for International
Development (www.a4id.org) –
incorporating clearer structures
of risk-sharing with the banks.
In terms of social impact,
the enterprises are showing
progress in creating
opportunities for poor farmers
and women. The percentage of
jobs created for women is lower
than expected, but there has been
better – in a few cases, massive
– progress in engaging women
farmers. This was thanks to the
commitment of many women, and
the support of senior enterprise
staff, partners and community
leaders. Each project is also
influencing the wider sector. In
Sri Lanka and Indonesia, local
authorities allocated land or
resources to support the dairy
and vanilla sectors; whereas in
Colombia and Sri Lanka, Oxfam
worked with large processing
firms to create fairer terms
for farmers living in poverty.
I want to thank colleagues at
Oxfam, the EDP Board and
Investment Committee for
continuing to share their passion
and skills, and to make this
an even stronger initiative.
Hugo Sintes
Manager, Enterprise
Development Programme
Hugo has more than 12 years of
experience in enterprise development
and finance in both the private and
voluntary sectors. He has been
at Oxfam for four years and EDP
Manager since January 2009.
11
Ursula van Almsick
explains why she
supports EDP
“XXXXX XXXXXXX XXXXXXXXXX.”
Ursula
van Almsick is a fund Manager with
XXXXX XXXXXXX
Capital International and has been a major
supporter of Oxfam for more than ten years.
In the last three years she has focused
her support on EDP.
12 > Interview with a supporter
1. When did you start
supporting Oxfam and why?
About ten years ago, one of my
colleagues encouraged us to
help fundraise for the Afghanistan
appeal through a matching gift
programme. Apart from many
other things, I also liked the fact
that Oxfam had a presence in
Latin America, where I grew
up and where I relate to.
2. In the past few years you
have focused your support
on Oxfam’s Enterprise
Development Programme.
What aspects of the
programme attracted you?
EDP focuses on self help,
and the beauty of the business
model is that repayment of the
loan will fund future projects.
So you give one dollar or pound,
but in a successful investment,
it gets reutilised for the next one.
EDP goes primarily into very
poor rural areas, and enables
a group of hardworking local
people to work in a business that
will have a high social impact,
be sustainable and grow.
3. As a professional
investment adviser, do you
have any suggestions how
EDP could be improved?
EDP will gain experience from
things that go well and finding
out what works less well.
You need to focus on doing
again and again what is working.
Ultimately the success of
enterprises is, in many cases,
linked to the quality of their
management. Though in the case
of EDP we are talking about very
small and simple enterprises, I
would love to dream of a potentially
outstanding enterprise emanating
from this programme. But as
Managerial skills are critical for the
success of an enterprise, I would
place very heavy emphasis
on mentoring and training.
4. As a successful
businesswoman, did the
emphasis on involving
women and helping them
develop as entrepreneurs
encourage you to support
this initiative?
I believe strongly in the highly
rational role and focus of a mother,
whose first priority will always be
to provide for her family. The EDP
programme explicitly lists female
participation as an objective and
shows an impressive success rate
in extending female participation
in some of its projects.
5. Your friends and family
have visited some of the
EDP projects. How has
this been helpful to you?
My son has just returned from a
visit to Tanzania. It has provided
him with insights that are likely to
be lasting, both with respect to his
values and objectives in life. It has
also stimulated a desire to be a
positive factor in helping the world
become a better place. He visited
the EDP sisal project which is very
successful and where basically a
small amount of capital is having
an enormous effect on productivity!
6. How do you think EDP
should develop in the future?
Once you have a model that works,
you ought to be able to replicate it.
You build up expertise and in the
long run, you would hope to widen
the field of activities. Maybe I am
dreaming, but my hope would be
that some entrepreneurial success
stories in these poor countries or
regions might be traced back to
EDP, with prosperity extending to
larger parts of the community.
13
Current portfolio
Over the last year, EDP has been supporting 14
enterprises in markets as diverse as dairy, vanilla,
food oils, sisal, vegetables and seeds. The following
pages provide an insight into each of these.
“This enterprise has changed my
life. Now I can earn a living of up to
Tshs.150,000 per month from selling
sisal leaves and can
send my children to school”
Elizabeth Sakwa,
Farmer and mother of seven,
Tanzania
Sisal farming in Tanzania. See page 44.
15
Colombia Dairy products
Enterprise Alliance of four enterprises supplying milk to Alpina: Ascamp,
Cooproler, Monterrey, Asoinpa
Key contactsGermán Téllez (Alpina), Harold Muñoz (Ascamp), Adrián
Ramírez (Monterrey), Jesús A Realpe (Cooproler)
Product
Fresh milk
Market
Local markets in Colombia
Investment
£132,000: £76,000 business grant, £65,000 project grant over
three years. Similar amount by Alpina Foundation.
Impacts sought
> Increase income for 204 producers by 60%
> Pilot a successful model of collaboration between farmers and a large company
>Increase participation of women
Highlights
> Sales stable at £125,000 per quarter despite flooding
> 40% increase in women suppliers
> 20% increase in average milk yields
>30% of farmers composting livestock waste
The background
Oxfam is working with Alpina (one of Colombia’s largest dairy
companies) to strengthen four of its small-scale dairy suppliers.
This collaboration takes place in the context of armed conflict
and high levels of poverty and exclusion, especially among
women. Over the last year, Colombia suffered from severe flooding
that resulted in a 50% decrease in milk production nationwide.
However, the government is making efforts to reinvigorate the
dairy sector, and the fixed milk price has increased by 4.4%.
16 > Current portfolio
The enterprises
Social impact
Each of the four enterprises is owned by, or
sources from, an average of 50 farmers.
They have formed an alliance to improve their
competitiveness, promote women’s empowerment
and strengthen their relationship with Alpina. The
main emphasis is on improving the quality and
quantity of milk, while the next stage aims to
develop new market channels and products.
> Each enterprise now has a women’s committee
and women are taking leadership roles, although
gender violence and discrimination have
limited women’s involvement in
production. The team has
requested funding to
engage professional
support on this issue.
Business performance
> Oxfam is working
with a local university
to find more weatherresilient fodders.
> The alliance of suppliers, Oxfam and
Alpina has now been running for more than
a year, with improvements in both quantity
and quality of milk. However, one of the
suppliers is showing less commitment and
might be asked to leave the alliance.
> Milk production suffered this year due to the
flooding, so the forecast increases in sales were not
achieved. However, quarterly sales were maintained.
> Fifty of the 161 farmers who requested
credit have had this disbursed (total
value of £100,000): this will be used
to expand production capacity.
> In addition to assistance with
production, the enterprises have
received support in financial
management and three of them are
providing quarterly financial reports.
“With this women’s
cooperative (Asoinpa)
we hope to move forward
as we are united. I pledge to
help my daughters too, so
we can all be a part of this.”
María del Pilar Tote,
cooperative member
17
Ethiopia Food oil
Enterprise Assosa Farmers’ Enterprise
The enterprise
Key contacts Ashenafi Mengistu (Manager until January 2011); Umer Seid
(Manager from May 2011)
The Assosa Farmers’ Enterprise comprises
20 producer organisations representing 6,375
farmers, who fully own the company. Women
now constitute 21% of the membership, up from
an initial 2% in 2006. The factory set up by the
enterprise is the first factory in the region, and has
the support of local authorities and stakeholders.
Its inauguration was on the national news.
Product
Food oil from sesame, groundnut and niger seeds
Market
Local and export
Investment
Phase I (2009-11) £201,000: £107,000 loan (reviewed from £70,000), £27,000 business development grant, £67,000 project grant [Phase II described in later pages]
>Increase economic and social security for oil-crop farmers
> Increase household income by 35% (on average)
> Increase women’s participation in organisations by 50%
Highlights
>Start of edible oil operations, with first quarter sales reaching
Birr 2m [approx £74,000]
> Farmer membership increased by 6%
>Women’s membership increased from 2% to 21%
>16 Full-time equivalent jobs in the enterprise (up 5)
The background
Ethiopia is one of the seven poorest countries in the world and
has deeply-rooted gender inequalities. Vegetable oils are an
essential part of local diets and seed-based oils are especially
valued. By processing seeds into oil, the Assosa Farmers’
Enterprise is taking advantage of the rapid expansion of
sesame seed production in the western region of Benishangul
Gumuz. Despite initial delays, the factory is now operational
and successfully selling niger oil in local markets. The demand
for edible oils is very high, but concerns about price hikes
have led the government to set limitations on import prices,
with as yet uncertain implications on local production.
18 > Current portfolio
Business performance
> While most milestones defined for the first period
have been met, new machinery is still needed
for the processing of sesame and groundnut oil.
However, niger seed oil is selling well. Training and
support for women traders has advanced smoothly,
and they will take a percentage of profits.
Photos: Tom Pietrasik
Impacts sought
> A full team is now in place, including a new
factory Manager and a general Manager with a
strong background in cooperative management.
The previous Manager will remain to provide
additional support. Bookkeeping is in place,
but financial reporting is still very poor.
> The company is also receiving
support from two experienced
consultants – one on a two-month
placement from Oxfam partner
Challenges Worldwide.
> In the past, Assosa
engaged in seed sales
only. Since March 2011, the
company has successfully
traded 10,000 litres of niger oil
(for approx £18,000 a month).
> Due to a delayed start of
operations the first loan repayment
was late, but it has now been made.
Social impact
> Through EDP’s involvement, women
members have increased from 2 to 21%.
> Nine women’s self-help groups have been formed
to support women’s involvement in the company,
and 400 women have been organised for trading.
19
Ethiopia Honey
Enterprise Zembaba Honey and Inputs Marketing
Key contacts Berihun Amsalu, General Manager
Product
Honey, beehives and protective clothing
Market
Farmers, Bureau of Agriculture, International NGOs
Investment
£237,000: £89,000 loans, £85,000 business development grants,
£63,000 project grants
Impacts sought
>Create 25 jobs at the enterprise
> Increase beekeepers’ income by 30%
> Increase the number of women beekeepers
Highlights
> Revenue from honey sales increased from Birr 110,000 in 2009/10
to Birr 615,000 (approx £23,000) in two years
> Women: 21% of member beekeepers are women
> Average yields have increased by 33%
The background
Around 85% of Ethiopia’s 80 million people live in rural areas and
depend on rain-fed subsistence agriculture. Poverty is widespread,
and most acute in women-headed households. Honey represents
an important economic opportunity. Beekeeping is already an
important activity: Ethiopia has ten million bee colonies, the largest
number in Africa. However, productivity and quality are low because
many of Ethiopia’s two million beekeepers still use less efficient,
traditional beekeeping practices. Export opportunities opened up
when the EU approved Ethiopia as an exporter of honey in 2008.
Today, there is a large global demand for honey, wax and other
bee products. The introduction of modern beehives has been able
to help meet this demand by increasing yields by 400%. Oxfam’s
work has also made beekeeping more accessible to women.
20 > Current portfolio
The enterprise
Zembaba is owned by nine cooperatives, with a
combined total of 3,494 members, including 632
women in 2009. Zembaba has developed a brand
name: ‘AMAR’, from the Amhara region where
the honey is produced, and has partnered with
the largest honey processor in
Ethiopia, Ambrosia. With
support from EDP,
Zembaba plans to set
up a workshop to
build beehives and
supply protective
equipment. They
aim to recruit a
workshop Manager,
12 carpenters, a
storekeeper, an
accountant, a marketing
officer and 13 distributors (70%
of the employees will be women).
Business performance
> This investment is progressing slowly. A revised
business plan was approved in early 2011, with a
clearer marketing strategy and cash-flow analysis.
> In March 2011, Zembaba secured 1,000
square metres of land from the government
for the honey factory to be built on.
> Zembaba continues to sell honey; however,
sales were limited by the lack of working capital.
EDP has decided to prioritise
its resources towards the more
lucrative provision of beehives,
while member cooperatives
continue to sell honey directly.
Social impact
> The plan is to build upon Oxfam’s previous
success in increasing yields through using
modern beehives and involving women.
The aim is to increase productivity
and income for potentially 10,000
beekeepers in the region.
> Women now constitute 21% of
member beekeepers, up from 18%.
> Zembaba sourced honey from 935
beekeepers, up from 300.
> Members are being advised on
pesticide-free production methods.
“In the past women did not
participate in beekeeping. The
introduction of modern beehives
has simplified the work for
them and increased the honey
production. They can now secure
an income for their families.”
Berihum Amsalu, Zembaba Manager
21
Haiti Dairy products
Enterprise Lèt Agogo/Veterimed
Business performance
Key contacts Rosanie Germain (Manager)
The enterprise has made limited progress
in the last year due to the very difficult
context. However, the network is starting to
rebuild and sales are increasing again.
Product
Dairy products: milk, yoghurt, cheese
Market
Haiti
Investment
£100,000: £34,000 loan, £66,000 grant over three years
Impacts sought
>Increase market share from 0.4% to 5% (US$3m in sales)
>Increase income of families involved by US$50 per year
>Increase women’s representation in producer groups by 30%
Highlights
>Sales have resumed, with reported revenues of $630,000
>665 active suppliers to the enterprise
> 97 full-time equivalent jobs in the dairies, 44 held by women
The background
Haiti is still recovering from the devastating earthquake in
January 2010 that killed an estimated 230,000 people and left
more than one million others homeless. The earthquake also
destroyed the enterprise’s buildings. School canteens, which
accounted for 70% of sales, were closed between January and
October 2010, but sales have since been picking up again.
The enterprise
Lèt Agogo is an initiative of Veterimed, a Haitian NGO with
16 years’ experience. It has built a national network of
13 dairies that turn local producers’ milk into pasteurised
and sterilised milk, yoghurt and (soon) cheese. These are
sold across Haiti through local schools and supermarkets
– the milk is Haiti’s only local, fresh milk brand.
22 > Current portfolio
> Thanks to the support from international donors,
Veterimed has secured funding to restore its
capacity to pre-earthquake levels, including GBP 0.5m
from the Belgian and Canadian governments.
> Between March 2010 and 2011, one
million bottles of sterilised milk and
168,000 bottles of yoghurt were
sold, similar levels to 2009.
> Priorities identified are in product
and marketing strategies, as well
as building the team’s capacity. A
marketing expert will visit the project
in July 2011 to provide support and
make recommendations. Financial
reporting is also still very limited.
> Oxfam has appointed a new officer to
manage Oxfam’s relationship with Veterimed.
Social impact
> One new dairy opened in 2010, recruiting seven
new employees. This took the total full-time
equivalent employees in the network to 97
(44 women). Women’s involvement needs further
strengthening, in particular in production.
23
Honduras Vegetables
Enterprise Aproalce
Key contacts Danilo Sauceda (Manager), Juan Pacheco (Chair)
Product
Fresh vegetables (potato, cabbage, carrot, cauliflower and broccoli)
Market
Local wholesale markets, supermarkets and other markets in Honduras
Investment
£176,000: £100,000 loan, £55,000 business development grant,
£21,000 project grant over three years
Impacts sought
>Double production over three years
>Increase income for 400 farmers by 40%
>Develop Aproalce to achieve sustainability
Highlights
>Sales tripled between 2009/10 and 2010/11
>Increase in women’s membership, now at 42%
> Productivity per hectare increased by 5%
The background
The agricultural sector in Honduras employs around 52% of
the population; however, small-scale producers – especially
indigenous people – are often marginalised. Aproalce operates in
the western region, one of the poorest parts of the country. Heavy
rains in 2010, followed by a drought and a plague of insects in
2011, caused 18 members of Aproalce to lose their crops.
The enterprise
Aproalce is a producer organisation that sells high-value vegetables
to the main cities in Honduras. It is governed by an assembly and a
Board of Directors (four men and three women). Most farmers are also
members of local savings groups, which provide the working capital.
In the last year the company has started sourcing from non-members too.
24 > Current portfolio
Business performance
> After the poor business performance in its first
year with EDP, mainly caused by poor weather
conditions, Oxfam appointed a new mentor to
work closely with the enterprise for eight months.
This unveiled a series of internal weaknesses
that have been addressed, including by:
•Better
definition of staff roles and
functions (this also led to the replacement
of the General Manager in mid-2011
by someone with more experience).
•Re-organisation
of production to tie in with
buyer/marketing contacts, leading to
increased commitment by members
(76% of members are now active compared to
31% last year); and also access to production
from non-members to spread risks.
•Identification
of new markets that
can absorb lower-quality grades.
•A
review of the finances, with
detailed and realistic cash flows.
Social impact
Aproalce’s membership has grown from 180
to 190 members, and women’s representation
has increased from 35% to 42%. Despite
the credit facility set up specifically for them,
women remain constrained by domestic duties
and their limited access to land – issues which
are being addressed. The enterprise is also
testing the market for processed foods made by
women. Some 79% of farmers saw an increase
in income of at least 40%, but 18 farmers
lost their crops. Oxfam is working with other
organisations to provide access to drip irrigation
and greenhouses, which will be critical.
“With support from Oxfam, our
enterprise has an increased
production area and is working
in a more coordinated way.”
Ángel Martin López, Farmer
> Total sales in 2010/11 have increased
from HNL 610,000 in 2009/10 to
1,820,000 in 2010/11 (approx
from £20,000 to £61,000).
> Oxfam has had to agree
to a reschedule of the loan
repayments and has made
provision until these begin.
25
Indonesia Vanilla
Enterprise Koperasi Wamanuan Mbeintabo Yawa (WMY)
Key contacts Apolos Mora (Village Leader); Patricius Usfomeny (Oxfam)
Product
Organic vanilla
Market
Local, national and international
Investment
£117,000 of grants, over two-and-a-half years (since end-2008)
Impacts sought
>Pilot a profitable business model for the production and marketing of vanilla
>Increase income of 200 farmers by 10%
>Increase participation of women
Highlights
>Women constitute 50% of farmer members and one-third of board members
> 1.5 full-time equivalent jobs have been created, with one-third
occupied by women
> 100% of farmers are implementing sustainable crop
diversification alongside vanilla production
The background
Serui Island, West Papua, has been affected by exclusion and conflict and remains
the poorest province in Indonesia. However, local village communities have identified,
and started to capitalise on, market opportunities that take advantage of the island’s
climatic conditions and natural resources.
The enterprise
When this initiative began there was no
formal enterprise, only a group of farmers
keen to grow organic vanilla for export.
Ten groups of 20 farmers have now set up
an enterprise, the Koperasi Wamanuan
Mbeintabo Yawa (WMY), for trading their vanilla.
Business performance
> The first vanilla was harvested in March 2011,
with an estimated yield of 2,080kg from the
farmers involved in the project (out of a total
8,600kg produced on the island as a whole).
> The farmers have been supported to
form a local cooperative, which has
been formally registered.
> The buyer originally identified,
Pacomen, has begun
to concentrate on other
crops, so discussions are
underway with a second
buyer specialising in export.
One of the best examples of this is the production of high-quality, organic vanilla.
Indonesia produces 20% of the world’s vanilla, but cultivation is not widespread in
Papua despite suitable climatic conditions. The overall outlook for the vanilla market is very
positive, as Indonesian prices have remained strong despite a reduction in global prices.
Social impact
In June 2010, Serui was hit by a major earthquake that caused landslides and destroyed infrastructure
across the island. The project was disrupted as access to the communities was made impossible.
However, activities have now restarted and Oxfam will be supporting the communities closely as they rebuild.
> The local government has committed to
supporting local farmers in the area, and other
donors are also interested in this project.
26 > Current portfolio
> Women continue to play a
prominent role in the enterprise,
making up 50% of members.
“Direct assistance from
Oxfam’s team has
increased our skills and
knowledge on how to
increase our production
and grow the enterprise.”
Apolos Mora, Vanilla Farmer,
Head of WMY cooperative
27
Liberia Rice
Enterprise AMENU Farmers’ Co-operative Society
The enterprise
Key contacts Bestman F. Geneyan (Chair), John Brownell (Agency for Economic Development and Empowerment)
The AMENU Farmers’ Co-operative Society
had 1,008 members working in rice cultivation
in 2009. The paddy fields were not reliably
irrigated, since the dams were broken during
Liberia’s civil war and – at best – gave
one, low-yield crop of rice per
year. In the first phase funded by
EDP (December 2008 to June
2010), the plan was to support
one rice production cycle on
up to 504 acres and rebuild
irrigation systems to allow for a
second harvest. The ongoing
second phase is developing
a further 1,100 acres of land
covering a total of 15 communities.
Product
Rice
Market
South-east Liberia
Investment
£150,000: £126,000 business development grant,
£24,000 project grant over 24 months
Impacts sought
>Double production and increase food security
>Increase income for over 1,000 farmers by 80%
>Increase participation of women
>AMENU’s membership has increased from 1,008 to 1,134
(45% women), including 115 shareholding members
> The board has increased from 8 to 13 members,
4 of whom are women (previously 0)
> There are currently 23 full-time equivalent jobs within AMENU
Highlights
The background
Liberia remains heavily reliant on imports of rice, its main staple
food, despite having extensive cultivable land and favourable
climatic conditions for rice production. Local authorities,
and organisations such as Oxfam, are actively pursuing
plans to promote local rice production. In the last year, the
area has been affected by the massive influx of refugees
into Liberia from Ivory Coast as a result of conflict.
28 > Current portfolio
Business performance
This is one of the poorest, most remote and least
developed areas in which EDP operates.
Last year we reported the initiative was in too early
a stage for EDP, given farmers’ low production
capacity and food security needs.
Oxfam has now partnered with the
European Commission and local
authorities to prioritise the expansion
of production capacity. Dams have
been greatly improved (including new
retaining walls and the upgrading of
one dam from earth to concrete) and other dams
have been built in neighbouring communities,
as well as two bridges and a road. The project has
provided training in production and cash for work.
Efforts also continued to develop
AMENU into an emerging
enterprise. The company
obtained the land for
a warehouse and
purchased a mill.
For the reasons
given above,
Oxfam converted
the £34,000 loan
agreed into a grant.
Social impact
Elections in AMENU
have resulted in a new
constitution, new by-laws, and the
expansion of the Board from 8 to 13 members
(of whom four are women). Membership has
increased from 1,008 to 1,134 (45% women).
29
Nepal Seeds
Enterprise Pabitra Jankalyan Agriculture Cooperative
Key contacts Naulsingh Khatri (President), Dharma K. Poude (Senior Social Mobilizer), Krihna Dhakal (mentor)
Product
Vegetable seeds
Market
Regional, national and, eventually, international markets
Investment
£152,000: £75,000 loans, £42,000 business
development grants, £35,000 project grants
Impacts sought
>Increase income for over 1,000 farmers by 300%
>60% participation of women
>Triple production of vegetable seeds
>Revenues for last two quarters reported at NPR 2,500,000,
(£21,000) setting the enterprise on a trajectory to exceed
2009/10 figures
> Farmer membership has risen from 204 to 544,
with women members increasing from 55 to 286
> Full-time equivalent jobs in the enterprise have increased from 2 to 7, with 4 now held by women
Highlights
The background
The Mid-Western region in Nepal is one of the poorest parts of the
country. Discrimination against women is widespread; their education
levels and incomes are lower than those of men, and men own most
of the land. However, due to the seasonal migration of men to India,
women have started to play a more prominent role in seed production.
The production of vegetable seeds makes good use of the limited
cultivable land. It provides higher financial returns than growing
cereal crops, and requires less water and resources than vegetables
themselves. Demand is growing 25% year-onyear; however, only 53% of seeds consumed
are currently produced in Nepal. The market
for local, organic vegetable seeds with a high
germination ratio is also starting to expand.
The enterprise
The Pabitra cooperative plans to transform
itself, from a small provider of inputs and
services to its members, into a women-farmerled business. This will produce and sell highquality, local vegetable seeds in local, regional
and (later) international markets, eventually
using its own ‘Himalayan Seeds’ brand.
Business performance
> Support from EDP only began in late
2010. In the few months of the reporting
period adverse weather conditions reduced
the crop yield, but plans for the larger,
summer season crop were well advanced,
including some high-value seed varieties.
> The enterprise successfully recruited
a finance officer and a mentor to provide
strong and continual business support.
> With support from Oxfam, Pabitra obtained a
loan from the Kumari Bank, one of the first such
agreements in Nepal. Farmers are paying interest
quarterly and financial reporting is on track.
Social impact
> Pabitra has grown its shareholder membership
from 204 to 544 (the target is 1,050 in 2 years),
including 286 women (up from 55). Overall,
Pabitra is now working with 66 farmers’ groups
(1,220 people, of whom 74% are women).
> Pabitra’s technical staff are all women,
which has encouraged other women
farmers to start communicating with the
cooperative. Four out of eleven board
members in the cooperative are women.
> The cooperative has also significantly improved
food security for people in the region.
“This soil can produce fortunes.
I worked in India for 25 years.
Now I don’t need to go to India if
I can earn more here, at home.”
Bal Krishna Paudel, Farmer
30 > Current portfolio
31
Pakistan Dairy products
Enterprise Chenab Dairy Enterprise
The enterprise
Key contacts Khalid Ahmed, Asiya Bibi (Managers of two of the four cooperatives)
Chenab Dairy Enterprise is to form as a federation
of four cooperatives (two of which formed in 2009,
and the other two in 2010) in the Muzzaffargarh
district of Punjab. Cooperatives have 25-50
shareholder members, but source from 2,145
farmers from six villages and plan to expand to
10,400 farmers. Chenab’s plan is to sell ‘thick’,
fresh milk and three other products (khoya,
cream and ghee) through a range of market
channels identified, including small retail shops.
Product
Milk and milk-based products
Market
Local regional markets
Investment
£165,000: £39,000 loan, £63,000 business
development grant, £63,000 project grant
Impacts sought
>20% increase in income for 10,400 smallholder farmers
>50% of members and 60% of the board, women
Highlights
>Farmer membership and women’s membership have doubled
> Women now constitute more than half the board
The background
Forty per cent of Pakistan’s workforce depend on agriculture for
their income. Women undertake the vast majority of livestock
management work, but patriarchal social and cultural norms
mean that most marketing and financial roles are taken by
men. However, with the right support, dairy is a sector that can
provide great opportunities for women smallholders. In the last
year, the project area and the whole country were affected
by the worst floods in the country’s history (see page 34).
32 > Current portfolio
Business performance
> The project was on hold during and after the
floods, but restarted in January 2011. Flood
recovery is not yet complete, but rehabilitation of
houses and agricultural land is progressing well.
Milk processing is to start at the end of 2011.
> Two new 25-member cooperatives,
Chakfrazi and Taliri, formed – each covering
five villages, with women forming the
majority of both members and leaders.
> Direct sales to a large buyer are ongoing, though
the position of middlemen-lenders strengthened
after the flood. Sales from the two older
cooperatives (Mudwala and Rangpur) in the first
quarter of 2011 reached PKR 600,000 (£4,200),
70% of total sales for whole previous year.
> A local mentor is now in
place. This position will
be complemented
by a dedicated
business-finance
mentor, to be
appointed.
> The release of
the loan element
has been put on
hold until the enterprise
is fully formed and can
start negotiations
with a local bank.
Social impact
> Both total
farmer
membership
and women’s
membership
have doubled.
> Women now
constitute more
than half the Board members; and three
of the general Managers are women.
> The target number of farmer suppliers has
been reduced from 17,500 to 10,400.
33
Overcoming the odds
in Pakistan
In July 2010, soon after EDP
approved its investment in
Chenab, the dairy enterprise
in the Muzaffargarh district of
Pakistan, the project suffered
the terrible consequences of
the country’s worst floods for 80
years. These engulfed an area
the size of the UK and affected
more than 18 million people,
devastating lives and livelihoods.
In spite of suffering the full impact of the Pakistan
floods, the
Chenab dairy
enterprise has managed
“XXXXX
XXXXXXX
XXXXXXXXXX.”
to rebuild itself and is thriving once again
34 > Overcoming the odds
Photo: REUTERS
XXXXX XXXXXXX
Lying in the strip between
the rivers Chenab and Indus,
Muzaffargarh district was one
of the most heavily-affected
areas, with 44% of its population
displaced and 51% of its crops
damaged. Farmers suffered
major losses in livestock too, with
the few surviving animals battling
with the spread of diseases
and weakened by the lack of
fodder. Approximately 82% of
cattle were severely affected,
resulting in a sharp decrease in
milk production. With 89% of the
project villages fully or partially
affected, the project was put on
hold for several months. In one of
the project areas, the floodwaters
reached up to five feet and the
access road was completely
cut off. The cooperatives also
suffered loss of, or damage
to, assets and facilities.
The project restarted in January
2011 and, by April, two of the
four cooperatives (Rang Pur and
The recovery efforts are, of
course, still underway, and one
year on – while Pakistan relives
the nightmare of flooding caused
by the monsoon rains – Oxfam
remains fully committed to
working with these extraordinarily
resilient women and men,
supporting their determination
to reclaim their livelihoods
in spite of the magnitude of
adversity that they face.
Mud Wala) were functional again,
buying and selling milk – while
the remaining two, Chaktrazi
and Taliri, became active a few
weeks later. Even though local
women and men have been
heavily engaged in rehabilitation
activities throughout this fourmonth period – rebuilding their
houses and preparing their
land for crops – the Mud Wala
and Rang Pur cooperatives
have also managed to increase
enterprise activity and revenue
generation to pre-flood levels.
“We faced a huge
shortage of fodder for
the animals after the
devastating floods
of 2010. Whatever
was available was
prohibitively expensive.
Oxfam’s support helped
our cooperatives recover
our production levels.”
Mazhar Hussain,
President of Rangpur
Cooperative
35
Palestine Natural foods
Enterprise The New Farm Company (NFC) and supplier cooperatives
The enterprise
Key contacts Dawood Istanbuli (Manager, NFC), Mohammed Sawafta
(ex-Oxfam, now ESDC)
The New Farm Company (NFC) markets the
significantly improve the management team’s
Product
Grape molasses, dried tomatoes, thyme, whole wheat, aubergines,
olive-oil soap, tapenade and olive oil
Market
Expansion in Palestine/Israel, Jordan and Saudi Arabia,
plus entry into European Fair Trade market
Investment
Phase I (2009-10) £120,000 (£10,000 loan) over 24 months
Phase II (2011-13) £260,000: £94,000 loan,
£26,000 repayable grant, £140,000 project grants
Impacts sought
>Increase sales to US$1m
>Increase the number of cooperatives from 8 to 13
(including 417 women members)
>2010 sales reached US$270,000, compared to
US$197,000 in 2009
> Full-time equivalent jobs have increased from
3 to 8.
Highlights
His initial findings drew attention to the need to
products of eight rural cooperatives in the
capacity and re-adjust the marketing strategy, for
West Bank. A significant percentage of project
example, to increase sales in the West Bank.
beneficiaries are women, who are more likely
> NFC is now providing quarterly financial
to be involved in food-processing activities.
Business performance
> Operations were reduced in the last few
information to Oxfam, but the detail and
quality of accounting still needs to improve.
Social impact
months of the reporting period as the company
> Women have been prioritised successfully
improved its factory to seek ISO certification.
through partner and product choices.
Sales still improved, from US$197,000 in 2009
> The total number of farmers of NFC’s suppliers
to US$270,000 in 2010. This is partly thanks to
(including both cooperatives supplying olive oil and
a new deal with a Saudi Arabian distributor to
other foods) increased from 2,210 to 2,240, with an
build a shop in Jeddah. The aim is to repeat
overall increase in women’s membership of 13%.
this strategy with one or more Gulf States.
> An evaluation in 2010 suggested supplier
> Oxfam has partnered with Challenges Worldwide
households increased their income
to place an experienced business Manager to
by 10%. The number of women farmers
coach the business between June and July 2011.
benefiting is, however, relatively small.
The background
While the political and economic context of the occupation
remains challenging, the West Bank economy is witnessing
positive economic growth. This initiative addresses the
factors that keep people living in poverty, including lack of
employment and livelihood opportunities, and the political
issues that hinder business. It also tackles the challenges
faced by women in entering employment and controlling
resources. This enterprise was initially supported by EDP
in 2008 and follow-on funding approved in 2010.
36 > Current portfolio
www.newfarm.ps
37
Philippines Moringa leaves
Enterprise Libas Farmers Multi-Purpose Cooperative
Key contacts Nanie Lanquino (Manager); Agnes Bolaños (Enterprise Facilitator)
Product
Moringa leaves (used by pharmaceutical, personal care and food industries)
Market
Secura International, a medium-sized company selling to the
pharmaceutical industry
Investment
£107,000: £59,000 loans, £27,000 business development
grant, £21,000 project grant over 2 years
Impacts sought
>Create 120 jobs for women in a seed nursery
>Increase earnings by 300% for 72 members
> Involve 900 additional farmers after 2-3 years
Highlights
>First sales of moringa from pilot plots
> Farmer membership has increased by 54%, with
women’s membership rising from 31% to 50%
The background
Nearly half the population of Caraga in Mindanao, south
Philippines, lives in poverty – double the national average. People
rely on subsistence farming and fishing, but natural resources are
diminishing. Women play a prominent role in family farms but earn
no income and have little say in how these farms are run. Oxfam’s
partner Agri-Aqua Development Coalition-Mindanao (AADC) has
identified a product that can be grown by smallholders and has
a high market demand as an ingredient for meals and herbal
medicines.
The enterprise
The Libas Farmers Multi-Purpose Co-operative is
building on its experience with coconut oil to grow
into a strong moringa-leaf marketing company which
provides economic opportunities for small farmers,
including women. This is a new crop and product
for Libas, but it is partnering with local organisations
including Secura International, a major supplier
of plant-based pharmaceutical products, which
manufactures moringa powder locally.
Business performance
> Last January, the Philippines suffered massive
floods which affected one million people. The
flooding has affected the project considerably.
The environmental assessment had identified
safe areas to grow trees, so that produce from
the pilot could be grown and sold, but the
production plan has had to be rescheduled.
> The enterprise’s main buyer, Secura
International, was also affected by the flooding
and by high oil prices. As a result it has reduced
its annual demand, from 100 to 32 hectares.
> There is still a large demand for moringa,
but the original market projections may have
been too ambitious, given current yields.
> New, specific market opportunities have been
identified and are under review. An increase
in prices of the nursery seedlings is being
considered to compensate for initially lower sales.
38 > Current portfolio
Social impact
> The initiative is successfully supporting women
who have little or no business experience.
> Women hold 85% of the leadership positions
in the enterprise, and constitute 63% of
those actively supplying to the enterprise.
“This Moringa project is one of my
sources of income that sustained the
schooling of my children. Women
are now working for the family. Our
husbands can longer scold us.”
Erlinda Bayod, Farmer
39
Rwanda Mushrooms
Enterprise BN Producers
Key contacts Niyibaho Berthilde (Owner and Manager)
Product
Fresh and processed mushrooms
Market
Hotels and urban markets
Investment
£79,000: £30,000 loans, £25,000 business development grant,
£24,000 project grants over 18 months
Impacts sought
> Increase monthly production of fresh mushrooms from 600 to 9,000kg
> Support 200 women in the first 18 months (up to 900 women over three years)
Highlights
> 100% of the mushroom producers involved in the enterprise will be women
The background
Rwanda has witnessed economic growth in the last few years
but levels of poverty remain high. Promoting new economic
opportunities is critical and challenging, especially for women
who face additional constraints such as caring responsibilities,
limited access to assets, and cultural discrimination. Mushrooms
are suited to local climatic conditions and require little land or
labour. The challenge is to connect them to reliable markets.
“BN Producers is a major player in Rwanda
mushroom production. My advice is that
their capacity should be reinforced over
a period of four months to successfully
implement the business plan.”
Isabelle Lagaillarde, Consultant and
mentor to BN Producers
40 > Current portfolio
The enterprise
Unlike other EDP projects, BN Producers is a
privately-owned enterprise, already supplying
seven tonnes of dried mushrooms to hotels and
supermarkets every year. BN employs 8 full-time
staff and 28 waged workers – all but one are
women. Its objective is to become Rwanda’s
leading marketer of fresh mushrooms, creating
a successful, women-led business model from
production to marketing. Its growth so far has
been slowed by limited access to committed
suppliers and finance, but with support from
Oxfam and the local organisation, Duterimbere,
BN hopes to overcome both these obstacles.
Business performance
Oxfam’s investment only started a few
months before the end of the reporting
period, and focused on putting the
key building blocks in place:
> The business plan has been
reviewed with support from an
experienced mentor and a
consultant from Accenture
Development Partnerships.
BN has agreed to improve
financial management
as a key priority.
> Oxfam has signed a loan
agreement with Duterimbere-IMF,
a local microfinance organisation
which will provide the financing
to BN and the supplying farmers.
> Partnership commitments are being
finalised with BN producers, and contracts
drawn up with producers and clients.
Social impact
> The enterprise intends to involve up to 200
farmers in the first 18 months. BN is also
already employing ten full-time equivalent
jobs (up from eight), 70% of which are held by
women. Women hold 80% of the leadership
positions, including general management,
and 75% of board memberships.
Sri Lanka Dairy products
Enterprise Union of District Livestock Breeders’ Cooperative Societies (ULBCS),
owned by eight local dairy cooperatives
Key contacts Kanagasabai Kandasamy, President of the Union; Ms Indraganthy,
Manager at VLBCS
Product
Fresh milk and seven milk products, including plain and flavoured pasteurised milk, ghee, toffee, yoghurt and ice cream
Market
Local villages and towns, especially lower-income families and niche
market segments
Investment
£125,000: £54,000 loan, £41,000 business grant, £30,000 project grant
Impacts sought
> Increase income by 20% for 1,500 producers (80% women)
> Provide new employment opportunities for women in
management, food processing and other functions
>The number of farmers involved in the enterprise has more
than doubled from around1,500 to over 3,200
> Women now represent 46% of all farmers involved with the
enterprise, and 59% of those actively supplying to it
Highlights
The background
Sri Lanka has one of the lowest rates of milk production in Asia.
Oxfam and other partners identified the opportunity for developing
local supply and helping women to play a leadership role.
The cooperative is in Vavuniya District, a region that is still feeling
the effects of conflict with thousands of people still displaced.
However, with support from the government, economic recovery is
gathering momentum and local demand for milk is growing.
As was the case in many other countries in Asia, Sri Lanka suffered
terrible floods last year which delayed the start of operations.
42 > Current portfolio
The enterprise
ULBCS-Vavuniya is the federation of initially
five, now eight, local dairy cooperatives. It was
registered in 2008. Its largest cooperative member,
VLBCS, had sales of £100,000 in 2009. EDP’s
investment will allow the federation to set up a
factory to produce pasteurised milk and other dairy
products; expand operations; and strengthen the
enterprise’s financial management and leadership.
Business performance
villages have organised into new cooperatives
which have joined the federation.
> 46% of all leadership positions in the
enterprise, including key management and
board positions, are held by women.
> People are accumulating their additional
income from milk sales into a local savings
scheme, and using it for a variety of purposes
including school fees, house improvements,
and durables and livestock purchase.
Floods and displacement over the winter months
disrupted milk production, and some cattle were
lost. Arrangements for loan financing have proved
complex and difficult to conclude; in the meantime,
grant funding from other donors has covered
fixed capital costs. In spite of this, the business
has made significant progress, including:
> A processing building, with nearly all necessary
equipment installed, has been completed.
Start of operations is expected for mid-2011.
> Marketing and Production Officers have
been hired to support mentoring, training and
business preparation activities. After the visit of
the EDP Manager in early 2011, it was agreed to
accelerate the recruitment of a General Manager.
Social impact
> With support from Oxfam’s partner
FOSDO (Federation of Social Development
Organisations), people returning to their
“My life has improved since I got involved
with the cooperative supported by Oxfam.
As a Manager I feel more confident now
in my dealings with banks and traders.”
Shamila, dairy cooperative Manager
43
Tanzania Sisal
Enterprise 5 small sisal-fibre processor firms (target 15)
Key contacts Benesta Titus (Oxfam), Juma Shamte (Katani Ltd)
Product
Sisal
Market
Katani Ltd www.katanitz.com
Investment
£152,000: £63,000 loan, £45,000 business grant, £44,000 project grant
Impacts sought
> 25% increase in income for 16,500 producers and farmers
> Women to constitute 40% of producers and 20% of processors
Highlights
>Sales reached TZS 7.5m (£3,000) in first two months alone.
> Women constitute 54% of the farmers and 59% of job-holders
The background
Approximately 80% of people in Tanzania derive their income
from subsistence agriculture. Women undertake a significant
and disproportionately high percentage of the agricultural
workload, in addition to bearing almost full responsibility for
the care of children, the sick and the elderly. Sisal production
provides an opportunity to address this imbalance, as there is a
growing global market demand for sisal products. By organising
smallholders – especially women – into associations and networks,
the project aims to showcase women’s economic leadership and
help women to meet the demands of the expanding global market.
“After receiving the Raspadora processing
machine and capital, as well as operational
skills, my life has changed – I have
become a real business woman.”
Fatuma Yusufu, Sisal Processor
44 > Current portfolio
The enterprise
Oxfam is partnering
with Katani Ltd,
a sisal processing
and marketing
company seeking
to expand its supply
chain by linking with more
smallholder growers. Katani
purchases processed sisal, and provides training
and loans to rural processors so they can buy
processing machines and sisal from local farmers.
With Oxfam’s support, five processing firms were
set up in year one, to be followed by a further ten in
year two. Each firm employs a Manager and, so far,
five to six workers have been taken on at each site.
Business performance
> Combined sales to Katani reached
TZS 7.5m (£3,000) in the first two months
alone. This is positive, but it’s too early
to confirm the firms’ profitability.
> The five processing firms that have
been established have formed a mutual
support group to assist in negotiating with,
and coordinating supply to, Katani.
> The firms are developing standard bookkeeping. External financing arrangements
to provide working capital are in place
in three out of the five firms.
Social impact
> Only one of the first five
processors is a female, but
each firm will employ five
to six workers; 50%
of those who have
received training
are women.
> A wider
programme,
funded by
Accenture
Foundation,
has
expanded
producer
groups
from 74 to
1,090, more
than doubling
the number of
farmers to 4,354.
> Women
represent 54% of
the farmers involved
in the enterprise, hold
59% of full-time equivalent
jobs and 67% of the enterprise
leadership positions, including key
management roles and board membership.
45
New projects
In 2011/12, we plan to invest in two new projects: another
vegetable seed company in Nepal, and Phase II of our food
oil factory in Ethiopia. These are currently under review and
will need board approval in mid-2011. In previous years we
invested in five to six new projects, but this year we reduced
our plan to just two, in response to the EDP Board’s decision
to consolidate EDP’s portfolio and learning before expanding
further (see Manager’s Review on page 10 for further details).
“Now that the factory is in place,
our plan is to introduce two new
products and triple the production.”
Groundnut seeds, Ethiopia. See page 48.
Photo: Tom Pietrasik
Umer Seid,
Manager Assosa Farmers Enterprise,
Ethiopia
(see page 48)
47
Ethiopia Food oil
Nepal Seeds
Enterprise Assosa Farmers Enterprise
Enterprise Dadeldhura Farmers’ Cooperative Society (DAFACOS)
Key contacts Umer Seid (Manager from May 2011)
Key contacts Tilak Shahi (President), Uma Koli (Board), Ganesh Bahadur (Manager),
Sudha Khadka (Oxfam)
Product
Food oil from niger, sesame and groundnut seeds
Product
Fresh vegetables and seeds
Market
Local and export
Investment Phase II (2011-2014) £252,000: £155,000 loan, £32,000 business development grant, 65,000 project grant
Impacts sought
> Increase economic and social security for oil-crop farmers
> Increase household income by 35%
> Increase women’s participation by 50%
The background
Assosa operates in the western
region of Benishangul Gumuz,
400km from Addis Ababa.
When reviewing the business
plan presented to Oxfam in
2009, EDP decided to approve
funding in two phases. Now
that the factory is in place and
key staff have been recruited,
the enterprise is seeking
additional support to consolidate
and expand operations.
The enterprise
The Assosa Farmers’ Enterprise
comprises 20 producer
organisations representing
6,375 farmers, who fully own the
company. Women now represent
21% of the membership.
The plan
Assosa plans to increase
edible oil production from the
current 10,000 litres a month
to 20,000 litres by the end of
2011, and 30,000 litres in 2012.
This will represent a full shift in
capacity. Assosa will introduce
two new products: peanut and
sesame oil. The latter will need
to be bottled and sold into
new markets in Addis. Oxfam’s
business development support
will prioritise experienced
mentoring to increase Assosa’s
management and financial skills.
The enterprise will continue
expanding women’s involvement
as farmers, employees,
Managers and traders. Special
financing arrangements are
being put in place to ensure that
the poorest farmers can benefit
from the enterprise’s growth,
while further research on weather
reliability is also proposed.
Market
Local markets and exports into India
Investment
£174,000: £75,000 loan, £35,000 business grant,
£64,000 project grant over three years
Impacts sought
> Increase revenue for 1,184 farmers from £85 to £424 in 3 years
> Increase seed turnover from 30 to 90 metric tonnes in 4 years; and reach 1,000 metric tonnes turnover of fresh vegetables
> Increase women’s access to, and control of, resources
The background
The rural areas of Mid-Western
and Far-Western Nepal are some
of the poorest in the country,
where low yields, unequal
access to land and unpredictable
weather often lead to seasonal
food shortages. Women are
involved in more than 80% of
farming, but have little control
over the income they generate.
The demand for fresh vegetables
and seeds is growing quickly in
Nepal, and the price of seeds
has doubled in the last five years.
Vegetable seed production
presents a significant market
48 > New projects
opportunity in Nepal, and Oxfam
is already working with another
seed-producing rural enterprise in
the region (Pabitra). With Oxfam’s
support, these two businesses
will develop together as examples
of competitive agribusinesses
led by women farmers.
The plan
The enterprise
seed outputs. This will allow them
DAFACOS is a small, districtbased farming cooperative
with 601 members, which has
over ten years of experience
in the seed business. Women’s
membership is low, at only 23%,
and women have very little
representation on the board.
Key initial activities will include
providing technical assistance
and improving transport and
access to bank loans for farmers.
DAFACOS will build more seedprocessing and storing centres
in order to improve the quality of
to launch branded and packaged
seeds after two years. DAFACOS
will start to trade fresh vegetables
once a full management team
has been recruited. A truck
will be hired to transport the
vegetables, which farmers will
be able to use on commission.
49
Joe Beale from
Challenges Worldwide tells us
about his two months in Ethiopia
One of them is Joe Beale, a
finance and business Manager
Challenges Worldwide is a pioneering not-for-profit
organisation with a decade of experience supporting
business development in low-and middle-income
countries. Oxfam has partnered with Challenges
Worldwide to place expert volunteers in
Oxfam-supported enterprises.
with 25 years of experience
setting up, running and developing
high-level management
functions in medium
enterprises in developing
and developed countries.
He tells us about his experience
working in Assosa, a food oil
factory in Western Ethiopia.
How did you find the
experience?
I really enjoyed my stint in the
bush, so much so that I’m
going to continue to act as the
business mentor for at least
another year. I’m experienced
in Africa, so the conditions were
as I expected, but the people
were friendlier than anticipated.
I got excellent support from the
folk at Oxfam in Addis Ababa
and from Challenges Worldwide,
and we were all pleased with
the feedback from Oxford.
50 > Joe Beale interview
Do you think this enterprise has
good potential?
This business is on the cusp of
making good money, the business
model is sound, there are skills in
place and the local management
is growing a sound business in
a sustainable manner. They still
need some help, but are well on
the way to achieving a sustainable
and replicable business.
What did you achieve during
your stay there?
The main achievement was that
the board and local management
learned how to complete their own
business plans, rather than having
a consultant to do this. They now
own their plan, and will work much
harder to achieve the planned
results. I also assisted local Oxfam
staff with documentation for Oxford.
What are the key challenges
facing Assosa?
The Assosa board and
management probably need
further training on business
problem solving. Currently,
the major issue is the lack
of ‘reporting ability’ to any
stakeholder. This is being
addressed right now. The other
big problem is a shortage of
marketing skills, combined with a
marketing strategy that is less
than robust. The production
plan for next year should
help reduce these risks.
Do you think that business
principles and skills earned in
developed countries apply to
developing ones?
Absolutely. Whether it’s a tenpound per month business, or
a million-pound per month one,
the problems are the same – as
are the methods to solve those
problems. The planning required,
all of that, doesn’t change.
The Assosa folk have business
skills, and we at Oxfam are
helping them grow into their
boots. I am proud to be
associated with this project.
51
Oxfam’s Enterprise Development
Programme uses a private equity
approach to support small and medium
enterprises in the developing world.
Through strategic investments in
sustainable businesses, EDP presents you
with the chance to help thousands of
people work their way out of poverty.
Our partners and supporters
We would like to thank all our partners, mentors,
supporters and organisations that work with us
to develop and implement this initiative, and in
particular Challenges Worldwide, Advocates
for International Development, Accenture
Development Partnerships, the Aspen Network of
Development Entrepreneurs and Oxfam Japan.
www.oxfam.org.uk/edp
Oxfam House, John Smith Drive, Oxford OX4 2JY. Oxfam is a registered charity in England and Wales
When you have finished with
this brochure please recycle it
This brochure is printed
on 100% recycled paper
(202918) and Scotland (SC039042). Oxfam GB is a member of Oxfam International. Inhouse No. 5003