Yeah Of Course I’ll Run in the Chilli Costume

Planning to take part in the Great North 10k to raise funds for Shared Interest Foundation seemed like a great idea. That was until the time came that I had to start training. Two weeks before the run, after a long and lazy holiday. Adding to the pressure of actually getting out there and doing some running was the challenge of running in the infamous Shared Interest chilli costume.

My colleague Sally, who some of you may recognise as the Shared Interest Banana, gave me some great tips for running a la chilli and made sure I pinned up my outfit so as not to trip over during the run. After requesting a target of at least £100 in donations to run in the outfit I was, surprisingly enough inundated with generous support from friends and colleagues!

As part of the Foundation Management Team I am lucky enough to see the direct impact of the work that those funds support. From assisting producers in times of emergency to supporting the growth of businesses through investing in business skills, the Foundation is a real source of support for fair trade producer groups. Knowing this made running – however slowly – the 6.1miles round Sunderland’s coast and city centre a lot easier, even when I passed colleagues on other side of the road, who were clearly much closer to the finish line than I was!

After the run the team (pictured) headed off for a much needed soft drink and rest in the local pub. Hopefully, the Sunderland 10k will continue to be a great source of fun and fundraising for Shared Interest Foundation, and perhaps the chilli outfit can be passed on as the baton for next year’s runners, any takers…?

Fun Run

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Increased orders for skilled Ugandan producers

From Rachel Ngondo, Regional Development Executive.

When Malcolm, Shared Interest’s Customer Services Manager, came to Nairobi last week I was reminded of four years ago when he interviewed me for this job and I am amazed at how time has gone so fast!

This is the week that the East African Community (EAC), comprising of Kenya, Uganda, Tanzania, Rwanda and Burundi, launched its own common market for goods, labour and capital within the region, with the goal of a common currency by 2012 and full political federation in 2015. The EAC is a potential precursor to the establishment of the East African Federation, a proposed federation of its five members into a single state. This means now I can live and work anywhere in the region with no requirement of a work permit.

In Kenya, Malcolm and I visited Salom Enterprises and, as always, Pauline, Salom’s Managing Director does not stop amazing us with more and more projects she is working on and the new ones she wants to start. She is really passionate about the coffee project she is setting up and she always takes the opportunity to get more information about buyers and advice on how to set up. It is this energy and enthusiasm that we saw in this organization that I know will be translated to many of the producers she works with.  Pauline was also not short of thankful words to tell us as she was working on an order for an Australian buyer who contacted her through us after he read Salom’s story in a recent edition Quarterly Return (QR) magazine. It is great to know the potential QR brings to our customers.

Unfortunately our trip to Uganda on Sunday was delayed first by one hour at the airport and then three hours from Entebe airport to Kampala. Apparently there were three things happening that Sunday; parents visiting their kids in boarding school, people coming from the Lake Victoria beach in Entebe and a music concert. As if the agony of waiting in traffic was not enough, the presidents convoy came zooming past us, with police sirens warning drivers to give way!

In Uganda we met with Nawou. It is an organization we have worked with for many years and both Malcolm and I had visited them before but we could not remember the way there as there is so much building work now going on. Peace is now the new Secretary General of the organization and it was impressive when she said that unlike other organizations, the financial crisis did not affect them and in fact they received more orders! We understood why when we saw the impressively intricate new designs that they are making. The women work in the villages but they are able to learn and make the new designs that are requested from their buyers.  We were informed that today the women are facing challenges in sourcing raw materials as wetlands which are their main sources are getting depleted. This shows the importance of the work that Shared Interest Foundation is doing within its training programs to create awareness of sustainable production methods.

I’ll be back again soon with more on our journey in Uganda….

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The universal language of coffee

From Hugo Villela, Regional Development Executive;

I’m writing to you from Chiapas, the southern department of Mexico, an area where the majority of the population comes from Mayan ethnic groups. Here the Catholic Church has undertaken a lot of work to develop the self sufficiency of the indigenous people, by organising them into Church based communities. Although the coffee organisation does not ask members to be Catholic, it does follow deep Christian values.

The population of Chiapas was abandoned by the government for many years until 1994 when Zapatistas (Zapatista Army for National Liberation) declared war against the Mexican State and the Zapatistas began to mobilise the social forces of Chiapas with the aim of putting the agenda of the indigenous people on the national development agenda. After more than 15 years of movement, you can see Chiapas is a region where the state is now investing in roads and supporting producers’ organisations with grants and loans. On the other hand Chiapas is a drug smuggling transit region and this, mixed with the inequity of wealth distribution, could create a very explosive social situation if the communities did not have the moral and continuous support of values from their religious movement.

So I have been crossing Chiapas from the coast line (Tapachula) through the mountain chains to get Jaltenango and from Jaltenango to San Cristobal de las Casas and from San Cristobal to Comitan de Dominguez; this is the only way to understand how the producers life is and how the organisations operate to collect coffee and complete contracts with specialty coffee buyers.

Most of the producer groups are fair trade and organic. They collect coffee from medium altitude and high altitude areas. The mountains are green with big rocks on top and the density of the population is quite low. This enabled me to understand how the coffee turnover works here and helped me to have all the details to support the applications I will write for Chiapas producer groups.

San Cristobal de las Casas is by far the most beautiful city I have visited while working for Shared Interest. It is a colonial town with a mix of different ethnic groups, there are people from France, Germany, UK, United States, Mexico, Lebanon and Latin American countries.

Away from the town, where producers live, are small towns where only a few people speak Spanish; most of them speak their dialects, incomprehensible to me. But you can still read on people faces what they want to express and I understand their coffee operation… coffee joins us!!

What is quite sad is the high amount of children selling handicrafts on the streets until late hours in the night; many of them sent by their parents. Being a typical town in Latin America with high differences among the ones who have and the ones who don’t have, makes a violent social difference, like a seed of hate among us, which the most clear manifestation of this can be drug gangs, “mareros”.

So, I keep working hard, to see if I can do some Mexican proposals for our customer portfolio, I love what I do, for the producers in connection with British Investors.

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The Importance of Tortillas!

From Hugo Villela, Regional Development Executive;

In the Mayan tradition the human being is made of corn, the corn is the basis of the life here in Mesoamerica, the region which used to be the Mayan territory (encompassing Mexico, Guatemala, Honduras, El Salvador, Nicaragua and northern Costa Rica).

In the Chiapas Mountains you can see many corn plantations, and that makes you understand that the base of the diet here is corn, to make tortillas, nachos, tamales, and other traditional dishes.

So it is important to realise how linked these people here are to the corn production, to mother Earth and to the environment. Corn here means life, well being, hope, tradition and hard work.

Since Christopher Columbus came here 500 years ago, Mesoamerica and the Peruvian Andeans, the regions where the corn comes from, have contributed to the daily food of all the world, (Maybe I have been eating too many tortillas in this last 10 days!)

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‘SEWING’ THE SEEDS OF FAIR TRADE IN TANZANIA FOR SHARED INTEREST

After 27 hours non-stop travel, two 6-hour stopovers and 3 different planes, I finally arrived to Dar es Salaam in Tanzania.  As always the interminable journey had been worth it to be back on African soil.  And anyway, I had met up with Rachel Ngondo, our African Regional Development Executive, at Nairobi so I’d had some company for the final leg of the journey.  As always, it was great to see her.

From the window of the third plane, the huge, open plains and the incredibly long coastline of Tanzania were both very much in evidence.  Unfortunately so too was the fact that it has been very dry here of late; rainfall is desperately needed.  Some areas haven’t had rains for two years now so not only is the livestock wasting away but the way of life of certain life groups may also be at risk unless some assistance is forthcoming.

Tanzania is apparently much less well developed than Kenya in a commercial sense but the country is fortunate to enjoy many more natural resources than its neighbour.  Another difference between the two which was also very obvious from the air is that in Dar those living in affluent homes and those in shacks live side-by-side.  In Nairobi on the other hand the very affluent areas and the slums are very separate.

Having fought our way out of Dar’s airport – literally! – we were hit by a wall of 32 degree heat combined with very high humidity.  On leaving the airport, we popped in to say hello to one of our existing customers in order to discuss their facility before making our way to what can only be described as a ‘haven’.  Being very slightly out of town, our hotel was serenely quiet and very beautiful with trailing bougainvillea stretching ceiling to floor around the internal courtyard.  After a very long day, I was only too happy to crawl into bed at the equivalent of 6.30pm my time!

We spent the majority of our time in Dar visiting with handicraft producers in and around the city.  As always with these trips, there is the odd hairy moment when we discover that, despite assurances from the taxi driver that he knows where we want to go (as he obviously needs the fare), he is in fact as lost as we are!  Still, a quick call to the customer and all is well once again.  I guess it’s one way of seeing a new location!

Everyone we met could not have been more friendly and welcoming: introducing us to all their workers and offering us some much-needed, cold, liquid refreshment; inviting us into their premises and giving us our own personal guided tour (whilst periodically dodging the rains that we obviously had to “let come”); and of course ensuring that we were not allowed to depart until we had signed the ubiquitous Visitors’ Book.

Most of our meetings were with new potential customers so they tended to follow a similar pattern.  We explained who we are, what we do, where our all-important funds come from, how we may be able to help them and what they should expect.  They reciprocated by explaining when they established their businesses, their structure, their history and of course their current requirements.

Obviously they all differed but what came across loud and clear was the desire to ‘give something back’.  Many of the ladies we met (and yes, every organisation we visited bar one was headed up by a woman) had come from the streets to become entrepreneurs.  One had even won Tanzania’s equivalent of Business Woman of the Year last year.  Now their overriding desire was to help people such as themselves; to give them some activity thereby keeping them off the streets.  One of the groups was focussing specifically on helping widows and grandmothers but with the same intention of helping to fill some of the lonely hours.

As already alluded to, these producers were primarily making handicrafts and textiles.  We saw numerous rugs, table cloths and kikoys (woven fabric) but most interestingly for me, we actually saw these products being woven on good, old-fashioned looms.  The purchasing opportunities were simply too numerous to mention and both Rachel and I indulged.  Needless to say, I was beginning to wonder from where the extra space required in my luggage was going to magic itself and this was only the first couple of days of a 3-week trip!  That said, it’s just simply not possible to say ‘no’ to these ladies and their groups of workers, especially as all the products we have seen without exception have been of such excellent quality.  It will be so special to dine off my new table mats having seen how and where they were made.

Some of the current issues affecting these particular producers include the fact that no design courses exist in the schools and colleges in Tanzania so young designers are limited in their ability to hone their skills.  Some courses are now just starting to be offered but it has always been too costly for the producers to employ the services of a consultant from overseas which has definitely slowed their output of new designs and products.

One of the groups with whom we visited told us that with the help of the local fair trade network, they are hoping to get handicrafts classified as ‘crops’.  In the same way that people tilling the land are able to live off the crops that they produce, these pioneers believe that people live off handicraft production in a similar way and this should be officially recognised.

I would say the overriding issue that all these producers seemed to be coming up against (and we come across this the world over) is how expensive it is to borrow funds locally.  We were told that official rates are currently approximately 24% but that this rate tends to mask further underlying fees making the final cost of borrowing even higher.  Some firms are therefore forced to shelve any plans they may have for expansion until a company like Shared Interest comes along and is able to help.  Suddenly their vision becomes a realistic possibility once more.

Without the pre-finance that Shared Interest offers, producers are not always able to consider accessing new markets and developing relationships with further buyers.  Indeed, for one of the ladies with whom we spoke, our visit was perfectly timed as far as her plans are concerned and she even referred to us as ‘angels sent from God’.  It is always very humbling to realise just how much benefit we are able to bring some of these groups, often with what might be considered quite small amounts of money.

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Shared Interest Increases Lending in South Africa

Our East African Regional Development Executive, Rachel Ngondo has recently assisted another new African producer group with access to credit from Shared Interest. AMWA are a South African handicraft producer where fair trade, environmental responsibility and commercial viability, are integral parts of the manufacture and marketing of products.  AMWA works with disadvantaged women in the rural area of Knysna and has given lots of producers an opportunity to earn a livelihood and change their lives. AMWA have plans in place to target the huge, potential market that the World Cup will bring to South Africa in 2010. By financing the term loan they applied for Shared Interest will help AMWA to further enhance their growth and increase their impact in the community.

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South-South Trade – A new mission for Fair Trade

One issue within Fair Trade which is becoming increasingly more important is that of South-South Trade. Fair Trade has achieved a great amount over the past few decades in terms of creating a more level playing field for the producers of a variety of goods from coffee to crafts.

However, currently that playing field still leaves the producer dependant on so called “Northern hemisphere” or “developed country” buyers. You can see from the map that Fair Trade labelling initiatives, the bodies that manage the fair trade mark are mainly based in these  countries. In the wake of the recent economic crisis some producers have seen their orders plummet. Even though their country may not be suffering directly from a recession, the dependence on Northern buyers affects their income.

This is why my trip to South Africa was so inspiring, you may have read that South Africa now has it’s own Fairtrade Marketing Initiative, giving South Africa license to certify fair trade products in that country. During the trip we met with Jonathan Robinson of Bean There Coffee Company. Jonathan spent the first two years operating his business under fair trade terms without a mark on the products to show they were fair trade! Now that South Africa has direct access to this mark it will make it much easier for producers to promote their goods as fair trade. This is a really big step forward in awareness raising and market access for producers in the South. Once again Fairtrade is making pioneering steps to level the playing field across the globe for producers who are often marginalised by the free market.

Jonathan now has a café and roaster based in Johannesburg where visitors can sample wonderful coffee from all over Africa; I should know I was lucky enough to try some!

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Fast turnaround for Kenyan Producers

I first met Pauline Ntombura the Managing Director of Salom enterprises in August 2008. Salom Enterprises have experienced tremendous growth in their business in the last few years. This September they decided they would like to apply for a facility with Shared Interest.

Salom works with 12 groups of producers located in Kisii district, Eastern and the Coast provinces of Kenya as well as in different slums in Nairobi. One of the producer groups working with Salom is ‘Amani’ which is the Swahili word for peace. The group is made up of women living in the slums of Nairobi and was formed after the post election violence by bringing together women from different tribes to work together in order to heal tribal animosity. This group produces a unique range of jewellery.

Salom has made a huge impact in the communities they work in by providing a consistent source of income to more than 1500 families. They have also contributed to various projects in the community which include schools, water harvesting. Some examples include 3 classrooms built for Nyabigena primary school in Kisii and construction of a well for one of the producer groups based in Mathane in Eastern Kenya.

For a number of years, SALOM has helped create employment for several producers hence directly impacting disadvantaged men and women in rural and low income areas of urban centres. Not only have they enabled producers earn a steady income but they have also impacted the wider community through re investing their profits to support community projects such as schools, water and health.

Working closely with Salom we managed to process their application within 2 weeks, which may be a record for Shared Interest! Salom now have access to a sizable export credit facility which will help massively with this seasons orders.

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Rollercoaster in Guatemala

The following is a Business Development Update by Hugo Villela, Regional Development Executive, Central America

Hello colleagues… Here are some thoughts coming from my latest experience in Guatemala, a trip from 9th to 12th June, 2009. This trip was not to look for new customers… it was to look after our customer service, as one customer has struggled with contracts and management of pre-finance recently.

Guatemala is a country where most of the people are descendent from Maya cultures. They have a central left president, more concerned with social development, but with a scandal of accusations for the assassination of a journalist who was involved in the research of a corruption default from Banrural (a local bank) and Anacafe (The Guatemalan Coffee Association). Most of the population chose this president expecting more respect for human rights, which were constantly violated in the preceding years from the army and paramilitary groups. A feeling of deception is in the air everywhere.

The trip to Guatemala was to San Pedro Nectar, a town in Huehuetenango near the Mexican border. Three weeks before my visit, 17 local drug smugglers were executed by Mexican cartels (other drug smugglers from Mexico). How to describe the context? …Huehuetenango is one of the 10 best coffee origins in the world, where coffee is mainly grown by small indigenous farmers. The local people don´t have a culture of drinking good coffee, they drink instant coffee, which was very bad for me, expecting a good coffee from this region!

The landscape is wonderful, green mountains in this season, deep canyons with white-water rivers, indigenous people walking along the roads, wearing traditional clothes and kids everywhere. The journey from Guatemala City (the capital) to San Pedro Nectar took seven hours. That meant I had to take a plane the day before, so that I could travel during the day, because in Guatemala personal security needs to be taken seriously and you can´t drive in the night. When I asked to rent a car, the rental company asked where I planned to go, and I said to Huehuetenango. The people who worked there told me that I should not travel alone. I took some precautions because the financial manager from Asociacion Chajulense (a customer) travelled with me, so that I didn´t look like a tourist asking “where is San Pedro Necta?”

On one hand the most recommendable option would be to take a 4X4, but on the other hand the people in the rent a car store asked me to rent a Sedan…so I don´t call the attention of bad guys. It is interesting how people give you advice, and that you need to keep your attitude ready to take on board what the common sense for people living there will be. Sometimes that is different than our own common sense from where we come.
This travel was like a sentimental rollercoaster, because when you see the needs of the producers and the poverty of their region you understand the relevance of our facility with them.

I have to recognize the support of Asociacion Chajulense to our Huehuetenango trip. I couldn´t have done this trip without their support. Special thanks to Freddy.

That was my experience… after long drives… and a flat tyre we were back to Guatemala City. I hope from this trip everything will now be sorted out for our customer in Guatemala…

Best regards and until next time!

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Shared Interest looks after the needs of Malawian fair trade producers

The following is a Business Development Update by Rachel Ngondo, Regional Development Executive, Africa

Last time I promised to tell you how the trip I made to Malawi about two weeks ago…

This was my first time to Malawi and I really looked forward to the visit. From Lusaka Zambia it is only an hour’s flight to Lilongwe. When I arrived in Lilongwe I was amazed at the spaciousness of the city. It’s really a nice feeling to be in a city with few high rise buildings and a countryside feeling. And the people are really nice and friendly.

The driver, who picked me up from the airport, said Lilongwe is not the largest city in Malawi as it became the capital city in the 70’s. I could not avoid noticing long queues of trucks carrying bales of tobacco waiting to offload into ware house near the auction house. Malawi is one of the largest producers of tobacco in Africa. In the recent years, farmers have been shifting from tobacco to food products. This is because of high input costs required in tobacco production compared to food products. Also food production in the country has improved tremendously thanks to the government policy to subsidize farmers.

I had an opportunity to visit a groundnut farmers association about 100km from Lilongwe. These groundnut producers are FLO certified and sell to the UK. Some of them have started small businesses, bought cows and improved their homes from the income. They had already harvested the nuts and were now waiting to sell.

From Lilongwe I traveled to Blantyre which is a city south of Malawi and then to Mulanje district about 150 km from Blantyre.  It was a really big contrast from Lilongwe.  It is cool and very beautiful. At the foot of Mulanje Mountain are lush tea estates owned by private companies as well as by small holder associations.  It was one of the small holders associations, Sukambizi, which I had come to visit. Sukambizi Association is the only FLO certified small holder tea producers with about 6000 producers.  With the help of Lujeri tea estates, they obtained FLO certification. They had just received their first premium fund and were in the process of selecting their priority projects to implement.  It was good to discuss with them about our facilities and they noted that they have spoken to several financiers but they find the Shared Interest lending model as the one that looks after the needs of the producers.

At about 4pm I set off from Mulanje to Blantyre where I spent the night and by 4.30pm it was already dark and very cold!  Luckily the hotel rooms are heated, so it was not so bad. I had to set off early in the morning to catch a plane back to Lilongwe and Nairobi. And I kept wishing I had more time in Malawi as there is so much I wanted to see…

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