MALAWI 2012
Alquity Insight Trip

1
Did you know...

•	 that there are over 61 million children living without education in the world?
•	 the average salary f...
Introduction

3
Introduction
Globaleye’s Managing Director Scott Balsdon and Corporate Communications
Manager Katy Glover, spent four days...
Alquity - A new type of investment management business
Alquity Investment Management Limited (Alquity) is an exciting, vib...
The One Foundation is Alquity’s charity partner and all donations from their net
management fee to OIBM are run through th...
Opportunity
International

7
Opportunity International Bank of Malawi
Opportunity International Bank of Malawi (OIBM) offer vital microfinance services...
OIBM Client Profiles

Doriska Jombo
Doriska is part of the Ndife
Amodzi Trust Group and is now
on her 10th loan cycle with...
Ian Serutu
Ian owns a stall in Blantyre
market selling cosmetic
goods such as earrings,
shampoo and make up.
He first lear...
On the Ground
Following a visit to a local branch of OIBM and speaking with the bank
manager to understand in greater dept...
We leave this market and travel to visit a second group of five OIBM
clients who have taken out a group micro-financing lo...
School Feeding
Programme
13
One Porridge & Mary’s Meals
One Porridge is a collaboration between morning foods, Global Ethics Investment
and The One Fo...
On the Ground
We spend one morning helping with a school feeding programme. The
school location is extremely rural; the 4x...
Despite the conditions, all the children love to learn and are impeccably behaved. Speaking
to the teachers regarding the ...
17
For more information please visit:
www.alquity.com
www.onedifference.org
or call Globaleye on +9714 404 3700

PO Box: 2459...
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Globaleye Malawi Report Slide

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Globaleye’s MD Scott Balsdon and Corporate Communications manager Katy Glover travelled to Malawi to see first-hand the sustainable projects funded by Alquity Investment Management and The One Foundation.

Alquity, in partnership with UK registered charity The One Foundation, helps people in developing countries who struggle to earn a living and who do not have access to credit and savings services from large banks and financial institutions. Alquity donates a minimum of 25% of their net fund management fees from the Alquity Africa Fund to The One Foundation, which directly supports microfinance programmes to create jobs and lift people out of poverty. They also had the opportunity to visit schools supported by The One Foundation and help with their school feeding program.

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Globaleye Malawi Report Slide

  1. 1. MALAWI 2012 Alquity Insight Trip 1
  2. 2. Did you know... • that there are over 61 million children living without education in the world? • the average salary for a working male in the UK would build a school block in Malawi? • that many children in the developing world have to walk many miles in order to attend school, sapping their precious energy, with no food at the end to sustain their brains? • that it costs $650 per annum to educate a child in developing Africa? • that 40 million children in Africa do not have access to any kind of education? 2
  3. 3. Introduction 3
  4. 4. Introduction Globaleye’s Managing Director Scott Balsdon and Corporate Communications Manager Katy Glover, spent four days in Malawi in September 2012 to see firsthand the sustainable projects funded by Alquity Investment Management and The One Foundation. Alquity Investment Management, in partnership with UK registered charity The One Foundation, helps people in developing countries who struggle to earn a living and who do not have access to credit and savings services from large banks and financial institutions. Alquity donates a minimum of 25% of their net fund management fees from the Alquity Africa Fund to The One Foundation, which directly supports microfinance programmes to create jobs and lift people out of poverty. 4
  5. 5. Alquity - A new type of investment management business Alquity Investment Management Limited (Alquity) is an exciting, vibrant and fast growing investment management company with a difference. Alquity represents the coming together of altruism and equity to form a new approach to investment management that aims to generate attractive returns for investors through a rigorous, sustainable investment process, whilst positively transforming the lives of people in the areas in which we invest. Alquity believes that it is time for a shift in thinking that will revolutionise investment in emerging markets. In a financial market shaken by the pursuit of short-term gain, it is time for an investment philosophy that completely redefines what we understand by long-term gain. That grows roots, instead of pulling them up. Where profit isn’t the only return. Where the bottom line is also a lifeline. All this without compromising theinvestment itself. That reinforces it, in fact. An investment that strengthens the economy in which it operates long term, and strengthens practices within it, thus is strengthening itself. This is that shift in thinking. This is our way of seeing the world: Commercial sense + Common sense + Conscience = Fair prosperity = Alquity Attractive returns from emerging markets = the Alquity Africa Fund Africa is one of the most exciting investment stories on the planet at the moment. With significant resources (20% of the world’s land mass, 60% of diamonds, 12% of proven oil reserves, 9% of natural gas and 40% of the world’s gold), a young and growing population, and low debt and high GDP growth, the continent is being talked about by everybody. Financier George Soros recently described Africa as “one of the few bright spots on the gloomy economic horizon”; Bob Geldof has said that “Africa is a continent of extraordinary business and investment opportunities”. Investing in the Africa investment story through Alquity offers investors a number of advantages: • Africa specialists. Our fund managers are highly experienced. Led by David Mcilroy who has over 17 years’ experience of managing emerging market equities, they have been specifically selected to manage our Africa Fund. • Diversified one-stop access to the exciting growth potential of the African continent we invest in the companies we think will offer the best long-term growth opportunities - regardless of country or sector so we are not constrained by an index. • A straight-forward approach. The fund is simple to understand as it does not use gearing nor derivatives and hence avoids unnecessary risks. • Sustainable investment. The fund takes a sustainable approach to investing, ensuring that we are not investing in unethical businesses. • Transforming lives - we donate a minimum of 25% of our net management fee revenue to help people in Africa set up businesses to support their families over the long term. 5
  6. 6. The One Foundation is Alquity’s charity partner and all donations from their net management fee to OIBM are run through them. The One is a UK registered charity working with communities in Africa to address the most pressing humanitarian needs, such as clean drinking water, nutrition and sanitation. The One Foundation funds projects in those countries where the need is greatest, working to positively and permanently change lives in the following ways: Water One provide a range of sustainable water projects, using technologies that are appropriate to the communities they serve and that can be easily maintained. Now, instead of walking for hours to collect water, children can go to school and entire communities benefit from access to fresh drinking water. Hygiene & Sanitation Focusing on larger schools, One funds brick-built ventilated pit latrines for girls and boys with hand-washing facilities, replacing unhygienic non-reinforced sandy pits with grass screen surrounds. This is supported with an education programme for the children and local communities that covers hand-washing and basic hygiene, which will reduce the spread of disease. Nutrition One works with the poorest farming families in rural African communities, helping them grow enough food to feed themselves, plus a little bit extra to sell. That way they can earn enough to see them through times when the crops fail. To this end, they fund vegetable garden projects - providing family communities with start-up kits, equipment and training to enable them to be self-sufficient and grow more nutritional food. Sustainable Livelihoods Working with poor communities, One funds chicken-farming projects and a range of microfinance initiatives. The provision of capital, materials and training as part of our sustainable livelihoods projects assists families in developing strategies to grow income and assets, helping to strengthen their resilience to distress caused by market fluctuations and seasonal trends. Community Health Targeting those communities that are grossly underserved by public health initiatives, One funds bicycle ambulances and community medical kits in remote African communities. HIV/AIDS To help address the issues associated with the HIV and AIDS pandemic, One funds Voluntary Counselling & Testing outreach clinics. The programmes take teams of nurses and counsellors to visit rural communities to help educate and raise awareness of HIV and HIV-related issues as well as test for HIV. 6
  7. 7. Opportunity International 7
  8. 8. Opportunity International Bank of Malawi Opportunity International Bank of Malawi (OIBM) offer vital microfinance services to some of the poorest communities in Malawi, concentrating on those who are excused from the financial system. This includes female headed households, those affected by HIV/AIDS and those with no collateral. Interestingly 80% of the loans are given to women who have proved they invest the money more wisely than their spouses. In Malawi people face innumerable barriers to growth, in particular access to credit. Few have access to safe saving facilities and insurance to build assets, increase income and reduce vulnerability caused by food shortages. OIBM currently has more than 250,000 clients - the majority of whom live on less than US$2 per day. OIBM offers Microcredit programs to Trust Groups and individuals. These are tiny loans (as small as £35) which enable people to grow their businesses and break the cycle of dependency. Each microloan comes with a Microsavings Account to provide people with secure places to keep their money, protecting them against day to day crises and evens out seasonal income fluctuation. OIBM also provides insurance services to compliment this. Many of OIBM’s Clients live in rural locations where they have no access to transport and in turn banking facilities, so OIBM runs multiple mobile banking units throughout the country which visit rural clients so they can deposit and draw out money. In addition OIBM promotes HIV/AIDS awareness and provides leadership training in order to assist clients in maximizing their loans and making a success of their business ventures. 8
  9. 9. OIBM Client Profiles Doriska Jombo Doriska is part of the Ndife Amodzi Trust Group and is now on her 10th loan cycle with Opportunity International Bank of Malawi. Doriska owns a small market stall selling drinks and building materials such as nails. Before she enrolled with OIBM Doriska used to borrow money from loan sharks with up to 100% monthly interest repayment rates. Doriska’s first loan was 30,000 kwacha ($95) and she used this money to buy stock to grow her business. Her loans gradually increased as she proved reliable with her repayments. Her expanding business capital provided enough profit to allow Doriska to purchase a refrigerator to aid beverage sales. The profit delivered by her business will allow Doriska to send her 6 young children to school. Mary Banda Mary owns a tailoring business based in Ndirande, near Blantyre. Before becoming an Opportunity client, Mary had unsuccessfully tried to take out loans with other banks, but they would not consider her due to her lack of credit history. Mary took out her first loan with Opportunity in 2008 when she borrowed 15,00 kwacha ($47) so that she could buy more stock for her shop. Mary is now in her 12th loan cycle, and after gradually building up the size of loan she receives, she is currently on her 5th repayment installment of a 45,000 kwacha loan. Mary found the training given to her by the Opportunity International loan officer extremely valuable. She has adopted the business strategy taught to her and understands the importance of maintaining capital and keeping profits separate. Profits gained from her tailor shop have allowed Mary to buy land and build her own house. Due to the financial and business support given to Mary, she has been able to put her 3 children through school and her daughter now owns a hairdressing business of her own. 9
  10. 10. Ian Serutu Ian owns a stall in Blantyre market selling cosmetic goods such as earrings, shampoo and make up. He first learned of Opportunity International in 2008 when he joined the Tughanane Trust Group. Ian buys a lot of his stock from Tanzania and so has experienced difficulties purchasing new stock due to the devaluation of the kwacha. However, through the support of his trust group Ian has been able to keep up his loan repayments and with profits from his business he has bought a plot of land on which he plans to build a house for his wife and 2 children. In the future, Ian hopes to expand his business and own a number stalls in different towns. Victoria, Grace, Ian, Fortunate & Elliot make up the Tughanane Trust Group based in Blantyre. They have the largest loan pool of any of the trust groups in the area, totaling 2,270,000 kwacha. The group have a joint savings account to hold a proportion of the profits for the individual businesses to go toward repayments and to support any businesses that are not hitting their targets. The group assist each other in their individual business ventures providing a trusting business support group and lasting friendships. In the future, Tughanane Trust Group hope to start a group business strategy in the financial services sector, providing a loan pool from which other business owners will borrow from. 10
  11. 11. On the Ground Following a visit to a local branch of OIBM and speaking with the bank manager to understand in greater depth OIBM’s structure, Scott and I are taken to meet several of their clients whose lives have been transformed by loans. The first two ladies we meet, Doriska and Mary, have been able to grow their existing businesses with an OIBM loan. Numerous loan cycles later they are now able to support their entire family and educate their children. One of the ladies, Doriska, has been able to buy a second hand refrigerator with her loan which has pride of place in her tiny house. Although it may seem insignificant to us, this refrigerator has allowed her to store her homemade drinks which she sells on her market stall. Doriska now has enough money to build herself a new house. When I ask them both what life would have been like without the loan they both immediately reply “appalling”. Without a credit rating the only option was to borrow from a loan shark who charged up to 100% interest. OIBM charges normal bank interest rates with the idea being that their clients can eventually reintegrate into the normal banking system without having to rely on charity. We leave their houses and walk the short distance to the local market to visit Doriska’s market stall where she sells her drinks. The market resembles a shanty town and stretches as far as the eye can see, but despite its size Doriska has been able to make a success of her stall thanks to stock purchased with her loan. 11
  12. 12. We leave this market and travel to visit a second group of five OIBM clients who have taken out a group micro-financing loan and who are OIBM’s most successful clients to date. One of the stall owners, Ian, sells cosmetics which he imports from Tanzania. The recent devaluation of the local currency, kwacha, has meant that importation of goods has become more expensive and times are harder than they were before, but the OIBM loan cycle has kept his business afloat when without it he’s sure that his business would not have survived. The trust group works as a team; if one of the group defaults on a loan repayment then the whole group is liable for the repayment. This forges a strong relationship of trust between the group members and they all strive to make their repayments on time so as not to let the other group members down. Obviously if one of the group does get in financial difficulties then they are secure in the knowledge that they will be supported until the situation recovers What strikes me with all of the clients we meet is their palpable sense of pride; they feel a sense of worth and self respect, secure in the knowledge that their children will have a better future than they had envisaged and that maybe one day the poverty cycle will be broken. Katy 12
  13. 13. School Feeding Programme 13
  14. 14. One Porridge & Mary’s Meals One Porridge is a collaboration between morning foods, Global Ethics Investment and The One Foundation, with 100% of the profit to The One Foundation from the sale of this porridge going towards funding school meals in rural Africa. Mary’s Meals, a charity which feeds the world’s poorest children in a place of education, receives a donation from each packet of One Porridge sold in UK supermarkets and manage the school feeding programme on the ground. The Mary’s Meals campaign started in Malawi 2002 and the charity is now feeding over 470,000 Malawian children each school day, which is more than 17% of the primary school population. They are fed Likuni Phala, a locally sourced, maize based, porridge type mix. 14
  15. 15. On the Ground We spend one morning helping with a school feeding programme. The school location is extremely rural; the 4x4 we are travelling in struggles to negotiate the rough terrain and it takes us a good 45 minutes to reach the school from the main road. En-route we pass many of the children walking to school barefoot, as well as the school’s headmaster, all who have already walked for at least an hour. We feel guilty for travelling in a vehicle, but the kids all wave cheerfully and run after the car for a short distance. When we arrive at the school many of the children are already there and they crowd round us excitedly. They are soon called into line, separated by their different classes, and as each class walks to their first lesson the whole school bursts into song. A huge vat of porridge is already cooking which will, in many cases, be the kids one main meal of the day. The porridge is made each school morning and Mary’s Meals have trained local mothers how to make it; however at least once a week a representative from Mary’s Meals visits the school to make sure the porridge is being made correctly. It’s easy to burn the porridge or for it to be the wrong consistency. It takes at least 4 hours each morning to make enough porridge to feed the entire school. Whist the porridge cooks we sit in on several lessons, the first of which is English. The classrooms are tiny, with mud floors, thatched roofs and no glass in the windows. Leaning against the back wall we feel it move, so it certainly isn’t a safe environment for anyone, let alone children. The rudimentary benches are made of earth and there are no desks. Each child has one text book and two pens which they treat with care and respect. 15
  16. 16. Despite the conditions, all the children love to learn and are impeccably behaved. Speaking to the teachers regarding the impact the school feeding programme has made, they all said that the change in the children has been remarkable as they now have the energy and concentration to enable them to learn. The porridge is ready to serve by mid-morning and we help to dish it out to the school. The children wait patiently in line for their turn, each have been issued with their own plastic mug and spoon. It takes a good half an hour to serve all the porridge, after which we get to sample some leftovers. The porridge is warming, has a sweet taste and a thick consistency, and by the end of the mug we feel satisfied, although it’s hard to imagine that being our only meal of the day. Once the porridge is finished all the children go to the nearby water pump to rinse their mugs clean in preparation for the next day. After porridge, and as a special treat in our honour, we spend several hours playing football, netball and singing games, a reminder that despite the poverty these children are no different from any other school children around the world. They are full of happiness and laughter and their enthusiasm and energy is humbling. When the time comes to leave there is a rugby scrum for the empty water bottles we have in our car – our rubbish is precious treasure for the children with the water bottles meaning they can easily carry and store the water from the pump. Our journey back from the school is quiet and thoughtful one. It’s not exactly a feeling of sadness, as the kids seem happy and they know no other alternative. Maybe it’s a sense of hopelessness that whilst we go back to our nice lives they will continue the same struggle for existence, but we’re also thankful that at least they are receiving food and nutrition thanks to the wonderful work of The One Foundation and Mary’s meals. Katy 16
  17. 17. 17
  18. 18. For more information please visit: www.alquity.com www.onedifference.org or call Globaleye on +9714 404 3700 PO Box: 24592, Dubai, United Arab Emirates Tel: +971 4 4043700 | Toll Free: 800 4558 | Fax: +971 4 3489331 Email: info@globaleye.com www.globaleye.com 18

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