ANNUAL REPORT - Stromme Foundation East Africa · Joint ventures between Stromme Microfinance East Africa Limited (SMF EA Ltd) and CMMF partners are being steered with the hope to

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Regional Director’s Message

About Stromme East Africa

Ensuring Quality Education for Disadvantaged groups

Strengthened social protection for children and adolescents living in violent environment

Improved livelihoods for the rural and urban poor

SMF EA Ltd., Making Financial Services more accessible by the Poor

Building capacities for sustainability

Networking with government and other civil society

Update on administration and finance

Challenges:

Children at an Early Childhood Learning Centre during their end of year open day. Kampala, Uganda

www.strommeea.org /StrommeEA

1STRØMME FOUNDATION A N N U A L R E P O R T


• Human Dignity: Fundamental to other human rights.

• Justice: Equal opportunities for all social justice as well as legal justice.

• Solidarity: We empathically identify ourselves with the plight of the marginalised and discriminated groups.

2014 – 2018 Overall Strategic Goal: Improved quality of life for poor people in poor/hard to reach communities of East Africa through promoting the right to education and access to financial and non-financial services.

What we would like to be remembered for: • An organization that “cares and walks with

the marginalized and vulnerable people out of poverty”.

• An organization that holistically empowers civil society and communities through participatory capacity development.

• Rights based development organization that premises its work on human dignity.

• Leading provider of innovative solutions in the fight against poverty

• A development partner that is accountable and reliable.

Strømme Foundation is a Norwegian based international development organization that has, since 1976, worked to help people in Asia, South America, West and Eastern Africa get out of poverty. SF Head Office is in Kristiansand, Norway. The organization currently works in 13 countries including Kenya, Tanzania, Uganda and South Sudan which are under Strømme Foundation Eastern Africa.

SF works with local non-governmental and community based organizations. Program sustainability is ensured through a community led participatory approach. Community participation, respect and the dignity of the beneficiaries are at the core of program success.

A world free from poverty

We exist to eradicate poverty

About Stromme Foundation East Africa

A Bonga graduate (An adolescent girls’ empowerment Program) preparing a meal for clients at her restaurant established after acquiring catering skills in the program. – Kajo Keji, South Sudan.


2 STRØMME FOUNDATION A N N U A L R E P O R T

Inspired For More Positive Change

Our commitment to empower people in rural/hard to reach areas continues to be a pillar as we seek to address the root causes of poverty and challenge communities to participate in their own development.

2014 marked our twentieth and tenth anniversaries for Stromme Foundation East Africa (SFEA) and Stromme Microfinance East Africa Limited (SMF EA Ltd) respectively. We celebrated these great milestones with a dinner shared with partners, friends, government authority representatives and our SF global Board members who were visiting our region at that time.

In the past years, we have witnessed all round transformation of both individuals and communities that our interventions target. This is attributed to the dedication of our partners, donors and staff who are ever committed to this phenomenal cause. The result and stories of transformation continue to be a motivational drive in all the work that we do and hope to carry out in future.

We kicked off our new five year strategic plan in 2014 which carries through to 2018. The plan takes decisive focus on poverty as a complex dynamic phenomenon that requires efficient integrated approaches to address it sustainably. The strategic plan further links poverty, development and human rights. In addition, the Rights Based approach is being emphasised as we encourage participation of communities in the issues affecting their communities.

Within the first year of the strategic plan, the Community Managed Microfinance (CMMF) program has been reviewed and our training manual adjusted to make it more holistic. Development education has been integrated into the model all geared towards reaching poorer people for sustainable development. Overall in 2014, 75,278 people benefited from this CMMF intervention.

On the other hand, our institutional microfinance is adapting strategies and products that reach more poor people.



Inspired For More Positive Change

Some of the staff members at the regional office in Kampala. Their team work and dedication is highly recognised as they continue to commit to the vision of Stromme Foundation

Joint ventures between Stromme Microfinance East Africa Limited (SMF EA Ltd) and CMMF partners are being steered with the hope to increase synergy between the institutional microfinance and community approach. This will enable us have more poor people access financial services. In 2014, SMF EA Ltd support to Microfinance Institutions enabled them to reach out to 1.65 million people by offering them an opportunity to access financial services that included savings, money transfers, credit and training in financial literacy. The Company provided financial and non-financial services to 27 partners during the year

SFEA has continued to promote the right to education through supporting access to vulnerable groups, retention and quality of basic education. In 2014, 2,328 children and 28,552 pupils were reached out to through support to early childhood development and primary schools alone. Greater focus has been put to adolescent girls and youth empowerment programs for the out of school youth whom we want to equip with life and vocational skills for a dignified sustainable livelihood. 4,287 adolescent girls were equipped with literacy, numeracy, life and vocational skills through the Bonga adolescent girl’s empowerment program. We want to further emphasise development of pro-youth microfinance products; reckoning that the

youth make 70% of the population in East Africa whilst at least 80% are unemployed.

I would like to extend my sincere gratitude to all our partners, donors, staff, friends who have contributed to the great positive strides made in our poverty eradication mission through their funding, hard work and dedication. We shall continue enhancing organisational effectiveness, leadership/governance development across all country programs in order to achieve even more results in our work.

Our commitment to empower people in rural/hard to reach areas continues to be a pillar as we seek to address the root causes of poverty and challenge communities to participate in their own development. We shall continue to work through our committed partners and ensure that their organisation capacities are built for sustainable community development.

Priscilla Mirembe SerukkaRegional Director – SFEA Chairperson Board of Directors, SMF-EA Ltd

@MirembeSerukka



Education is a key aid to sustainable development that SF continues to dedicate efforts to. SFEA’s Community Based Education Initiative (CBEI) aims at contributing to quality education for children and pupils through support to Early Childhood Development and primary schools. SF also supports alternative learning programs targeting adolescent and under-privileged children who miss out on school due to conflict, poverty or cultural practices. Accelerated learning program (ALP), Community Girls Education, Bonga (Adolescent girls Empowerment), Functional Adult Literacy (FAL) and Community Vocational Skill are some of the alternative learning initiatives that SFEA supports.

2014 Target:32,550 children enrolled

• The classroom: pupil ratio in primary schools supported is 1:80

• 30% of pupils in primary seven pass and are eligible to join secondary school

• 5% drop out rate

2014 Actual:28,552 (14,145 girls: 14,407 boys) enrolled

• The classroom: pupil ratio was 1:94

• The pass rate in primary seven was47%

• 4% drop out rate

Ensuring Quality Education for Disadvantage Groups

Highlights of the different interventionsPrimary schools

In 2014, 34 government-aided primary schools were supported by improving the learning environment, and increasing stakeholders’ participation to increase access, retention, and pupil-teacher contact time. SFEA also facilitated training of 537 teachers, 509 members of SMCs (School Management Committees) and PTAs (Parents-Teacher Associations) to enhance management capacity in the supported schools. Improving the learning environment enabled higher

enrolment and retention of 28,552 pupils (only 5% drop-out in comparison to the national average of 64% drop-out rate).

CBEI has been integrated with CMMF as a means of curbing drop-out rates caused by lack of fees, other scholastic materials and meals while at school. By the end of 2014, 35 primary school communities, had guardians and parents participating in CMMF. This strengthened their ability to support their children in school.

Primary school pupils during break time at one of the SFEA supported schools. - Dares Salaam, Tanzania



Early Childhood Development (ECD):Early Childhood Learning aims at ensuring that children between the ages of 1 to 5 years are protected, receive good nutrition and have a good start to Education.

Target • 3,000 children enrolled

in ECD centres

• 24 ECD centres supported

• The classroom: pupil ratio in ECD centres supported is 1:60

• The teacher: pupil ratio in ECD centres supported is 1:50

Actual by end of 2014 • 2,142 children enrolled

in ECD centres (946 Male, 951 female)

• 21 ECD centres supported

• The classroom: pupil: ratio in ECD centres supported is 1:79

• The teacher: pupil ratio in ECD centres supported is 1:37

In 2014, SF supported a total of 24 ECD centres with enrolment of 2,278 children. Support to ECD centres enables them to improve the learning environment and facilities which in turn contributes to higher enrolment. Parents also receive economic empowerment through the Community Managed Microfinance (CMMF) initiative, which has enabled them to support the feeding of their children at the centres as well as take care of other basic needs.

SF’s support to Early Childhood Education enables children in poor communities to access early learning facilities propelling them into a better future.



Vocational Skills training (VST):

Actual ALP: 989 learners enrolled (554

male, 435 female)o 23 ALP centers established

CGS: total of 1,558 enrolled in 45 centres (620 boys, 938 girls)

FAL: 571 learners enrolled (219 male, 352 female)

o 17 FAL centers established

2014 Target:ALP: No enrolled

• 510 learners enrolled

• 17 centres established

• CGS:

• 45 centres established

• 1,350 learners enrolled

• FAL:

• 17 centers established

• 510 learners enrolled

Alternative Education in South Sudan is a government initiative that targets children in communities with limited access to formal education, youth and adults who never went to school or dropped out of school, mainly due the war, poverty and negative attitude towards education. SF’s intervention is in response to the very high illiteracy rates in South Sudan (90%) as well as a response to the government’s Education for All (EFA) policy campaign.

In 2014 SFEA supported 23 ALP centres (Accelerated Learning Program), 45 CGS (Community Girls Schools) centres and 17 FAL (Functional Adult Literacy centres. With ALP youth undergo four years instead of eight years in primary school after which they do an exam to graduate to secondary or tertiary institutions.

A total of 1,002 learners attended ALP classes and acquired literacy and numeracy skills. To enable the centres run and effectively deliver the expected service to the beneficiaries, other supportive activities were carried out like: training of teachers; provision of scholastic materials; sensitizing and involvement the local community representatives, to promote community ownership and support to the centres.

CGS just like ALP follows a condensed primary school syllabus designed for children who missed out on an early start to primary education, but are still within the age bracket of primary schooling. CGS aims at increasing girl’s enrolment (targeting girls between the ages of 8 and 13) in the centres located within the community for easier access. In 2014 a total of 1,558 learners were enrolled.

SF believes that if every youth is equipped with a practical skill, the problem of youth unemployment would eventually be combatted.

This initiative is designed to provide opportunities to youth who did not receive formal schooling or dropped out of school. A total of 918 youth (553 females and 365 males) were supported in 36 centres to acquire appropriate and marketable vocational and entrepreneurial skills. Skills include tailoring, crafts making, catering, hotel management, mechanics, and hair dressing. These have increased their chances of getting gainful employment for self-sustenance. The support was extended to both formal (in an established vocational school/s) and non-informal training (through apprenticeships).

Alternative Education in South Sudan:


A total of 571 adult learners attended FAL. The learners are very enthusiastic and have quickly gained reading, writing, numbers and some life skills to enable them live better lives. In addition, integration of the Alternative Education interventions (FAL, CGS, ALP) with CMMF was started. This is aimed at enabling the learners to sustain themselves through improved incomes.

2014 Results:GESS: • 596 schools

targeted have been reached

• 596 schools receiving capitation grant

• 16,858 girls received cash tranfers

• 51% of the registered girls (33,199) received cash transfers

2014 Target:• GESS: 550 primary

schools targeted

• No of schools receiv-ing capitation grant

• 11,475 girls receiving cash transfer (target is 4,000)

A learner (named Likiso) at FAL center in Kaya - Morobo is writing her name after one month of the training

GESS program beneficiaries during an advocacy match to sensitize the community about the importance of girl’s education

In South Sudan, Girls’ education indicators are particularly poor; there are only seven girls for every 10 boys in primary school and five girls for every 10 in secondary. In the whole country, only five hundred girls are in the last grade of secondary school. Just 12% of teachers are female. Literacy rates for girls are 40% compared to 60% for boys. Cultural practices, internal and external conflicts have further exacerbated their lack of access to education.

This UKAID (DFID) funded project offers a capitation grant to meet school administrative costs that would otherwise be paid by parents. The expected impact of the Programme is to transform the lives of a generation of girls in South Sudan through education by increasing their enrolment, retention and levels of achievement. SF in South Sudan oversees the program in 596 schools.

The Girls’ Education South Sudan (GESS)




Bonga Program, Empowering Adolescent GirlsBonga (also known as Shonglap) is a one-year adolescent girls’ empowerment program that has continued to impart basic literacy and numeracy skills, life skills and occupational/vocational skills to adolescent girls (13 to 19 years) who dropped out or never went to school. By end of 2014, the program had empowered 4, 275 adolescent girls in 149 centres. The girls acquired improved livelihood due to increased awareness about general wellbeing, acquisition of literacy, business and life skills. With their esteem and confidence built, they now actively participate in decision making in their homes, and are well respected in their communities. The project combats violence against girls, illiteracy, vulnerability to diseases, early marriages and pregnancies, while promoting economic independence and community participation. The girls also act as an advocacy group amongst themselves and for other marginalized people in the community. For instance; in several cases they have intervened to save other girls from early marriages by engaging the girl’s families and local leaders.

In order to ensure self-sustenance of the girls, they are introduced to Community Managed Micro Finance (CMMF) to enable them save money in groups and take loans from the pooled funds to invest in and grow their small businesses. Girls acquired various skills in trades like hair dressing, tailoring, catering, weaving, knitting, cake making, briquettes making, soap making, chalk making and agro-based skills.

One of the beneficiaries had this to say, “I have one child and started my saloon business six months ago. I receive on average 4 customers in a day and each day I go home with approximately UGX 30,000. I have already bought a goat with this money and established a cassava plantation. My my son goes to a good kindergarten which I can afford now. I have 2 bags of cassava ready for sale in my house out of the plantation and some are still in the garden. My husband gave me UGX 100,000 to start this business and my next plan is to move to the town where I can have more customers and possibly employ other girls. My major challenge is that I don’t have a good room here in this trading centre for my saloon” (Zainab, Adolescent girl, Yumbe)

Bonga Girls in Session

Strengthened Social Protection for Children and Adolescents living in Violent Environment.

Bonga graduate

putting her

hairdressing

skill to use



Children and parents during a sensitization meeting about the dangers of living on the streets.

One of the CHRISC Uganda sports teams

Supporting children on the street to acquire education:Through this intervention, SFEA supports the rehabilitation of children formerly exposed to inappropriate living. 1,090 children were counselled and after a comprehensive rehabilitation process, 75 were enrolled in formal schools while others joined vocational skills training through apprenticeships. The children are continuously sensitised about the risks of street life. A preventive approach was used in an effort address the issues that forced the children to go to the streets so as to prevent them from running away to the streets again. As a way of further rehabilitating them and giving them basic life skills, the children were also involved in agriculture activities for training purposes as well as engaging them in activities that instil in them a sense of belonging and responsibility.

Reaching Youth through Sports and cultural creative arts programs.Strømme Foundation supports local partners like Christian Sports Contact (CHRISC), CRO to engage young people in behaviour change activities for their better and safer livelihoods. Sports, cultural creative arts, environmental conservation; and prevention of HIV/AIDS are some of the sessions organised to instil various disciplines among these energetic youth. Sports serves as an entry point for changing lives of young people and to equip them with leadership and self-management skills. The youth are trained in sportsmanship, empowered to positively and effectively respond to their unique needs and community needs. This empowers the youth to be change agents in their communities. In addition, through different tournaments that the youth groups take part in, a few are recognised and win school bursaries and scholarships in schools that are keen on promoting sports. CRO in 2014 had over 30 youth given bursaries/school fees subsidies in some of the best secondary schools.

To take it a notch higher, youth have been introduced to Community Managed Microfinance to strengthen the culture of work, saving and investment. About 5,378 were actively saving in 2014 under the CHRISC Uganda partnership.



2014 Target: • 3,185 groups formed

• 800 new groups formed

• 79,625 members /clients

• 22,500 new members /clients

• 70 % women

• 15% change in savings mobilised

• 60 % with businesses

• 30% with new businesses

• Cumulative Social Fund contributed

• 142 Clusters formed

Actual at end of 2014: • 3,075 groups

• 920 new groups

• 75,278 members

• 25,681 members

• 72.5% women

• Total savings by end of 2014 USD 7,913,916 and in 2013USD 5,963,535, there was 24.6% change in savings

• 64.9% with businesses

• 31.8% with new businesses

• USD 161,089 Social Fund

• 103 Clusters formed

Improved Livelihoods for the Rural and Urban Poor Community Managed Microfinance (CMMF)The CMMF program supports the establishment and strengthening of Self Help Groups (SHGs), which are primarily savings and loans groups, but with substantial social support activities amongst the members. The groups normally comprise of 20 to 30 self-selected people who pool their savings of pre-determined amounts on a weekly basis, from which they borrow to either start or strengthen their microenterprises to boost their incomes. They periodically pay back the loan with an agreed affordable interest. The members coalesce around their economic activities to also support each other to address their personal/family needs as well as engaging in development initiatives in poor communities. For instance all groups have a social fund from which members can borrow money for urgent consumption needs like sickness of a child, school fees etc., which they pay back without interest and the education fund used by the groups to address needs in the schools in their communities.

CMMF Results:

CMMF clusters comprise up to 8 – 10 groups formed after 2-3 years. The aim is to create people’s owned grass root organisations that are linked to advanced financial and social service providers for bigger. In 2014, 43 Clusters were formed and trained. Through these clusters, members are able to access services and skills like basic literacy and numeracy, safe water, opportunities for investment.



Other outcomes of CMMF.Enterprise development: Group members have been trained in Selection Planning and Management of Income Generating Activities. 64.9% of all group members have at least one income generating activity while about 30% have obtained casual work and small businesses. The group IGAs has also strengthened cooperation amongst the CMMF groups and clients. Editah

showing off her bricks

CMMF ladies in Kajo keji selling some of their produce in the local market.

Food Security: Also used as an income generating activity, food Security was started due to alarming famine in some of the areas that was adversely affecting the CMMF and other programs. Enterprises promoted include; Cassava, Maize, bananas, beans Vegetables and others. 44 farmers’ schools, 42 farmer plots and 3,997 Backyard gardens were established across the region. Intervention aims at strongly integrate Food security elements in CMMF project since these poor communities have high agricultural potentials. Groups are also sensitized on Environmental sustainability and the use of environmentally friendly cooking stoves or methods. Group members are also encouraged to plant fruit trees and other types of trees for timber.



Community Based Vocational Skills Training:In a bid to respond to the high percentage of unemployed youth in the region, SF has chosen to prioritise targeting youth in various ways. One of the ways is through Community Based Vocational Skills Training. Artisans are identified in different trades and youth are attached to these artisans for a period of time depending on the type of trade. Trades include Carpentry, Tailoring, bakery, catering, stove making, black smith and welding, brick making, masonry, crafts and others. In 2014, 1,514 (865 girls and 649 boys) youth were trained. They are now able to get employment as they grow their income and acquire their own workshops.

Local Government Support: S o c i o - e c o n o m i c empowerment to groups has strengthened their advocacy and lobbying powers resulting into local government support to community development programs initiated by CMMF members. Some of the local authorities are encouraging the groups to register so that they can be included in the various government projects.

Editah Kyomukama from COVOID was selected in 2014 to represent other CMMF members in a Stromme Foundation campaign; The Job Creator. At just over 29 years, Editah has become not only a job creator in her community but also an empowered woman leader catalysed by the enhancement of leadership skills in her CMMF groups where she has taken on various committee roles.

Due to extreme poverty that prevailed in her family throughout her childhood, Editah’s parents were not able to take most of their children to school. Only Editah managed to go up to level six of secondary school through a merit scholarship that she acquired.

After completing her senior six and having been home for a while, Editah’s parents decided it was time for her to get married. They soon identified a suitable mate for her. Young, timid and unable to defend her rights (like many girls in rural areas)Editor gave in to her family family’s demands. She was 21 years old when she got married and 2 years later, she had her first son.

The situation with the new family was not any different. The husband struggled daily to make ends meet. This left Editah wondering how best to intervene. Soon, she was introduced to CMMF through a community facilitator of COVOID, one of Stromme Foundation East Africa partners implementing the CMMF program in Rubirizi, Bushenyi, Ishaka districts in the western part of Uganda.

With much enthusiasm, Editah enrolled in two CMMF groups at the same time and she began saving UGX 5000 in each group per week. In 2013, February She borrowed UGX 600,000. She used part of the money to construct a shelter for pig rearing. She also acquired 4 pigs and started her piggery business. In 3 months, she had finished paying back the loan and she borrowed another UGX 1million which she used to purchase soil, to start a brick making business. She also bought 50 chicks that opened up her poultry business. All the 50 chicks blossomed into healthy chicken for meat and she sold them off to different clients. The income she received enabled her to pay up her loan and remain with UGX 200,000 as profit. She invested this back by purchasing more chicks. By the end of 2014, poultry was her biggest business. She had altogether 200 birds, 100 for meat and 100 for egg laying.

Editah is always looking out of opportunities to completely redeem herself and her family from poverty. She also grows coffee for sale. In 2014, she had over 200 coffee trees. On a weekly basis, Editah puts aside UGX 40,000 as savings for her and her family. She has now created jobs for over 5 households through employing members in her various projects.

When asked why and how she ended up being a local government leader, she responded; “People in my community kept seeing how I was progressing in my various ventures and they were really inspired. Most

Editah represents CMMF Job creators in Norway



My greatest motivation now is to fight poverty. My role as a councillor is to encourage people to work hard, save and invest in income generating projects so that they can get stable income to sustain their lives and those of their families.

Editah participating in the Job creator campaign in Norway

of them supported me and appreciated what I was doing in the community. When an opportunity arose in the local government, they elected me to be their leader at local council four. And that’s how I became a councillor.”

“My greatest motivation now is to fight poverty. My role as a councillor is to encourage people to work hard, save and invest in income generating projects so that they can get stable income to sustain their lives and those of their families. Growing up, I saw how my siblings and I struggled and I really want a better life for my children.” Said Editah.

This tenacity with which Editah carries out her business has caused her to be recognised both locally and internationally. In September 2014, she travelled to Norway, to share her story with the Norwegian audience through SF’s job creator campaign. She also got to visit other piggeries and farms and had an opportunity to learn more about modern farming.

Editah’s story summarises the empowerment journey that many ladies have experienced through CMMF. SF’s interventions not only aim at fighting poverty but also at empowering people to participate in own development.

Editah who represented CMMF job creators in Norway in 2014.

Editah with the board chairperson of Henriette Foundation, one of the funding partners of Stromme Foundation.



SMF EA Ltd., Making Financial Services more accessible by the Poor

SMF EA Ltd supports access to social products like water, biogas, so that partner clients can have improved livelihoods. James installed these water storage tanks after receiving a loan support from SMF EA Ltd partner, BIMAS kenya. He can now distribute safe water and earn some income.

Microfinance Partners

SMF EA Ltd provided financial and non-financial services to 27 Partners during the year although the year ended with 231 Microfinance partners having outstanding loans i.e. Uganda (14), Kenya (4) and Tanzania (5).

1 SomePartnershadpaidofftheirloans

Figure 1: Trend of Microfinance Partners supported

1 Some Partners had paid off their loans

0

10

20

30

2010 2011 2012 2013 2014

15 17 17 15 14

4 2 2 3 46 6 5 4 5

Uganda Kenya Tanzania

Source: SMF EA LTD audited accounts

SMF EA Ltd through its Microfinance intervention is committed to causing positive changes in the lives of the enterprising poor. This is being done through support given to local microfinance institutions who target the low income earners.

In 2014, the company in partnership with practitioner networks in Uganda and Kenya undertook social baseline studies in the two countries as a way of tracking and documenting the impact of its services.

As at December 31, 2014, SMF EA Ltd Partner institutions reached out to 1.65 million people by offering them an opportunity to access financial and non-financial services that included savings, money transfers, credit and training in financial literacy. Out of these clients reached, 61% were female and 39% male. Overall, 44% of the clients reached had access to credit facilities through partner institutions and hence enabled them to improve their livelihood.

To further evaluate its interventions, SMF EA Ltd carried out an impact baseline survey with three Partner institutions where a total of 1,002 partner clients participated in the study and will be monitored over a three year period to track the changes in their livelihood.



Loan Portfolio volume and QualityThe Company registered a 21% increase in Loan portfolio from Ugx 26.6 billion (USD 9.6 Million) as at December 2013 to Ugx 32.1 billion (USD 11.6 Million), as 31st December, 2014. Figure 2, below shows the trend in gross loan portfolio of over the period 2010- 2014. Portfolio quality as measured by portfolio at risk (>30 days) was 0% compared to 0.06% compared as at December 2013.

Figure 2: Trends in Gross loan portfolio

15,888,325

20,483,129 21,749,095

26,560,008

32,113,831

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2010 2011 2012 2013 2014

Loan

Por

tfol

io( '

000

Ugx

)

Year


Distribution of Loan Portfolio by Country and Product TypeFigure 3 and 4 below show the loan portfolio distribution by Country and by product type as at December 2014. The biggest portfolio concentration was in Uganda (51%), followed by Kenya (26%) and Tanzania (23%).

Figure 3: Loan Portfolio Distribution by Country (In Uganda Shillings)

15,888,325

20,483,129 21,749,095

26,560,008

32,113,831

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2010 2011 2012 2013 2014

Loan

Por

tfol

io( '

000

Ugx

)

Year


During the year the company rolled out the Housing Microfinance loan product and disbursements amounting to Ugx 2.73 billion (USD 982,721) were made to three

Partners including HOFOFAM Ltd, Uganda Microcredit Foundation Ltd and Letshego Kenya Ltd. To date, the Company in partnership with 6 partner institutions under the Housing Microfinance loan product. Figure 4 below shows the portfolio distribution by product type.

Housing Microfinance Loan Product is intended to improve Partner client’s livelihood by enabling them to access loan funding to have to decent housing and minimize health related dangers associated to poor shelter and environment.

Figure 4: Loan portfolio Distribution by product (In Uganda Shillings)

Institutional Business Loans,

28,805,236,929

(89.7%)

Housing Microfinance

Loans, 3,308,593,750

( 10.3%)

24,263,167 25,266,557 25,969,787 29,944,547

34,978,039

- 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

2010 2011 2012 2013 2014

Amou

nt in

Ush

s '00

0

Year


The institutional development loan product was also developed and introduced in 2014 although no loan disbursements had been made by end of year. Pilot testing shall be undertaken in 2015.

Total AssetsTotal assets increased by 17% from Ugx.29.9 bn (USD 10.8 million) in 2013 to Ugx 35 billion (USD 12.6 million) as at December 2014

Figure 5: Trend of Growth in Total Assets

Institutional Business Loans,

28,805,236,929

(89.7%)

Housing Microfinance

Loans, 3,308,593,750

( 10.3%)

24,263,167 25,266,557 25,969,787 29,944,547

34,978,039

- 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

2010 2011 2012 2013 2014

Amou

nt in

Ush

s '00

0

Year




Equity and LiabilitiesFigure 6: Trends in Equity and Liabilities (in ‘000 Uganda Shillings)

14,684,786 15,861,353 16,282,748 18,072,856

19,858,130

9,578,381 9,405,204 9,687,039 11,871,691

15,115,409

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

2010 2011 2012 2013 2014

Amou

nt in

Ush

s '00

0

Year

Liabilities

Equity

277,048 730,385 769,361

1,790,108 1,789,774

0

500,000

1,000,000

1,500,000

2,000,000

2010 2011 2012 2013 2014

Amou

t in

Ush

s('0

00s)

Year


Total Liabilities increased by 27.3% from Ugx. 11.871 billion (USD 4.3 million) as at 31st December 2013 to Ugx.15.12 billion (USD 5.4 million) as at 31st December 2014. Equity increased by 9.9%, from Ugx.18.072 billion (USD 6.5million) as at 31st December 2013 to Ugx.19.86 billion (USD 7.1 million) as at 31st December 2014. Increase in liabilities was mainly due to accessing more loans for on-lending to partners. Increase in equity was as a result of the profitability of the Company.

Profits after TaxThe Company’s profitability has been on the increase over the years. Comparing the period 2013 and 2014, profit after tax almost remained constant at Ugx 1.79 billion (USD 644,348 million) due to the 60% increase in interest expense on borrowed funds and investing part of the generated revenue into strengthening the capacity of small and emerging institutions in the year 2014. Figure 7 below provides the trends for the years 2010 to 2014.

Figure 7: Trends of Profit after Tax

14,684,786 15,861,353 16,282,748 18,072,856

19,858,130

9,578,381 9,405,204 9,687,039 11,871,691

15,115,409

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

2010 2011 2012 2013 2014

Amou

nt in

Ush

s '00

0

Year

Liabilities

Equity

277,048 730,385 769,361

1,790,108 1,789,774

0

500,000

1,000,000

1,500,000

2,000,000

2010 2011 2012 2013 2014

Amou

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Year


Story Highlight: More than just a Business, Mr. Toys’ heart for the children When Victor Kiyingi 42, lost his job at a local non-government organisation in August 2013, life did not only become difficult for himself but his family too. “There I was, a father who was not able to feed my 6 children. It is obvious that if I could not afford to feed my family, my children were not in school. During that time of unemployment, Kiyingi attended an industrial training from where he acquired skill of making children toy cars from wood. He registered his unique initiative with a brand name, Mr. Toys.

Kiyingi first made five toy cars and tested them on his children. The toy cars are for children between the ages of two to five. After he tested the toys and realized that they were good and children will like them, Kiyingi took them to some parents who instantly liked them and ordered for more. With a skill, what Kiyingi lacked was capital. He needed money to buy machinery to begin production.

In January, Kiyingi got a loan of Shs500,000 (USD 180) from UMF for a period of six months and invested it buying machinery. “I was assured of demand for my products but I lacked money to implement my vision that’s why it was a great relief for me joining Kawempe Kwagala Development Group and acquiring a loan that boasted my efforts to be self-employed,” says Kiyingi joyfully. His weekly instalment was Shs26,600 (USD 9.6).

Kiyingi started by producing 20 pieces a month. With the loan, he increased his production to 80 pieces a month. He sells a small toy at Shs15,000 (USD 5.4) and Shs20,000(USD7.2) for the bigger ones. Kiyingi has set up a workshop in his home and employs one full time employee. Two others work on part time basis.



I was assured of demand for my products but I lacked money to implement my vision that’s why it was a great relief for me joining Kawempe Kwagala Development Group and acquiring a loan that boasted my efforts to be self-employed.

Mr. Victor Kiyingi, a client of Uganda Microcredit Foundation Limited (UMF)

“To date I have sold over 450 toy cars. At the moment I make 100 toys a month up from 20 pieces a month before I got the loan. I want to produce more because surely there is demand for my products,” says Kiyingi. “I earn approximately Shs500,000 (USD 180) a month from my business. I am now able to support my children in school and look after my family very well. My plan, beginning August, 2014 is to increase production to 200 toys per month, for then my profits will also increase.”



Motorcycle handover to WENIPS team to facilitate implementation and monitoring of SF supported programs.

SF is keen on ensuring that capacities of all our partners are supported to grow and develop as a way of fostering sustainability for community development. Workshops were held to train Partner staff in various capacities such as programming and reporting on results, monitoring and evaluation, corporate good governance and management as well as finance and administration. As a result partners’ programming is gradually improving as they address the real issues in their communities. In all the trainings a In addition, Partners engaged each other in exchange learning visits after having identified strengths from other organisations they could tap into. It is quite encouraging to see our partners networking while taking steps of improving their organisations. Results for the trainings will best be tracked within the new year.

SMF EA Ltd continued its support to the Microfinance industry by working closely with practitioner networks of Tanzania, Uganda and Kenya. The Association of Microfinance institutions of Uganda (AMFIU) was supported to organise the Uganda National Microfinance Conference that brought together all the players in the Country to learn and share from each other on the theme of ‘Inclusive Finance’. AMFIU was also engaged to train Partner staff from the 3 Countries in use of the Performance Monitoring tool (PMT). As a result, Partners greatly improved their financial reporting to SMF EA Ltd.

SMF EA Ltd in collaboration with the Association of Microfinance institutions of Uganda (AMFIU) and Association of Microfinance institutions of Kenya

(AMFI-K) conducted a Social Performance Baseline Study of 15 partner institutions in Uganda and 4(four) partner institutions in Kenya. With support from CORDAID, 8 (eight) partner institutions shall be supported in 2015 to streamline Social Performance Management in their Operations. The collaboration with the apex association is to form a background for entrenching best practices within the MFI that are members and also set a platform for the industry standards at large.

SMF EA Ltd also supported partners to improve their systems, processes and delivery channels in order to facilitate service delivery to the enterprising poor in the East African region.

Building Capacities for Sustainability



Mallesh, an FK exchange participant from MYRADA India, training partner staff in CMMF.

Eline, an Act Now exchange student doing her chores at a day care she volunteered her time.

The FK south to South professional and Youth exchange programs continues to be used as means of skills transfer aimed at improving service-delivery and greater impact among beneficiary communities

In 2014, partners benefited from four participants exchanged for 10 months between organisation in India, Kenya, South Sudan and Uganda. Through the various trainings conducted by participants from India, there is been notable improvements in the implementation of SFEA’s intervention of Community Managed Microfinance (CMMF) among our partners. With institutional microfinance, both BIMAS and PRIDE UG who are SMF EA Ltd partners have benefited with new products introduced to their market and thus working better to serve the enterprising poor in East Africa.

FK Norway Exchange Programs

SFEA also hosted youth from Norway who volunteered among partner organisations for 7 months. The impact on their lives has been as great as they experience first-hand the issues surrounding poverty and see how best they can contribute to change. 4 youth from partners in East Africa returned from Norway upon completion of their internship and learning of 10 months. These have been integrated in their home organisations as young leaders who are highly advocating for positive change in their communities.


www.strommeea.org /StrommeEATable: Showing a statistical summary on education interventions in the region during 2014

Intervention Line Gender UGANDA KENYA TANZANIASOUTH SUDAN

2014 Target2014 Outreach

Early Childhood Enrolment

Male 29 0 1,052 34 1,648 1,115

Female 113 0 1,084 16 1,792 1,213

Total 142 0 2136 40 3,441 2,328

Primary School Enrolment

Male 6,897 263 6,990 257 16,636 14,407

Female 6,407 166 7,511 61 16,334 14,145

Total 13,304 429 14,501 318 32,970 28,552

Accelerated Learning Programme Enrollment

Male 0 0 0 559 798 559

Female 0 0 0 443 866 443

Total 0 0 0 1,002 1,664 1,002

Community Girl’s Schools

Male 0 0 0 620 365 620

Female 0 0 0 938 986 938

Total 0 0 0 1,558 1,350 1,558

Functional Adult Literacy (FAL)

Male 0 0 0 219 196 219

Female 0 0 0 352 314 352

Total 0 0 0 571 510 571

Vocational Training

Male 91 0 154 104 314 349

Female 290 0 145 106 486 541

Total 381 0 299 210 800 890

Teacher training pre-service

Male 0 0 0 172 126 172

Female 0 0 0 125 124 125

Total 0 0 0 297 250 297

Teacher Training in -service

Male 73 0 24 87 270 184

Female 38 0 31 13 120 82

Total 111 0 55 100 390 266

Girls Education in South Sudan

Female 0 0 0 16,858 4,000 16,858

Street Children (Rehabilitated and resettled)

Male 454 0 0 0 491 454

Female 239 0 0 0 258 239

Total 693 0 0 0 749 693

Street Children reached through Sports /life skills

Male 280 0 0 0 210 280

Female 120 0 0 0 90 120

Total 400 0 0 0 300 400

PTA/SMC members trained

Male 80 0 30 4 179 114

Female 54 0 39 1 148 94

Total 134 0 69 5 327 208

Bonga (Shonglap) girls reached

Female 2,218 174 0 1,895 3,725 4,287

Youths participating in sports and leadership training

Male 800 6,868 3,533 0 6,300 11,201

Female 200 4,872 1,243 0 4,200 6,315

Total 1000 11,740 4,776 0 10,500 17,516

Community Managed Micro-Finance (CMMF)

Male 14,317 20 3,566 2,804 32,399 20,707

Female 41,351 1,225 6,275 5,720 76,125 54,571

Total 55,668 1,245 9,841 8,524 108,750 75,278


SFEA believes that greater achievement can only be got through a network of people or organisations that share common goals. Networking with the government and other development bodies will always be a core component in our programing.

In 2014, SFEA partnered the government of Uganda, Save the Children, UNICEF, UNHCR and ERIKS development partner to facilitate the out of school study for children who have dropped out of primary school. The purpose of this study was to understand better the different reasons for drop-out and non-enrolment, which vary widely according to region, demographic, and socioeconomic background. Thereafter recommendations which address the identified challenges for improved future Education outcomes were to be derived. The report was shared widely in the entire country which gave service providers and duty bearers more insight into the issues around the high school dropout rates.

In 2014, SFEA also managed to run radio programs in partnership with CBS radio. These are used as a platform to sensitize listener on issues concerning poverty and matters on development.

SF has also encouraged all our partners to network and strongly make their voice heard in matters concerning the marginalised. Partner efforts in advocacy are being seen as individuals in the various communities begin to understand their rights and demand that their leaders take up the responsibilities entrusted to them. In some communities like Kaberamaido, leaders have have cleared roads for the citizens. In TAHEA mwanza, after creating awareness on the roles and responsibilities of the local government at community, ward, and district levels, the awareness on the right of adequate housing which has brought dialogue on land ownership rights has led to 2 communities to be surveyed by the Ilemela district - land office.

Networking with Government and other Civil Society

Members of the Forum for Education NGO Network in Uganda (FENU) in a meeting hosted at SF Kampala office.




Administration and FinanceIn comparison with 2013, there was increased funding for partners in South Sudan by 74%, Kenya by 6% and Uganda by 20%. This is attributed to more funding from DFID for the GESS project in South Sudan, new funding for DFID GPAF project, and a new partner in Kenya. In addition our development partner, Lakarmissionen started funding projects in South Sudan and we also secured funds to support Teacher Training Arapai, specifically for the Disability Main Streaming Project.

As a result of increased funding for the projects, the Regional Office costs reduced from 24% to 20% and further down in 2014.

Figure : SFEA administrative costs in comparison with project costs.

Figure: 2010 – 2014 transfers to Partners per Country in USD



SFEA funding sources All major funders continued to fund the projects in 2014 and these included Lakarmissionen, ERIKS and FK Norway. In addition to GESS Project, SF got more funding from DFID for the GPAF project and the general increase in funding from 2013 is 25%

FUNDERS AMOUNT IN US$

2009 2010 2011 2012 2013 2014

Stromme Foundation – Norway*

3,171,607 2,616,860 3,944,451 3,996,924 3,360,214 3,733,203

Lakarmissionen 263,963 76,850 121,676 295,710 333,158 539,319

Fredskospett 246,445 253,943 301,540 371,741 408,683 218,997

UNDP 592,323 446,036 317,169 - 0

EU/DCA - 40,816 41,541 65,319 34,713

ERIKS - - 22,477 311,885 334,673 312,659

Others - - 57,971 63,710 40,895 93,505

WFP 16,186 0 3,283

GESS/DFID 101,317 582,416

GPAF/DFID 150,784

TOTAL 4,274,338 3,450,691 4,806,826 5,105,290 4,512,336 5,634,166

CHALLENGES:One of the greatest ways to learn is to appreciate challenges for their ability to trigger thoughts on how to do things better. One of our biggest challenges in 2014 was the instability in South Sudan. A number of programs were interrupted in Jonglei state forcing us to re-strategize and engage another partner in Equotria state to take on more responsibilities

Also worth mentioning was the effect that the currency fluctuations had on both the programs and Microfinance work. There were notable increases in currency exchange that paused a challenge with our transactions. Working with small and emerging partner institutions which normally have weak governance structures and systems also proved to be a great challenge for SMF EA Ltd. To mitigate this, SMF plans to continue building capacities of its partners in 2015, through mentoring and coaching program of Partner staff.

We shall also deliberately undertake continuous training at governance and senior management level as well as middle management since they are the ones who steer the direction of organisations and implement the strategic plan.

www.strommeea.org /StrommeEAFigure 1: Our Implementing Partners and the various Interventions

Project Number Partner Intervention Supported

UGANDA

232044 CRO - Mbale Street Children and Sports

232052 CHRISC - Uganda Sports and CMMF

232055 Miles2Smiles Early Childhood Development and CMMF

232059 SOCADIDO CMMF and CBEI

232060 CBS CMMF, Vocational and South to South

232061 PRIDE Uganda South to South

232063 ADB Bonga, CMMF and South to South

232066 Drusilla CMMF and Vocational

232069 READ CMMF

232075 COVOID Vocational and CMMF

232076 WENIPS CMMF, CBEI and Bonga

232078 CREAM CMMF, Bonga and Vocational

232079 SEPSPEL CMMF, Vocational, Bonga and Food Security

232080 Charity for peace CMMF and Bonga

TANZANIA

234030 TAHEA CMMF and CBEI

234040 MPDI CMMF and CBEI

234044 SEMA CMMF and Vocational

234045 OCODE CMMF and CBEI

SOUTH SUDAN

235023 ACROSS CMMF

235031 HTPV Vocational and CBEI

235039 ECS - Kajo Keji CMMF, Adult Literacy, Bonga & South to South

235041 BRAC Bonga and CBEI

235042 SPEDP Bonga, CMMF, ALP, Community Girls, Vocational

235043 YTTC Teacher Training

235044 Light for the World Disability mainstreaming

235046 ARAPAI - Teacher training Teacher Training

KENYA

240037 Centre for Justice CMMF & Bonga

240038 Naboisho - Base Camp CMMF, CBEI, Big Cat, Green Centre

240039 CHRISC Sports

240040 BIMAS Microfinance FK South to South Professional Exchange

Members of SFEA partnership network



A CMMF group who run a Tea growing income generating project in Kabale, demonstrate how they do it. 25STRØMME FOUNDATION

A N N U A L R E P O R T


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Documents

ANNUAL REPORT - Stromme Foundation East Africa · Joint ventures between Stromme Microfinance East Africa Limited (SMF EA Ltd) and CMMF partners are being steered with the hope to