Summary
In reflecting on the past year, Shared Interest has seen both significant achievements and considerable challenges as we deliver our ongoing mission to improve the livelihoods of people in remote and disadvantaged communities by helping them trade their way out of poverty.
The loyalty of our 10,082 members has been instrumental, with Share Capital of £50.9m, a testament to their commitment despite the turbulent economic landscape. The average account duration of 16 years showcases a steadfastness that is increasingly vital as we navigate shifting financial dynamics influenced by external pressures, including the cost of living crisis and geopolitical tensions.
Working towards our shared goals
Importantly, our work aligns closely with several SDGs, which guide our efforts to create lasting impact. Goal 1, No poverty, is directly addressed through our financial support, enabling producer groups to achieve greater economic stability.
Goal 5, Gender equality, resonates throughout our initiatives. These are evidenced by the 416,979 people we supported across 47 countries, with 37.4% being women, reflecting a 4% increase from the previous year.
Similarly, Goal 8, Decent work and economic growth, reflects our commitment to fostering job creation and fair working conditions within our communities. The number of permanent employees across both producer and buyer organisations is 166 in 2024, reaching 9,044 employees, including 44% women. Our commitment to fostering strong relationships and providing tailored financial solutions will continue to be key to achieving long-term resilience for the communities we serve.
In line with SDG Goal 17, Partnerships for the goals, partnership remains central to our impact, with collaborative relationships spanning 33 organisations. These partnerships enhance our ability to address the complex challenges faced by our producer groups and reinforce our commitment to sustainable development.
Our lending landscape
The lending landscape in 2024 highlights both structural challenges and emerging opportunities within our portfolio. Currently, we have allocated 204 facilities across 166 customers, underscoring our vital role in supporting producer groups, which make up 89% of total lending.
Coffee continues to be the cornerstone of our lending operations, accounting for 51% of disbursements, a rise from 48% in the previous year. This growth is juxtaposed with cocoa's decline from 30% to 25%, reflecting the broader sector's struggles, including climate impacts and evolving regulatory frameworks. Overall disbursements have fallen to £42.1 million from £49.2 million, primarily due to a contraction in our portfolio and reduced uptake of facilities.
Our commitment to supporting those most in need
Our commitment to supporting smaller enterprises distinguishes us in the social lending sector, with 80% of our producer customers operating facilities under £500k. This focus on smaller businesses stands in stark contrast to broader industry trends, where only 39% of lending occurs at this level, as reported by the Council on Smallholder Agricultural Finance. Such a commitment is essential as we seek to empower vulnerable communities in an increasingly competitive financial environment.
As we look to the future, our role as a social lender is more critical than ever in supporting vulnerable businesses navigating market volatility, climate challenges, and regulatory changes. Although the handcrafts sector has contracted slightly, we remain uniquely positioned as the sole social lender within this vital segment, underscoring our commitment to sustaining diverse fair trade supply chains.
Shared Interest Foundation
The Foundation which celebrated its 20th anniversary has made significant strides this year, executing 14 projects across Sub-Saharan Africa and Latin America. This strategic focus on enterprise development, climate resilience, women's empowerment, and youth engagement is not only timely but necessary, given the challenges that these communities face.
Our success in securing unrestricted and restricted funding totalling £522,895, echoes the credibility and relevance of our approach. This funding has facilitated projects, from innovative soilless farming in Burkina Faso to technical assistance programmes that enhance the sustainability of producer groups.
Over its 20-year history, the Foundation has delivered 51 projects, in 15 countries, reaching over 13,000 farmers and artisans.
Final Reflections
As we navigate the complexities of an evolving financial landscape, our mission remains steadfast: to empower producer groups and artisans through sustainable financial solutions aligning with fair trade principles.
The road ahead may not be without challenges, but our track record of resilience, innovation, and commitment to social responsibility positions us to continue making a meaningful impact in the lives of those we serve.
As we embrace the future, we will carry forward the lessons learned, strengthening our resolve to create a fairer, more equitable world through collective action and solidarity, fully aligned with the SDGs that guide our mission.
Click here to read the full Social Accounts document.
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