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1 Annual Report 2009

2 Table of Contents Preface 2 Yoghurtproject 4 SYPO MediStructures 6 SYPO microdevelopment 8 Counterpart Travels 10 Evaluation 11 Case 12 SYPO organization 13 Financial Report Summary Financial Report Future goals

3 Preface 2009 was the year in which SYPO matured from a single project and the part-time goodwill of several volunteers into an ambitious organization with several promising projects that will in time cover an entire district. After the yoghurt factory of the Yoghurt project became independent and profitable in 2008, we decided to expand to several projects that would achieve structural development using local initiative and entrepreneurship. In 2009, we started SYPO MediStructures and SYPO microdevelopment ; a medical project and a microfinance project. SYPO MediStructures trains Ugandan volunteers to become Village Health Workers, and builds a primary healthcare system where it is most needed, with clinics in the most remote areas of Mukono district. SYPO microdevelopment uses microcredit to give people the freedom that is taken away by structural poverty: the freedom of initiative and self-reliance. In the Netherlands, SYPO grew to 15 active volunteers, with a strong and knowledgeable board and enthusiastic, dedicated work group members. In Uganda, SYPO has started building a more permanent organisation; which will be a strong semi-independent organization that can grow to become an economic motor in the region. SYPO managed to finance the projects in 2009 with a combination of private, corporate and NGO funding. A sponsor work group was formed to cover the 2010 budget, and to start new exciting initiatives such as SYPO microbanking was the year of the first impact measures, promising new projects, the first SYPO office, and the largest budget expansion to date; it certainly made for the most interesting annual report so far! - 2 -

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5 Yoghurt Project The Yoghurt Project was started to enable our Ugandan partner organization Pat the Child to get an independent income by starting a yoghurt factory in a rural area in the Mukono district. At the same time, we encouraged local families to take in orphans by giving pregnant Fresian cows to women willing to take in an orphan. The women sell the milk to the factory, and the factory sells yoghurt. A simple plan that shows that commercial business can be started in a way that serves development purposes. The yoghurt factory now runs independently and with a profit. In 2009, no donations have been necessary to maintain production. SYPO has however encouraged the factory to come with plans to switch to different packaging materials and to buy a simple pick-up truck to start transporting to Kampala. The financing of the pick-up truck and new packaging line will be looked at in 2010, but one thing is certain; the factory can now grow on savings or loans, rather than donations. Although the factory is now completely independent, we have donated 30 new cows to women who have adopted an orphan in their families. Separate from the factory, there is still a strong need for financial support in the raising of the children, and the cows have proven to be a structural way to help with this problem. Care for the cows has improved in 2010, with the women forming an active cooperative, the appointment of a cooperative Cow Coach. All the women now go for cow-keeping training, financed by SYPO. Before they receive the cows, they are also required to have a concrete floor to keep the cows on, and to plant elephant grass in their gardens for the cows to feed on. As a consequence of the intensified care, milk production has gone up to as much as 18 litres per day for some cows

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7 MediStructures 2009 was the first year of SYPO s medical project SYPO MediStructures. Convinced that first-line, low-threshold care in the villages is most urgently lacking from Uganda s healthcare system, SYPO has trained 60 local volunteers to become Village Health Workers. The work of the first 30 women was evaluated this year, and this information was used to identify the best locations to build Health Centres II ; small clinics that employ a nurse and midwife. SYPO builds the clinics in cooperation with partner organization Pat the Child. After completion of the clinic, the operational costs (salaries, drugs, tools) are paid for by the ministry of health. SYPO believes that this public-private partnership ensures the long-term viability of the clinics. SYPO has received exceptional support for this project from the Dutch firm SBR, based in Rotterdam. The cooperation with the Uganda government has been time-consuming and difficult, and 2010 will show whether a long-term partnership is viable or not. As a result, only one clinic was finished in 2009, with two more that were budgeted to be completed in 2009 almost finished at the end of the year

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9 SYPO microdevelopment_ Even the poorest women of the Mukono district know very well how they can and want to create an income for themselves. Rather than depending on donations and charity, two hundred women in 2009 have taken the opportunity to apply for a loan to start a business of their own in the project SYPO microdevelopment. Based on the model of the famous Grameen Bank of Bangladesh, the women apply for the loans in groups of five, each with an individual business plan. The project s loan officers review the application, and enter them into an online administration system that allows for direct control of the project. No larger than 200,-, the loans are repaid within a year in weekly installments. Not a single repayment was missed by the women. Muhammed Yunus, founder of the Grameen Bank, has defended access to credit as a human right. Whether or not it should be seen that way, the first nine months of this project have shown that low-threshold access to credit is an incredible way to utilize local potential and ambition. It has shown that people are poor not because they do not know how to earn money, but simply because they were poor before. SYPO will work hard to make this project grow to cover the entire Mukono district, which can mean as much as several tens of thousands of clients. The project now has two members of staff, who can still handle the logistics of two hundred clients. Next year, some three new loan officers, an accountant and administrative assistance will need to be added to achieve the ambitious goal of giving out 1000 new loans. One great feature of this project is that on top of helping hundreds of women, it can actually make a profit and sustain itself

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11 Counterpart Travels Over the years, many people have asked whether they can go to Uganda to do volunteer work in one of the SYPO projects. Although this was not always possible, saying no to people willing to spend their time and efforts in Uganda was never easy. Our new project Counterpart Travels uses SYPO s extensive network of organisations in the Mukono district to find interesting and relevant positions for people looking for volunteer work in Uganda. Counterpart Travels places around thirty volunteers a year; medical volunteers in hospitals, teachers, accountants, ICT specialists, lawyers Counterpart Travels can always find a good placement. Most of the volunteers study in University or have just finished, but others have a long employment history. To accommodate the volunteers and give them a place to discuss intensive working days, we started Besaniya Guesthouse (see photo), just outside the centre of Mukono town. With basic accommodation, cooking facilities and important- an incredible garden, Besaniya serves as guesthouse for long-term guests; the offices of SYPO are also on the 1.5 hectare compound. Counterpart Travels and the Besaniya Guesthouse are income generating projects; aimed primarily at covering the overhead costs of SYPO, so that the donations can be used for the actual projects. Counterpart Travels charges a fee for each volunteer placement, and Besaniya charges per night; the proceeds of the guesthouse are shared between SYPO and projects of the owner of Besaniya, the Church of Uganda

12 Evaluations We are convinced that careful and critical evaluation is one of the strongest tools to improve projects. Without evaluation, it will remain unclear whether the target group really benefited from the project; or whether the project can be more efficient. The Yoghurt project will report key indicators such as the number of cows and calfs, number of orphans in the beneficiary families, average number of litres of milk produced per cow, number of litres of yoghurt sold, and profit of the factory. A reliable registration system to report these indicators will be started in the first quarter of A thorough impact report on both qualitative (wellbeing, client satisfaction, etc) and quantitative (improved client income, savings, etc) outcomes was made for the project SYPO microdevelopment in December From this first evaluation, it was clear that clients income had increased significantly more than that of non-clients. Table 8 Change in reported personal income over the last year (two categories) Clients Non-clients Decreased or stayed the same ** 8% 45% Increased ** 92% 53% ** Chi square significant difference between clients and non-clients (p-value <0.01) Clients were also more likely to have expanded existing businesses, or to have hired employees. Differences in social indicators (e.g. number of school-going children) were not yet visible; the first loans were given out only eight months earlier. For the full report, please visit the website result pages of the project

13 Case Anna Nampewo Location: Buyira Anna is 70 years old and lives with three of her children. She separated from her husband about 20 years ago. She now looks after her grandsons and daughters since their parents died. Anna acquired a loan of 250,000 shilling from the project SYPO microdevelopment. She used 100,000 to start crop farming and 150,000 to rear animals. She employed workers to till the land on which they planted maize. She bought four pigs. Unfortunately she lost one when it was giving birth. She decided to use the loan in these two fields because she is old and cannot engage in trading and commercial activities like her group members. It is too early to tell if things have changed as a consequence of getting the loan, because she has not yet harvested and the pigs still have to mature. However, she has changed personally since she now has confidence that her earnings will increase the chance that her grandsons can go to school. In general, she says that women in her community are more independent and working harder as a result of the loan. Besides that, their husbands have also become more involved in family life and are working harder. She concludes by saying that she has confidence in the future and is planning to apply for another loan to expand her business

14 SYPO organisation From a few active members up to 2008, SYPO has grown to a committed team of volunteers in the Netherlands and dedicated staff in Uganda. SYPO is building on a strong decision-making process; with the knowledgeable board in the Netherlands supervising and controlling the staff in Uganda, and the volunteers in the Netherlands promoting and supporting the individual projects. Started in September this year, the Director of SYPO and the financial manager will spend a year in Uganda working to make the projects grow and start a strong organization that can select, run, control and supervise projects in the future. Below is a schematic overview of the organization and its partners, as it will be from early 2010 onwards

15 Financial Report SYPO General REALISATIE BEGROTING Besaniya / Counterpart Travels Uitgaven Inkomsten Renovatie Besaniya Guest house Onkostenvergoeding management Besaniya Bemiddeling vrijwilligerswerk 1400 Uitgaven Inkomsten Renovatie Besaniya Guest house 0 Onkostenvergoeding management Besaniya 0 Anders (lening kerk) -812 Anders (lening kerk) 0 Bemiddeling vrijwilligerswerk 0 TOTAAL TOTAAL 1400 TOTAAL 0 TOTAAL 0 MediStructures Uitgaven Inkomsten Uitgaven Inkomsten Donatie tbv bouw klinieken Donaties Donatie tbv bouw klinieken Donaties Verdubbelingsbijdrage Verdubbelingsbijdrage Medische trainingen -321 Impulsis Medische trainingen Impulsis Administratie -2 Administratie 0 Declaratie onkosten 0 Declaratie onkosten -500 Relatiebeheer -27 Relatiebeheer 0 TOTAAL TOTAAL TOTAAL TOTAAL

16 SYPO microdevelopment Uitgaven Inkomsten Uitgaven UGX Donatie tbv SYPO Donatie tbv SYPO microdevelopment Donaties 2870 microdevelopment Donaties 2000 Donatie tbv pilotproject Jonge Verdubbelingsbijdrage Donatie tbv pilotproject Jonge Verdubbelingsbijdrage Ondernemers Impulsis 3000 Ondernemers 0 Impulsis 3000 Donatie tbv salarissen Donatie tbv salarissen Evaluatie -215 Evaluatie 0 Declaratie onkosten -89 Declaratie onkosten 0 Relatiebeheer -55 Relatiebeheer 0 Anders -23 Anders 0 TOTAAL TOTAAL 5870 TOTAAL TOTAAL 5000 Yoghurtproject Uitgaven Inkomsten Uitgaven UGX Donatie tbv Yoghurtproject Donaties Donatie tbv Yoghurtproject Donaties Rente uitstaande Rente uitstaande Donatie tbv salarissen -736 lening 0 Donatie tbv salarissen 0 lening 140 Cooperatief -108 Verdubbelingsbijdrage Impulsis Cooperatief 0 Verdubbelingsbijdrage Impulsis Anders -262 Anders 0 Training 0 Training -400 TOTAAL TOTAAL TOTAAL TOTAAL

17 Algemeen Uitgaven Inkomsten Uitgaven Declaratie onkosten Niet geoormerkte donaties 9905 Declaratie onkosten 0 Onkostenvergoeding SYPO Oeganda Automatische incasso 92 Salaris SYPO Oeganda 0 Salaris financieel controleur -997 Koersverschil 668 Salaris financieel controleur 0 Bankkosten -491 Bankkosten 0 Relatiebeheer -217 Relatiebeheer 0 Administratie -22 Resultaatmeting 0 Evaluatie -80 KvK 0 KvK -37 Website 0 Website -90 Anders 0 Anders -34 TOTAAL TOTAAL UGX Niet geoormerkte donaties TOTAAL 0 TOTAAL OVERALL TOTAAL OVERALL TOTAAL

18 Financial Report Yoghurt Project REALISATIE BEGROTING Uitgaven Doel UGX Doel UGX Banking costs Banking costs 0 0 Cooperative Cooperative 0 0 Cow meals Cow meals Cow shelters Cow shelters Cows and cow training Cows and cow training Other Other 0 0 Salary cow coach Salary cow coach Salary yoghurt factory Salary yoghurt factory 0 0 Training Training Water tank Water tank 0 0 TOTAAL TOTAAL Inkomsten Doel UGX Doel UGX Donatie SYPO tbv Yoghurtproject Donatie SYPO tbv Yoghurtproject Donatie SYPO tbv salarissen Donatie SYPO tbv salarissen Interest 0 0 Interest TOTAAL TOTAAL

19 Financial Report Microdevelopment REALISATIE BEGROTING Uitgaven Doel UGX Doel UGX Administratie Administratie 0 0 Bankkosten Bankkosten 0 0 Communicatie Communicatie 0 0 Juridisch Juridisch Micro-kredieten Micro-kredieten Praktische benodigdheden Praktische benodigdheden Salarissen (opstartperiode zonder winst) Salarissen (opstartperiode zonder winst) Training Training Transport Transport 0 0 Niet verantwoord Banksaldo en in kas TOTAAL TOTAAL Inkomsten Doel UGX Doel UGX Donatie SYPO tbv SYPO microdevelopment Donatie SYPO tbv SYPO microdevelopment Donatie SYPO tbv pilot project Young Entrepreneurs Donatie SYPO tbv pilot project Young 3150 Entrepreneurs 0 0 Terugbetalingen Terugbetalingen 0 0 Donatie SYPO tbv salarissen Donatie SYPO tbv salarissen TOTAAL TOTAAL

20 Financial Report MediStructures REALISATIE BEGROTING Uitgaven Doel UGX Doel UGX Bouw pilotkliniek Kikwayi -9,420,000-3,339 Bouw pilotkliniek Kikwayi -8,750,000-3,500 Bouw klinieken -35,761,000-12,677 Bouw 3 klinieken -93,750,000-37,500 Onverantwoord -6,000,000-2,127 In kas -571, TOTAAL -51,752,889-18,346 TOTAAL - 102,500,000-41,000 Inkomsten Doel UGX Donatie SYPO tbv bouw klinieken 51,757,200 18,344 UGX Doel Donatie SYPO tbv bouw klinieken 102,500,000 41,000 TOTAAL 51,757,200 18,344 TOTAAL 102,500,000 41,

21 Financial Report Besaniya Renovation REALISATIE BEGROTING Uitgaven Doel UGX Doel UGX Bar Bar Cleaning Cleaning Construction Construction Electricity Electricity Garden Interior Interior Kitchen equipment Kitchen 630 equipment Labour Other Other Painting Painting Plumbing Plumbing Onverantwoord TOTAAL TOTAAL Inkomsten Doel UGX Doel UGX Investering SYPO Investering SYPO

22 Financial Report Summary REALISATIE BEGROTING Besaniya / Counterpart Travels Uitgaven Inkomsten Uitgaven Inkomsten TOTAAL TOTAAL 600 TOTAAL 0 TOTAAL 0 MediStructures Uitgaven Inkomsten Uitgaven Inkomsten TOTAAL TOTAAL TOTAAL TOTAAL SYPO microdevelopment Uitgaven Inkomsten Uitgaven UGX TOTAAL TOTAAL 5870 TOTAAL TOTAAL 5000 Yoghurtproject Uitgaven Inkomsten Uitgaven UGX TOTAAL TOTAAL TOTAAL TOTAAL Algemeen Uitgaven Inkomsten Uitgaven UGX TOTAAL TOTAAL 8900 TOTAAL 0 TOTAAL OVERALL TOTAAL OVERALL TOTAAL

23 Financial Report Summary Report Overall, SYPO managed to realise all its budgeted goals for 2009, except for the completion of another two clinics in SYPO MediStructures, which was deemed unrealistic following the slow cooperation with the local government in placing staff in the first clinic. This has caused a discrepancy between the budgeted amount for 2009 ( 96921) and the realised amount ( 78075). Donations The two major contributors to this year s budget were the company SBR and Impulsis, front-desk of the foundation ICCO. Although SYPO is proud to have attracted substantial funding from Dutch companies entrepreneurs for entrepreneurs- we aim to increase the Other contribution of private people to 25% in With initiatives such as SYPO 4% microbanking and monthly donations, SYPO will attract more donations from individuals, which will create more stability over the years. NGO 42% Corporate 46% Private 8%

24 Future goals We believe that the field of development aid would greatly benefit from a more pragmatic, result-driven approach. We do not believe in bashing large organizations because of the large cars they drive, or small organizations because of the orphanages that will never yield an income. We think that large cars can sometimes be necessary and the world can never be without orphanages. Projects should simply be held accountable on the basis of how well they help the poor, and at what costs. In the coming years, SYPO will build an organisation that helps the poor as efficiently as possible. Working within our expertise, we will focus on projects that have an entrepreneurial character, so that our projects will become a driving force in the economy of the Mukono district. SYPO microdevelopment will rapidly become the largest project within SYPO and hopefully the largest microfinance institution in the district. Microfinance is efficient in its setup; cost-effective -since it can even be run at a profit- and never paternalistic; the clients choose to take a loan, choose their own business, and do not depend on charity or donations. Of course, we need your help in building this new organisation! So keep an eye on our website for future developments, such as SYPO microbanking, which will enable you to fund specific business plans and keep track of the client s repayments

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