Funding Proposal. For. KASIRYE The Xavier Project Livelihoods Programme

Transcription

1 Funding Proposal For KASIRYE The Xavier Project Livelihoods Programme Edmund Page Xavier Project Furzey Hill Meysey Hampton Cirencester GL7 5LD (Registered as Whinfield Charitable Trust No )

2 XAVIER PROJECT: WHO AND WHY? The Xavier Project exists to provide opportunities to urban refugees in Kenya and Uganda who are otherwise excluded from the means to live fulfilled and dignified lives. The vision is that through a holistic approach to development urban refugees will be able to take back control of their lives and make a positive change whether to their new communities or to their country of origin. XAVIER PROJECT: HOW? Education We currently assist refugee children with school fees in government schools Livelihoods We have opened with their parents to promote their economic stability Media - Tamuka We enable refugees to speak out through media and accessible channels of communication

3 XAVIER PROJECT: WHAT? XAVIER PROJECT: PROPOSAL KASIRYE XP LIVELIHOODS PROGRAMME 2 nd GENERATION SUMMARY Xavier Project is applying for 20,000 for the Kasirye Livelihoods Programme. Kasirye aims to enable 100 refugee families in Nairobi to find full-time employment between 2013 and The capital needed to start the project can be given as a donation, or as a loan to be paid back in 2016 at face value. THE NEED In 2012 Xavier Project conducted an assessment in Nairobi in conjunction with UNHCR to determine the number of children from that community who were not accessing education. Out of a sample of 1225 children we found that 50% were not accessing education across all ages, and at secondary level this decreased to 33% of students in that age bracket. The reason given in many cases was that parents and guardians were not able to bear the financial burden of school fees and the support costs that come with education. Now, more than ever, it is easy to see the vital links between livelihood and education. The Danish Refugee Council (DRC) in partnership with UNHCR recently released a baseline study on refugee livelihoods in Nairobi, which reveals that an average of 80 per cent of refugee income in Nairobi is spent on food and rent, leaving very little for the unavoidable costs of education. Among many other recommendations, the study advocates income generating projects for refugees, promoting access to financial services, vocational training, apprenticeships and job placements for refugees. UNHCR has recently released a Global Education Strategy, in which Kenya is named as a priority country. A key objective in the strategy is to increase access to education for refugees, by empowering parents through livelihood programmes so that they can pay school fees for their children. In line with UNHCR s Global Education Strategy and the DRC assessment, and endorsed by UNHCR s livelihoods officer for urban refugees, Xavier Project intends to improve access to quality education for as many refugees as possible in Nairobi through improving access to employment.

4 Empowering refugees through livelihoods is a durable solution which will not only improve access to education for their children but enable them to live full and dignified lives in other ways as well. PRIMARY OBJECTIVE Creating employment so that refugees can pay for their children s education. Xavier Project aims between 2013 and 2016 to empower 100 refugee families through economic activities to improve their chances of sending their children to school and to enable them to live full and dignified lives. GUIDING PRINCIPLES The activities and strategic objectives of Kasirye will be based on three guiding principles: 1. Kasirye will support existing rather than start ups 2. An on-going relationship between Kasirye and client will depend on the extent to which the business shows a commitment to the primary objective of Kasirye. 3. Provided the above is satisfied Kasirye staff will work closely with the until they can sustain themselves effectively and expand on their own. ACTIVITIES Kasirye will support in four ways: 1. Accounting services 2. Consultancy services 3. Finance services 4. Staff training and recruitment 1. Accounting Services The first service provided to will be accounting services. Existing will approach Kasirye for assistance with accounting that may include internal auditing, cash flow projections, monitoring of cash flow, simple bookkeeping and advising the entrepreneurs on statutory obligations and requirements. Kasirye will offer accounting services at a reduced rate to who sign up to the objective of the programme. In practice this will mean being open to employing refugees in the company. These services can be continual or one off. Remuneration for this service can be arranged in three different ways: a) A one off fee. This will be very competitive with other accounting services in the market. b) Through a long term contract packaged together with the consultancy service (see 2a). Fee based on business performance. c) Through a long term contract packaged with one or two of the other services. Services in exchange for equity or part equity part fee. By offering accounting services at a reduced rate companies and, whether refugee-run or not, will be able to make savings which will enable them to expand and employ more staff, including refugees.

5 2. Consultancy Services The second service provided to the business will be consultancy services. Kasirye staff will use information gathered from the accounting services and other research to help the company to build a strategy to improve performance. As well as advice connected with finance and accounting, this will include empowerment in areas such as marketing, human resources management, management procedures, systems and practices, and fostering a progressive framework for decision making. For this service to be offered the accounting service must already be in place in some form in that business. The consultancy services can be compensated in the following three ways. a) Through a one off fee. This will be very competitive with other consultancy services on the market. b) Through a performance based contract. As Kasirye will also be conducting accounting services, Kasirye staff will be able to assess the improvements in performance in coming months. The fee, whether monthly or a one-off paid at a designated time, can be determined by how successful the business has been since the consultancy service began. This could even be a non-win, no fee model. c) Continuous services can be provided in exchange for equity, or part performance based fee and part equity, or part fixed rate fee, part equity, depending on agreement between the parties involved. This will mean it is possible for Kasirye to own proportions of with which there is a relationship. Making remuneration for consultancy performance related or even no-win, no fee reduces the risk and cost for in employing consultants. However, good consulting will enable their to expand thus opening the possibility of employing more refugees. 3. Finance Services Again, finance services will only be discussed if Kasirye staff have made a thorough assessment of the company during the accounting and consultancy services and also therefore come up with a realistic and achievable strategy for expansion. Financial support can be in the form of: a) A loan, or b) Finance in return for equity. This can be a distorted equity ratio depending on the nature of the business and the proprietors. Supporting small and medium sized with finance is especially reliable if qualified Kasirye staff have already supported the business through accounting and consultancy services. These will expand and be able to employ more refugees. 4. Staff Training and Recruitment When a business with a relationship with Kasirye is able to expand and employ more staff, Kasirye will help train and recruit staff with relevant skills. In many cases these may be refugees who have completed the vocational training course of the Xavier Project Education Programme. In some cases refugees will be taken on as apprentices and it is possible for the Xavier Project Education Programme to cover some of the costs incurred in this training by the. There will be no contractual obligation for clients of Kasirye exclusively to employ refugees. Kasirye will maximise the potential for refugee recruitment by: Working with that already employ refugees or that are likely to agree to employing refugees for various reasons

6 Clearly explaining the objective of the programme with client in advance of engagement. Matching refugees with appropriate skills for that business to reduce cost and time in recruiting employees. OPERATIONS 1. Personnel For the first two years of the programme, Kasirye will be run by two members of staff. The Director of the programme will be Mildred Mugenya who is a Certificated Professional Accountant Kenya (CPA-K), with seven years experience in accounting, consultancy, and auditing. She has a wide experience and understanding of the Kenya and Uganda Tax laws. She also has a Degree in Bachelor of Business Management and therefore can devise good business management solutions for the refugees and. The Director will visit and provide accounting and consultancy services as well as negotiating any financing opportunities. Where necessary she will work with the new employees and mentor them to become effective members of the business. She will work with the in the area of sales, market development to promote general expansion. She will also recruit new clients into Kasirye, marketing Kasirye s services and evaluating new clients eligibility for the programme. The Finance and Marketing Officer will be responsible for raising the funds if the organisations are to be supported by finance. This may be locally sourced funds or funds acquired from donors, depending on the business. This member of staff will also be responsible for marketing the services of Kasirye and will act as a communications officer between Kasirye and the involved. They will also be the link between the Xavier Project vocational training programme and Kasirye. This member of staff has not yet been recruited. In 2015, an Assistant Accountant/Consultant will be hired as there will be a target of 25 in the relationship, so constant mentoring will require more staff. Xavier Project volunteers will also be recruited to help reduce the work load for the accounting and consulting specialists. An Office Manager will also be hired to act as a receptionist, secretary and PA for the specialists. In 2016 two more assistant specialists will be hired as the number of in Kasirye increases to 40. One of these will work in the consulting service and one in fundraising for venture capitalism. 2. Relationship with other Xavier Project Programmes. Kasirye staff will all be part of Xavier Project. The objective of Kasirye is linked to the Xavier Project Education Programme, so staff from the Xavier Project Education Programme will work closely with the Kasirye team. In particular, the co-ordinator of the vocational training programme will be responsible for the recruitment and training of the refugee employees. This co-ordinator will also be responsible for compiling a database detailing the skills and qualifications of as many refugees as possible in Nairobi. 3. Location Kasirye office will be based in Jamuhuri, Nairobi.

7 CASE STUDY - Elgonia Laundry Services Elgonia Laundry Services is a company that offers laundry and dry cleaning services to both corporate and individual clients. It was founded in June 2008 with only one outlet. Mildred Mugenya has worked with Elgonia Laundry Services since January When she first approached them they had no accounting department and were basically run as a sole proprietorship with no major distinction between the company and the entrepreneur. The company did not have any book keeping system or filing system for that matter. It was hard to distinguish payments made for the company and payments made for the owner (which is a major problem for most SME s). She has now introduced an accounting system which has led to reduced expenses as now the entrepreneur has leant to control the company s expenses. When Mildred first started assisting Elgonia they had only one branch and annual income of With the new accounting skills taught by Mildred and put into practice the company has been able to grow and thus offer more employment opportunities for three refugees from Rwanda. This has lead to expansion of the business, which now has two branches and an annual income of 15,000. Mildred has spent 32 hours per month at a fee of 150 per month assisting Elgonia on a freelance basis. Her services have included 1. Daily monitoring of cash flow, 2. Preparation of monthly budgets, 3. Comparison between the budget and the actual targets, 4. Training the entrepreneur on better credit management, 5. Educating the entrepreneur on better understanding of the financial reports, 6. Monthly bank reconciliation, 7. Prepares special financial reports by collecting, analyzing, and summarizing account information and trends In the future, Elgonia hopes to open more branches and become a world class service provider. This can only be attained if they continue with the accounting skills learnt from Mildred. This will lead to more refugee employment. The DRA report identified some similar in Nairobi run by refugees who have had access to capital and a skilled workforce, which have profits of 1000 a month and over.

8 TARGETS Target Target Target Indicator related to objective Totals Build relationships Build Build Builld Relationships with five relationships relationships relationships with 40 with ten new with ten new with 15 new Train and enable five refugees to be effective workers in these Cash revenue in fees or profits from equity of 5,000 Five refugees are employed or apprenticed in full time work. Total income for refugees 2500 Train and enable 15 refugees to be effective workers in these and 2013 Cash revenue in fees or profits from equity of 15, refugees are employed or apprenticed in full time work. Total income for refugees 10,000 Train and enable 30 refugees to be effective workers in these and Cash revenue in fees or profits from equity of 30, refugees are employed or apprenticed in full time work. Total income for refugees 30,000 Train and enable 50 refugees to be effective workers in these and Cash revenue in fees or profits from equity of 60, refugees are employed or apprenticed in full time work. Total income for refugees 65, refugees in full time employment Total revenue 110,000 Plus shares in up to 40 Total wages for refugees 107,500 Combined revenue 217,500 BUDGET Total Raised so far Staff Director 8, , , , , Fundraiser 5, , , , , Assistant Accountant/ Consultant 4, , , Assistant Fundraiser Assistant Consultant Office manager 4, , , , , , ,700.00

9 0.00 Legal Fees 2, , , , , Office 0.00 Rent 1, , , , , , Support Costs 0.00 Marketing , Total Expenditure 18,100 18,100 25, , , Income 5, , , , , Funds needed 13, , , Misc 3,800 Total 20,000 SECONDARY OBJECTIVES Integration of refugees. As well as the primary objective, this programme will also help refugees to integrate into the local community. Kasirye encourages to be more open-minded about employing refugees, which in Nairobi is important as there are numerous documented cases of xenophobia against refugees, especially in employment. In the work place refugees will be able to mix with Kenyans which will break down social and cultural barriers. Income for Xavier Project. Over the course of the four years this programme is targeted to raise 11,800 profit for Xavier Project, even after the 20,000 loan has been paid back. This does not include the fact that Kasirye will also have equity in up to 40 successful. These profits will be used in the Xavier Project Education Programme in Kenya, and will enable six refugee students to complete four years of secondary school. From 2016 the profits will increase so the potential to sponsor more students will increase as well. Benefit to the Kenyan Economy. The services provided by Kasirye will not just benefit refugees, but will help the we work with fulfil their aspirations. This will simultaneously result in better products and services for the Kenyan people. Employment of Xavier Project staff. The Kasirye programme offers secure employment to at least four members of staff, who will be Kenyan or refugees.

10 BACKGROUND BEHIND KASIRYE The Xavier Project Microfinance Programme was launched in Kampala in June We helped start five for refugees, three of which are still running successfully. The other two were closed after one proprietor died and the other was resettled in America. Xavier Project followed a model called micro-venture-capitalism. In this model we provided necessary capital for the business and formed an equity partnership with the refugee proprietors. In every case the structure of the equity was distorted the refugees owned a higher portion of the business than the percentage of the capital they had provided to start the business. This reflected the challenges faced by refugees who struggled in the notoriously corrupt and nepotistic Kampala business environment all the more for language barriers and xenophobic marginalisation. Since the concept of microfinance was developed in Bangladesh in the 1970 s, the industry and scholarship has not yet endorsed a model that is guaranteed to succeed. In the case of refugees this is even more the case because refugees are less likely to make a lasting bond with a cooperative group, they struggle to penetrate the foreign market, and outside of the workplace they bear the additional burdens that come with being recently displaced. For these reasons, Xavier Project decided in January 2012 that an original approach needed to be found to improve livelihoods for refugees. We no longer go into equity partnerships with refugees. In March we opened a fabric business in Nairobi of which we have sole proprietorship, which employs three refugees and currently earns 450 profit per month. This business aims to create jobs for refugees, raise money for the Xavier Project Education Programme, and spread awareness of urban refugee challenges through our products. Now we intend to expand our livelihoods further through a business services company detailed in this proposal, called Kasirye, named after a Xavier Project Volunteer, Sam Kasirye, who sadly passed away recently. COMMITMENT Any Trust or Foundation making a gift to the Xavier Project will receive a report on the impact the money has had on the lives of the refugees. We are committed to being as transparent as possible with the money given to the Xavier Project. In UK we are registered under an umbrella charity called Whinfield Charitable Trust, Whinfield, Hook Heath Road, Woking, GU22 0QD. Xavier Project is an operating name of Whinfield Charitable Trust In Kenya Xavier Project is registered as a Non-Governmental Organisation.