MEDA Annual Report – 2015

Executive view

Why leveraging for impact?
The business answer is that leveraging is simply good stewardship of resources.

We are leveraging by engaging funding and implementation partners in our work around the world. Leveraging is not simply for the sake of growth, but to achieve the greatest impact for the maximum number of families. Through leveraging, we are able to help more families realize their God-given potential.

Fiscal year 2015 was a challenging year for MEDA in comparison to the past decade, when we enjoyed strong growth and positive bottom lines on our financials. A number of factors combined to create a perfect storm:

• A drop in major gifts;
• The end of several major contracts and slow start-up of new projects; and,
• Global currency declines that contributed to a loss in our investments;

Fortunately, we have the unwavering strong support of a Board of Directors with experienced business people who have weathered similar storms in their own enterprises. They are a beacon of support, giving generously of their time and wisdom. And we are so grateful that we have subsequently signed a significant number of new projects that will ensure our future growth.

This year we helped 36.5 million families in 52 countries realize healthier, more economically sustainable lives. Working through 233 partners, we reached:

• 36 million clients of microfinance institutions and small and medium enterprises where MEDA has invested through a Sarona fund;
• and nearly 66,000 farmers and entrepreneurs who received training, financial services and/or access to markets.

And that’s in addition to the clients of organizations we worked with in the past who continue to serve thousands of entrepreneurs long after MEDA is no longer directly involved.

Your contributions made this possible! We multiplied your $4.4 million in private contributions with government and foundation funding to achieve a total budget of $18.3 million.

We invested Sarona Risk Capital Fund assets of $18.5 million ($8.4 million equity) in funds and companies, for total assets under management of $550 million – up 18% from last year.

We are disappointed in this year’s overall loss of $1.9 million, arising from an operating loss of $1.1 million and a loss of $867,000 in our Sarona Risk Capital Fund equity. The Sarona Risk Capital loss is primarily due to global currency declines and a few investments that did not perform as expected.

We’re thankful for our supporters, our board, and our wonderful staff who work so hard and share so generously to keep MEDA at the leading edge of leveraging for impact. We invite you to join in this work.

Allan Sauder, President
Albert Friesen, Chair