MEDA Annual Report

MEDA Annual Report - 2018

MEDA Annual Report - 2018

Executive view

For over 65 years, MEDA has continued to grow, learn and innovate. We remain steadfast in our aim to create business solutions to poverty.

FY18 has been a year of transition: We moved deeper into implementing newer projects, and concluding others. While we prepared to move to new offices in Waterloo, we also searched for a new CEO as Allan Sauder approaches retirement in December. We are excited that Dr. Dorothy Nyambi will be joining us Nov 26 as Allan’s replacement.

Allan’s departure comes at a time of significant strength for MEDA, having achieved – through the determination and hard work of our staff – a 23% increase in revenue over last year with enough reserves to increase the Sarona Risk Capital Fund by over $2 million. We served almost 103 million families through our work with 401 partners in 62 countries in FY18.

We are exceedingly grateful to our loyal and generous supporters, who gave 31% more than last year. It is truly remarkable and brings us ever closer to our five-year campaign goal of raising $50 million to help 10 million families.

In keeping with the convention theme of Intersections, we find ourselves at the crossroads of a compelling legacy with a future that promises exciting new horizons for MEDA – one that offers many opportunities to bring hope and sustainable livelihoods to millions more families living in poverty in many parts of the globe.

Tim Penner
Chair

“Every time I visit one of our field programs I come away more convinced than ever that unleashing entrepreneurial potential, especially of young people, is the most sustainable way to help poor families realize a better life. I am so grateful to have been a part of this for the past 31 years, and I know that the MEDA team under new leadership will continue to find new and creative ways to achieve even better results. I look forward to becoming a cheerleader.”

Allan Sauder
President

MEDA Annual Report - 2017

MEDA Annual Report - 2017

Executive view

Once again, we are happy to have good news to share. It is a pleasure to report on a successful year of creating business solutions to poverty.

We are grateful to our worldwide MEDA team, who are committed and have worked so hard to ensure that we met and even exceeded our FY17 goals.

(FY17 MEDA Audited Financial Statements are available for download here.)

MEDA’s positive impact continues to expand. This year with your generous support we were able to help 91 million families in 60 countries through our work with 322 partners. In addition to the 615,000 lead firms, farmers and entrepreneurs served by our projects, small and medium enterprises where MEDA has an investment served 90.6 million customers.

The center spread of this annual report illustrates four particular projects and the way in which we quickly multiply the impact when we scale up our work and maximize the power of our investments.

We are exceedingly grateful for our philanthropic MEDA supporters, whose generosity resulted in a record high $6.5 million in private contributions.

We are particularly gratified as we embark on a large, five-year campaign to raise $50 million to support our mission of creating business solutions to poverty. Funding from institutional donors multiplied the impact of your gifts, for a total budget of $27.2 million.

With our customary stewardship and judicious use of these gifts, we realized a healthy $948,000 operating surplus, in addition to a $1.67 million equity gain in our Sarona Risk Capital Fund, where it will be invested again and again.

MEDA continues to work toward a more just and peaceful existence by building bridges. The bridges we build are the ties between people and communities, partnering and collaborating to strengthen local organizations, businesses, entrepreneurs and their families – bridges that increase understanding and strengthen our relationships. We do this by improving lives and livelihoods, because enduring livelihoods are vital to long-term peace and economic growth.

We are grateful for the very committed staff and the continued trust and faithful generosity of our loyal supporters in the sharing of your gifts of time, talent and financial support.

Thank you for your steadfast commitment, for walking alongside us, and with people living in poverty, to build bridges to enduring livelihoods.

Allan Sauder, President
Albert Friesen, Chair

MEDA Annual Report - 2016

MEDA Annual Report - 2016
View Annual Report Online

Executive view

New strategic directions cap exciting year of growth. Doubling down on business with B2 will help MEDA continue to unleash people’s God-given potential.

(FY16 MEDA Audited Financial Statements are available for download here.)

We are delighted to report on excellent FY16 results after a challenging year in FY15.

MEDA was able to generate a positive bottom line this year. This is thanks in no small part to our generous individual MEDA supporters, plus the determination and hard work of our staff and board of directors, and the trust of our institutional donors.

With the development of our new strategic directions, summed up as Business to the Power of Two, we are confident that we are well-positioned to meet the needs of a changing world.

While our focus on sustainable livelihoods remains the same, the way we create sustainable livelihoods must change, too.

We aim to keep vulnerable poor families – especially in rural, agricultural areas – at the heart of our efforts. Livelihoods will be sustained by profitable business entities at a minimum of two market levels within a stronger ecosystem of entrepreneurship.

Our Mennonite values will continue to form the core of who we are and how we approach our work.

FY16 was a year of recovery and a move back into the black with a strong pipeline of contracts and projects and inspiring support from individual MEDA donors.

We helped 46 million families in 62 countries realize healthier, more economically sustainable lives. Working through 246 partners, we reached:

  • 45.7 million clients of microfinance institutions and enterprises where MEDA has invested;
  • and 149,000 farmers and entrepreneurs, with training, financial services and market access.

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.

This success was only possible through your gifts! We leveraged your $6.3 million in private contributions with government and foundation funding for a total budget of $22 million.

We invested Sarona Risk Capital Fund assets of $20 million ($8.2 million equity) in funds and companies, for total assets under management of $607 million – up 15% from last year.

We are pleased that this year we netted a surplus of $661,740 from an operating surplus of $848,118 and a loss of $186,377 in our Sarona Risk Capital Fund equity. Once again, the Sarona Risk Capital Fund loss is primarily due to global currency declines relative to the U.S. dollar.

Thank you once again for your faith in us, for your commitment to our mission of creating business solutions to poverty, and your support to help millions of families adapt to a changing world.

Allan Sauder, President
Albert Friesen, Chair

MEDA Annual Report - 2015

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


 

MEDA Annual Report - 2014

MEDA Annual Report - 2014

Executive View

Throughout this report you’ll learn how MEDA’s frontier investing and programs are helping poor families unleash their entrepreneurial spirit and skills to build sustainable livelihoods – creating business solutions to poverty.

If you visited these people, you’d hear stories of how their increased income has impacted their families, their communities, and their dreams for the future – stories of better health and nutrition … of children now able to attend university … of small businesses able to employ many more in the community … and of their ability to care for the needy in their midst. It’s truly a gift to be able to share God’s love in this way!

On Wall Street and Bay Street, frontier investing has been heralded as a new answer to poverty.

But the idea that investing capital in small and medium companies in frontier markets can be both financially rewarding for investors and good economic development for their customers, staff and communities is not new. MEDA has been doing this for 61 years.

However, creating ways to do this on a scale attractive to investors large and small – that is the new frontier – the space where MEDA and our Sarona funds are truly at the leading edge.

This year we helped 46.4 million families in 62 countries realize healthier, more economically sustainable lives. Working through 248 partners, we reached:

  • 44 million clients of microfinance institutions and small and medium enterprises where MEDA has invested through a Sarona fund;
  • 2 million families who received mosquito nets in Tanzania;
  • and nearly half a million 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 $6 million in private contributions with government and foundation funding to achieve a total budget of nearly $42 million.

We invested Sarona Risk Capital Fund assets of $20 million ($9.3 million equity) in funds and companies, for total assets under management of $410 million – up 21% from last year largely due to substantial growth in MicroVest and the Sarona Frontier Markets Fund 2 LP.

We were grateful to realize a net surplus of $930,000 from an operating surplus of $980,000 and a slight loss in our Sarona Risk Capital Fund equity due to the write-down of assets in Ukraine following the political challenges there.

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. We invite you to join in this work.

Debbie Sauder David, Chair
Allan Sauder, President