The Trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Legal Purposes
Footprints Africa objectives are for the public benefit.
To promote sustainable development by:
The promotion of sustainable means of achieving economic development and regeneration;
The prevention of poverty and social exclusion (1); and
The protection of the environment and the prudent use of natural resources.
The advancement of education and promotion of research in subjects related to sustainable development (2), the prevention of poverty and the protection, enhancement and rehabilitation of the environment, provided that the useful results of such research are disseminated to the public at large.
The advancement of any other charitable purpose the Trustees from time-to-time think fit.
Footprints Africa’s mission is to advance sustainable, scalable and inclusive approaches to the development of local African economies and prove that business can be a force for good at scale.
Footprints Trustees have due regard to the Charity Commission’s guidance on public benefit and have included clauses on the necessary requirements in all contracts and Memoranda of Understanding (MoU). Footprints signs contracts or MoUs with all parties with whom we engage; from programme participants, grant recipients and those contracted to undertake activities in pursuit of our objectives
Footprints has identified that certain issues related to sustainable development, such as the environmental and community impact of industry, stem from private sector activity. Additionally, despite the involvement of companies' supply chains and distribution channels with impoverished communities, they often fail to provide a lasting pathway out of poverty.
To achieve its goals in a sustainable and widespread manner, Footprints has developed a series of educational activities and research initiatives, including collaborative efforts with Small and Medium-sized Enterprises (SMEs) to encourage better environmental and community standards. Through these efforts, Footprints aims to support SMEs in adopting future-friendly practices, addressing challenges in sustainable growth, creating meaningful employment opportunities, and using supply chains as a tool for inclusive and regenerative development.
At its core, Footprints focuses its efforts on improving the lives of people in Ghana and the broader African continent, with a particular emphasis on socially excluded groups. Footprints strives to create sustainable and quality jobs to contribute to Africa’s inclusive and regenerative development.
Additional details of objectives and activities
Grant-making policy
Footprints Africa supports a wide range of initiatives to strengthen the impact of SMEs on their local communities, employees, environment and customers. The terms of a grant proposal, management of grants, and requests for modifications of grant terms are governed by the charity’s grant making policies with a focus on the grantees’ fiduciary, reporting and record-keeping responsibilities.
During 2023, there were a total of 16 grants awarded to participants in our programmes for a total of £5,599.
______
1 For the purpose of this clause “social exclusion” means being excluded from society, or parts of society, as a result of one or more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental) race; gender; poor educational or skills attainment or disability. Charity Commission (2001) Social Exclusion, The Promotion of Social Inclusion.
2 "Sustainable development" is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” World Commission on Environment and Development (1987) Sustainable Development, Our Common Future.
Poverty Alleviation
The informal sector is estimated to represent 86% (3) of all jobs in Africa. It is critical to ensure that Informal Workers are not left behind through creating meaningful engagement with formal value chains. Recognising that the Informal Sector is an integral part of the economy yet experiences deep vulnerability, Footprints seeks to improve the livelihoods, security and income of Informal Workers by providing programming and resources to Informal Workers and those who engage them.
Goal: Footprints will work with 100 SMEs and 1,000 informal workers to reduce vulnerability and secure livelihoods.
Target Milestones (by 2025) | Totals 2022 | Totals 2023 | Overall |
100 SMEs implementing policies to support 800 informal workers, providing contracts & safety equipment |
|
|
|
Advocacy - host annual workshop to engage key decision-makers to influence the lives of informal workers | 5 Stakeholder workshops held/co-chaired | Alumni event, Co-Chairing Inclusion Task Force of Ghana’s National Plastics Action Partnership | 7 workshops/events |
Environment
Businesses are a key contributor to environmental degradation and share resources with communities. Footprints will promote regenerative practices within our community of Small Medium Enterprises (SMEs) - focussed on eliminating waste and instilling circular business practices.
Goal: support 100 circular businesses in Africa to measure and improve their environmental impact and provide them with support to grow sustainably.
Target Milestones (by 2025) | Totals (2022) | Totals (2023) | Overall |
Circularity Mapping | |||
|
|
|
|
Circular Metrics | |||
|
|
|
|
Design Tools & Training | |||
|
|
|
|
_____
3 International Labour Organization (2018) More than 60 per cent of the world’s employed population are in the informal economy
Women’s Empowerment
Women’s empowerment in Africa plays a critical role in the continent's efforts to reduce poverty. Women’s empowerment is defined as a woman’s opportunity to make important life choices, whether economic, personal or social. Empowering women not only benefits the woman but their families and communities as well. Footprints will provide targeted programming to support women to be driving forces of change in their communities.
Goal: By 2025, work with 900+ females (and female-led businesses) working in the informal sector to reduce vulnerability and secure livelihoods.
Target Milestones (by 2025) | Totals (2022) | Totals (2023) | Overall |
900+ women trained | 136 women | 51 women | 187 women trained |
150 SMEs implement policies to support females in their value chain | 15 SMEs | 0 women | 15 SMEs |
20 grants awarded to female-owned businesses | 12 grants | 10 grants | Goal Met |
Youth
By 2050, Africa’s youth population is projected to reach one billion (4), the largest globally. 12% of youth in Ghana are unemployed but 50% (5) are underemployed. In the meantime, sustainable development requires new skills and thinking. Footprints will provide young people with critical resources such as soft and hard professional skills, practical work experience and networking opportunities to bolster development and create a diverse group of young people passionate about social and environmental development.
Goal: To support graduates to enter the workplace with industry-relevant skills and knowledge. Through Fellowships, Conferences, Workshops and Research Assignments, we will work with 500 young people by 2025.
Target Milestones (by 2025) | Totals (2022) | Totals (2023) | Overall |
Host 50 Fellows | 6 Fellows | 3 Fellows | 9 Fellows |
8 University Research Challenges cohorts | 1 cohort reaching 38 participants | 1 cohort reaching 16 participants | 2 cohorts reaching 54 participants |
Leadership
Our core value is predicated on working with and developing local experts and supporting the next generation of African changemakers. Footprints seeks to strengthen local leadership skills and prospects for sustainable growth and prosperity.
Goal: Through leadership training and hands on experience, Footprints will empower +100 individuals across our team, local experts, and SMEs in Africa. Our goal is that local challenges are addressed by local leaders.
Target Milestones (by 2025) | Totals (2022) | Totals (2023) | Overall |
4,000 hours of professional development for staff | 296 course hours | 433 course hours | 729 hours |
20 CEOs receive Leadership training | 15 CEOs trained | 0 trained | 15 CEOs trained |
Develop local sustainability practitioners | 9 trained | 18 trained | 27 trained |
______
4 Hajjar, B. (2020) The children’s continent: keeping up with Africa's growth. Available at https://www.weforum.org/agenda/2020/01/the-children-s-continent/
5 Dadzie, C; Fumey, M. and Namara, S (2020) Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation. Available at www.worldbank.org/en/news/press-release/2020/09/29/addressing-youth-unemployment-in-ghana-needs-urgent-action
Performance Review
Highlights of Footprints Africa achievements for 2023 are as follows:
Conducted four cohorts of our B Corp Lite programme in Ghana, assisting 76 organisations to enhance their social and environmental performance via trainings on topics such as Environmental Management Systems, Business Requirements, Employee Engagement, Customer Service, Business Models and Theory of Change.
Published a comprehensive how-to guide on measuring the impacts of circular initiatives tailored to companies on the African continent.
Successfully concluded the second cohort of our measurement programme, providing support to four circular businesses in Nigeria to effectively measure their impact.
Delivered training sessions to 75 participants across Africa, enlightening them on the importance of impact measurement and empowering them with the skills to measure the impact of their circular initiatives.
Produced a research report shedding light on the impact of second-hand electronics/cars from the European Union exported to Ghana and Nigeria.
Disbursed £5,599 in 16 micro grants to small businesses - driving social and environmental impact in Ghana, with an emphasis on training informal workers and enhancing waste management, directly benefiting 239 individuals.
Conducted a comprehensive waste audit for the Canadian High Commission to Ghana, identifying waste streams and formulating strategies to mitigate waste generation, as well as diversifying Footprints’ income.
Established partnerships with experts from Ghanaian institutions including the Food and Drug Authority, Ghana Enterprise Authority, Ghana Export Promotion Authority, Ghana Standards Authority, Social Security and National Insurance Trust, and Ghana Revenue Authority. Together, we co-facilitated workshops on Business Compliance for 76 local SMEs.
Graduated 3 youths and enrolled three new youths into our 1-year fellowship programme, providing them with invaluable opportunities for personal and professional development in social and environmental impact to augment their employability.
Organised two internal events and participated in nine external events, actively engaging stakeholders on topics surrounding circular economy and impact measurement reaching a total of 244 participant.
Going concern considerations and subsequent events
Footprints Africa’s principal risk in 2023 was the lack of a major donor/funding source for the organisation. The organisation’s last major donor was First State Investments (UK) which ended in 2023. The Organisation is proactively seeking a major funder to replace First State.
During the period, the Organisation has undertaken the following measures:
Footprints engaged the services of two fundraising consultants. One consultancy developed a bespoke list of funders aligned to Footprints’ charitable objects. The Footprints staff has been directly exploring funding opportunities and reaching out to these funders. The second consultancy developed a bespoke pitch deck template to use during outreach to funders and identified further potential funders.
Footprints has set up an account with a Fiscal Sponsor in the US to widen the potential base of funders.
During the reporting year, Trustees provided feedback and overview of the organisation's fundraising strategy including, but not limited to; the development of prospect lists, templates and marketing materials.
Footprints staff increased its responses/applications to Request for Proposals from potential funders to diversify programmatic funding.
Footprints management is seeking a fundraiser who will work with the organisation as a consultant to provide support in raising funding.
The Footprints Board acknowledge that the organisation’s ability to continue to operate as a going concern is dependent on the Organisation securing adequate funding to enable it successfully to carry out its principal activities.
Charity’s Reserve Policy: To mitigate challenges of uncertain funding and timing of funding, Footprints has a policy to hold reserves equivalent to 6 months staff and rent expenses plus £20,000, which is equal to £120,000. The charity currently has free reserves of £111,055 with the remainder allocated to forthcoming projects to further the charity’s objectives.
In the event of a funding delay, this amount would allow us to maintain our staff to look for additional funding, continue minimum programming and review and improve past programmes, so that when funds come through there are not further delays and programmes can continue with less disruption. Reserves can be spent when funding has been approved but is not yet available for Footprints’ use. A case of need should be presented to the Board for their approval to use the reserve funds; Board approval should be documented.
Funding sources: Footprints received total income of more than £188,000 from sources such as First State Investments, Trinomics, Canadian High Commission (Ghana), and The Finnish Innovation Fund (Sitra), and Everroot Consulting. The organisation is actively seeking funding from a diversified pool of funders, as well as undertaking revenue-generating activities, where they align with and further our charitable objects.
Details of any funds materially in deficit: Footprints Africa does not have any funds materially in deficit.
Future Plans
With net current assets at £311,055 as of 31st December 2023, it is considered by the Trustees that Footprints Africa has sufficient reserves and liquidity to continue, for the foreseeable future, to manage operations efficiently whilst maintaining a suitable flow of funds to Footprints Africa to fulfil our charitable objectives.
A financial concern for the organisation is that currently there is no core donor. Our planning process, including financial projections and reserves policy, has taken into consideration the current economic climate and its potential impact on future income. In response to this, the organisation has developed and begun to implement a comprehensive fundraising plan to identify and seek new and diverse funding partners and models.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Footprints Africa Limited (the Charity) for the year ended 31 December 2023.
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Footprints Africa Limited is a charitable company limited by guarantee incorporated in the United Kingdom and registered in England and Wales. The registered office is International House, Holborn Viaduct London, EC1A 2BN.
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP any general volunteer time is not recognised.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Resource expended, support and governance costs are recognised on an accruals basis in the period in which the goods are delivered or the services provided.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Grant income
During the year Footprints Africa received services to the value of £Nil (2022: £10,000) on a pro bono basis.
Funds for the development of educational materials
Environmental Impact Awareness
Fund raising consultant
Program Delivery Partner Fees
Program Training
Consulting
Other
Grants to institutions
Grants to institutions
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £4,200 (2022 - £3,675).
World Economic Forum
The charity was awarded a grant of €23,000 to held towards a project drafted by the African Circular Economy Alliance titled: Scaling Circular Solutions in Africa: Proposal for a scoping study to inform the implementation of an Africa-wide Circular Economy Business Incubation Program.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Circular economy fund
The trustees have designated these funds to advancing the transition to circular economy in Africa.
There were no disclosable related party transactions during the year (2022 - none).
The remuneration of key management personnel is as follows.
The remuneration of the key management personnel is included within consultancy costs.