Charity registration number 1167980
Company registration number 09929136 (England and Wales)
MUSANGU FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
MUSANGU FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr S A R Purkiss
Ms V L Partridge
Mr C G Bailey
Mr B Sulwe
Charity number
1167980
Company number
09929136
Registered office
15 Woodend Drive
Ascot
Berkshire
SL5 9BD
Accountants
Carpenter Box
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
MUSANGU FOUNDATION
CONTENTS
Page
Trustees' report
1 - 4
Accountants' report
5
Statement of financial activities
6
Balance sheet
7
Notes to the financial statements
8 - 12
MUSANGU FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 30 April 2024.

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)".

Objectives and activities

The Musangu Foundation ("Musangu") is a UK charity born out of the mining industry. It is a social enterprise which has been established to harness the collective investment of the private sector, with strong support from the mining industry, into social and development projects. It aligns the business investment of mines with other private and public sector companies thereby creating local participation through strategic partnerships. The Foundation's ethos is to invest in sustainable growth across Africa.

 

The Musangu Foundation aims to deliver services to rural communities. This will be achieved by implementing sustainable, high quality innovative technologies to improve education, health and livelihood across sub-Saharan Africa. A key principle of the Musangu Foundation is that the projects they deliver will be self-sustaining with the ability to continue independently of the initial investment once they are established and to continue to grow and benefit the local communities in which they operate making use of collaboration with existing local organisations and businesses.

 

Projects have commenced in Zambia. Musangu's objective is to expand to other regions of sub-Saharan Africa once the Foundation's principles and approach has been proven through on the ground project success in Zambia.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Public benefit

The Musangu Foundation has been established to improve education, health and livelihood, specifically to those living in rural communities in sub-Saharan Africa. This is delivered through on-the-ground project implementation as set out in the 'Activities' and 'Plans for future periods' sections below. The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation's aims and objectives and in planning future activities.

 

The Foundation's project principles endorse this guidance and direct the trustees in their decision making process when appraising potential projects. The projects undertaken must benefit the local rural community in which they operate by enhancing their access to education, improving health and/or helping to create sustainable livelihood choices. These 3 areas often overlap and are the keystones to The Musangu Foundation's work ethic.

 

MUSANGU FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Achievements and performance

 

Activities

Project activities have initially begun in Zambia with the aim to expand to other regions of sub-Saharan Africa once the Foundation has proven project success on the ground.

 

A set of Project Principles have been developed to guide the trustees and Foundation management team in their decision making process when appraising potential activities. Two key Project types will be delivered by the Musangu Foundation:

 

 

Projects and Activities ICA Zambia: Ongoing and self-sustaining

Impact Capital Africa ("ICA") was established by the Musangu Foundation (Zambia & UK) to deliver high quality impact investing conferences across the continent of Africa.

 

Musangu, via ICA, continued to work in 2023 and 2024 with a conference held in 2023 jointly with NABII (National Advisory Board for Impact Investing), a non-profit organisation established in Zambia in 2019 to accelerate the growth and effectiveness of impact investment Zambia necessitating the integration and measurement of social and environmental impact in all economic activity including government policy, business operations, investor behaviour, and consumer consumption. A second conference was planned and held in June 2024. Both conferences were supported by Anglo American Corporation and were very successful.

 

In parallel Musangu continued to work with donor partners, developing an affordable technical assistance curriculum with EU funded iBAN. Via this curriculum we worked to provide a hybrid of self-guided and specialist supported modules focussing on the core business investment readiness constraints identified via our 4 years of track record in this sector. ICA’s business security was further strengthened with a three-year collaboration project with Anglo American in South Africa to develop employment outside of the mining industry but in the regions that the mines operate. A target of 5 jobs for every job on the mine is the target. ICA co-ordinate the identification and develop the companies to be ready for impact investment funds to meet this target.

 

Outcomes were very successful, with several businesses using the curriculum to build resilience in their company, address key issues and several moved forward to raise both concessional and commercial capital. Musangu has therefore met its objective of founding and funding ICA to a point where it is now a stand alone business with its own strategy in developing impact investing into Zambian and South African SME's.

 

Musangu financed and supported the development of their flagship program to replace the use of charcoal in Lusaka initially through the production of an alternative to charcoal. Currently the deforestation rate in Zambia sees the clearing of 300,000 ha per annum of forest to feed the charcoal industry. An alternative fuel is required for cooking, particularly since the state electricity utility, ZESCO, is load shedding due to the current drought in the country. Musangu, through its collaboration with a Zambian entity it formed, Big Grass Investments (BGI), is collecting biomass from local villages and farmers, being the Elephant Grass that grows in the bush and the maize stalks that are burnt in the fields following each harvest. The collection of the biomass generates a new income stream for the local villagers and farmers. BGI purchases the biomass and then compresses it into fuel pellets that can be used in fuel efficient gasifier stoves to cook on. A pilot operation was established at the beginning of the year and the first biomass was received into the plant and “Musangu Green Fuel” pellets are now being produced. The intention is to source funding to expand the production as the stoves are sold into the city.

 

 

 

MUSANGU FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Financial review

Income was a donation from Consolidated Mining and Investments (CMI) a mining investment company and received for general office expenes. With the focus on the sustainability of ICA there was little grant application activity while Musangu developed its next investment target.

 

There were no other financial activities. The directors consider their position to be satisfactory.

 

The Musangu Foundation's initial 12 month fundraising approach will continue to focus time and resources on grant making foundations and corporate giving. The Foundation continues working towards larger community engagement campaigns, volunteer programs, individual giving and mass participation events once they are further established. The immediate target is the development of an alternative charcoal supply chain plan that will replace charcoal with an alternative biomass that will stop the devastating forest destruction that is impacting the Zambian environment.

 

The following 12 months of the fundraising plan will be heavily guided by the Charcoal Project and goals that the foundation wishes to carry out in Zambia.

Reserves Policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to 24 months' support and governance costs. The trustees have secured an agreement with CMI to provide sufficient funds to cover the operating costs for this period.

Risks

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

Looking ahead, continued expansion of projects and affiliations with corporate partners will continue to be vital during the coming 12 months.

 

The projects, which have been implemented post year end continued and further projects will be evaluated and undertaken if they meet the Musangu Foundations' criteria (Project Principles).

Structure, governance and management

 

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

 

This company is limited by guarantee, governed by its Memorandum and Articles of Association dated 24 December 2015.

 

It is registered as a charity (charity no. 1167980).

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:

Mr S A R Purkiss
Ms V L Partridge
Mr C G Bailey
Mr B Sulwe

Appointment of Trustees

The Articles provide that there should be a minimum of four trustees unless otherwise amended by Ordinary Resolutions. There is no maximum number specified in the Articles. The Board is interviewing prospective trustees to join the company.

MUSANGU FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

Organisation

The Board of Trustees administers the charity. The Board meets several times per year to discuss the operational activities of the charity, the 2023/24 year was quiet and a minimum of four meetings is held each year either in person or in a teleconference.

 

Trustees

The trustees of the charity have control of the assets and funds. The day to day management is overseen by the charity trustees.

 

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The trustees' report was approved by the Board of Trustees.

Mr S A R Purkiss
Trustee
30 January 2025
MUSANGU FOUNDATION
CHARTERED ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF MUSANGU FOUNDATION FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Musangu Foundation for the year ended 30 April 2024, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter dated 18 January 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Musangu Foundation and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Musangu Foundation and the charity's trustees as a body, for our work or for this report.

It is your duty to ensure that Musangu Foundation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Musangu Foundation. You consider that Musangu Foundation is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.

We have not been instructed to carry out an audit or a review of the financial statements of Musangu Foundation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Carpenter Box
30 January 2025
Chartered Accountants
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
MUSANGU FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
3
13,000
-
13,000
-
-
-
Charitable activities
4
-
-
-
20,000
-
20,000
Total income
13,000
-
13,000
20,000
-
20,000
Expenditure on:
Charitable activities
5
8,309
-
8,309
3,144
-
3,144
Net income and movement in funds
4,691
-
4,691
16,856
-
16,856
Reconciliation of funds:
Fund balances at 1 May 2023
(14,074)
9,547
(4,527)
(30,930)
9,547
(21,383)
Fund balances at 30 April 2024
(9,383)
9,547
164
(14,074)
9,547
(4,527)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

MUSANGU FOUNDATION
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 7 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
10
2,501
-
Cash at bank and in hand
1,114
2,062
3,615
2,062
Creditors: amounts falling due within one year
11
(3,451)
(6,589)
Net current assets/(liabilities)
164
(4,527)
The funds of the charity
Restricted income funds
12
9,547
9,547
Unrestricted funds
(9,383)
(14,074)
164
(4,527)

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 April 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 30 January 2025
Mr S A R Purkiss
Trustee
Company registration number 09929136 (England and Wales)
MUSANGU FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
1
Accounting policies
Charity information

Musangu Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 15 Woodend Drive, Ascot, Berkshire, SL5 9BD.

1.1
Accounting convention

The financial statements have been prepared in accordance 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)". 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 applying FRS 102 Update Bulletin 1 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 £1.

1.2
Going concern

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. The trustees have considered relevant information, including the charity’s principal risks and uncertainties and the impact of subsequent events in making their assessment. As at the balance sheet date the company has a deficit on its unrestricted funds. As noted in the Trustees/ Annual Report, the trustees have secured an agreement with CMI to provide sufficient funds to cover the operating costs for this period.

 

Based on these assessments and having regard to the resources available to the entity, the trustees have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3
Charitable funds

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.

1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5
Expenditure

Expenditure relating to charitable activities is included in the Statement of Financial Activities on an accruals basis.

 

Support costs include amounts incurred in respect of the running of the charity as an organisation, including general management, administration and the finance function.

 

Governance costs include staff costs incurred to support governance and legal and professional fees.

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

MUSANGU FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 9 -
1.7
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

MUSANGU FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
3
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Donations and gifts
13,000
-
4
Income from charitable activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Exceptional income (see note 7)

-
20,000
5
Expenditure on charitable activities
2024
2023
£
£
Share of support and governance costs (see note 6)
Support
5,260
564
Governance
3,049
2,580
8,309
3,144
Analysis by fund
Unrestricted funds
8,309
3,144
6
Support costs allocated to activities
2024
2023
£
£
Bank charges
114
-
Sundry expenses
35
35
Software licenses
766
529
Consultancy fees
4,345
-
Governance costs
3,049
2,580
8,309
3,144
MUSANGU FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Support costs allocated to activities
(Continued)
- 11 -
2024
2023
Governance costs comprise:
£
£
Accountancy & legal fees
3,049
2,580
3,049
2,580
7
Trustees

No trustees' remuneration or other benefits were paid in the current and comparative period.

 

During the year the charity entered into the following transactions with related parties:

 

Consultancy fees of £3,943 (2023: £nil) were paid to Mr B Sulwe, a trustee of the charity.

 

A loan of £2,500 (2023: £nil) was made to Vulcan Green Copper Ltd, a company of which two of the trustees are also directors.

 

Consolidated Mining and Investments Ltd, a company of which two of the trustees are also directors, made an unrestricted donation of £13,000 (2023: £nil) to the charity.

 

In the prior year, Impact Knowledge Limited, a company of which one of the trustees is also a director, agreed to waive a loan of £20,000 due to it from the charity. The amount was recorded as exceptional income.

8
Employees

The charity had no employees in the current or comparative period.

9
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
2,501
-
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
733
4,190
Accruals and deferred income
2,718
2,399
3,451
6,589
MUSANGU FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
12
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 May 2023
At 30 April 2024
£
£
GIZ Impact Readiness Programme
9,547
9,547
Previous year:
At 1 May 2022
At 30 April 2023
£
£
GIZ Impact Readiness Programme
9,547
9,547

The purpose of the GIZ Impact Readiness Programme is to improve the competencies of inclusive businesses ("IBs") to initiate and obtain investments, through development of resources for preparing for investment and online affordable technical assistance ("TA") resources, as well as peer to peer learning, including webinar/online discussions.

13
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
Fund balances at 30 April 2024 are represented by:
Current assets/(liabilities)
(9,383)
9,547
164
(9,383)
9,547
164
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
Fund balances at 30 April 2023 are represented by:
Current assets/(liabilities)
(14,074)
9,547
(4,527)
(14,074)
9,547
(4,527)
14
Related party transactions

There were no disclosable related party transactions during the current or prior year other than transactions with trustees as disclosed in note 7.

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