Council First in Scotland to Make Ethical Investment
Inverclyde Council has become the first local authority in Scotland to invest in an organisation that provides ethical finance in support of fair trade around the world.
Shared Interest Society Limited uses funds invested by individuals and organisations to provide loans to fair trade business.
Inverclyde Council’s Policy & Resources Committee has agreed to invest up to £50,000 and to allow any interest to be reinvested.
Convener and Council Leader Councillor Stephen McCabe said: “As a Council we are proud to have achieved Fairtrade Zone status for Inverclyde and we continue to promote and support fair trade issues.
“This is a hugely positive way to make a real difference around the world. We have worked hard over recent years to grow the Fairtrade Inverclyde campaign. The Council and community groups have come together to promote and support Fairtrade throughout Inverclyde in offices, local businesses, churches and schools.
This is another positive step forward to achieving the aims of fair trade and to support communities in developing countries to earn enough for today and to invest in a better tomorrow.”
Shared Interest pools £39 million in share capital from 11,000 UK investors to help fair trade farmers and handcraft makers with loan and credit facilities.
Shared Interest Head of Membership Engagement Kerrey Baker said: “We are delighted to welcome Inverclyde Council on Board as the first council in Scotland to invest in Shared Interest. Last year, our members helped make a positive impact on the lives of 362,000 individuals, helping us to break the cycle of poverty in the developing world.”
Bukonzo Organic Farmers Co-operative Union started out as a group of six organic coffee farmers based in Kasese town in western Uganda, whose main problem was the financial return on their crop. However, by tapping into the Fairtrade market, Bukonzo has been able to overcome this problem, while also increasing their membership from 500 to almost 2,000.
One of the few coffee co-operatives in Africa, which is female-led, Bukonzo is using a Shared Interest loan to pay farmers at harvest time. The co-operative has made a huge impact on the community, particularly on the lives of women, as they are now getting more involved with coffee production, traditionally a ‘man’s crop’
Kabugho Jostina, General Manager, said: “The loan from Shared Interest has allowed us to double our coffee sales and pay the farmers on time. With the increased income from coffee sales, the farmers have been able to educate their children.”