Description
Within this detailed explanation around research into possible ways that the african affiliated consumer organisations (cos).
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RESEARCH INTO POSSIBLE WAYS THAT THE AFRICAN
AFFILIATED CONSUMER ORGANISATIONS (COs) OF CONSUMERS INTERNATIONAL (CI)
COULD BECOME MORE ECONOMICALLY SUSTAINABLE
by
the Centre for Social Entrepreneurship and Social Economy (CSESE)
Faculty of Management
Dr Susan Steinman (Editor)
Contact & Enquiries:
Dr Susan Steinman
Director: CSESE
Faculty of Management
P O Box 524
2006 Auckland Park
Tel.: +27 11 664-6527
Funded by OSISA
Copyright: University of Johannesburg, 2012
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TABLE OF CONTENTS
DESCRIPTION OF CONTENT PAGE
Executive summary iv
1. INTRODUCTION TO THE STUDY 1
1.1 Background 1
1.2 Methodology, method and design 3
1.3 Research challenges 8
2. ORGANISATIONAL FORM – CURRENT TRENDS 10
2.1 Types 10
2.2 Organisational form for consumer organisations 11
3. FACTORS IMPACTING ON SUSTAINABILITY 13
3.1 Institutional sustainability 13
3.2 Organisation financial processes 15
3.3 Programmatic sustainability 19
4. FINDINGS AND RECOMMENDATIONS 23
4.1 Findings 23
4.2 Recommendations 25
4.3 In conclusion 31
5. REFERENCES 32
ANNEXURES 33
Annexure A – Profiles of the most successful international CI members 34
Annexure B – Profiles of African Consumer Organisations 45
Annexure C – Nine business models proposed by CI 54
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LIST OF TABLES
Description of table Page
Table 1: Consumer Organisation (CO) type in relation to annual income 11
Table 2: Income discrepancies between African and non-African consumer organisations 12
Table 3: Sustainability and amount of income generated through projects 16
Table 4: percentage of budget allocated for support services – comparison between the Relatively
Not Sustainable Group (RNSG) and the Relatively Sustainable Group (RSG)
17
Table 5: Streams of income for RNSG 18
Table 6: Streams of income for RSG 18
Table 7: Influencing policy process in relation to sustainability 21
Table 8: Sustainability and reach: number of individual who have benefitted from consumer
education
21
Table 9: Sustainability and impact: contribution to consumer protection 22
Table 10: Streams of income ranking and comparison for RNSG and RSG 24
Table 11: Example of the Google Business Model 30
LIST OF ACRONYMS
ARNSG African Relatively Not Sustainable Group
APSG African Potentially Sustainable Group
CBO Community-based Organisation
CI Consumers International
CiCs Community Interest Company(ies)
COs Consumer Organisation(s)
CSESE Centre for Social Entrepreneurship and Social Economy
NGOs Non-government Organisations
NPO Non-profit Organisation
RNSG Relatively Not Sustainable Group
RSG Relatively Sustainable Group
UJ University of Johannesburg
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EXECUTIVE SUMMARY
Consumers International (CI) offers support and guidance to over 220 member organisations in 115
countries. 75% of these members are in developing countries. The shrinking funding environment
poses challenges for the continuity of the consumer organisations.
The purpose of this study was to investigate successful CI models from across the world through
quantitative and qualitative surveys and exploring how and if the approaches of the international
partners could be of benefit to the African, particularly the southern African region.
The research findings and subsequent recommendations address the issues of sustainability on
institutional, financial and programmatic levels, by juxtaposing the African and other non-
sustainable COs with the measures taken by sustainable organisations to make meaningful
inferences. This was made possible by using the SPSS statistical data programme to analyse the data
of the Global Survey conducted by Consumers International at the end of October 2012.
Notably there is a difference in generating income between the Relatively Not Sustainable Group
(RNSG) and the Relatively Sustainable Group (RSG). The recommendations focus on the issues where
sustainability is affected. Issues such as training in business skills and improvement of governance
are regarded as essential to lead the COs towards sustainability.
However, the biggest challenge would be to switch from grant-dependency to a social enterprise
model and adopting the Multiple Income Generating Stream (MIGS) model through increasing the
membership base. Publications such as magazines and newsletters, test centres, while increasing
donor and government funding through increased lobbying and improved techniques in funding
proposals, trading services or goods for income, engaging in local and international partnerships,
apply for skills development funds to train consumers will contribute significantly to creating a
bigger membership base. It is also important to charge market-related fees for research and
advocacy.
Incubation and the provision of seed funding for struggling COs are other options that could be
explored. . However, a Business Plan incorporating a unique business model using the “Business
Model Canvas” is most likely to yield the best results. It is recommended that COs in the southern
African region reaches out to local universities to assist them.
As a whole, African Consumer Organisations can learn from their European counterparts and lobby.
It is important to engage the African Union, NEPAD and SADC countries to reach out for joint funding
and more awareness on country level.
It is a long road to sustainability for the African COs whose struggle is more severe. It is evident from
the research that the African COs try harder, but get far less than their counterparts world-wide as
the impediments of working in a developing country cannot be ignored.
However, sustainability is within reach of all these organisations if they could follow the MIGS model
and become social enterprises, not charities. This is the difference between winning and losing the
battle in a very tough market. It requires innovation, determination and skills to beat the odds and
serve the interests of the consumers.
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1. INTRODUCTION TO THE STUDY
Dr Susan Steinman and Rejoice Shumba
1.1 BACKGROUND
1.1.1 Background to Consumers International
Consumers International (CI), founded in 1960, is a not-for-profit company limited by guarantee and
it is registered in the UK. CI is also registered as a charity. This organisation with its 240 members in
120 countries is the world federation for consumer groups. Working together with its members, CI
serves as the only independent and authoritative global voice for consumers based on the following
eight basic consumer rights: the right to satisfaction of basic needs, safety, information, choice, to be
heard, redress, consumer education and a healthy environment.
Consumers International offers support and guidance to over 220 member organisations in 115
countries. It is interesting to note that more than 75% of the CI members are actually in developing
countries. Due to the profile of its majority members CI aims to build the capacity of its member
organisations in order to offset some of the challenges and constraints within its constituency. One
of the major aims of CI is therefore to help build stable organisations in the developing countries, to
conduct independent research, campaign effectively and provide high-quality services to consumers.
CI has regional representation in each region. In Africa, the regional office is based in Pretoria.
The role of the regional office is to:
• Create and sustain a network of consumer organisations in Africa, to enable them to learn
from each other and benefit from membership of a global consumer federation.
• Mobilise its members in support of global campaigns designed to improve the lives of
consumers everywhere.
• Support the development of member organisations to increase their capability and capacity
to help consumers at national and regional levels.
CI members in Africa:
Many consumer organisations in Africa operate in a difficult environment and often struggle to
sustain their operations, operating with only one or two staff members, often lacking formal
structures.
CI Africa members are in the following countries:
• North Africa (Morocco, Algeria, Tunisia, Egypt and Sudan)
• East Africa (Tanzania, Kenya, Uganda, Ethiopia, Burundi and Rwanda)
• Francophone West Africa (Senegal, Mali, Niger, Benin, Chad, Burkina Faso, Guinea, Cote
D’Ivoire, Togo and Niger)
• Anglophone West Africa (Nigeria, The Gambia, Sierra Leone, Liberia Ghana and Cape Verde)
• Central Africa (Cameroon, Congo, Gabon, CAR, Angola)
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• Southern Africa (South Africa, Namibia, Botswana, Mozambique, Zimbabwe, Zambia,
Malawi, Seychelles, Mauritius, Lesotho and Comoros Islands).
The CI Office for Africa focuses on:
• offering training and development, as well as information, toolkits and models that can be
adapted by various members in various countries; making members understand their
primary roles vis-à-vis other organisations/movements and networks
• enabling members to participate in global campaigns by delivering specific training on
campaigning in the face-to-face meetings as well as by means of on-line training modules;
• ensuring that member organisations become effective learning organisations
• seeking funding support to develop members as well as the entire consumer movement in
Africa; strengthening the ability to effectively cultivate, mobilise and apply resources
efficiently to achieve strategic organisational objectives and achieve long-term financial
sustainability
• strengthening members’ fundraising capabilities as a backbone of members’ sustainability
but also helping members to think ‘outside the box’ when it comes to generating income.
1.1.1.2 Vision and Mission
CI’s vision is a world where people can make informed choices about safe and sustainable goods and
services, in which individual and collective Consumer Rights are secure and respected.
CI believes that:
• all people consume, in order to live - be it through the satisfaction of the most basic human
needs, to considering complex financial products.
• the fundamental rights of all consumers must be upheld and protected by corporations,
governments and international decision-making bodies.
CI thinks that consumers should be:
• provided with the right facts and skills, while being protected from misleading promotion, to
make confident and empowered decisions
• be confident that the products and services they buy are safe to use, with the minimum
impact on social and ecological conditions for both producers and consumers.
CI’s mission is to champion Consumer Rights internationally to help protect and empower consumers
everywhere -
• to defend, promote, develop and pursue Consumer Rights as the international basis of
consumer protection.
• to support, develop and work directly with our constituent member organisations, seeking to
protect, inform, give a voice to and secure rights for consumers worldwide.
(http://www.consumersinternational.org/)
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1.1.2 Background to this study
The shrinking funding environment poses challenges for the continuity of non-profit organisations
such as Consumer Organisations (COs). The role of consumer organisations is critical, although in
some instances they are rarely recognised or appreciated by the consumers that they serve or the
governments of the countries in which they operate. Many consumer organisations are struggling to
execute their mandates due to a lack of funding. The collapse of consumer organisations would have
a negative impact on consumers. It is therefore important to develop sustainable models for
consumer organisations so that they do not only rely on shrinking donor funding.
The objectives of this research are fourfold;
• to collect and document successful CI member models from across the world;
• to investigate regional promising new models such as social entrepreneurship initiatives and
their applicability to COs;
• to explore how the models could be adapted to the southern African region;
• to compile a report on the recommendations arising from the research.
Therefore this study will endeavour to conduct research on Sustainable Business Models that are
relevant to Consumer Organisations (COs) and to answer the research question: How can the
southern African affiliates of Consumers International become sustainable?
Furthermore the researchers will investigate, using mixed methods, promising new models such as
social entrepreneurship initiatives and their applicability to consumer organisations and explore how
these models can be adapted to the southern African region.
1.2 METHODOLOGY, METHOD AND DESIGN
Methodology is influenced by the ontology and epistemology of researcher. Briefly, one may
describe the concepts of ontology and epistemology as part of methodology in research as
follows:
• Ontology has to do with our assumptions about how the world is made up and the nature of
things.
• Epistemology has to do with our beliefs about how one might discover knowledge about the
world.
1.2.1 Ontology and epistemology
1.2.1.1 Ontology
What is the nature of the phenomena, the entities or things, the social reality you want to
study, or your object of research?
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Researchers have different and conflicting beliefs when it comes to their views of the nature of
the phenomena they intend to study. There are different options and the researchers are
interested in understanding the world of lived experience from the point of view of those who
live it – in this case, particularly the consumer organisations. The researcher contends that
social reality is not a given, but is built up over time through shared history, experience and
communication. In other words, a person is an agent who actively constructs meaning within
an ever-changing social and historical context. That which is taken for “reality” is what is
shared and taken for granted as the way the world is perceived and understood. In order to
appreciate the lived world of experience, we must engage and participate in it; we must
actively interpret it (Locke, 2001 in Steinman, 2008).
1.2.1.2 Epistemology
Epistemology or theory of knowledge is the branch of Western philosophy that studies the
nature and scope of knowledge (http://www.wikipedia.org/epistemology). How do we know
what we know? What is knowledge? What is reality? The epistemological position assumed for
purposes of this paper is that, in building knowledge, different strategies can be employed as
both qualitative (co-constructing knowledge) and quantitative strategies (surveys).
1.2.2 Research methodology and methods
The relationship between method and methodology is like the relationship between the words
psyche and psychology, or between derma and dermatology. Psyche basically means the
internal mind, and psychology is the discipline that studies and supports the internal mind (i.e.
the research of academics in the faculty of psychology and the counselling of psychologists).
Derma is our outer covering, or skin. Dermatologists research skin and treat skin conditions
(Kinash, 2010).
Methodology has to do with the tools and techniques of research. The methodology is the
discipline, or body of knowledge, that utilises these methods. (Kinash, 2010). The methodology
can use either qualitative methods (such as interviews, focus groups, or participant
observation), or quantitative methods using research techniques to gather data for
information dealing with numbers and anything that is measurable. Statistics, tables and
graphs are often used to present the results of these methods. Therefore they are to be
distinguished from qualitative methods. The decision to use either qualitative or quantitative
techniques largely depends on what is being investigated.
According to Borkan (2007):
… the nature of quantitative research and its data collection tools allow the researcher to infer
only about that which he or she is examining (you “see” only what you are “looking at”),
whereas qualitative methods can expand the gaze to key elements that were never elucidated
or even previously considered.
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Mixed methods are about using both qualitative and quantitative research. While it can be said
that a mixed methodology may be incompatible with ontological and epistemological stances,
it is often overlooked that ontological theories do not entail epistemological ones and
especially those methods wrongly associated with a given epistemological theory. Furthermore
an ontological position (e.g. realism) does not commit one to a given methodology (Tashakkari
& Teddle, 2002 in Steinman, 2008).
Using mixed research techniques, or mixed methodologies, has advantages, for example the:
• improved strength of the research
• use of multiple methods in a research study helps one to research a process or a problem
from all sides
• usage of different approaches helps the researcher to focus on a single process and it also
confirms the accuracy of data. Employing mixed research methods complements a result from
one type of research with that yielded by another one. This research does not miss any
available data.
Hunt (2007) succinctly describes quantitative and qualitative methods as follows:
For example, a quantitative component of a mixed research assumes the usage of deductive
scientific method while a qualitative component assumes inductive scientific method.
Moreover, a quantitative approach collects quantitative data based on exact measurement
applying structured as well as validated information collection. For instance, rating scales,
closed-ended items and responses. This approach produces a statistical report with
correlations.
A qualitative component uses qualitative information. For instance, interview, field notes,
open-ended questions, etc. This approach considers a researcher to be the major means of
information collection (in Steinman, 2008).
Therefore, the researcher is of the opinion that using mixed methodology, using quantitative data
and triangulating these with qualitative data or interviews would bring about a better understanding
of suitable business models.
1.2.3 Research Design
The research was carried out in three phases:
• Phase 1:
Literary survey. For purposes of introduction, a short survey of the movement is necessary so that
data can be put in perspective.
• Phase 2
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Consumers International (CI) conducted a survey on Consumer Organisations’ sustainability. The
survey was part of CI’s Consumer Justice and Protection programme. It is one of the tools that CI is
using to enhance its consumer protection work by supporting and empowering its members to
enable them to develop into sustainable organisations.
The survey aimed to:
Understand the processes and strategies that its members use in their operation and
development;
Provide information and build a database on innovative best practices of consumer
organisation (CO) models and establish key dimensions of CO sustainability that can be
shared with its members; and
Identify types of empowerment activities.
The survey was divided into two parts. Part 1 involved three sections, which are related to COs’
sustainability:
(i) Institutional sustainability;
(ii) Financial sustainability; and
(iii) Programmatic sustainability.
Part 2 concerns the types of CO business models based on stakeholder engagement orientation and
CO vital functions.
The Centre for Social Entrepreneurship and Social Economy had prepared a survey for distribution to
CI members worldwide. It was noted that the questions in the two surveys were very similar. There
was therefore no need to send two similar surveys to the same people. It was then decided that
CSESE should rather wait for the closing date of the Global Survey and then analyse the findings.
Follow-up questions were then sent to the organisations that were deemed to be successful.
The CI Global Survey was administered using survey monkeys and the results were analysed via
survey monkeys. However, the survey monkey programme could not provide the researchers with
cross-tabulations and the statistical services at the University of Johannesburg (Statcon) were
enlisted to do cross-tabulation and handle additional analysis of the data.
Statcon used the SPSS Statistical programme. Two concepts, namely Relatively Not Sustainable and
Relatively Sustainable were developed for the purposes of the research. The information was
obtained from Question 22 where income was divided into four groups, namely,
(1) 75,000 USD and less;
(2) 75,001 USD to 300,000 USD;
(3) 300,001 USD to 1 million USD; and
(4) 1 million USD and more.
First, the data was divided into Relatively Not Sustainable Group (RNSG) representing those with an
income below R300,000 (Group 1 and 2 above) and the Relatively Sustainable Group (RSG) with an
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income above R300,000 (Group 3 and 4 above). All the data was cross-tabulated according to the
RNSG and RSG for analysis of sustainability.
The groups were referred to as “Relatively Not Sustainable” and “Relatively Sustainable”, because
sustainability or “not sustainable” could be relative to a region or country. One has to be careful and
still needs to be careful with the interpretation of the data, because at most it may be considered an
indication of sustainability factors and a guideline.
Lastly, the African countries were analysed. They fall within the “Relatively Not Sustainable” group
above, but for the purposes of data analysis the countries were divided as the “African Relatively Not
Sustainable Group” (ARNSG) with an income of below $75,000 and the “African Potentially
Sustainable Group” (APSG) with an income between $75,001 to $300,000, followed by an analysis of
factors that are significant in making them potentially sustainable or not. Given the relatively low
cost of living in Africa compared to the rest of the world, those COs with an income within this
bracket are regarded as potentially sustainable, while they could well be regarded as not sustainable
elsewhere in the world.
There is a large amount of data available, but only data that is either noteworthy or significant with
a direct bearing on sustainability is analysed in this report, as it would require a much larger research
project to capture the richness of information provided by the Global Survey.
• Phase 3
Using the responses emerging from Phase 2, follow-up questions were sent to the organisations that
were identified as being the most sustainable – in this case four non-African COs. Other secondary
data was also used to write the profiles of sustainable CI members worldwide, particularly African
participants using data from the web sites, as well as responses to the follow-up emails and
telephonic interviews. Five African COs were profiled.
Therefore the researchers at the CSESE sent the following email (edited by CI) to the selected COs to
gather more information:
My name is XXX (name of researcher). I am a Researcher at the Centre for Social
Entrepreneurship and Social Economy based in South Africa. We are working with the
Consumers International (CI) Africa office, conducting research on how African CI members
can be more sustainable. This research is being conducted as part of a Capacity Building
Project with CI members in southern Africa. . We hope that you can help strengthen our
research by clarifying a few more items as we hope the information will be beneficial to the
Africa members in particular, as well as CI as a whole.
The analysis of the recent survey that you completed for Consumers International shows that
you have received support from civil society organisations. Would you kindly share with us
which organisations they are, what kind of support you received and would you recommend
such partnerships for other CI member organisations?
You listed the following as your self-financing strategies:
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• membership fees
• publishing
• testing
• consultancy services
• advisory services.
Please could you shed more light on these strategies?
What percentage of your budget is covered by government and how were you able to get
your government to opt-in for this?
I thank you in advance for your assistance. We would really appreciate your responses to
these questions. Please feel free to contact the CI Africa office should you be interested in
knowing more about the capacity building project funded by the Open Society International
(southern Africa). I sent copies to Cathy Rutivi, Project Manager and Member Officer
([email protected]) and Onica Makwakwa, Head of CI for Africa
([email protected]).
Most of those approached for information sent their responses within days, however a few of
prospective respondents did not react and information available from the survey and websites was
used to compile a reasonable profile.
• Phase 4
To determine sustainability, data obtained in phases 2 and 3 was triangulated. Phase 4 deals with
what makes consumer organisations, particularly African and southern African consumer
organisations more sustainable. Findings and recommendations form part of this phase.
1.3 RESEARCH CHALLENGES
1.3.1 Research procedure
In the Research Proposal as amended (Annexure A) provided by the Consumers International, a
qualitative method was indicated as the research methodology, but it would have resulted in a
relative small study.
1.3.2 Changes in methodology
The Global Survey conducted by Consumers International ended 28 October 2012. Researchers had
the opportunity to interpret and analyse the results of the survey for purposes of this study. It meant
that much more data was available and researchers had access to the Statistical Services of the
University of Johannesburg to analyse the data, resulting in a much larger study.
1.3.3 Time constraints
In accepting the assignment, a smaller study was foreseen, as per the original research proposal.
Very soon it became evident that the researchers would not be able to finish the research within the
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period determined. More time would be necessary. Firstly there was a waiting period for the Global
Survey to end and then there was a waiting period to gain access to the statistical data analysis by
Statcon. This in itself largely extended the research period and therefore the researchers were
subject to severe time constraints.
In addition, one of the researchers could not complete her work due to the extended time required
and a replacement had to be found. Furthermore no more work could be done after 20 November,
because of another research project and therefore work had to stand over until the December
holidays.
1.3.4 Budget constraints
The additional work extended the period of research and depended on times when the Director of
the CSESE was available.
1.3.5 Language options
Only the English-speaking countries could be analysed as none of the team members could speak the
other languages. However a very large number of participants answered in English and therefore the
data could be used and it can be said that is relatively representative of the sample.
One of the profilers is fluent in French and therefore the profiles of two French countries were
included to get a richer picture. However, this person could not assist with the other data as he was
busy with other work and in terms of the survey, we were limited to the English respondents.
1.3.6 Omission of some answers to questions
Not all the questions were answered by all the respondents. Therefore one could only capture what
was available. However it is not expected that this affected the result drastically, as a very high
percentage of COs fully participated in the survey and answered all the questions.
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2. ORGANISATIONAL FORM – CURRENT TRENDS
Dr Susan Steinman
The current organisational forms of the consumer organisations are relevant. In this respect, current
legal forms for organisational forms of consumer organisations (COs) and similar such organisations
are briefly discussed below to give an overview of the available options:
2.1 TYPES
2.1.1. Non-profit organisations (NPO)
Some NPOs may also be a charity or service organisation. They may be organised as a not-for-profit
corporation or as a trust, a cooperative, or they exist informally. A very similar type of organisation,
termed a supporting organisation, operates like a foundation, but this type of organisation is are
more complicated to administer, holds more favourable tax status and is restricted in terms of the
public charities they may support (http://en.wikipedia.org/wiki/Nonprofit_organization).
A non-profit organisation is, in South Africa as well as other countries, a trust, or community-based
organisation (CBO) such as a cooperative, faith-based organisation, any voluntary association that is
not-for profit or a company or other association of persons established for a public purpose where
the income and property are not distributable to its members or office-bearers, except as reasonable
compensation for services rendered. Trusts can also, under certain circumstances and if they meet
certain requirements, be regarded as an NPO.
Increasingly, the terms “non-profit organisations” refer to a business form and are not indications of
the way business is conducted in the organisation. Non-profit organisations are progressively
becoming “enterprising non-profits” or “social enterprises” to survive (Steinman, 2011).
2.1.2. Social Enterprises
Social enterprises are at times confused with social entrepreneurship. According to Steinman
(2010) “there are two schools of thought – a broad definition of social enterprises would simply
state that a social enterprise is ‘a market-related response to a social problem’ while narrower
definitions would explicitly prefer to distinguish the social enterprise from other business forms by
designating the manner in which profit or surplus is dealt with”. In the case of South Africa, the
researcher recommended that, after triangulating the qualitative and quantitative surveys, the
most acceptable definition for the large majority of those that participated in the research would
be:
A social enterprise’s primary objective is to ameliorate social problems through a financially
sustainable business model, where surpluses (if any) are principally reinvested for that purpose
(Steinman, 2010 in Steinman 2011)”.
In the United Kingdom (UK), social enterprises are regulated through the Community Interest
Companies Act and similar business forms are in operation elsewhere in the world. However, even
in the absence of legal form, enterprising non-profits flourish in the form of hybrid business models
and it will be a matter of time for legislation to catch up with what is happening on the ground
(Steinman, 2011).
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2.1.3 For-profit organisations
For-profit Organisations have, as its primary purpose, to make a profit. They take on different forms,
depending on the legislation in the respective countries. These organisations are enterprises such as:
• Closed corporations
• Private companies
• Partnerships
• Public Companies
• Sole proprietorships
• Cooperatives.
However for the purposes of this study, we will not go in depth about for-profit organisations as
these business forms could have shareholders, limited liability etc. A discussion of such organisations
does not fall within the scope of this study.
2.2 ORGANISATION FORM FOR CONSUMER ORGANISATIONS (COs)
Does the business form or model play a role in the sustainability of the Consumer Organisation (CO)?
To a certain extent, but the study will deal with these factors in a holistic manner.
Table 1: Consumer organisation types in relation to annual income
Q2.1 Four general types of consumer organisation (CO) models have been
identified as described below. Which of the following describes your
organisation? (Please select only ONE)
Total
CO is an umbrella
organisation (or a
network/
federation) formed
through an
association of civic
organisations
CO is involved in
forging formal
and mutual
cooperations or
collaborations
with another
party or a private
corporation
CO carries out
one or more of
its vital functions
as a CO and
charges fees for
its products or
services
provided
CO ventures
into
developing its
own business
entity that
produces
and/or sells
goods or
services
Q1.22
Please
indicate the
total annual
income of
your
organisation
in the last
financial
year.
Less than 75,000 USD Count 16 10 8 2 36
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
44.4% 27.8% 22.2% 5.6% 100.0%
Between 75,001 and 300,000
USD
Count 5 2 4 0 11
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
45.5% 18.2% 36.4% 0.0% 100.0%
Between 300,001 and
1,000,000 USD
Count 4 1 3 0 8
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
50.0% 12.5% 37.5% 0.0% 100.0%
More than 1000,000USD Count 5 1 10 1 17
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
29.4% 5.9% 58.8% 5.9% 100.0%
Total Count 30 14 25 3 72
12 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
41.7% 19.4% 34.7% 4.2% 100.0%
From the above it is clear that an overall total of 41.7% of COs are umbrella organisations (or a
network/federation) formed through an association of civic organisations while 19.4% of COs are
involved in forging formal and mutual cooperations or collaborations with another party or a private
corporation. 34.7% of COs carries out one or more of its vital functions as a CO and charges fees for
its products or services provided, while only 4.2% of COs venture into developing its own business
entity that produces and/or sells goods or services. However, it is worth noting that of those with an
income of more than $1 million per annum, 58.8% carries out one or more of its vital functions as a
CO and charges fees for its products or services. Therefore, earnings and income are definite options.
This is also indicative of a social enterprise model which is, at this early stage, already emerging as a
strong model. However, as a whole, only 34.7% of all COs embrace this model. It appears as if this
aspect is related to sustainability.
There is a significant difference between the income of the African COs and that of the non-African
COs as illustrated below:
Table 2: Income discrepancies between African and non-African Consumer Organisations.
Q1.22 Please indicate the total annual income of your organisation in
the last financial year.
Total
Less than
75,000 USD
Between
75,001 and
300,000 USD
Between 300,001
and 1,000,000
USD
More than
1000,000
USD
AfrnonAfr
African/
Non
African
African Count 13 2 0 0 15
% within
AfrnonAfr
African/ Non
African
86.7% 13.3% 0.0% 0.0% 100.0%
Non-African Count 31 12 9 19 71
% within
AfrnonAfr
African/ Non
African
43.7% 16.9% 12.7% 26.8% 100.0%
Total Count 44 14 9 19 86
% within
AfrnonAfr
African/ Non
African
51.2% 16.3% 10.5% 22.1% 100.0%
Significantly, 86.7% of the African respondents have an income of less than 75,000 USD while 43.7%
of the non-African respondents have the same. There are no African respondents with an income of
more than 300,000 USD per annum.
It is therefore imperative that the researchers investigate firstly the RNSG and RSG to see what
factors play a role in sustainability and then to take a closer look at significant features of the Not
Sustainable and Potentially Sustainable groups in Africa to make recommendations relating to the
southern African organisations.
13 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
3. FACTORS IMPACTING SUSTAINABILITY
Dr Susan Steinman
with contributions by Rejoice Shumba, Yannick Tshimanaia and Idah Makulele
The Global Survey provided an enormous amount of data in terms of factors that influence
sustainability. Because of the language barrier, only the English responses were taken into
consideration for the purposes of this study. Governance, fundraising and the positioning of the CO is
of importance in terms of sustainability. The following facets of sustainability were explored in this
survey.
(i) Institutional sustainability;
(ii) Financial sustainability; and
(iii) Programmatic sustainability.
These were further explored by profiling four international sustainable COs and five African COs,
including two from French-speaking countries. The full profiles are attached as Annexure A and
Annexure B to this document. To enable the researchers to determine the real factors relating to
sustainability, it was necessary to juxtapose the African group with the non-African group in certain
instances to reach meaningful conclusions. This was done through cross-tabulation using the SPSS
Statistical Data programme.
Although a large number of questions were asked in the Global Survey, the researchers will only deal
with those where the results represent a significant outcome in terms of sustainability.
As from this point forward, acronyms will be used to describe levels of sustainability:
• RSG – Relatively Sustainable Group with an income over 300,000 USD
• RNSG – Relatively Not Sustainable Group with an income of less than 300,000 USD
• This is further narrowed down for the African group:
• ARNSG – African Relatively Not Sustainable Group with an income of less than 75,000 USD
(even for Africa with its lower cost of living compared to the rest of the world, less than
75,000 USD cannot be regarded as relatively sustainable in the opinion of the researchers
• APSG – African Potentially Sustainable Group with an income between 75,000 USD – 300,00
USD (cost of living fluctuate in all countries, but given the relatively low cost of living in Africa
compared to the rest of the world those COs with an income within this bracket are regarded
as potentially sustainable – relatively speaking).
3.1 INSTITUTIONAL SUSTAINABILITY
There were no significant differences between the RSG and the RNSG with in the composition of
their governing bodies – in the majority of cases the directors/board members and trustees are
14 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
elected through annual general meetings. Only 2% of the RSG stated to have key founding members
with decision making power. Of the RNSG, only 12.1% selected this option. These can be seen as
significant choices.
However, on closer analysis, there is a significant difference relating to the ARNSG and the rest of the
sample. Only 31% of this group elect board members/directors through the annual general
meeting23% appointed by the chairman. Another 23% have partially elected/co-opted members and
23% with the key founding members having decision-making powers. From the above it is clear that
that a process of election of members at an Annual General Meeting (AGM) might be linked to
sustainability. The AGM process can also be linked to greater transparency and accountability.
Strategic planning meetings also seem to play a role on the sustainability of the organisations. While
the majority of respondents from the RNSG and RSG stated to have strategic planning meetings at
least once a year a large portion of the responses also stated that they only conduct meetings as and
when necessary, only 3.4% if the RSG still needs to develop a plan while 12.1% of the RNSG need to
do the same. Within the ARNSG the percentage is much higher at 23%. Strategic planning could be a
factor in terms of sustainability.
The integration of sustainable consumption practices into organisations’ operations and activities is
important in terms of overall sustainability. Of the RSG, 41,4% stated that sustainable consumption
practices have been implemented fully in the organisations’ operations and activities, whereas only
17,2% of the RNSG have implemented sustainable consumption practices (statistically significant
with a p value of .036) . A higher portion of the respondents also stated that at least 30% to 60% of
sustainable consumption had been integrated into the organisational operations. This applies to
48.3% of the RNSG and 41.4% of the RSG.
The extent to which the implementation of equal opportunities took place in COs seem to play a role
in sustainability. 86.2% of the RSG (50% of the APSG) stated that equal opportunities had been fully
implemented and operational in the organisation, while only 56.9% of the RNSG (61.5% of the
ARNSG) stated the same. Furthermore, a higher portion of the RNSG, 34.5% (ARNSG 30.8%) stated
that at least 30% to 60% of the equal opportunities had been integrated into the operation of the
organisation, whereas only 3.4% of the RSG (50% of the APSG) stated the same.
Access to ICT facilities and offices is an important factor in sustainability. 62.1% of the RSG (50% of
the APSG) stated that they had fully set up office space with fully integrated ICT, whereas only 15.5%
of the RNSG (15.4% of ARNSG) had access. 31% of the RNSG (38.5% for the ARNSG) stated to have
full office setup with limited ICT, while this was the case for only 6.9% of the RSG (50% of the APSG).
However 30.8% of the ARNSG have a limited office set up and limited ICT. Access to computers also
seems to play a role. Of the RSG, 89.7% of staff had access to computers and were not sharing, but of
the RNSG only 44.8%.
Administering contracts and job descriptions or good human resource management seems to be a
hallmark of sustainability with 72.4% of the RSG stating that all staff receives contracts and job
descriptions. Similarly 56.1% of the RNSG stated that they provide contracts and job descriptions.
This is linked to the provision of staff appraisals. Of the RSG 72.4% (APSG 100%) stated to provide
them every year and of the RNSG 41.4% (ARNSG 30.8%) provided appraisals every year.
15 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
It is a cause of concern to note the high staff turnover rates reported. 39.7% of RNSG reported a staff
turnover rate of more than 15% per annum. Such a high staff turnover rate is not acceptable under
any circumstances.
It appears as the African COs spend more time and try harder to raise funds than the overall RSG One
only needs to compare the instances where more than 30% of the time is dedicated to fundraising.
Compare 50% of the APSG and 30.8% of the ARNSG to the 10.7% reported by the RSG and 20.7%
reported by the RNSG world-wide. It seems it is much harder for the African group to survive. This
could explain why issues like human resources receives less attention and it is not possible to
determine whether the lack of money and the enormous efforts that goes into raising money or the
lack of good administration impact most.
Relatively disproportionate time is spent on programme monitoring and evaluation if one compares
the African countries to the rest of the COs world-wide. For instance, 100% the ARNSG spends 100%
more than 30% of total staff time on the monitoring and evaluation of projects or programmes while
the same can be said of 24.1% of the RSG. This could be due to the African group employing smaller
numbers of staff, or it could be that sponsors are more vigilant when it comes to African countries,
requiring more monitoring and evaluation of the projects. This issue should be explored further.
The same disproportionate output in terms of time allocated for advocacy represents itself at 49.1%
of the RNSG and 27.6% of the RSG spending more than 30% of their time on this aspect, but 76.9% of
the ARNSG and 100% of the APSG spending more than 30% of their time on advocacy. Again the
question must be asked – is Africa much, much tougher with consumer affairs, requiring a
disproportionate effort in advocacy, compared to the rest of the world?
The majority of sustainable and not sustainable COs prefers to manage risks through Memoranda of
Agreement/Understanding with partners and constituents. Furthermore the risk of negative publicity
is mainly minimised through publicising positive activities, keeping a record of success stories,
developing and adhering to a code of ethics within the organisation to demonstrate transparency.
3.2 ORGANISATIONAL FINANCIAL PROCESS
The majority (79.3%) of the RSG consumer organisations and 100% of the APSG have an internal
person or team dedicated exclusively to finance work, use of accounting systems and daily
monitoring of financial operations, as opposed to 48.3% of the RNSG and 38.5% of the ARNSG. A
high number of ARNSG, namely 46.5% reported basic financial transactions recorded using
accounting practices and record keeping. It appears as if a more dedicated and hands-on approach in
terms of financial management could well influence the sustainability.
Membership seems to play an important role. 22.4% of RNSG did not report that they are
membership based, but 27.6% of the RSG reported membership bases. However, 55% of the RSG
group have more than 5,000 members while only 8.6% in the RNSG have more than 5,000 members.
None of the African consumer organisations have more than 5,000 members while 50% of the APSG
16 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
have between 1,000 and 5,000 members. It appears that, the more members a consumer
organisation has, the likelihood of sustainability increases.
Relative Sustainability is also linked to the number of project grants secured from
governments/foundations/NGOs/trusts, with 46.4% of RSG receiving more than five project grants
while the RNSG reported that 48.3% received between two and five project grants, with 48.3% that
receive less than two project grants on average during the year. None of the African consumer
organisations receives more than five project grants per annum.
Factors that play a role include the frequency of meetings within the organisation to plan fund
raising. It appears that 70.4% of the RSG held meetings as and when required, rather than at set
times and it appears that 52.6% of the RNSG does the same. The same trend is reflected in the
African consumer organisations.
Government funding plays a role in sustainability. More than two-thirds of the RNSG do not receive
government funding at all, while a smaller percentage (44.8%) reported the same situation for the
RSG. 20.7% of the RSG had full overheads cover by governments as opposed to 10.5% of the RNSG. In
34.5% of cases they reported partial overheads cover within the RSG, while the same was reported
for 22.8% of the RNSG. The African consumer organisations have non-supportive governments, with
92.3% of the ARNSG not receiving any funding, while 50% of APSG reported receiving full funding and
50% reported receiving partial funding. It is very clear that government funding plays an important
role in the sustainability of the organisations. One of the profiled CI members, the Australian
Communications Consumer Action Network (ACCAN) has an annual budget of 1 million USD. ACCAN
receives its core funding from the government of Australia. The funding from the government
enables the organisation to meet its overhead costs (Annexure A).
Among the African members profiled, Youth Education Network, Kenya (YEN) does not receive any
government funding while the Consumer Council of Zimbabwe receives government funding to cover
staff salaries, overheads and administration. ADECOR in Rwanda is partly funded by the government
of Rwanda through the Ministry of Trade and Industry. The Rwanda Bureau of Standards is also a key
financial partner of the organisation (Annexure B).
It appears that government financing of overhead costs plays an important role in sustainability (39%
of the RSG as opposed to 20.4% of the RNSG) while 82% of the RSG reported government financing
for specific programmes and 50% of the RNSG reported the same. However 70% of the RNSG
reported financing from trusts, foundations and other NGOs, while only 46.4% of the RSG reported
the same.
Income generated from projects plays a role in sustainability as illustrated below:
17 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 3: Sustainability and amount of income generated through projects
Q1.33 How much was the income generated from projects in
the last financial year?
Total
Less than
50,000 USD
Between
50,001-
200,000
USD
More than
200,001
USD
Not
applicable
rQ1.22
Total
annual
income
Relatively not sustainable
(under 300,000 USD)
Count 35 10 0 12 57
% within
rQ1.22 Total
annual
income
61.4% 17.5% 0.0% 21.1% 100.0%
Relatively sustainable
(Over 300,000 USD)
Count 5 7 12 5 29
% within
rQ1.22 Total
annual
income
17.2% 24.1% 41.4% 17.2% 100.0%
Total Count 40 17 12 17 86
% within
rQ1.22 Total
annual
income
46.5% 19.8% 14.0% 19.8% 100.0%
Sustainability appears to be linked to income generated from projects. The African consumer
organisations reported 76.9% of the ARNSG, with 50% of the APSG receiving less than 50,000 USD
per annum with none receiving more than 200,000 USD per annum. Projects have the ability to
generate income. The Cyprus Consumer Organisation is involved in a number of funded projects
through which the organisation raises funding. One of the projects that they are involved in is funded
by the Civil Society Programme of the European Union. Another project that the organisation is
involved in is funded by the Delegation of the European Commission to Cyprus. These projects
contribute to the annual income of the organisation and contribute to its sustainability.
In order to bolster the funding that it receives from the government, the Consumer Council of
Zimbabwe has partnered with the Zimbabwe Women’s Resource Network on a four-year project.
Project management might influence sustainability. Only 15.4% the ARNSG and none of the African
consumer organisations that can be viewed as potentially sustainable retrieve more than 15% of the
income generated from projects associated with the organisation’s fixed costs such as salaries, while
39.3% of RSG reported the same.
More money is allocated to governance and management costs when organisations appear to be
more sustainable. In case of RNSG, 65% report less than 15% (ARNSG 53.6%), while 43% of the RSG
(APSG two organisations or 100%) reported the same. In case of the RSG, 32% allocated more than
30% to this purpose while the RNSG reported 10.5%. The money allocated to governance and
management is much smaller for African consumer organisations.
The same pattern as described in the afore-going paragraph manifests itself in terms of support
services or overheads:
18 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 4: Percentage of budget allocated to support services – comparison between RNSG and RSG
Q1.37 When developing your organisation’s annual
budget for operation and overheads, what is the
percentage allocated to support services? Support
services refer to other activities or costs such as
administrative costs including tel/fax/internet/post,
finance
Total Less than 15%
Between 15-
30% More than 30%
rQ1.22 Total annual
income
Relatively not
sustainable (under
300,000 USD)
Count 27 24 7 58
% within rQ1.22 Total
annual Income
46.6% 41.4% 12.1% 100.0%
Relatively sustainable
(Over 300 000 USD)
Count 10 14 5 29
% within rQ1.22 Total
annual income
34.5% 48.3% 17.2% 100.0%
Total Count 37 38 12 87
% within rQ1.22 Total
annual income
42.5% 43.7% 13.8% 100.0%
Less is spent on this aspect by the African consumer organisations, as money is probably diverted to
other causes.
It appears as if research and development plays an important role in the sustainability of the
organisation and while larger percentages are spent on research and development in the RSG, it
appears that the importance of this is realised by all.
Contingency reserves appear to increase according to sustainability. While the RNSG reported that
less than 5% is set aside for contingencies in 77.6% (ARNSG 92.3%) of cases, the RSG had reported
that 50% did the same. While the RNSG reported a 19% contingency between 5% and 15%, the RSG
reported 31%. Only 3.4% reported a contingency of more than 16% for RNSG. 19% reported a
contingency of more than 16% for the RSG. Contingency reserves set aside appear to be determined
by the relative level of sustainability. The contingency reserves are overwhelmingly low, less than 5%
for African consumer organisations.
Streams of income analysed for the RNSG and the RSG:
Table 5: Streams of income: RNSG
RELATIVELY NOT SUSTAINABLE GROUP (RNSG)
N Minimum Maximum Mean Std. Deviation
Q2.2.4.2 Grants from
foundations
26 0 100 47.23 35.922
Q2.2.5.2 Grants from
government
24 0 99 37.29 38.628
Q2.2.11.2 Other (please
specify)
11 0 93 37.27 34.906
Q2.2.6.2 Individual
donations
25 0 95 22.96 29.061
Q2.2.8.2 Membership fees 38 0 100 21.97 27.664
Q2.2.7.2 Magazine or
publication subscription or
sale
17 0 70 17.06 20.468
Q2.2.2.2 Consultancy
services
13 0 50 15.54 17.106
19 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Q2.2.9.2 Testing services 6 0 70 12.50 28.240
Q2.2.10.2 Training services 14 0 40 10.71 12.225
Q2.2.1.2 Advice and
mediation services
9 0 10 5.33 4.243
Q2.2.3.2 Court settlements 4 0 0 0.00 0.000
Valid N (list wise) 4
a. rQ1.22 Total annual Income = Relatively not sustainable (under $300 000)
Table 6: Streams of income: RSG
RELATIVELY SUSTAINABLE GROUP (RSG)
N Minimum Maximum Mean Std. Deviation
Q2.2.7.2 Magazine or
publication subscription or
sale
12 0 100 51.08 38.895
Q2.2.8.2 Membership fees 14 1 100 45.36 37.360
Q2.2.5.2 Grants from
government
19 0 100 37.63 35.140
Q2.2.4.2 Grants from
foundations
12 0 70 23.33 27.635
Q2.2.11.2 Other (please
specify)
6 1 40 15.50 13.795
Q2.2.6.2 Individual
donations
3 0 15 7.67 7.506
Q2.2.1.2 Advice and
mediation services
5 1 15 6.40 6.066
Q2.2.2.2 Consultancy
services
4 0 10 4.00 4.546
Q2.2.3.2 Court settlements 4 0 4 2.00 2.309
Q2.2.10.2 Training services 3 1 2 1.33 .577
Q2.2.9.2 Testing services 3 0 2 1.00 1.000
Valid N (list wise) 1
a. rQ1.22 Total annual Income = Relatively sustainable (Over $300 000)
It is clear from the above that the RSG differ in the ranking of their streams of income from those of
the RNSG.
Question 61 of the survey requested the responding consumer organisation to submit suggestions to
strengthen their organisations’ capacities to become more sustainable. Unfortunately this question
was used by most to clarify responses to other questions or point out difficulties in answering certain
question or it was simply used to explain their situations. Therefore the responses did not set clear
indicators for the future, but suggestions emanating from the responses are nevertheless meaningful
and include possible income from:
• Research and publications
• Training
• Consulting
• Government funding
• Membership fees
• International support
• Donor funding
• Staff development
• Social enterprise model
20 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
• Better marketing and consumer awareness
In addition to the above, one of the profiled organisations that heavily relies on publications, is
Consumer Reports, based in the USA. The organisation generates more than 2 00 million USD in
revenue through its publications and websites. Consumer Reports is one of the top-circulation
magazines in USA and Consumer Reports.org has the most subscribers of any website of its kind.
All the organisations profiled rely on membership fees to meet some of their operational costs. This
underlines the importance of membership fees for CI members.
3.3 PROGRAMMATIC SUSTAINABILITY
Communicating with various stakeholders also seems likely to play a role on sustainability.
Programmes that are put in place seem to play a role on whether COs are sustainable. Data suggests
that the RSG held more meetings (69%) while the RNSG spent less time on meetings (22.4%) with
government agencies. It would then mean that the RSG were bringing about awareness and further
engaging various stakeholders on issues of sustainability. Within this arena they were promoting
social and economic justice. None of the RSG group still had to engage with government agencies,
while 6.9% of RNSG still had to engage with government agencies.
The writing of letters could play an important role on the sustainability of organisation. 72% of the
RSG wrote more than 21 letters to government organisations within the last 12 months. Of the RNSG
only 31% wrote more than 21 letters to governments. The results for engaging with companies to
deal with consumer issues were similar. The RSG (76%) wrote more than 21 letters in last 12 months
and the RNSG 45%. 3.4% of the RNS still had to write letters, the RNSG reported a higher percentage
at 12.1%. The results of the survey show that letter-writing can be a factor in sustainability. This
trend is also evident in the African consumer organisations. One may be tempted to deduct that this
also has to do with being relevant and well-positioned as an organisation.
In other areas of activity, the RSG reported higher activity than the RNSG. This also applies to the
African consumer organisations. The frequency of the following activities appears not only to be
statistically and practically significant, but is believed to have a direct bearing on the perceived
sustainability or potential sustainability of the organisation:
• Letters to companies addressing relevant consumer issues
• Meetings, discussions and consultation held with companies addressing consumer issues
• The number of issue-based networks the COs are part of. RSG groups stated to have more
than six networks (64.3%) and of the RNSG, 37.9% stated that they have between one and
three networks
• Number of advocacy campaigns conducted by the COs. 52% of the RSG stated to have
conducted more than four campaigns a year, whereas 34% of the RNSG stated more than
four campaigns a year
21 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
(The above statement is compounded by the fact that advocacy campaigns also seem to
play a role. Both the RSG and the RNSG make use of the social media such as Facebook and
twitter. Of the RSG, 66% used social media and 47% of the RNSG used social media.
Respectively the use of traditional media was relatively similar between the RSG and the
RNSG).
• Courts and tribunals seemed to have a higher effect on the RSG (55.2%), while the not
sustainable group reported this at 22.4%. This could account for more advocacy and activism
on the side of the RSG as opposed to the RNSG
• Number of civil society organisations that received support or services from the COs
• Number of private corporations that received support or services from the COs
• Number of government agencies or inter-government organisations that received
support/services from the COs.
From the above it is clear that the number of civil society organisations, private corporations and
government agencies that received support from the COs does not necessarily reflect an equal
number providing support for the COs.
Table 7: Influencing policy process
Q1.46 How do you describe your organisation’s
capacity to influence policy processes?
Total
The
organisation
has had less
than 5
activities or
occasions to
engage in
policy-making
process, or
attending
stakeholder
The
organisation
has had more
than 5
activities or
occasions to
engage in
policy-making
process, or
attending
stakeholder
The
organisation
has had more
than 5
activities or
occasions to
engage in
policy-making
process, or
attending
stakeholder
rQ1.22 Total annual
income
Relatively not sustainable
(under 300,000 USD)
Count 15 18 25 58
% within rQ1.22 Total
annual income
25.9% 31.0% 43.1% 100.0%
Relatively sustainable
(Over 300,000 USD)
Count 1 5 23 29
% within rQ1.22 Total
annual income
3.4% 17.2% 79.3% 100.0%
Total Count 16 23 48 87
% within rQ1.22 Total
annual income
18.4% 26.4% 55.2% 100.0%
The RSG organisations engaged more frequently with policy makers. It was reported that 79.8% of
the RSG had more than five activities or occasions where they engaged with policy makers. Only
43.1% of the RNSG reported to have engaged with policy-makers on five or more occasions. More
activities were carried out by the RSG than the RNSG. By working towards the development of
consumer rights, the RSG were more widely known.
Conducting meetings with task force organisation seems to also play a role. The data suggests that
organisations that engage with international task forces were higher (76%), with the RNSG reported
at 55%.
22 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 8: Sustainability and reach: individuals who have benefited from consumer education
The RSG organisations reported a higher portion of individuals benefiting from the consumer
education and services that they provide. Of the RSG, 76% stated that more than 25,000 individual
consumers benefited from their services. Within the RNSG only 32.8% stated that more than 25,000
individuals benefited, while 38% reported less than 5,000 and 29% less than 25,000 individual
customers benefitting. One may argue that the larger income enables the RSG to reach more
consumers.
The COs described how their organisations contributed to consumer protection as follows:
Table 9: Sustainability impact to contribute to consumer protection
Q1.56 Please describe how your organisation has contributed
to consumer protection in your country?
By affecting
change (in
policy,
consumer
behaviour,
corporate
practices,
etc.)
By creating
a conducive
environment
for
consumer
protection
(e.g.,
consumer
information
and
education for
making
smart
choices
By affecting
change and
creating a
conducive
environment
for
consumer
protection
(combination
of both a
and b)
Consumer
protection
environment
in the
country is
yet to be
enabled in
order to
support the
organisation’
s capacity to
c
rQ1.22 Total annual
income
Relatively not
sustainable (under
300,000 USD)
Count 5 14 35 4
% within rQ1.22 Total
annual income
8.6% 24.1% 60.3% 6.9%
Relatively sustainable
(Over 300,000 USD)
Count 1 4 23 1
% within rQ1.22 Total
annual income
3.4% 13.8% 79.3% 3.4%
Total Count 6 18 58 5
% within rQ1.22 Total
annual income
6.9% 20.7% 66.7% 5.7%
Q1.49 Number of individual consumers that have
benefited directly from your work (i.e., from service
provision like consumer education or complaints
handling) during the last 12 months?
Total
Less than
5,000
Between
5,000 and
25,000
More than
25,000
rQ1.22 Total annual
income
Relatively not sustainable
(under 300,000 USD)
Count 22 17 19 58
% within rQ1.22 Total
annual income
37.9% 29.3% 32.8% 100.0%
Relatively sustainable
(Over 300,000 USD)
Count 2 5 22 29
% within rQ1.22 Total
annual income
6.9% 17.2% 75.9% 100.0%
Total Count 24 22 41 87
% within rQ1.22 Total
annual income
27.6% 25.3% 47.1% 100.0%
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4. FINDINGS AND RECOMMENDATIONS
Dr Susan Steinman
This section recaps the findings which were discussed extensively in Section 3 of this document and
then make recommendation for the road forward.
4.1 FINDINGS
The findings of this report will indicate that sustainability is not only about receiving grants from
government or elsewhere, but that COs must act, think and move towards the social enterprise
paradigm to survive hard times. While those receiving adequate government grant funding are in an
advantageous position, those that aren’t so fortunate should be able to generate funding through
“multiple income generating streams” (MIGS).
The findings will point out the factors on the institutional, financial and programmatic level that
could strengthen the not sustainable COs and in particular the African COs in their bid to become
sustainable. It must be emphasised that a holistic approach must be followed in terms of
sustainability.
4.1.1 Institutional Sustainability
As far as institutional sustainability is concerned, the issue of governance is important and
sustainability appears to be linked to a transparent election of board members or directors that can
be held accountable. On the operational level, strategic planning, the sustainable consumption
practices, the implementation of equal opportunities, access to or improvement of ICT facilities, good
human resource management and lower staff turnover are factors that must be considered.
It appears as if the African COs are stressed and they try harder (dedicate more time) but raise less
funds than those organisations that are sustainable. This could perhaps explain why important
sustainability factors do not receive the attention they should. A disproportionate amount of time is
spent on programme monitoring and evaluation in African COs, while there is a more realistic time-
frame for sustainable organisations. The same applies to advocacy efforts.
4.1.2 Organisational financial process
It is heartening to know that the large majority of RSG COs and 100% of the APSG have an internal
person or team dedicated exclusively to finance work, but even the less sustainable COs prefer a
dedicated person/team. A hands-on approach in terms of finance is essential. The more members a
consumer organisation has, the greater the likelihood of relative sustainability. The number of
project grants impact sustainability and the African COs are the worst off in terms of receiving
project grants. This is also reflected in the income generated from projects. Sustainability is further
linked to the frequency of meetings to raise funds and strategise.
Project management influence sustainability because ARNSG retrieve very little from the funds rose
through projects to cover their own operational cost which indicates that “costing skills” could be
lacking. Money spent on governance and management is much less for ARNSG than for the RSG.
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Similarly the same pattern manifests itself in terms of budgeting for operational overheads and
support services. It may be that the African COs spent less on these because of other priorities.
Contingency reserves grow with sustainability and can be regarded as a sure indicator of
sustainability.
Streams of income rank in popularity as follows in terms of the RNSG and the RSG with the same
trend represented at the African COs
Table 10: Streams of income ranking for RNSG and the RSG comparison
RANKING RNSG RSG
1 Grants from foundations Magazines or publication subscription or sales
2 Grants from government Membership fees
3 Other Grants from government
4 Individual donations Grants from foundations
5 Membership fees Other
6 Magazine or publication subscription or sale Individual donations
7 Consultancy services Advice and mediation services
8 Testing services Consultancy services
9 Training service Court settlements
10 Advice and mediation services Training services
11 Court settlements Testing services
In an open-ended question requesting the respondents to identify other streams of income that
could make them more sustainable, they identified the following possibilities:
• Research and publication: the majority of organisations stated that they have research and
publication as a key component in raising funds. Taking part in conferences and being part of
a network enabled them to engage with different organisation on key components of
consumer issues in their respective countries and also on international levels.
• Training: organisations also elected to provide training services on consumer related issues
(consumer rights and fair trade competition). Other organisations also stated that they
needed training in terms of raising funds and capacity development at their organisations.
• Consulting: providing consulting services was mentioned as a major component for
sustainability, as this is where the bulk of funding emerged from.
• Government funding: some organisations stated that they received funds from government,
but that more funding was needed from government organisations. It would allow for mass
mobilisation for organisations to work with communities and consumers.
• Membership fees: These fees constitute a large portion of funds received at various
organisations. Members also privately funded the organisations.
• International support: international donors were seen to have the potential to play a role in
the development of capacity for the various organisations, particularly those interested in
promoting consumer rights, but also to engage government and policy makers on these
issues.
• Donor funding: donor funding (both nationally and internationally) was viewed as pivotal to
sustainability within the various organisations. The view was that organisations can begin to
work with partner countries i.e. those in Europe. This could help to develop international
25 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
ties. The development of proposals and projects could be handled jointly. This enables a
process where there is a strong information exchange between consumer organisations.
• Staff development: developing staff and keeping them within the various organisations so
that there is no loss of human capital. Staff should also receive financial training. Awareness
is also needed to know how to apply for funds and the channels that need to be followed.
• Social enterprise model: The social enterprise model and the diversification of streams of
income are seen as good survival strategies.
• Better marketing and consumer awareness: This could, according to some participants, lead
to more income
4.1.3 Programmatic Sustainability
The sustainable group communicate significantly more with their stakeholders, on all levels. They
write more letters to government organisations, companies and agencies. This could well help with
the positioning of the CO as a force within the country. Other activities such as meetings, discussions
and consultation with companies and government, networking, advocacy campaigns, the use of
social and traditional media, participating in court and tribunals, support to stakeholders (not always
reciprocated), participating in policy-making, the number of individuals benefitting from the CO are
of importance
How the CO views itself is of importance as this will affect every level of operation.
4.2 RECOMMENDATIONS
4.2.1 A need for training
The findings as set out in 4.1 above indicate a need for training, specifically for the African consumer
organisations. Basic business skills for social entrepreneurs covering governance, marketing, finance,
costing, project management, strategic management, entrepreneurship and innovation, drawing up
a business plan, preparing a fund-raising proposal and so on, could go a long way to enable the
African COs to become more sustainable. It is clear that the RNSG and in particular the large ARNSG
need to be exposed to best practices and skills that could help them towards sustainability.
A good example of how training can benefit the African COs: it was noted that the ARNSG spends a
disproportionate time on monitoring and evaluating projects. Training in project management skills
could be very helpful and could save money. It could yield a higher return on investment for the
African COs.
4.2.2 Governance
The issue of governance is important because the more sustainable COs elect board members and
hold annual general meetings. This is also important in terms of legislation in many countries, as well
as keeping the reputation of the movement above reproach. The CI plays a very important role in
assisting its members to follow a prudent route in terms of governance.
4.2.3 Switching from grant dependency to social entrepreneurship
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Grant-dependency is simply no longer an option. Non-profits and COs alike will have to increasingly
earn income through trade to carry out their social missions. Social entrepreneurship is about making
a difference, about changing the landscape in a sustainable way. According to an article in The Star
newspaper “social entrepreneurship is about talented energetic risk-takers who want to make a
difference in the world through their ideas and their efforts, idealism that resonates particularly with
today’s youth. Increasingly it is the millennial generation that is responding to the need to find big
ideas that can change the society and is putting those ideas into action” (http://www.iol.co.za)
According to the newspaper article, more and more young people turn to social entrepreneurship to
find new models to solve existing problems and to create new and tenacious business models, but
also initiatives that could genuinely impact the African continent positively.
Social entrepreneurship encourages innovation and thinking out of the box to solve problems – this
includes raising funds and in the case of Africa, COs surviving and protecting the rights of consumers
despite limited resources. It is about a way of thinking and solving problems in a sustainable manner.
While social enterprises can take on many legal business forms, a social enterprise is about doing
good and being sustainable. That could make the difference for the African COs that deal with more
challenges than any of the other COs in the world. African COs can make the switch to social
enterprises, to further their causes.
4.2.4 The Multiple Income Generating Streams (MIGS) Model
It is essential that African COs put on their social entrepreneurial caps and vigorously pursue multiple
income generating streams. Sustainability has to do with the CO’s ability to engage every possible
avenue of income – training, research, consultancy, magazines, conferences and more. If all expenses
are not paid by government, the social entrepreneurial model is the way forward. The African COs
cannot afford the luxury of being grant-dependent. It is a developing continent and the COs struggles
to be sustainable. They cannot deliver the important missions they set out to do.
While the findings in 4.1 above outline the options for income generation, every country and every
organisation is unique. All COs should therefore select that which would suit the circumstances in
their countries best.
It is inevitable that COs trade and offer an indispensable service to the public. The following streams
of income should be included:
• Membership fees remain important sources of income for many sustainable COs and are
definitely a good stream of income for African COs, as the profiles in Annexure B shows.
However, it takes sound marketing, using social and electronic media to reach more potential
members. Strong networking and positioning within the civil society, as is the case with
ABUCO in Burundi, are also helpful in positioning the CO within society and to draw
membership.
• The strong international COs and the South African CO publish a magazine or newsletter. A
publication can be very profitable if it contains consumer news that adds value for the
consumer. The better the magazine, the higher the possibility of a profit to be used for
consumer-related activities.
• Testing centres for automobile and other products, moving the CO forward into strong
advocacy, are another good possibility.
• Government funding, although helpful is not always forthcoming in Africa and therefore a
healthy relationship with government officials and strong lobbying on this front could change
the picture for those African COs not receiving any government funding.
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• Donor funding through foundations and NGOs must be pursued vigorously and value must be
offered to supportive organisations, through recognition or project management.
• Trading: sell something whether it is lotto tickets as is the case with the Cyprus CO, cell
phone airtime discounts or whatever commodity. It is important to supplement grant income
with money earned from activities to carry out the mandate of the CO.
• Local and international partnerships are of great importance.
• Research can position the CO, but can also be a stream of income for COs. This can be done
in partnership with local universities.
• COs becoming trainers themselves and training of consumers, through funding by local skills
development agencies or government departments, could be considered. There is a dire
need in rural and other areas for greater consumer awareness.
• Consulting, advice and mediation services could bring in income. It should never be totally
free of charge and COs must be seen to put a value on their role in the market.
The above does not exhaust the list of income streams, but rather captures the “must have” MIGS
that could lead to sustainability.
4.2.5 Incubation
The best way forward is to incubate the African COs by creating an “ecosystem” of support. An
ecosystem could consider making the COs part of a network, accelerate growth through a virtual
incubator, workshops, training, and even a business development consultant. It may be worthwhile
for CI to explore the possibility of engaging a sponsor to accelerate the sustainability of the African
COs through incubation or partial business incubation.
4.2.6 Seed funding
The importance of seed funding cannot be over-emphasised. In many cases seed funding can really
set organisations on a sustainability track. The CI needs to find funds to assist struggling COs to get
off the ground or “launched” so to speak. Assistance in the early days could be of great value. Local
universities can also be engaged to provide technical assistance with a sustainability plan and in
developing a proper business plan.
4.2.7 The Business Model as part of the Business Plan
As the “strategic component 2”, a document provided to the researchers by Consumers
International, refers to business models, in particular “traffic light” classification. Although the
researcher was not asked to use this as a basis, it needs to be mentioned that the concept is a
relatively unknown in South Africa. However, the traffic light coding system could be useful in
identifying key areas to look at institutional capacities as well as human resources.
For instance traffic light coding can be applied to each component of the business model in the and
in drawing up the business plan, one can develop a turnaround strategy. Furthermore the Weigner
matrix could be used in prioritizing those activities and developing indicators.
However, one must be careful not to compartmentalize or “prescribe” a model, but rather allow
each of the CI members to develop their own model within their unique environment using tools
28 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
such as the business canvass model, traffic light coding, the Wiegner matrix and the many templates
available for a business plan.
According to the CI there are about nine business models that were identified. These models are
attached as Annexure C.
Business model is a term that is very loosely used in our day-to-day conversations and the meaning
vary considerably. For most people the term business model either refers to the revenue model or
the operating model. But, business model should be much more than that.
There are many types of business models, some better known than others. In this document it is
claimed that most consumer organisations exist as non-government and non-profit organisations.
The business model ascertains how your business makes money. It identifies the services that your
customers value and shows the reciprocation of funds for the services your small business renders to
your customers while the business plan provides the details of your business. It takes the focus of the
business model and builds upon it. Overall, the business plan supports the business model and
explains the steps needed to achieve the goals of that model and is therefore completely dependent
upon the business model (http://smallbusiness.chron.com/differences-between-business-plan-
business-model-4744.html
Therefore the business model canvas (www.business modelgeneration.com) is proposed to enable
COs to develop a business model suitable for their needs.
It must be emphasised that the streams of income and circumstances of each of the different
consumer organisations vary immensely and therefore there are no one-size-fits-all business model
but it is suggested that the business model – forming the basis and ultimately part of a
comprehensive unique and tailor-made business plan take the following into consideration:
• Key Partners – identify key partners such as members, the network, donors, government,
corporate supporters, networks, suppliers and the activities they engage in.
• Key Activities – What key activities does our value proposition require, what are our
distribution channels, what activities will relate to our consumer relationships and revenue
streams? These would include advocacy, lobbying, research, engagement with policy
drafting, marketing of the services, the CO and project management.
• Key Resources – What key resources does our value proposition require? Distribution
channels, consumer relationships and revenue streams? The media and media coverage,
newsletters, the internet, office space, equipment, staff, volunteers?
• Value Proposition – What value do we deliver to stakeholders? Which problem(s) are we
helping to solve? What are the products we offer and which customer needs are we
satisfying? The main value would be protecting the rights of consumers by offering an advice
or testing service, following up on complaints, advocacy for policies, research on consumer
issues, newsletters and news about consumer issues.
• Stakeholder Relationships – What type of relationship do we have with our stakeholders?
How do we need to establish and maintain the relationships, how are we establishing the
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relationships, how loyal are our customers? Do COs always increase their number of
members and do they keep in contact. Does the consumer know where to contact the COs,
do they know enough about the CO to trust them, and does the CO contact them through
newsletters, advertisements and other forms of visibility within the community?
• Channels – through which channels do our customers, want to be reached and how are we
reaching them? Are our channels integrated and which ones work best and are most cost-
efficient? Is the CO using the social media, newsletters, the internet or general visibility in the
community to get the message across?
• Customer Segments – For whom are we creating value and who are our most important
customers? The consumers are the customer segment the COs is serving, but other
customers could also be those to whom the CO sells its services (such as research).
• Cost Structure - What are the most important costs inherent to our business model and what
key resources and key activities are most expensive. Most expensive aspects would be
salaries, office space, IT and overheads. All costs and applications for sponsorships would be
structured around this.
• Revenue Streams - What value are our customers willing to pay for/contribute/donate and
what do they currently pay for? How are they paying, contributing or donating? How
diversified are our streams of income and how do we generate income? How much does
each revenue stream contribute to our overall revenue? Revenue streams are through
memberships, selling of services e.g. research, training, consulting. Some even sell lotto
tickets or engage in public-private partnerships
(More on www.businessmodelgeneration.com)
According to this model the Google Business Model will look as follows:
30 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 11: Example of Google Business Model
A good business model will form the basis of the business plan. There are many templates and tools
available on how to compile a business plan. Notably, the tool of the International Labour
Organisation, to create a Social Business Plan, may be used by African COs. It is easy to obtain.
Universities could also be helpful in assisting the local African COs.
4.2.8 Engaging the African Union, NEPAD and SADC
While the European counterparts actively engage the European Union in their funding efforts, the
African COs should engage with the African Union, NEPAD and SADC bodies or relevant sub-
committees. A delegation of the CI should try to lobby on that level for the support of the African
COs. Incidentally the COs initiatives complement the AU/NEPAD Development Plan 2010-2015 in
terms of governance, which is seen as the basis for sustainable development. Governance is
interlinked with institutionalised values such as democracy, observance of human rights,
accountability, transparency and greater efficiency and effectiveness of the public sector. Good
governance ensures that political, social and economic priorities are based on broad consensus in
society and that the voices of the poorest and the most vulnerable are heard in decision-making over
the allocation of development resources. Improving good governance in Africa is of central
importance. Governance is seen as an effective means of enabling and guaranteeing development,
building and/or restoring stability as opposed to conflict in countries, regions and sub-regions.
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The fact that the COs are within the field of governance of consumers’ rights make them important
role-players, deserving of a voice on the important platforms such as African Union, NEPAD and
SADC.
4.3 IN CONCLUSION
It is a long road to sustainability for those African COs that struggle most. It is evident from the
research that the African COs try harder, but get far less than their counterparts in the rest of the
world. The impediments of working in a developing country cannot be ignored.
However, sustainability is within reach of all these organisations if they could follow the MIGS model
and become social enterprises, not charities. This is the difference between winning and losing the
battle in a very tough market. It requires innovation, determination and skills to beat the odds and
serve the interests of the consumers.
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5. REFERENCES
Consumers International. (2012). Global Survey on sustainability for CI members. Surveymonkey.
Locke, K.D. (2001). Grounded theory in management Research. SAGE series in Management
Research. SAGE.
Kinash, S. (2010). Paradigms, Methodology and Methods. Bond University, Australia.
Steinman, S.M. (2008) A Draytonian Changemaker: The Story of a Social Entrepreneur. PhD thesis.
University of Johannesburg.
Steinman, S.M. (2011) The need for a state-civil society dialogue to develop public policies for the
social and solidarity economy. Theme: work and employment. A case study of South Africa. FIESS,
Canada.
Tashakkori, A & Teddlie, C. (198) Mixed Methodology. Thousand Islands: SAGE Publications.
Websites visited:
Business Model Generation. Retrieved on 20 December from
http//www.businessmodelgeneration.com
Consumers International. Retrieved from 1 November fromhttp://www.consumersinternational.org
Non-profit Organizations. Retrieved on 2 December fromhttp://www.wikipedia.org
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ANNEXURES
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ANNEXURE A
PROFILES OF MOST SUCCESSFUL INTERNATIONAL CI MEMBERS
By Rejoice Shumba
1. Australian Communications Consumer Action Network (ACCAN)
Introduction
The Australian Communications Consumer Action Network (ACCAN) is Australia’s peak body for
consumer representation and advocacy in communications. It represents residential consumers and
small businesses including not-for profit organisations in so far as they are consumers. ACCAN
focuses on goods and services encompassed by the converging areas of telecommunications, the
internet and broadcasting, including both current and emerging technologies.
The organisation aims to empower consumers to make good choices about products and services. As
a peak body, ACCAN activates its broad and diverse membership base to campaign to get a better
deal for all communications consumers. Member groups include community legal centres, disability
advocates, indigenous organisations, financial counsellors, regional organisations, farmers’
federations, parents groups, senior’s organisations as well as 30 or so interested individuals.
Organisation name and acronym: - Australian Communications Consumer Action Network (ACCAN)
First name: - Elise
Surname: - Davidson
Position: - Media & Communications Manager
Country: - Australia
Work email: - [email protected]
Telephone no (including country code): - +61292884010
General e-mail of the organisation: - [email protected]
Website URL: - www.accan.org.au
Twitter: - @ACCAN_AU
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ACCAN formally began on July 1 2009, growing from an amalgamation of smaller groups like the
Consumers Telecommunications Network and Tedicore. The organisation currently has a nine-person
board of governance, and two nine-member consumer advisory body
ACCAN’s mission is to:
• Campaign for consumers and the public interest, with particular emphasis on the needs of
consumers for whom the market is not working.
• Inspire, inform, enable and equip consumers to act in their own interests.
• Research emerging consumer and technology issues.
The organisation reaches its objectives by using the following strategies
• Influence the government and industry so the communications market is fair and inclusive for
all.
• Influence government and industry to protect network standards and consumers’ privacy and
security
• Enable consumers to make informed choices.
• Identify and engage on emerging communications consumer issues and technologies.
• Ensure adequate and sustainable resources for effective operations.
• Maintain ACCAN independence.
Funding strategies
The organisation has an annual budget of more than 1 million. In comparison to other CI member
organisation, this is a relatively large annual budget. ACCAN receives its core funding from the
government of Australia. In addition to the core funding, the organisation also engages in
The organisation conducts his finances with prudence. The organisation has an internal person or a
team dedicated exclusively to finance work, use of accounting system, daily monitoring of financial
transactions and financial records maintenance, external audits on an annual basis.
The organisation raises funds for its operations in three main ways:
• Self-financing (membership fees, publishing, testing, consultancy and advisory services)
• Government financing for overhead costs and pledges
• Conference revenue
The bulk of the funding comes from government financing for specific programmes and membership
fees.
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Using the amount of money in reserves left over in a financial year as a marker for sustainability, the
organisation makes between 5-16%. This seems to be sustainable organisation as compared to a
number of the CI member organisation.
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2. Consumer NZ Incorporated CNZ
Organisation name and acronym: - Consumer NZ Incorporated CNZ
First name: - Suzanne
Surname: - Chetwin
Position: - Chief Executive Officer
Country: - New Zealand
Work email: - [email protected]
Telephone no (including country code): - 00648012071
Fax no (including country code): - 00643858752
General e-mail of the organisation: - [email protected]
Website URL: - www.consumer.org.nz
Twitter: - twitter.com/consumernz
Introduction
Established in 1959, the New Zealand Consumer organisation aims ‘to get the best deal for New
Zealand Consumers’. The organisation is involved in a variety of activities related to consumer
protection and information. Their work includes
• comparative tests and surveys of consumer goods and services;
• research into and advice on financial, food, health, safety, welfare and environmental
matters;
• representation at parliamentary committees and public enquiries;
• an interest in consumer education and complaints advisory work.
Funding strategy
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Test reports
• Desktop all-in-ones
• Food processors
• Lawnmowers
• Stick vacuum cleaners
• Vacuum cleaners
• Washing machines
Research reports
• Buying glasses
• Christmas gift guide
• iPhone 5 vs Galaxy SIII
• Retirement savings - first steps
• Supermarket prices
Watching brief
• Consumers win from law reform
Major retailers repeat FTA offenders
• Smiths City payment protection insurance
• Taxes on overseas purchases
• Vitamix blender
Editorial
• Editorial: On notice
• Letters to the Editor
The bulk of the funding for the
organisation’s activities comes
from the sale of publications
and membership to consumer
magazines and consumer
.org.nz.
The organisation aims to
maintain its independence,
therefore, it does not accept advertising in any of their publications in order to protect the
impartiality of their reporting. In addition the organisation never accepts free goods for testing, nor
do they accept donations or sponsorships. Their publications are completely independent and have
no ties with any commercial firm or organisation
Consumer magazine is available by subscription or on the newsstand at all key supermarkets and
bookstores. Subscribing gives the convenience of the magazine being delivered to the door of the
customer, plus access to subscriber advice service. The consumer magazine contains independent
tests reports, and best buy recommendations. It is a monthly magazine which produces 11 magazines
per year
The magazine has a readership of 65 000 people. Currently, the cost of the magazine is $53 for 6
months
Their in-depth reports cover a wide range of topics such as appliances, cars, computers, phones,
groceries and food, health, home and DIY, legal rights, money, insurance, mortgages and much,
much more.
The organisation maintains that they buy all the products that they test right off the shelf just as a
consumer would do. They do not accept any sponsorship or advertising of any kind so the
information that the consumer get is completely objective.
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3. Consumer Reports (CR)
Organisation name and acronym: - Consumer Reports (CR)
First name: - Jean
Surname: - Halloran
Position: - Senior Adviser, International Affairs
Country: - USA
Work email: - [email protected]
Telephone no (including country code): - 914-378-2457
General e-mail of the organisation: - none
Website URL: - consumerreports.org and consumersunion.org
Consumer Reports (CR) is an expert, independent, non-profit organisation whose mission is to work
for a fair, just, and safe marketplace for all consumers and to empower consumers to protect them.
The organisation was founded in 1936 when advertising first flooded the mass media. The founders
of the organisation realised that consumers lacked a reliable source of information that they could
depend on to help them distinguish hype from fact and good products from bad ones. Since then CR
has filled that vacuum with a broad range of consumer information. To maintain its independence
and impartiality, CR accepts no outside advertising and no free samples and employs several hundred
mystery shoppers and technical experts to buy and test the products it evaluates.
Consumer Reports, is one of the top-circulation magazines in USA, and ConsumerReports.org, has
the most subscribers of any Web site of its kind, in addition to two newsletters, Consumer Reports
on Health and Consumer Reports Money Adviser. They have combined subscriptions of more than 8
million. All of CR’s work is informed by the more than 1 million readers who respond to the Annual
Ballot & Questionnaire, among the largest and most comprehensive consumer studies in the world.
In 2008, CR also launched several initiatives, including ConsumerReportsHealth.org and the
Consumer Reports Health Ratings Centre, which serve to educate and empower consumers to make
more informed health-care decisions and to help change the market.
To further advance its mission, Consumer Reports employs a dedicated staff of lobbyists, grassroots
organisers, and outreach specialists who work with the organisation’s more than 600,000 online
activists to change legislation and the marketplace in favour of the consumer interest.
The organisation generates more than $200 million in revenue, and a staff totalling more than 600
works at CR's 50 state-of-the-art labs and offices in Yonkers, N.Y.; its 327-acre Auto Test Centre in
East Haddam, Conn.; and three advocacy offices, in Washington, D.C., Austin, Texas, and San
Francisco. Consumer Reports is governed by a board of 18 directors who are elected by CU members
and meet three times a year.
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Since its first issue in 1936, Consumer Reports (CR) has never accepted paid ads. Free from the
pressures of advertisers and commercial influence, Consumer Reports has tackled some of the
toughest safety issues of the time, evaluating new products and technologies and warning about
potential dangers. From seat belts to strontium-90, lawnmowers to locks, and hazardous vehicles to
heaters, Consumer Reports has been on the cutting edge of reporting risks and striving to improve
the quality of the consumer marketplace.
Consumer Reports operates the largest and most sophisticated independent automobile testing
centre dedicated to consumer interest anywhere in the world. Situated on 327 acres in rural
Connecticut, the Consumer Reports Auto Test Centre is home to more than 20 staff members,
including automotive engineers, technicians, and support staff. Consumer Reports buys,
anonymously, all the cars it tests, about 80 per year, and drives each for thousands of miles.
Formal testing is done at the track and on surrounding public roads. The evaluation regimen consists
of more than 50 individual tests. Some are objective, instrumented track tests using state-of-the-art
electronic gear that yield empirical findings. Some are subjective evaluations-jury tests done by the
experienced engineering staff. These videos will provide further insights into the ways that Consumer
Reports evaluates new cars to help its readers make smart, informed choice.
Products are tested by engineers and technicians with years and sometimes decades of expertise in
their field. They live with the products for several weeks, putting them through a battery of objective
tests using scientific measurements, along with subjective tests that replicate the user experience.
We test products against existing industry or government standards and develop our own
benchmarks when we encounter new technologies or issues that require further testing. All models
within a category go through exactly the same tests, side by side, so they're judged on a level playing
field, and test results can be compared.
Testers focus on a product's primary function (evaluating image quality for TVs and cameras, for
example) and some secondary functions, too (sound quality for TVs or photos shot with a cell-phone
camera). They evaluate whether features add to usability or just make an item more complicated.
They check ergonomic functions (how intuitive controls are and how comfortable a keyboard is) and,
where appropriate, consider battery life, speed, and other attributes.
The testers use a product as any consumer would. For example, they assess how long a laptop
computer's battery will last when running everyday applications, such as word processing and photo
editing, or how quickly a digital camera can shoot photos at a fast-moving soccer game.
At Consumer Reports, they believe that objective, impartial testing, reviews and Ratings are critically
important for consumers. That is why they have a strict "No Commercial Use Policy" preventing the
use of their name and information for any promotional or advertising purposes. The policy helps
ensure that avoid even the appearance of endorsing a particular product or service for financial gain.
The policy also guarantees that consumers have access to the full context of their information and
are not hearing about our findings through the language of salesmanship.
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4. Cyprus Consumers` Association
Organisation name and acronym: Cyprus Consumers` Association - CCA
First name: - Giorgos
Surname: - Stylianou
Position: - Coordinator
Country: - Cyprus
Work email: - [email protected]
Skype: - n/a
Telephone no (including country code): - 0035722516112
Fax no (including country code): - 0035722516118
General e-mail of the organisation: - [email protected]
Website URL: - www.katanalotis.org.cy
Twitter: - n/a
Facebook: - ????????? ????????? ???????????
LinkedIn: - n/a
Introduction
The Cyprus Consumers Association was founded in 1973 and joined the Consumers' International as
a full member in 1980 and BEUC in 2002. It is a non-political, independent, non-governmental
Consumers' Organisation.
The Association is managed by a 19-member Council elected every two years during a General
Assembly. Committee members offer their services voluntarily. At present the Association employs
three full-time staff members and two part-timers, one at each of its regional offices in Limassol and
Larnaca. The Association has around 1400 paying members but it provides services to all Cyprus
Consumers.
While the Association campaigns on all consumer issues in Cyprus, their main priorities at both local
and European Union level are consistent with of the European Commission’s new strategy for
consumer policy (2002-06), which emphasises the need to
• ensure a high common level of consumer protection;
• guarantee effective enforcement of consumer protection rules;
• involve consumer organisations in EU policies and its potential impacts in both communities
of the island.
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These objectives are being pursued through a range of measures and are intended to make it easier
to integrate consumer concerns into all other EU policies, to maximise the benefits of the single
market for consumers and to prepare for enlargement.
The Association is very active in promoting public awareness and active citizenship of consumers,
consumer education and sensitivity on a wide and diverse variety of areas and issues pertaining to:
• Food Safety
• Product Safety
• Food Hygiene
• Health Care
• Genetically Modified Organisms
• Family issues
• Services to Consumers
• Consumer Rights
• Legislation
• Information and Communication Technologies
Furthermore, since its inception in 1973, and notwithstanding its financial restraints, the Association
regularly undertakes important market surveys regarding prices of goods, display of goods,
cleanliness, ease during shopping, awaiting time at cashiers, parking facilities etc., aimed at achieving
a high level of consumer protection for all consumers in Cyprus.
The activities of the organisations include:
Lobbying
The Association is very active promoting consumer interest in public life. Its representatives sit on
Cyprus Standards Committees, on the Government Council for Consumer Affairs, on Parliamentary
committees when dealing with Consumers' matters. It also participates in some 30 advisory
Committees on various issues connected with the consumers.
Advocacy
The Association is working to advance and affect pro-consumer policy on a variety of issues by
working with public officials and governmental agencies to promote beneficial policies and oppose
harmful policies and disseminating information on consumer issues to the public and the media, as
well as to policy makers and other public interest advocates.
Strengthening Consumer Protection in Cyprus
Funded by the Civil Society Programme of the European Union, this Project aimed at better-educated
citizens with regard to consumer protection issues, who will subsequently play a more active role in
the Cyprus society promoting higher standards of quality of life.
Young Consumer Competition
Funded by the Delegation of the European Commission to Cyprus, this Project is aimed at promoting
a healthy lifestyle through a positive ‘image’ shared among young consumers.
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Raising Awareness on Consumer Protection and Rights
Supported with a grant from the people of the United States of America and the United Nations
Development Programme through the United Nations Office for Project Services, this Project aims at
raising awareness on consumer protection and rights in both communities of Cyprus.
Funding strategy
The organisation is partly funded by the government of Cyprus but its main funding comes from the
sales of lotto tickets.
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ANNEXURE B
PROFILES OF AFRICAN CONSUMER ORGANISATIONS
By Yannick Tshimanga
1. Youth Education Network (Kenya)
Organisation name and acronym: - Youth Education Network
First name: - Michael
Surname: - Okumu
Position: - Director of Programmes
Country: - Kenya
Work email: - [email protected]
Skype: - mikemungoma
Telephone no (including country code): - +254729425198
General e-mail of the organisation: - [email protected]
Website URL: - www.yenkenya.org
Facebook: - yenkenya
Introduction Analysing Youth Education Network (YEN) (Kenya #40)
The Youth Education Network is a non-profit organisation established in Nairobi, Kenya. Its goal is to
empower the youth through information and vocational training. The organisation aims to achieve its
goal by helping to inform and involve citizens with skills which will effectively contribute to the socio-
economic development of their communities. YEN’s main target audience are the youth, so that they
can be educated and skilled from a young age to make informed decisions and choices in commercial
and moral challenges, as consumers.
Funding and Projects
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YEN is an organisation which does not receive any government funding, but despite this the
organisation manages to play a crucial role in bettering the skills and education of the youth. One of
the organisations means of revenue comes from any of their eight partners, but another notable
manner in which YEN manage to increase their income is by increasing their member base. The
organisation boosts of over 1000 members. The strategy which the organisation uses to increase
their members is by hosting events and they call on participants to become members by providing
information about YEN, at this stage the organisation takes the contact details of the participants and
at future meetings, they invite them to participate ideas about growing the organisation, it must also
be mentioned that membership is free and when the members like the ideas of the organisation, at
this stage it is easier to them to support where they can, including financially. According to the
director of programmes for YEN, Michael Okumu “Diversity in membership is also a key factor”, as
the organisation has members from different communities this help YEN to grow, and subsequently
increase their income source. The organisations also takes part in projects, but they don’t not charge
for this, rather they use fundraisers and exhibitions where income can be generated, such as the
annual cultural event which takes place in November. Furthermore YEN out sources for the best
prices as a means to make savings that can be used in unforeseen events. As mentioned above the
organisations partners play a key role in supporting specific activities and fundraising projects and
the fact that the organisation target group is the youth is also an advantage, as the younger
populations energy and willingness to participate in YEN grows the membership and consequently
will result in the spread of YEN influence in the Nairobi and other regions in Kenya and also an
increase in funds and income.
Conclusion
Due to the fact that YEN main target is a vibrant and youthful population, their membership size has
seen a sharp increase, which has undoubtedly has made the YEN organisation more popular in the
Nairobi communities. As the organisation engages with the youth to expand their knowledge and
skills so that they can become informed consumers with the right tools to make decisions in society.
It is clear that even though funding sources are challenging the wide communities support for the
organisation, whether financially or by other means, ensure that the organisation lives on and
spreads the knowledge among the youthful consumers.
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2. National Consumer Forum (South Africa)
Organisation name and acronym: - National Consumer Forum
First name: - Thami
Surname: - Bolani
Position: - Chairman
Country: - South Africa
Work email: - [email protected]
Telephone no (including country code): - 27 12 4287071 / 7284
Fax no (including country code): - 27 12 4285019
General e-mail of the organisation: - [email protected]
Website URL: - www.consumerfair.co.za
Introduction
Analysing Consumer Fair
Consumer Fair is a South African based independent Non Profit Company whose objective is to work
for a fair, just and safe marketplace for all consumers in South Africa and to empower the previously
disadvantaged communities. Furthermore Consumer Fair has been an affiliated member of
Consumers International since 2002. They vision a just and fair society whereby:
• All consumers enjoy the benefits of a competitive and efficient economy;
• All consumers have a choice of quality and affordable services from the private and public
sector;
• Consumers rights be respected by all;
• Previously disadvantaged consumers are empowered by to play a meaningful role in the
South African economy.
Consumer Fair try to achieve their goal among others by providing: Firstly, an online consumer
education system, where the aim is to well-inform the public so they can develop skills to decisions in
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the purchasing of goods and services; and inform consumers of their responsibilities and rights.
Secondly they participate in product testing, such as in 2005 where they laid a complaint to the South
African Bureau of Standards for the selling of under-weight products. They also provide consumer
related financial services and give advice on food safety and security advice.
Funding and projects.
Consumer Fair receives no government funding and since the newspaper Consumer Fair which is
published bi-monthly, doesn’t yield enough profit to sustain all operations which the organisation
part-takes in, Swedish Society for Nature Conservation also fund Consumer Fair with a grant which is
renewable annually. Also noteworthy in the attempt to increase their income base, is the fact that
the organisation tender for government work from time to time in the field of consumer
education/awareness, small business support and monitoring. Furthermore Consumer Fair has
projects in the pipe line which will increase their revenue and more importantly benefit its members.
They plan on doing this firstly by, negotiating with cell-phone companies for lower rate for their
members and secondly setting up an academy which will provide training and capacity building to
members and non-members for a fee.
In 2013 Consumer Fair aims to expand its operations, members and influence in society targeting
mainly the low income population group. Three projects which the organisation aims to start next
year: first, a television programme on financial education on Cape Town TV; second, an academy
which will focus on addressing the shortage of skills in the South African communities and savings
initiatives; and lastly, the organisation aims to form a partnership with universities and research
bodies, for the benefit of the academy. These three projects are expected to increase the
organisations income in the near future.
Conclusion
Consumer Fair has found means and ways to increase their influence in a working environment
where income and profits are hard to achieve, especially on the African continent, where most
governments don’t help or partially help, therefore making it more challenging for survival,
furthermore companies funding could comprise the organisation, therefore Consumer Fair has
adopted on projects and initiatives which will increase in funding and income profits. According to
Chairman Thami Bolani the organisation is planning “to speak even louder in 2013 and beyond”, and
achieve increase in their savings and funding.
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3. Association pour la défense des droits des Consommateurs au Rwanda (ADECOR)
(Rwanda)
Organisation name and acronym: - Association pour la Décence des droits des Consommateurs au
Rwanda(ADECOR)
First name: - Damien
Surname: - NDIZEYE
Position: - Executive Director
Country: - Rwanda
Work email: - [email protected]
Skype: - ndizeye.damien
Telephone no (including country code): - +250788595587
General e-mail of the organisation: - [email protected]
Website URL: - adecor.org.rw
Facebook: - adecor asbl
Introduction Analysing ADECOR (Rwanda77)
The Association for the Defence of Consumers Right in Rwanda (ADECOR) is an organisation in
Rwanda which is structured to be the consumer’s voice in the country, as it represents the
consumers’ interests and encourages the spreading of information on issues which affect consumers.
The organisation also provides a forum for discussion of consumers’ issues and act as a lobby to all
levels of government. ADECOR has a vision of a Rwandan society where consumers have access to
enough, safe and affordable goods and services; therefore consumers can influence the market
behaviour and protection of their rights. The organisation boosts of six branches, which includes one
in the capital city Kigali. The organisation main functions are: (i) research, testing and publishing
product/service evaluations; (ii) Consumer education, information, and legal advice; (iii) Lobbying on
policy formulation and decision-making processes (e.g. as consumer representatives in councils,
boards, committees or task-forces); and Representing consumers in seeking redress (tribunal,
consumer courts).
Funding and Projects
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ADECOR is partially supported by government, having the ministry of Trade and Industry; and the
Rwanda Bureau of Standards as partners. In the last financial year the organisation managed to bring
in an income of more than $ 7500. Executive Secretary Damien Ndizeye has stated that the bulk of
this income is from the research carried out by the organisation for the benefit of consumers. He
further noted that, as the organisation noticed an increase in malpractices in society, they conduct
research which in turn gets the attention of the community, government, NGOs and so on; therefore
mobilising these interest groups can also generate more income sources. The organisation also
stresses the fact that putting up credibility is also a crucial aspect as partners trust increase and
which attracts them to release more funds. Another source of income for the organisation is
membership fees. The challenge is not the fees but gathering the members according to the
organisation. It succeeds in this situation by having the ideology that “people enjoy getting back what
they have given”, therefore the organisation advises other consumer organisations to do their best
to add value on what they serve for consumers then members will be excited to contribute in the
project. This strategy has been to winning formula for ADECOR as their membership has increased
from one community to the next and therefore membership fees play a crucial role to benefit the
organisations income profile. Lastly the organisation has also advised that a strong and stable
relationship between the members and the organisation helps an important role for funding as
partners and government funding and so on, may end but membership loyalty and fees are more
sustainable and lasting for the survival of any consumer organisation.
Conclusion
ADECOR consumer organisation has multi income sources, but the most important and most valued
source, according to the organisation is the membership, which consists of the community members,
who offer just more than membership fees, they also offer security and sustainability to the
organisation.
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4. Consumer Council of Zimbabwe (CCZ) (Zimbabwe)
Organisation name and acronym: - CONSUMER COUNCIL OF ZIMBABWE CCZ
First name: - ROSEMARY
Surname: - SIYACHITEMA
Position: - EXECUTIVE DIRECTOR
Country: - ZIMBABWE
Work email: - [email protected]
Skype: - -
Telephone no (including country code): - 263-4-706968/700500/707065
Fax no (including country code): - 263-4-700500
General e-mail of the organisation: - [email protected]
Website URL: - www.ccz.org.zw
Introduction
Consumer Council of Zimbabwe (CCZ) was officially established in 1975 with its main objectives
being, protecting and empowering consumers by monitoring product quality and service. Other
objectives which the organisation aims to achieve are, to protect manufacturing standards and to
educate consumers and producers. To reach its goal, CCZ influence government policy and laws
which protect the consumer rights; monitor prices and standards of products; and by providing
research services and information. As a consumer organisation CCZ pays a lot of emphasis on
promoting, protecting and educating the public about the eight universally accepted consumer
rights, as this will also make the public aware of their duties as consumers and producers in a day to
day life. CCZ main functions are to provide
• Consumer education, information, and legal advice;
• Lobbying on policy formulation and decision-making processes (e.g. as consumer
representatives in councils, boards, committees or task-forces);
• Representing consumers in seeking redress (tribunal, consumer courts).
Funding
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It has taken a long for CCZ to convince its partners and other consumer organisations that even
though the organisation gets government funding, their operations and activities are not comprise.
But the funds covered from government only cover staff salaries, overheads and administration,
therefore making government funds insufficient. CCZ thus looks at alternative means of funding
which can be more sustainable for the organisation. The organisation managed to find other means
by partnering with the Zimbabwe Women Resource Network Centre and UN Women for a project
which is set to run for four years, starting from 2011. The project allows for CCZ to reach remote
areas and educate the public of their consumer rights. The projects funding also creates a platform
for the organisation to promote consumer clubs, and in this manner indirectly increasing the
membership size. The increase in the size of membership has also played a vital role in increasing
income for the organisation. Other means of income include that which the organisation receives on
Worlds Consumer Rights Day, whereby the corporate world which supports the cause of the
organisation contribute in kind or in cash.
Given the current economic crisis worldwide where unemployment is rife, making membership to
the organisation a huge challenge, CCZ has found means to overcome such obstacles. The fact that
an increase in membership can result in an increase of income through membership fees, therefore
CCZ have tried to increase this membership base by using radio and internet to expose their brand
but the organisation has acknowledged that another method they seek to explore is operating
through social media.
Conclusion
One of the biggest aspect which most consumer organisations such as CCZ fear is being comprised
through the process of government funding and other funding which may cause conflict of interest,
yet CCZ has shown that government funding can actually be beneficial to the consumers, executive
director of the organisation has stated that “funding from government is considered a common good
by ensuring that consumers are discerning and know their rights”. Even though the organisation
receives government funds, it has also paid emphasis on the importance of membership growth for
its sustainability.
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5. Association Burundaise des Consommateurs (ABUCO) (Burundi)
Organisation name and acronym : - Association Burundaise des Consommateurs (ABUCO)
Name : - Amédée
Surname : - NDAGIJIMANA
Position in Organisation :- Executive Director
Country : - BURUNDI
Work email :- [email protected]
Skype address : - amedee258
Telephone number, including country code: - +257 79 585453
Fax number including country code : - +257 22237686
General email address of the organisation : - [email protected]
Facebook : - [email protected]
Introduction
Association Burundaise des Consommateurs (ABUCO) is a non-profit organisation based in Burundi
whose main aim is to educate and inform consumers. Founded in 1994, ABUCO an organisation
which serves the Burundi consumer public nationwide as they seek to promote, develop and defend
the rights of consumers. The organisation has proven its worth to the Burundi communities as the
membership of the organisation has grown throughout the years, furthermore the organisations
importance has also been recognised by government, the authorities consult the organisation on all
decisions which impact consumers.
Funding
The organisations income in the last financial year was over the $75000, which is an unusual
achievement with consumer organisations on the Africa continent. This success was mainly
accomplished due to the members of ABUCO and the most source of income was the Belgian
cooperation. The organisation submits for project proposals and at times they get the projects, which
also increase their income levels. For most NPOs and other consumer organisations, such as ABUCO,
income is scarce and not enough to always sustain the organisations’ activities, therefore ABUCO
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have set up a fundraising mechanism which is defined in the organisation’s Strategic Plan. In a bid to
help the survival and sustainability of the organisation, ABUCO look to both national and
international partners who have the consumers’ interest at heart. With these partners the
organisations aims to:
1) Promotion, protection and defence of consumer rights; and
2) Promoting good governance and fight against corruption.
Many consumer organisations such ABUCO know the important role which members play in
contributing to the sustainability of the organisation. ABUCO has managed to get more than 1000
members country wide, it must also be mentioned that ABUCO is a founding member of several
collectives Burundian civil society including: Forum for the Strengthening of Civil Society (FORSC)
Obsevatoire Governmental Action (OAG), and so on. This puts the organisation in a strategic place to
increase their membership. Executive Director NDAGIJIMANA has given his words of advice to other
organisations such as ABUCO with regards to increasing funds and sustainability of the organisation
by saying that “To have more credibility, every organisation must have clear and specific goals. There
are organisations that appear to be heterogeneous, that is to say, who want to work in all sectors,
even in areas that are not consistent with their missions. This is a handicap for the organisation. Also
tied ABUCO good relations with the media and the government as a way to try ensuring sustainability
of the organisation.
Conclusion
Many consumer organisations in Africa battle with their financial stability which in turn threatens
their existence. Like many consumer organisations on the continent ABUCO has had to look at other
means of income, which include looking at local and international partners who have the consumers’
interest at heart. Furthermore ABUCO has also raised a valid point about organisations which focus
on more than what their objectives requires which becomes a costly exercise.
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ANNEXURE C
The Nine business models
(Extract from Consumers International Internal Document)
1. Diversification functions Model: This development model refers to COs with a network of
affiliated COs with specific agenda (focused causes) that complement each other’s functions.
Function based diversification of the COs into smaller organisational units enables
management, operation and fundraising to be carried out independently, and yet remain
inter-connected under one national umbrella.
FOMCA is a prime example of CO that has fully benefited from this approach. The formation
of strategic partnership with private sector has prompted the birth of Water Forum as a Unit
of FOMCA with funding being channelled by the Water Supply Commission. Another
specialised Unit on Standards within FOMCA has led to the establishment of the Malaysian
Association of Standard Users which receives its funding primarily through the Department
of standards
2. Co-Corporate Model: refers to a new trend in creating value for developing or emerging
markets, which may involve corporations and nongovernmental organisations to collaborate
or forge cross-sector partnerships, such as getting their individual membership to switch to
another provider who gives a commission.
3. Social-Enterprise Model: refers to COs having the ultimate goal of achieving sustainability by
enabling the organisation to support themselves financially through innovative ways instead
of relying solely on grants and donations, whereby the profits from the related social
enterprise are completely re-invested into the work of the organisation.
4. Government-Supported Model: where government may contribute to the development of
the COs through mechanisms provided by law or through administrative procedures,
whereby resource (financial) allocated may be provided this model may be differentiated at
different levels such as fully-supported or partially supported.
5. Information-Based Model: where COs may offer specific or specialised products/ services,
generating core value for their operation and resources. These core products/ services may
be in the form of niche publication (magazine), product testing, or product information that
has direct benefits to targeted beneficiaries or consumer segments. In this model some for,
of monetary value may be attached to the service or products, and thus, may be classified as
for profit organisations.
6. Expansion Model: This model can be applied to COs that strategically widen their core
activities either vertically or horizontally. This may include geographic expansion by means of
acquisition, merger or opening new offices. This may depend on economic scale.
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7. Integrated Social Media Model: This model may be applied to an inter-networked CO using
ICT or social media “Apps” to further enhance their relevance. This model may depend on
economics of scale.
8. Project- based Model: This model may be applied to COs having their operations and core
activities dependent on successful funding solicited through calls for proposals from specific
donors o funders,
9. Mix & Match Model: This model refers to organisations that adopt and apply a mix of
business models to carry out the operations and resource strategies.
10. Other models: Apart from the above, other potential models will also be explored.
doc_825419440.pdf
Within this detailed explanation around research into possible ways that the african affiliated consumer organisations (cos).
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RESEARCH INTO POSSIBLE WAYS THAT THE AFRICAN
AFFILIATED CONSUMER ORGANISATIONS (COs) OF CONSUMERS INTERNATIONAL (CI)
COULD BECOME MORE ECONOMICALLY SUSTAINABLE
by
the Centre for Social Entrepreneurship and Social Economy (CSESE)
Faculty of Management
Dr Susan Steinman (Editor)
Contact & Enquiries:
Dr Susan Steinman
Director: CSESE
Faculty of Management
P O Box 524
2006 Auckland Park
Tel.: +27 11 664-6527
Funded by OSISA
Copyright: University of Johannesburg, 2012
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TABLE OF CONTENTS
DESCRIPTION OF CONTENT PAGE
Executive summary iv
1. INTRODUCTION TO THE STUDY 1
1.1 Background 1
1.2 Methodology, method and design 3
1.3 Research challenges 8
2. ORGANISATIONAL FORM – CURRENT TRENDS 10
2.1 Types 10
2.2 Organisational form for consumer organisations 11
3. FACTORS IMPACTING ON SUSTAINABILITY 13
3.1 Institutional sustainability 13
3.2 Organisation financial processes 15
3.3 Programmatic sustainability 19
4. FINDINGS AND RECOMMENDATIONS 23
4.1 Findings 23
4.2 Recommendations 25
4.3 In conclusion 31
5. REFERENCES 32
ANNEXURES 33
Annexure A – Profiles of the most successful international CI members 34
Annexure B – Profiles of African Consumer Organisations 45
Annexure C – Nine business models proposed by CI 54
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LIST OF TABLES
Description of table Page
Table 1: Consumer Organisation (CO) type in relation to annual income 11
Table 2: Income discrepancies between African and non-African consumer organisations 12
Table 3: Sustainability and amount of income generated through projects 16
Table 4: percentage of budget allocated for support services – comparison between the Relatively
Not Sustainable Group (RNSG) and the Relatively Sustainable Group (RSG)
17
Table 5: Streams of income for RNSG 18
Table 6: Streams of income for RSG 18
Table 7: Influencing policy process in relation to sustainability 21
Table 8: Sustainability and reach: number of individual who have benefitted from consumer
education
21
Table 9: Sustainability and impact: contribution to consumer protection 22
Table 10: Streams of income ranking and comparison for RNSG and RSG 24
Table 11: Example of the Google Business Model 30
LIST OF ACRONYMS
ARNSG African Relatively Not Sustainable Group
APSG African Potentially Sustainable Group
CBO Community-based Organisation
CI Consumers International
CiCs Community Interest Company(ies)
COs Consumer Organisation(s)
CSESE Centre for Social Entrepreneurship and Social Economy
NGOs Non-government Organisations
NPO Non-profit Organisation
RNSG Relatively Not Sustainable Group
RSG Relatively Sustainable Group
UJ University of Johannesburg
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EXECUTIVE SUMMARY
Consumers International (CI) offers support and guidance to over 220 member organisations in 115
countries. 75% of these members are in developing countries. The shrinking funding environment
poses challenges for the continuity of the consumer organisations.
The purpose of this study was to investigate successful CI models from across the world through
quantitative and qualitative surveys and exploring how and if the approaches of the international
partners could be of benefit to the African, particularly the southern African region.
The research findings and subsequent recommendations address the issues of sustainability on
institutional, financial and programmatic levels, by juxtaposing the African and other non-
sustainable COs with the measures taken by sustainable organisations to make meaningful
inferences. This was made possible by using the SPSS statistical data programme to analyse the data
of the Global Survey conducted by Consumers International at the end of October 2012.
Notably there is a difference in generating income between the Relatively Not Sustainable Group
(RNSG) and the Relatively Sustainable Group (RSG). The recommendations focus on the issues where
sustainability is affected. Issues such as training in business skills and improvement of governance
are regarded as essential to lead the COs towards sustainability.
However, the biggest challenge would be to switch from grant-dependency to a social enterprise
model and adopting the Multiple Income Generating Stream (MIGS) model through increasing the
membership base. Publications such as magazines and newsletters, test centres, while increasing
donor and government funding through increased lobbying and improved techniques in funding
proposals, trading services or goods for income, engaging in local and international partnerships,
apply for skills development funds to train consumers will contribute significantly to creating a
bigger membership base. It is also important to charge market-related fees for research and
advocacy.
Incubation and the provision of seed funding for struggling COs are other options that could be
explored. . However, a Business Plan incorporating a unique business model using the “Business
Model Canvas” is most likely to yield the best results. It is recommended that COs in the southern
African region reaches out to local universities to assist them.
As a whole, African Consumer Organisations can learn from their European counterparts and lobby.
It is important to engage the African Union, NEPAD and SADC countries to reach out for joint funding
and more awareness on country level.
It is a long road to sustainability for the African COs whose struggle is more severe. It is evident from
the research that the African COs try harder, but get far less than their counterparts world-wide as
the impediments of working in a developing country cannot be ignored.
However, sustainability is within reach of all these organisations if they could follow the MIGS model
and become social enterprises, not charities. This is the difference between winning and losing the
battle in a very tough market. It requires innovation, determination and skills to beat the odds and
serve the interests of the consumers.
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1. INTRODUCTION TO THE STUDY
Dr Susan Steinman and Rejoice Shumba
1.1 BACKGROUND
1.1.1 Background to Consumers International
Consumers International (CI), founded in 1960, is a not-for-profit company limited by guarantee and
it is registered in the UK. CI is also registered as a charity. This organisation with its 240 members in
120 countries is the world federation for consumer groups. Working together with its members, CI
serves as the only independent and authoritative global voice for consumers based on the following
eight basic consumer rights: the right to satisfaction of basic needs, safety, information, choice, to be
heard, redress, consumer education and a healthy environment.
Consumers International offers support and guidance to over 220 member organisations in 115
countries. It is interesting to note that more than 75% of the CI members are actually in developing
countries. Due to the profile of its majority members CI aims to build the capacity of its member
organisations in order to offset some of the challenges and constraints within its constituency. One
of the major aims of CI is therefore to help build stable organisations in the developing countries, to
conduct independent research, campaign effectively and provide high-quality services to consumers.
CI has regional representation in each region. In Africa, the regional office is based in Pretoria.
The role of the regional office is to:
• Create and sustain a network of consumer organisations in Africa, to enable them to learn
from each other and benefit from membership of a global consumer federation.
• Mobilise its members in support of global campaigns designed to improve the lives of
consumers everywhere.
• Support the development of member organisations to increase their capability and capacity
to help consumers at national and regional levels.
CI members in Africa:
Many consumer organisations in Africa operate in a difficult environment and often struggle to
sustain their operations, operating with only one or two staff members, often lacking formal
structures.
CI Africa members are in the following countries:
• North Africa (Morocco, Algeria, Tunisia, Egypt and Sudan)
• East Africa (Tanzania, Kenya, Uganda, Ethiopia, Burundi and Rwanda)
• Francophone West Africa (Senegal, Mali, Niger, Benin, Chad, Burkina Faso, Guinea, Cote
D’Ivoire, Togo and Niger)
• Anglophone West Africa (Nigeria, The Gambia, Sierra Leone, Liberia Ghana and Cape Verde)
• Central Africa (Cameroon, Congo, Gabon, CAR, Angola)
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• Southern Africa (South Africa, Namibia, Botswana, Mozambique, Zimbabwe, Zambia,
Malawi, Seychelles, Mauritius, Lesotho and Comoros Islands).
The CI Office for Africa focuses on:
• offering training and development, as well as information, toolkits and models that can be
adapted by various members in various countries; making members understand their
primary roles vis-à-vis other organisations/movements and networks
• enabling members to participate in global campaigns by delivering specific training on
campaigning in the face-to-face meetings as well as by means of on-line training modules;
• ensuring that member organisations become effective learning organisations
• seeking funding support to develop members as well as the entire consumer movement in
Africa; strengthening the ability to effectively cultivate, mobilise and apply resources
efficiently to achieve strategic organisational objectives and achieve long-term financial
sustainability
• strengthening members’ fundraising capabilities as a backbone of members’ sustainability
but also helping members to think ‘outside the box’ when it comes to generating income.
1.1.1.2 Vision and Mission
CI’s vision is a world where people can make informed choices about safe and sustainable goods and
services, in which individual and collective Consumer Rights are secure and respected.
CI believes that:
• all people consume, in order to live - be it through the satisfaction of the most basic human
needs, to considering complex financial products.
• the fundamental rights of all consumers must be upheld and protected by corporations,
governments and international decision-making bodies.
CI thinks that consumers should be:
• provided with the right facts and skills, while being protected from misleading promotion, to
make confident and empowered decisions
• be confident that the products and services they buy are safe to use, with the minimum
impact on social and ecological conditions for both producers and consumers.
CI’s mission is to champion Consumer Rights internationally to help protect and empower consumers
everywhere -
• to defend, promote, develop and pursue Consumer Rights as the international basis of
consumer protection.
• to support, develop and work directly with our constituent member organisations, seeking to
protect, inform, give a voice to and secure rights for consumers worldwide.
(http://www.consumersinternational.org/)
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1.1.2 Background to this study
The shrinking funding environment poses challenges for the continuity of non-profit organisations
such as Consumer Organisations (COs). The role of consumer organisations is critical, although in
some instances they are rarely recognised or appreciated by the consumers that they serve or the
governments of the countries in which they operate. Many consumer organisations are struggling to
execute their mandates due to a lack of funding. The collapse of consumer organisations would have
a negative impact on consumers. It is therefore important to develop sustainable models for
consumer organisations so that they do not only rely on shrinking donor funding.
The objectives of this research are fourfold;
• to collect and document successful CI member models from across the world;
• to investigate regional promising new models such as social entrepreneurship initiatives and
their applicability to COs;
• to explore how the models could be adapted to the southern African region;
• to compile a report on the recommendations arising from the research.
Therefore this study will endeavour to conduct research on Sustainable Business Models that are
relevant to Consumer Organisations (COs) and to answer the research question: How can the
southern African affiliates of Consumers International become sustainable?
Furthermore the researchers will investigate, using mixed methods, promising new models such as
social entrepreneurship initiatives and their applicability to consumer organisations and explore how
these models can be adapted to the southern African region.
1.2 METHODOLOGY, METHOD AND DESIGN
Methodology is influenced by the ontology and epistemology of researcher. Briefly, one may
describe the concepts of ontology and epistemology as part of methodology in research as
follows:
• Ontology has to do with our assumptions about how the world is made up and the nature of
things.
• Epistemology has to do with our beliefs about how one might discover knowledge about the
world.
1.2.1 Ontology and epistemology
1.2.1.1 Ontology
What is the nature of the phenomena, the entities or things, the social reality you want to
study, or your object of research?
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Researchers have different and conflicting beliefs when it comes to their views of the nature of
the phenomena they intend to study. There are different options and the researchers are
interested in understanding the world of lived experience from the point of view of those who
live it – in this case, particularly the consumer organisations. The researcher contends that
social reality is not a given, but is built up over time through shared history, experience and
communication. In other words, a person is an agent who actively constructs meaning within
an ever-changing social and historical context. That which is taken for “reality” is what is
shared and taken for granted as the way the world is perceived and understood. In order to
appreciate the lived world of experience, we must engage and participate in it; we must
actively interpret it (Locke, 2001 in Steinman, 2008).
1.2.1.2 Epistemology
Epistemology or theory of knowledge is the branch of Western philosophy that studies the
nature and scope of knowledge (http://www.wikipedia.org/epistemology). How do we know
what we know? What is knowledge? What is reality? The epistemological position assumed for
purposes of this paper is that, in building knowledge, different strategies can be employed as
both qualitative (co-constructing knowledge) and quantitative strategies (surveys).
1.2.2 Research methodology and methods
The relationship between method and methodology is like the relationship between the words
psyche and psychology, or between derma and dermatology. Psyche basically means the
internal mind, and psychology is the discipline that studies and supports the internal mind (i.e.
the research of academics in the faculty of psychology and the counselling of psychologists).
Derma is our outer covering, or skin. Dermatologists research skin and treat skin conditions
(Kinash, 2010).
Methodology has to do with the tools and techniques of research. The methodology is the
discipline, or body of knowledge, that utilises these methods. (Kinash, 2010). The methodology
can use either qualitative methods (such as interviews, focus groups, or participant
observation), or quantitative methods using research techniques to gather data for
information dealing with numbers and anything that is measurable. Statistics, tables and
graphs are often used to present the results of these methods. Therefore they are to be
distinguished from qualitative methods. The decision to use either qualitative or quantitative
techniques largely depends on what is being investigated.
According to Borkan (2007):
… the nature of quantitative research and its data collection tools allow the researcher to infer
only about that which he or she is examining (you “see” only what you are “looking at”),
whereas qualitative methods can expand the gaze to key elements that were never elucidated
or even previously considered.
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Mixed methods are about using both qualitative and quantitative research. While it can be said
that a mixed methodology may be incompatible with ontological and epistemological stances,
it is often overlooked that ontological theories do not entail epistemological ones and
especially those methods wrongly associated with a given epistemological theory. Furthermore
an ontological position (e.g. realism) does not commit one to a given methodology (Tashakkari
& Teddle, 2002 in Steinman, 2008).
Using mixed research techniques, or mixed methodologies, has advantages, for example the:
• improved strength of the research
• use of multiple methods in a research study helps one to research a process or a problem
from all sides
• usage of different approaches helps the researcher to focus on a single process and it also
confirms the accuracy of data. Employing mixed research methods complements a result from
one type of research with that yielded by another one. This research does not miss any
available data.
Hunt (2007) succinctly describes quantitative and qualitative methods as follows:
For example, a quantitative component of a mixed research assumes the usage of deductive
scientific method while a qualitative component assumes inductive scientific method.
Moreover, a quantitative approach collects quantitative data based on exact measurement
applying structured as well as validated information collection. For instance, rating scales,
closed-ended items and responses. This approach produces a statistical report with
correlations.
A qualitative component uses qualitative information. For instance, interview, field notes,
open-ended questions, etc. This approach considers a researcher to be the major means of
information collection (in Steinman, 2008).
Therefore, the researcher is of the opinion that using mixed methodology, using quantitative data
and triangulating these with qualitative data or interviews would bring about a better understanding
of suitable business models.
1.2.3 Research Design
The research was carried out in three phases:
• Phase 1:
Literary survey. For purposes of introduction, a short survey of the movement is necessary so that
data can be put in perspective.
• Phase 2
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Consumers International (CI) conducted a survey on Consumer Organisations’ sustainability. The
survey was part of CI’s Consumer Justice and Protection programme. It is one of the tools that CI is
using to enhance its consumer protection work by supporting and empowering its members to
enable them to develop into sustainable organisations.
The survey aimed to:
Understand the processes and strategies that its members use in their operation and
development;
Provide information and build a database on innovative best practices of consumer
organisation (CO) models and establish key dimensions of CO sustainability that can be
shared with its members; and
Identify types of empowerment activities.
The survey was divided into two parts. Part 1 involved three sections, which are related to COs’
sustainability:
(i) Institutional sustainability;
(ii) Financial sustainability; and
(iii) Programmatic sustainability.
Part 2 concerns the types of CO business models based on stakeholder engagement orientation and
CO vital functions.
The Centre for Social Entrepreneurship and Social Economy had prepared a survey for distribution to
CI members worldwide. It was noted that the questions in the two surveys were very similar. There
was therefore no need to send two similar surveys to the same people. It was then decided that
CSESE should rather wait for the closing date of the Global Survey and then analyse the findings.
Follow-up questions were then sent to the organisations that were deemed to be successful.
The CI Global Survey was administered using survey monkeys and the results were analysed via
survey monkeys. However, the survey monkey programme could not provide the researchers with
cross-tabulations and the statistical services at the University of Johannesburg (Statcon) were
enlisted to do cross-tabulation and handle additional analysis of the data.
Statcon used the SPSS Statistical programme. Two concepts, namely Relatively Not Sustainable and
Relatively Sustainable were developed for the purposes of the research. The information was
obtained from Question 22 where income was divided into four groups, namely,
(1) 75,000 USD and less;
(2) 75,001 USD to 300,000 USD;
(3) 300,001 USD to 1 million USD; and
(4) 1 million USD and more.
First, the data was divided into Relatively Not Sustainable Group (RNSG) representing those with an
income below R300,000 (Group 1 and 2 above) and the Relatively Sustainable Group (RSG) with an
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income above R300,000 (Group 3 and 4 above). All the data was cross-tabulated according to the
RNSG and RSG for analysis of sustainability.
The groups were referred to as “Relatively Not Sustainable” and “Relatively Sustainable”, because
sustainability or “not sustainable” could be relative to a region or country. One has to be careful and
still needs to be careful with the interpretation of the data, because at most it may be considered an
indication of sustainability factors and a guideline.
Lastly, the African countries were analysed. They fall within the “Relatively Not Sustainable” group
above, but for the purposes of data analysis the countries were divided as the “African Relatively Not
Sustainable Group” (ARNSG) with an income of below $75,000 and the “African Potentially
Sustainable Group” (APSG) with an income between $75,001 to $300,000, followed by an analysis of
factors that are significant in making them potentially sustainable or not. Given the relatively low
cost of living in Africa compared to the rest of the world, those COs with an income within this
bracket are regarded as potentially sustainable, while they could well be regarded as not sustainable
elsewhere in the world.
There is a large amount of data available, but only data that is either noteworthy or significant with
a direct bearing on sustainability is analysed in this report, as it would require a much larger research
project to capture the richness of information provided by the Global Survey.
• Phase 3
Using the responses emerging from Phase 2, follow-up questions were sent to the organisations that
were identified as being the most sustainable – in this case four non-African COs. Other secondary
data was also used to write the profiles of sustainable CI members worldwide, particularly African
participants using data from the web sites, as well as responses to the follow-up emails and
telephonic interviews. Five African COs were profiled.
Therefore the researchers at the CSESE sent the following email (edited by CI) to the selected COs to
gather more information:
My name is XXX (name of researcher). I am a Researcher at the Centre for Social
Entrepreneurship and Social Economy based in South Africa. We are working with the
Consumers International (CI) Africa office, conducting research on how African CI members
can be more sustainable. This research is being conducted as part of a Capacity Building
Project with CI members in southern Africa. . We hope that you can help strengthen our
research by clarifying a few more items as we hope the information will be beneficial to the
Africa members in particular, as well as CI as a whole.
The analysis of the recent survey that you completed for Consumers International shows that
you have received support from civil society organisations. Would you kindly share with us
which organisations they are, what kind of support you received and would you recommend
such partnerships for other CI member organisations?
You listed the following as your self-financing strategies:
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• membership fees
• publishing
• testing
• consultancy services
• advisory services.
Please could you shed more light on these strategies?
What percentage of your budget is covered by government and how were you able to get
your government to opt-in for this?
I thank you in advance for your assistance. We would really appreciate your responses to
these questions. Please feel free to contact the CI Africa office should you be interested in
knowing more about the capacity building project funded by the Open Society International
(southern Africa). I sent copies to Cathy Rutivi, Project Manager and Member Officer
([email protected]) and Onica Makwakwa, Head of CI for Africa
([email protected]).
Most of those approached for information sent their responses within days, however a few of
prospective respondents did not react and information available from the survey and websites was
used to compile a reasonable profile.
• Phase 4
To determine sustainability, data obtained in phases 2 and 3 was triangulated. Phase 4 deals with
what makes consumer organisations, particularly African and southern African consumer
organisations more sustainable. Findings and recommendations form part of this phase.
1.3 RESEARCH CHALLENGES
1.3.1 Research procedure
In the Research Proposal as amended (Annexure A) provided by the Consumers International, a
qualitative method was indicated as the research methodology, but it would have resulted in a
relative small study.
1.3.2 Changes in methodology
The Global Survey conducted by Consumers International ended 28 October 2012. Researchers had
the opportunity to interpret and analyse the results of the survey for purposes of this study. It meant
that much more data was available and researchers had access to the Statistical Services of the
University of Johannesburg to analyse the data, resulting in a much larger study.
1.3.3 Time constraints
In accepting the assignment, a smaller study was foreseen, as per the original research proposal.
Very soon it became evident that the researchers would not be able to finish the research within the
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period determined. More time would be necessary. Firstly there was a waiting period for the Global
Survey to end and then there was a waiting period to gain access to the statistical data analysis by
Statcon. This in itself largely extended the research period and therefore the researchers were
subject to severe time constraints.
In addition, one of the researchers could not complete her work due to the extended time required
and a replacement had to be found. Furthermore no more work could be done after 20 November,
because of another research project and therefore work had to stand over until the December
holidays.
1.3.4 Budget constraints
The additional work extended the period of research and depended on times when the Director of
the CSESE was available.
1.3.5 Language options
Only the English-speaking countries could be analysed as none of the team members could speak the
other languages. However a very large number of participants answered in English and therefore the
data could be used and it can be said that is relatively representative of the sample.
One of the profilers is fluent in French and therefore the profiles of two French countries were
included to get a richer picture. However, this person could not assist with the other data as he was
busy with other work and in terms of the survey, we were limited to the English respondents.
1.3.6 Omission of some answers to questions
Not all the questions were answered by all the respondents. Therefore one could only capture what
was available. However it is not expected that this affected the result drastically, as a very high
percentage of COs fully participated in the survey and answered all the questions.
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2. ORGANISATIONAL FORM – CURRENT TRENDS
Dr Susan Steinman
The current organisational forms of the consumer organisations are relevant. In this respect, current
legal forms for organisational forms of consumer organisations (COs) and similar such organisations
are briefly discussed below to give an overview of the available options:
2.1 TYPES
2.1.1. Non-profit organisations (NPO)
Some NPOs may also be a charity or service organisation. They may be organised as a not-for-profit
corporation or as a trust, a cooperative, or they exist informally. A very similar type of organisation,
termed a supporting organisation, operates like a foundation, but this type of organisation is are
more complicated to administer, holds more favourable tax status and is restricted in terms of the
public charities they may support (http://en.wikipedia.org/wiki/Nonprofit_organization).
A non-profit organisation is, in South Africa as well as other countries, a trust, or community-based
organisation (CBO) such as a cooperative, faith-based organisation, any voluntary association that is
not-for profit or a company or other association of persons established for a public purpose where
the income and property are not distributable to its members or office-bearers, except as reasonable
compensation for services rendered. Trusts can also, under certain circumstances and if they meet
certain requirements, be regarded as an NPO.
Increasingly, the terms “non-profit organisations” refer to a business form and are not indications of
the way business is conducted in the organisation. Non-profit organisations are progressively
becoming “enterprising non-profits” or “social enterprises” to survive (Steinman, 2011).
2.1.2. Social Enterprises
Social enterprises are at times confused with social entrepreneurship. According to Steinman
(2010) “there are two schools of thought – a broad definition of social enterprises would simply
state that a social enterprise is ‘a market-related response to a social problem’ while narrower
definitions would explicitly prefer to distinguish the social enterprise from other business forms by
designating the manner in which profit or surplus is dealt with”. In the case of South Africa, the
researcher recommended that, after triangulating the qualitative and quantitative surveys, the
most acceptable definition for the large majority of those that participated in the research would
be:
A social enterprise’s primary objective is to ameliorate social problems through a financially
sustainable business model, where surpluses (if any) are principally reinvested for that purpose
(Steinman, 2010 in Steinman 2011)”.
In the United Kingdom (UK), social enterprises are regulated through the Community Interest
Companies Act and similar business forms are in operation elsewhere in the world. However, even
in the absence of legal form, enterprising non-profits flourish in the form of hybrid business models
and it will be a matter of time for legislation to catch up with what is happening on the ground
(Steinman, 2011).
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2.1.3 For-profit organisations
For-profit Organisations have, as its primary purpose, to make a profit. They take on different forms,
depending on the legislation in the respective countries. These organisations are enterprises such as:
• Closed corporations
• Private companies
• Partnerships
• Public Companies
• Sole proprietorships
• Cooperatives.
However for the purposes of this study, we will not go in depth about for-profit organisations as
these business forms could have shareholders, limited liability etc. A discussion of such organisations
does not fall within the scope of this study.
2.2 ORGANISATION FORM FOR CONSUMER ORGANISATIONS (COs)
Does the business form or model play a role in the sustainability of the Consumer Organisation (CO)?
To a certain extent, but the study will deal with these factors in a holistic manner.
Table 1: Consumer organisation types in relation to annual income
Q2.1 Four general types of consumer organisation (CO) models have been
identified as described below. Which of the following describes your
organisation? (Please select only ONE)
Total
CO is an umbrella
organisation (or a
network/
federation) formed
through an
association of civic
organisations
CO is involved in
forging formal
and mutual
cooperations or
collaborations
with another
party or a private
corporation
CO carries out
one or more of
its vital functions
as a CO and
charges fees for
its products or
services
provided
CO ventures
into
developing its
own business
entity that
produces
and/or sells
goods or
services
Q1.22
Please
indicate the
total annual
income of
your
organisation
in the last
financial
year.
Less than 75,000 USD Count 16 10 8 2 36
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
44.4% 27.8% 22.2% 5.6% 100.0%
Between 75,001 and 300,000
USD
Count 5 2 4 0 11
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
45.5% 18.2% 36.4% 0.0% 100.0%
Between 300,001 and
1,000,000 USD
Count 4 1 3 0 8
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
50.0% 12.5% 37.5% 0.0% 100.0%
More than 1000,000USD Count 5 1 10 1 17
% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
29.4% 5.9% 58.8% 5.9% 100.0%
Total Count 30 14 25 3 72
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% within Q1.22 Please indicate
the total annual income of your
organisation in the last
financial year.
41.7% 19.4% 34.7% 4.2% 100.0%
From the above it is clear that an overall total of 41.7% of COs are umbrella organisations (or a
network/federation) formed through an association of civic organisations while 19.4% of COs are
involved in forging formal and mutual cooperations or collaborations with another party or a private
corporation. 34.7% of COs carries out one or more of its vital functions as a CO and charges fees for
its products or services provided, while only 4.2% of COs venture into developing its own business
entity that produces and/or sells goods or services. However, it is worth noting that of those with an
income of more than $1 million per annum, 58.8% carries out one or more of its vital functions as a
CO and charges fees for its products or services. Therefore, earnings and income are definite options.
This is also indicative of a social enterprise model which is, at this early stage, already emerging as a
strong model. However, as a whole, only 34.7% of all COs embrace this model. It appears as if this
aspect is related to sustainability.
There is a significant difference between the income of the African COs and that of the non-African
COs as illustrated below:
Table 2: Income discrepancies between African and non-African Consumer Organisations.
Q1.22 Please indicate the total annual income of your organisation in
the last financial year.
Total
Less than
75,000 USD
Between
75,001 and
300,000 USD
Between 300,001
and 1,000,000
USD
More than
1000,000
USD
AfrnonAfr
African/
Non
African
African Count 13 2 0 0 15
% within
AfrnonAfr
African/ Non
African
86.7% 13.3% 0.0% 0.0% 100.0%
Non-African Count 31 12 9 19 71
% within
AfrnonAfr
African/ Non
African
43.7% 16.9% 12.7% 26.8% 100.0%
Total Count 44 14 9 19 86
% within
AfrnonAfr
African/ Non
African
51.2% 16.3% 10.5% 22.1% 100.0%
Significantly, 86.7% of the African respondents have an income of less than 75,000 USD while 43.7%
of the non-African respondents have the same. There are no African respondents with an income of
more than 300,000 USD per annum.
It is therefore imperative that the researchers investigate firstly the RNSG and RSG to see what
factors play a role in sustainability and then to take a closer look at significant features of the Not
Sustainable and Potentially Sustainable groups in Africa to make recommendations relating to the
southern African organisations.
13 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
3. FACTORS IMPACTING SUSTAINABILITY
Dr Susan Steinman
with contributions by Rejoice Shumba, Yannick Tshimanaia and Idah Makulele
The Global Survey provided an enormous amount of data in terms of factors that influence
sustainability. Because of the language barrier, only the English responses were taken into
consideration for the purposes of this study. Governance, fundraising and the positioning of the CO is
of importance in terms of sustainability. The following facets of sustainability were explored in this
survey.
(i) Institutional sustainability;
(ii) Financial sustainability; and
(iii) Programmatic sustainability.
These were further explored by profiling four international sustainable COs and five African COs,
including two from French-speaking countries. The full profiles are attached as Annexure A and
Annexure B to this document. To enable the researchers to determine the real factors relating to
sustainability, it was necessary to juxtapose the African group with the non-African group in certain
instances to reach meaningful conclusions. This was done through cross-tabulation using the SPSS
Statistical Data programme.
Although a large number of questions were asked in the Global Survey, the researchers will only deal
with those where the results represent a significant outcome in terms of sustainability.
As from this point forward, acronyms will be used to describe levels of sustainability:
• RSG – Relatively Sustainable Group with an income over 300,000 USD
• RNSG – Relatively Not Sustainable Group with an income of less than 300,000 USD
• This is further narrowed down for the African group:
• ARNSG – African Relatively Not Sustainable Group with an income of less than 75,000 USD
(even for Africa with its lower cost of living compared to the rest of the world, less than
75,000 USD cannot be regarded as relatively sustainable in the opinion of the researchers
• APSG – African Potentially Sustainable Group with an income between 75,000 USD – 300,00
USD (cost of living fluctuate in all countries, but given the relatively low cost of living in Africa
compared to the rest of the world those COs with an income within this bracket are regarded
as potentially sustainable – relatively speaking).
3.1 INSTITUTIONAL SUSTAINABILITY
There were no significant differences between the RSG and the RNSG with in the composition of
their governing bodies – in the majority of cases the directors/board members and trustees are
14 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
elected through annual general meetings. Only 2% of the RSG stated to have key founding members
with decision making power. Of the RNSG, only 12.1% selected this option. These can be seen as
significant choices.
However, on closer analysis, there is a significant difference relating to the ARNSG and the rest of the
sample. Only 31% of this group elect board members/directors through the annual general
meeting23% appointed by the chairman. Another 23% have partially elected/co-opted members and
23% with the key founding members having decision-making powers. From the above it is clear that
that a process of election of members at an Annual General Meeting (AGM) might be linked to
sustainability. The AGM process can also be linked to greater transparency and accountability.
Strategic planning meetings also seem to play a role on the sustainability of the organisations. While
the majority of respondents from the RNSG and RSG stated to have strategic planning meetings at
least once a year a large portion of the responses also stated that they only conduct meetings as and
when necessary, only 3.4% if the RSG still needs to develop a plan while 12.1% of the RNSG need to
do the same. Within the ARNSG the percentage is much higher at 23%. Strategic planning could be a
factor in terms of sustainability.
The integration of sustainable consumption practices into organisations’ operations and activities is
important in terms of overall sustainability. Of the RSG, 41,4% stated that sustainable consumption
practices have been implemented fully in the organisations’ operations and activities, whereas only
17,2% of the RNSG have implemented sustainable consumption practices (statistically significant
with a p value of .036) . A higher portion of the respondents also stated that at least 30% to 60% of
sustainable consumption had been integrated into the organisational operations. This applies to
48.3% of the RNSG and 41.4% of the RSG.
The extent to which the implementation of equal opportunities took place in COs seem to play a role
in sustainability. 86.2% of the RSG (50% of the APSG) stated that equal opportunities had been fully
implemented and operational in the organisation, while only 56.9% of the RNSG (61.5% of the
ARNSG) stated the same. Furthermore, a higher portion of the RNSG, 34.5% (ARNSG 30.8%) stated
that at least 30% to 60% of the equal opportunities had been integrated into the operation of the
organisation, whereas only 3.4% of the RSG (50% of the APSG) stated the same.
Access to ICT facilities and offices is an important factor in sustainability. 62.1% of the RSG (50% of
the APSG) stated that they had fully set up office space with fully integrated ICT, whereas only 15.5%
of the RNSG (15.4% of ARNSG) had access. 31% of the RNSG (38.5% for the ARNSG) stated to have
full office setup with limited ICT, while this was the case for only 6.9% of the RSG (50% of the APSG).
However 30.8% of the ARNSG have a limited office set up and limited ICT. Access to computers also
seems to play a role. Of the RSG, 89.7% of staff had access to computers and were not sharing, but of
the RNSG only 44.8%.
Administering contracts and job descriptions or good human resource management seems to be a
hallmark of sustainability with 72.4% of the RSG stating that all staff receives contracts and job
descriptions. Similarly 56.1% of the RNSG stated that they provide contracts and job descriptions.
This is linked to the provision of staff appraisals. Of the RSG 72.4% (APSG 100%) stated to provide
them every year and of the RNSG 41.4% (ARNSG 30.8%) provided appraisals every year.
15 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
It is a cause of concern to note the high staff turnover rates reported. 39.7% of RNSG reported a staff
turnover rate of more than 15% per annum. Such a high staff turnover rate is not acceptable under
any circumstances.
It appears as the African COs spend more time and try harder to raise funds than the overall RSG One
only needs to compare the instances where more than 30% of the time is dedicated to fundraising.
Compare 50% of the APSG and 30.8% of the ARNSG to the 10.7% reported by the RSG and 20.7%
reported by the RNSG world-wide. It seems it is much harder for the African group to survive. This
could explain why issues like human resources receives less attention and it is not possible to
determine whether the lack of money and the enormous efforts that goes into raising money or the
lack of good administration impact most.
Relatively disproportionate time is spent on programme monitoring and evaluation if one compares
the African countries to the rest of the COs world-wide. For instance, 100% the ARNSG spends 100%
more than 30% of total staff time on the monitoring and evaluation of projects or programmes while
the same can be said of 24.1% of the RSG. This could be due to the African group employing smaller
numbers of staff, or it could be that sponsors are more vigilant when it comes to African countries,
requiring more monitoring and evaluation of the projects. This issue should be explored further.
The same disproportionate output in terms of time allocated for advocacy represents itself at 49.1%
of the RNSG and 27.6% of the RSG spending more than 30% of their time on this aspect, but 76.9% of
the ARNSG and 100% of the APSG spending more than 30% of their time on advocacy. Again the
question must be asked – is Africa much, much tougher with consumer affairs, requiring a
disproportionate effort in advocacy, compared to the rest of the world?
The majority of sustainable and not sustainable COs prefers to manage risks through Memoranda of
Agreement/Understanding with partners and constituents. Furthermore the risk of negative publicity
is mainly minimised through publicising positive activities, keeping a record of success stories,
developing and adhering to a code of ethics within the organisation to demonstrate transparency.
3.2 ORGANISATIONAL FINANCIAL PROCESS
The majority (79.3%) of the RSG consumer organisations and 100% of the APSG have an internal
person or team dedicated exclusively to finance work, use of accounting systems and daily
monitoring of financial operations, as opposed to 48.3% of the RNSG and 38.5% of the ARNSG. A
high number of ARNSG, namely 46.5% reported basic financial transactions recorded using
accounting practices and record keeping. It appears as if a more dedicated and hands-on approach in
terms of financial management could well influence the sustainability.
Membership seems to play an important role. 22.4% of RNSG did not report that they are
membership based, but 27.6% of the RSG reported membership bases. However, 55% of the RSG
group have more than 5,000 members while only 8.6% in the RNSG have more than 5,000 members.
None of the African consumer organisations have more than 5,000 members while 50% of the APSG
16 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
have between 1,000 and 5,000 members. It appears that, the more members a consumer
organisation has, the likelihood of sustainability increases.
Relative Sustainability is also linked to the number of project grants secured from
governments/foundations/NGOs/trusts, with 46.4% of RSG receiving more than five project grants
while the RNSG reported that 48.3% received between two and five project grants, with 48.3% that
receive less than two project grants on average during the year. None of the African consumer
organisations receives more than five project grants per annum.
Factors that play a role include the frequency of meetings within the organisation to plan fund
raising. It appears that 70.4% of the RSG held meetings as and when required, rather than at set
times and it appears that 52.6% of the RNSG does the same. The same trend is reflected in the
African consumer organisations.
Government funding plays a role in sustainability. More than two-thirds of the RNSG do not receive
government funding at all, while a smaller percentage (44.8%) reported the same situation for the
RSG. 20.7% of the RSG had full overheads cover by governments as opposed to 10.5% of the RNSG. In
34.5% of cases they reported partial overheads cover within the RSG, while the same was reported
for 22.8% of the RNSG. The African consumer organisations have non-supportive governments, with
92.3% of the ARNSG not receiving any funding, while 50% of APSG reported receiving full funding and
50% reported receiving partial funding. It is very clear that government funding plays an important
role in the sustainability of the organisations. One of the profiled CI members, the Australian
Communications Consumer Action Network (ACCAN) has an annual budget of 1 million USD. ACCAN
receives its core funding from the government of Australia. The funding from the government
enables the organisation to meet its overhead costs (Annexure A).
Among the African members profiled, Youth Education Network, Kenya (YEN) does not receive any
government funding while the Consumer Council of Zimbabwe receives government funding to cover
staff salaries, overheads and administration. ADECOR in Rwanda is partly funded by the government
of Rwanda through the Ministry of Trade and Industry. The Rwanda Bureau of Standards is also a key
financial partner of the organisation (Annexure B).
It appears that government financing of overhead costs plays an important role in sustainability (39%
of the RSG as opposed to 20.4% of the RNSG) while 82% of the RSG reported government financing
for specific programmes and 50% of the RNSG reported the same. However 70% of the RNSG
reported financing from trusts, foundations and other NGOs, while only 46.4% of the RSG reported
the same.
Income generated from projects plays a role in sustainability as illustrated below:
17 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 3: Sustainability and amount of income generated through projects
Q1.33 How much was the income generated from projects in
the last financial year?
Total
Less than
50,000 USD
Between
50,001-
200,000
USD
More than
200,001
USD
Not
applicable
rQ1.22
Total
annual
income
Relatively not sustainable
(under 300,000 USD)
Count 35 10 0 12 57
% within
rQ1.22 Total
annual
income
61.4% 17.5% 0.0% 21.1% 100.0%
Relatively sustainable
(Over 300,000 USD)
Count 5 7 12 5 29
% within
rQ1.22 Total
annual
income
17.2% 24.1% 41.4% 17.2% 100.0%
Total Count 40 17 12 17 86
% within
rQ1.22 Total
annual
income
46.5% 19.8% 14.0% 19.8% 100.0%
Sustainability appears to be linked to income generated from projects. The African consumer
organisations reported 76.9% of the ARNSG, with 50% of the APSG receiving less than 50,000 USD
per annum with none receiving more than 200,000 USD per annum. Projects have the ability to
generate income. The Cyprus Consumer Organisation is involved in a number of funded projects
through which the organisation raises funding. One of the projects that they are involved in is funded
by the Civil Society Programme of the European Union. Another project that the organisation is
involved in is funded by the Delegation of the European Commission to Cyprus. These projects
contribute to the annual income of the organisation and contribute to its sustainability.
In order to bolster the funding that it receives from the government, the Consumer Council of
Zimbabwe has partnered with the Zimbabwe Women’s Resource Network on a four-year project.
Project management might influence sustainability. Only 15.4% the ARNSG and none of the African
consumer organisations that can be viewed as potentially sustainable retrieve more than 15% of the
income generated from projects associated with the organisation’s fixed costs such as salaries, while
39.3% of RSG reported the same.
More money is allocated to governance and management costs when organisations appear to be
more sustainable. In case of RNSG, 65% report less than 15% (ARNSG 53.6%), while 43% of the RSG
(APSG two organisations or 100%) reported the same. In case of the RSG, 32% allocated more than
30% to this purpose while the RNSG reported 10.5%. The money allocated to governance and
management is much smaller for African consumer organisations.
The same pattern as described in the afore-going paragraph manifests itself in terms of support
services or overheads:
18 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 4: Percentage of budget allocated to support services – comparison between RNSG and RSG
Q1.37 When developing your organisation’s annual
budget for operation and overheads, what is the
percentage allocated to support services? Support
services refer to other activities or costs such as
administrative costs including tel/fax/internet/post,
finance
Total Less than 15%
Between 15-
30% More than 30%
rQ1.22 Total annual
income
Relatively not
sustainable (under
300,000 USD)
Count 27 24 7 58
% within rQ1.22 Total
annual Income
46.6% 41.4% 12.1% 100.0%
Relatively sustainable
(Over 300 000 USD)
Count 10 14 5 29
% within rQ1.22 Total
annual income
34.5% 48.3% 17.2% 100.0%
Total Count 37 38 12 87
% within rQ1.22 Total
annual income
42.5% 43.7% 13.8% 100.0%
Less is spent on this aspect by the African consumer organisations, as money is probably diverted to
other causes.
It appears as if research and development plays an important role in the sustainability of the
organisation and while larger percentages are spent on research and development in the RSG, it
appears that the importance of this is realised by all.
Contingency reserves appear to increase according to sustainability. While the RNSG reported that
less than 5% is set aside for contingencies in 77.6% (ARNSG 92.3%) of cases, the RSG had reported
that 50% did the same. While the RNSG reported a 19% contingency between 5% and 15%, the RSG
reported 31%. Only 3.4% reported a contingency of more than 16% for RNSG. 19% reported a
contingency of more than 16% for the RSG. Contingency reserves set aside appear to be determined
by the relative level of sustainability. The contingency reserves are overwhelmingly low, less than 5%
for African consumer organisations.
Streams of income analysed for the RNSG and the RSG:
Table 5: Streams of income: RNSG
RELATIVELY NOT SUSTAINABLE GROUP (RNSG)
N Minimum Maximum Mean Std. Deviation
Q2.2.4.2 Grants from
foundations
26 0 100 47.23 35.922
Q2.2.5.2 Grants from
government
24 0 99 37.29 38.628
Q2.2.11.2 Other (please
specify)
11 0 93 37.27 34.906
Q2.2.6.2 Individual
donations
25 0 95 22.96 29.061
Q2.2.8.2 Membership fees 38 0 100 21.97 27.664
Q2.2.7.2 Magazine or
publication subscription or
sale
17 0 70 17.06 20.468
Q2.2.2.2 Consultancy
services
13 0 50 15.54 17.106
19 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Q2.2.9.2 Testing services 6 0 70 12.50 28.240
Q2.2.10.2 Training services 14 0 40 10.71 12.225
Q2.2.1.2 Advice and
mediation services
9 0 10 5.33 4.243
Q2.2.3.2 Court settlements 4 0 0 0.00 0.000
Valid N (list wise) 4
a. rQ1.22 Total annual Income = Relatively not sustainable (under $300 000)
Table 6: Streams of income: RSG
RELATIVELY SUSTAINABLE GROUP (RSG)
N Minimum Maximum Mean Std. Deviation
Q2.2.7.2 Magazine or
publication subscription or
sale
12 0 100 51.08 38.895
Q2.2.8.2 Membership fees 14 1 100 45.36 37.360
Q2.2.5.2 Grants from
government
19 0 100 37.63 35.140
Q2.2.4.2 Grants from
foundations
12 0 70 23.33 27.635
Q2.2.11.2 Other (please
specify)
6 1 40 15.50 13.795
Q2.2.6.2 Individual
donations
3 0 15 7.67 7.506
Q2.2.1.2 Advice and
mediation services
5 1 15 6.40 6.066
Q2.2.2.2 Consultancy
services
4 0 10 4.00 4.546
Q2.2.3.2 Court settlements 4 0 4 2.00 2.309
Q2.2.10.2 Training services 3 1 2 1.33 .577
Q2.2.9.2 Testing services 3 0 2 1.00 1.000
Valid N (list wise) 1
a. rQ1.22 Total annual Income = Relatively sustainable (Over $300 000)
It is clear from the above that the RSG differ in the ranking of their streams of income from those of
the RNSG.
Question 61 of the survey requested the responding consumer organisation to submit suggestions to
strengthen their organisations’ capacities to become more sustainable. Unfortunately this question
was used by most to clarify responses to other questions or point out difficulties in answering certain
question or it was simply used to explain their situations. Therefore the responses did not set clear
indicators for the future, but suggestions emanating from the responses are nevertheless meaningful
and include possible income from:
• Research and publications
• Training
• Consulting
• Government funding
• Membership fees
• International support
• Donor funding
• Staff development
• Social enterprise model
20 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
• Better marketing and consumer awareness
In addition to the above, one of the profiled organisations that heavily relies on publications, is
Consumer Reports, based in the USA. The organisation generates more than 2 00 million USD in
revenue through its publications and websites. Consumer Reports is one of the top-circulation
magazines in USA and Consumer Reports.org has the most subscribers of any website of its kind.
All the organisations profiled rely on membership fees to meet some of their operational costs. This
underlines the importance of membership fees for CI members.
3.3 PROGRAMMATIC SUSTAINABILITY
Communicating with various stakeholders also seems likely to play a role on sustainability.
Programmes that are put in place seem to play a role on whether COs are sustainable. Data suggests
that the RSG held more meetings (69%) while the RNSG spent less time on meetings (22.4%) with
government agencies. It would then mean that the RSG were bringing about awareness and further
engaging various stakeholders on issues of sustainability. Within this arena they were promoting
social and economic justice. None of the RSG group still had to engage with government agencies,
while 6.9% of RNSG still had to engage with government agencies.
The writing of letters could play an important role on the sustainability of organisation. 72% of the
RSG wrote more than 21 letters to government organisations within the last 12 months. Of the RNSG
only 31% wrote more than 21 letters to governments. The results for engaging with companies to
deal with consumer issues were similar. The RSG (76%) wrote more than 21 letters in last 12 months
and the RNSG 45%. 3.4% of the RNS still had to write letters, the RNSG reported a higher percentage
at 12.1%. The results of the survey show that letter-writing can be a factor in sustainability. This
trend is also evident in the African consumer organisations. One may be tempted to deduct that this
also has to do with being relevant and well-positioned as an organisation.
In other areas of activity, the RSG reported higher activity than the RNSG. This also applies to the
African consumer organisations. The frequency of the following activities appears not only to be
statistically and practically significant, but is believed to have a direct bearing on the perceived
sustainability or potential sustainability of the organisation:
• Letters to companies addressing relevant consumer issues
• Meetings, discussions and consultation held with companies addressing consumer issues
• The number of issue-based networks the COs are part of. RSG groups stated to have more
than six networks (64.3%) and of the RNSG, 37.9% stated that they have between one and
three networks
• Number of advocacy campaigns conducted by the COs. 52% of the RSG stated to have
conducted more than four campaigns a year, whereas 34% of the RNSG stated more than
four campaigns a year
21 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
(The above statement is compounded by the fact that advocacy campaigns also seem to
play a role. Both the RSG and the RNSG make use of the social media such as Facebook and
twitter. Of the RSG, 66% used social media and 47% of the RNSG used social media.
Respectively the use of traditional media was relatively similar between the RSG and the
RNSG).
• Courts and tribunals seemed to have a higher effect on the RSG (55.2%), while the not
sustainable group reported this at 22.4%. This could account for more advocacy and activism
on the side of the RSG as opposed to the RNSG
• Number of civil society organisations that received support or services from the COs
• Number of private corporations that received support or services from the COs
• Number of government agencies or inter-government organisations that received
support/services from the COs.
From the above it is clear that the number of civil society organisations, private corporations and
government agencies that received support from the COs does not necessarily reflect an equal
number providing support for the COs.
Table 7: Influencing policy process
Q1.46 How do you describe your organisation’s
capacity to influence policy processes?
Total
The
organisation
has had less
than 5
activities or
occasions to
engage in
policy-making
process, or
attending
stakeholder
The
organisation
has had more
than 5
activities or
occasions to
engage in
policy-making
process, or
attending
stakeholder
The
organisation
has had more
than 5
activities or
occasions to
engage in
policy-making
process, or
attending
stakeholder
rQ1.22 Total annual
income
Relatively not sustainable
(under 300,000 USD)
Count 15 18 25 58
% within rQ1.22 Total
annual income
25.9% 31.0% 43.1% 100.0%
Relatively sustainable
(Over 300,000 USD)
Count 1 5 23 29
% within rQ1.22 Total
annual income
3.4% 17.2% 79.3% 100.0%
Total Count 16 23 48 87
% within rQ1.22 Total
annual income
18.4% 26.4% 55.2% 100.0%
The RSG organisations engaged more frequently with policy makers. It was reported that 79.8% of
the RSG had more than five activities or occasions where they engaged with policy makers. Only
43.1% of the RNSG reported to have engaged with policy-makers on five or more occasions. More
activities were carried out by the RSG than the RNSG. By working towards the development of
consumer rights, the RSG were more widely known.
Conducting meetings with task force organisation seems to also play a role. The data suggests that
organisations that engage with international task forces were higher (76%), with the RNSG reported
at 55%.
22 | P a g e C o m m i s s i o n e d b y C o n s u m e r s I n t e r n a t i o n a l
Table 8: Sustainability and reach: individuals who have benefited from consumer education
The RSG organisations reported a higher portion of individuals benefiting from the consumer
education and services that they provide. Of the RSG, 76% stated that more than 25,000 individual
consumers benefited from their services. Within the RNSG only 32.8% stated that more than 25,000
individuals benefited, while 38% reported less than 5,000 and 29% less than 25,000 individual
customers benefitting. One may argue that the larger income enables the RSG to reach more
consumers.
The COs described how their organisations contributed to consumer protection as follows:
Table 9: Sustainability impact to contribute to consumer protection
Q1.56 Please describe how your organisation has contributed
to consumer protection in your country?
By affecting
change (in
policy,
consumer
behaviour,
corporate
practices,
etc.)
By creating
a conducive
environment
for
consumer
protection
(e.g.,
consumer
information
and
education for
making
smart
choices
By affecting
change and
creating a
conducive
environment
for
consumer
protection
(combination
of both a
and b)
Consumer
protection
environment
in the
country is
yet to be
enabled in
order to
support the
organisation’
s capacity to
c
rQ1.22 Total annual
income
Relatively not
sustainable (under
300,000 USD)
Count 5 14 35 4
% within rQ1.22 Total
annual income
8.6% 24.1% 60.3% 6.9%
Relatively sustainable
(Over 300,000 USD)
Count 1 4 23 1
% within rQ1.22 Total
annual income
3.4% 13.8% 79.3% 3.4%
Total Count 6 18 58 5
% within rQ1.22 Total
annual income
6.9% 20.7% 66.7% 5.7%
Q1.49 Number of individual consumers that have
benefited directly from your work (i.e., from service
provision like consumer education or complaints
handling) during the last 12 months?
Total
Less than
5,000
Between
5,000 and
25,000
More than
25,000
rQ1.22 Total annual
income
Relatively not sustainable
(under 300,000 USD)
Count 22 17 19 58
% within rQ1.22 Total
annual income
37.9% 29.3% 32.8% 100.0%
Relatively sustainable
(Over 300,000 USD)
Count 2 5 22 29
% within rQ1.22 Total
annual income
6.9% 17.2% 75.9% 100.0%
Total Count 24 22 41 87
% within rQ1.22 Total
annual income
27.6% 25.3% 47.1% 100.0%
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4. FINDINGS AND RECOMMENDATIONS
Dr Susan Steinman
This section recaps the findings which were discussed extensively in Section 3 of this document and
then make recommendation for the road forward.
4.1 FINDINGS
The findings of this report will indicate that sustainability is not only about receiving grants from
government or elsewhere, but that COs must act, think and move towards the social enterprise
paradigm to survive hard times. While those receiving adequate government grant funding are in an
advantageous position, those that aren’t so fortunate should be able to generate funding through
“multiple income generating streams” (MIGS).
The findings will point out the factors on the institutional, financial and programmatic level that
could strengthen the not sustainable COs and in particular the African COs in their bid to become
sustainable. It must be emphasised that a holistic approach must be followed in terms of
sustainability.
4.1.1 Institutional Sustainability
As far as institutional sustainability is concerned, the issue of governance is important and
sustainability appears to be linked to a transparent election of board members or directors that can
be held accountable. On the operational level, strategic planning, the sustainable consumption
practices, the implementation of equal opportunities, access to or improvement of ICT facilities, good
human resource management and lower staff turnover are factors that must be considered.
It appears as if the African COs are stressed and they try harder (dedicate more time) but raise less
funds than those organisations that are sustainable. This could perhaps explain why important
sustainability factors do not receive the attention they should. A disproportionate amount of time is
spent on programme monitoring and evaluation in African COs, while there is a more realistic time-
frame for sustainable organisations. The same applies to advocacy efforts.
4.1.2 Organisational financial process
It is heartening to know that the large majority of RSG COs and 100% of the APSG have an internal
person or team dedicated exclusively to finance work, but even the less sustainable COs prefer a
dedicated person/team. A hands-on approach in terms of finance is essential. The more members a
consumer organisation has, the greater the likelihood of relative sustainability. The number of
project grants impact sustainability and the African COs are the worst off in terms of receiving
project grants. This is also reflected in the income generated from projects. Sustainability is further
linked to the frequency of meetings to raise funds and strategise.
Project management influence sustainability because ARNSG retrieve very little from the funds rose
through projects to cover their own operational cost which indicates that “costing skills” could be
lacking. Money spent on governance and management is much less for ARNSG than for the RSG.
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Similarly the same pattern manifests itself in terms of budgeting for operational overheads and
support services. It may be that the African COs spent less on these because of other priorities.
Contingency reserves grow with sustainability and can be regarded as a sure indicator of
sustainability.
Streams of income rank in popularity as follows in terms of the RNSG and the RSG with the same
trend represented at the African COs
Table 10: Streams of income ranking for RNSG and the RSG comparison
RANKING RNSG RSG
1 Grants from foundations Magazines or publication subscription or sales
2 Grants from government Membership fees
3 Other Grants from government
4 Individual donations Grants from foundations
5 Membership fees Other
6 Magazine or publication subscription or sale Individual donations
7 Consultancy services Advice and mediation services
8 Testing services Consultancy services
9 Training service Court settlements
10 Advice and mediation services Training services
11 Court settlements Testing services
In an open-ended question requesting the respondents to identify other streams of income that
could make them more sustainable, they identified the following possibilities:
• Research and publication: the majority of organisations stated that they have research and
publication as a key component in raising funds. Taking part in conferences and being part of
a network enabled them to engage with different organisation on key components of
consumer issues in their respective countries and also on international levels.
• Training: organisations also elected to provide training services on consumer related issues
(consumer rights and fair trade competition). Other organisations also stated that they
needed training in terms of raising funds and capacity development at their organisations.
• Consulting: providing consulting services was mentioned as a major component for
sustainability, as this is where the bulk of funding emerged from.
• Government funding: some organisations stated that they received funds from government,
but that more funding was needed from government organisations. It would allow for mass
mobilisation for organisations to work with communities and consumers.
• Membership fees: These fees constitute a large portion of funds received at various
organisations. Members also privately funded the organisations.
• International support: international donors were seen to have the potential to play a role in
the development of capacity for the various organisations, particularly those interested in
promoting consumer rights, but also to engage government and policy makers on these
issues.
• Donor funding: donor funding (both nationally and internationally) was viewed as pivotal to
sustainability within the various organisations. The view was that organisations can begin to
work with partner countries i.e. those in Europe. This could help to develop international
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ties. The development of proposals and projects could be handled jointly. This enables a
process where there is a strong information exchange between consumer organisations.
• Staff development: developing staff and keeping them within the various organisations so
that there is no loss of human capital. Staff should also receive financial training. Awareness
is also needed to know how to apply for funds and the channels that need to be followed.
• Social enterprise model: The social enterprise model and the diversification of streams of
income are seen as good survival strategies.
• Better marketing and consumer awareness: This could, according to some participants, lead
to more income
4.1.3 Programmatic Sustainability
The sustainable group communicate significantly more with their stakeholders, on all levels. They
write more letters to government organisations, companies and agencies. This could well help with
the positioning of the CO as a force within the country. Other activities such as meetings, discussions
and consultation with companies and government, networking, advocacy campaigns, the use of
social and traditional media, participating in court and tribunals, support to stakeholders (not always
reciprocated), participating in policy-making, the number of individuals benefitting from the CO are
of importance
How the CO views itself is of importance as this will affect every level of operation.
4.2 RECOMMENDATIONS
4.2.1 A need for training
The findings as set out in 4.1 above indicate a need for training, specifically for the African consumer
organisations. Basic business skills for social entrepreneurs covering governance, marketing, finance,
costing, project management, strategic management, entrepreneurship and innovation, drawing up
a business plan, preparing a fund-raising proposal and so on, could go a long way to enable the
African COs to become more sustainable. It is clear that the RNSG and in particular the large ARNSG
need to be exposed to best practices and skills that could help them towards sustainability.
A good example of how training can benefit the African COs: it was noted that the ARNSG spends a
disproportionate time on monitoring and evaluating projects. Training in project management skills
could be very helpful and could save money. It could yield a higher return on investment for the
African COs.
4.2.2 Governance
The issue of governance is important because the more sustainable COs elect board members and
hold annual general meetings. This is also important in terms of legislation in many countries, as well
as keeping the reputation of the movement above reproach. The CI plays a very important role in
assisting its members to follow a prudent route in terms of governance.
4.2.3 Switching from grant dependency to social entrepreneurship
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Grant-dependency is simply no longer an option. Non-profits and COs alike will have to increasingly
earn income through trade to carry out their social missions. Social entrepreneurship is about making
a difference, about changing the landscape in a sustainable way. According to an article in The Star
newspaper “social entrepreneurship is about talented energetic risk-takers who want to make a
difference in the world through their ideas and their efforts, idealism that resonates particularly with
today’s youth. Increasingly it is the millennial generation that is responding to the need to find big
ideas that can change the society and is putting those ideas into action” (http://www.iol.co.za)
According to the newspaper article, more and more young people turn to social entrepreneurship to
find new models to solve existing problems and to create new and tenacious business models, but
also initiatives that could genuinely impact the African continent positively.
Social entrepreneurship encourages innovation and thinking out of the box to solve problems – this
includes raising funds and in the case of Africa, COs surviving and protecting the rights of consumers
despite limited resources. It is about a way of thinking and solving problems in a sustainable manner.
While social enterprises can take on many legal business forms, a social enterprise is about doing
good and being sustainable. That could make the difference for the African COs that deal with more
challenges than any of the other COs in the world. African COs can make the switch to social
enterprises, to further their causes.
4.2.4 The Multiple Income Generating Streams (MIGS) Model
It is essential that African COs put on their social entrepreneurial caps and vigorously pursue multiple
income generating streams. Sustainability has to do with the CO’s ability to engage every possible
avenue of income – training, research, consultancy, magazines, conferences and more. If all expenses
are not paid by government, the social entrepreneurial model is the way forward. The African COs
cannot afford the luxury of being grant-dependent. It is a developing continent and the COs struggles
to be sustainable. They cannot deliver the important missions they set out to do.
While the findings in 4.1 above outline the options for income generation, every country and every
organisation is unique. All COs should therefore select that which would suit the circumstances in
their countries best.
It is inevitable that COs trade and offer an indispensable service to the public. The following streams
of income should be included:
• Membership fees remain important sources of income for many sustainable COs and are
definitely a good stream of income for African COs, as the profiles in Annexure B shows.
However, it takes sound marketing, using social and electronic media to reach more potential
members. Strong networking and positioning within the civil society, as is the case with
ABUCO in Burundi, are also helpful in positioning the CO within society and to draw
membership.
• The strong international COs and the South African CO publish a magazine or newsletter. A
publication can be very profitable if it contains consumer news that adds value for the
consumer. The better the magazine, the higher the possibility of a profit to be used for
consumer-related activities.
• Testing centres for automobile and other products, moving the CO forward into strong
advocacy, are another good possibility.
• Government funding, although helpful is not always forthcoming in Africa and therefore a
healthy relationship with government officials and strong lobbying on this front could change
the picture for those African COs not receiving any government funding.
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• Donor funding through foundations and NGOs must be pursued vigorously and value must be
offered to supportive organisations, through recognition or project management.
• Trading: sell something whether it is lotto tickets as is the case with the Cyprus CO, cell
phone airtime discounts or whatever commodity. It is important to supplement grant income
with money earned from activities to carry out the mandate of the CO.
• Local and international partnerships are of great importance.
• Research can position the CO, but can also be a stream of income for COs. This can be done
in partnership with local universities.
• COs becoming trainers themselves and training of consumers, through funding by local skills
development agencies or government departments, could be considered. There is a dire
need in rural and other areas for greater consumer awareness.
• Consulting, advice and mediation services could bring in income. It should never be totally
free of charge and COs must be seen to put a value on their role in the market.
The above does not exhaust the list of income streams, but rather captures the “must have” MIGS
that could lead to sustainability.
4.2.5 Incubation
The best way forward is to incubate the African COs by creating an “ecosystem” of support. An
ecosystem could consider making the COs part of a network, accelerate growth through a virtual
incubator, workshops, training, and even a business development consultant. It may be worthwhile
for CI to explore the possibility of engaging a sponsor to accelerate the sustainability of the African
COs through incubation or partial business incubation.
4.2.6 Seed funding
The importance of seed funding cannot be over-emphasised. In many cases seed funding can really
set organisations on a sustainability track. The CI needs to find funds to assist struggling COs to get
off the ground or “launched” so to speak. Assistance in the early days could be of great value. Local
universities can also be engaged to provide technical assistance with a sustainability plan and in
developing a proper business plan.
4.2.7 The Business Model as part of the Business Plan
As the “strategic component 2”, a document provided to the researchers by Consumers
International, refers to business models, in particular “traffic light” classification. Although the
researcher was not asked to use this as a basis, it needs to be mentioned that the concept is a
relatively unknown in South Africa. However, the traffic light coding system could be useful in
identifying key areas to look at institutional capacities as well as human resources.
For instance traffic light coding can be applied to each component of the business model in the and
in drawing up the business plan, one can develop a turnaround strategy. Furthermore the Weigner
matrix could be used in prioritizing those activities and developing indicators.
However, one must be careful not to compartmentalize or “prescribe” a model, but rather allow
each of the CI members to develop their own model within their unique environment using tools
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such as the business canvass model, traffic light coding, the Wiegner matrix and the many templates
available for a business plan.
According to the CI there are about nine business models that were identified. These models are
attached as Annexure C.
Business model is a term that is very loosely used in our day-to-day conversations and the meaning
vary considerably. For most people the term business model either refers to the revenue model or
the operating model. But, business model should be much more than that.
There are many types of business models, some better known than others. In this document it is
claimed that most consumer organisations exist as non-government and non-profit organisations.
The business model ascertains how your business makes money. It identifies the services that your
customers value and shows the reciprocation of funds for the services your small business renders to
your customers while the business plan provides the details of your business. It takes the focus of the
business model and builds upon it. Overall, the business plan supports the business model and
explains the steps needed to achieve the goals of that model and is therefore completely dependent
upon the business model (http://smallbusiness.chron.com/differences-between-business-plan-
business-model-4744.html
Therefore the business model canvas (www.business modelgeneration.com) is proposed to enable
COs to develop a business model suitable for their needs.
It must be emphasised that the streams of income and circumstances of each of the different
consumer organisations vary immensely and therefore there are no one-size-fits-all business model
but it is suggested that the business model – forming the basis and ultimately part of a
comprehensive unique and tailor-made business plan take the following into consideration:
• Key Partners – identify key partners such as members, the network, donors, government,
corporate supporters, networks, suppliers and the activities they engage in.
• Key Activities – What key activities does our value proposition require, what are our
distribution channels, what activities will relate to our consumer relationships and revenue
streams? These would include advocacy, lobbying, research, engagement with policy
drafting, marketing of the services, the CO and project management.
• Key Resources – What key resources does our value proposition require? Distribution
channels, consumer relationships and revenue streams? The media and media coverage,
newsletters, the internet, office space, equipment, staff, volunteers?
• Value Proposition – What value do we deliver to stakeholders? Which problem(s) are we
helping to solve? What are the products we offer and which customer needs are we
satisfying? The main value would be protecting the rights of consumers by offering an advice
or testing service, following up on complaints, advocacy for policies, research on consumer
issues, newsletters and news about consumer issues.
• Stakeholder Relationships – What type of relationship do we have with our stakeholders?
How do we need to establish and maintain the relationships, how are we establishing the
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relationships, how loyal are our customers? Do COs always increase their number of
members and do they keep in contact. Does the consumer know where to contact the COs,
do they know enough about the CO to trust them, and does the CO contact them through
newsletters, advertisements and other forms of visibility within the community?
• Channels – through which channels do our customers, want to be reached and how are we
reaching them? Are our channels integrated and which ones work best and are most cost-
efficient? Is the CO using the social media, newsletters, the internet or general visibility in the
community to get the message across?
• Customer Segments – For whom are we creating value and who are our most important
customers? The consumers are the customer segment the COs is serving, but other
customers could also be those to whom the CO sells its services (such as research).
• Cost Structure - What are the most important costs inherent to our business model and what
key resources and key activities are most expensive. Most expensive aspects would be
salaries, office space, IT and overheads. All costs and applications for sponsorships would be
structured around this.
• Revenue Streams - What value are our customers willing to pay for/contribute/donate and
what do they currently pay for? How are they paying, contributing or donating? How
diversified are our streams of income and how do we generate income? How much does
each revenue stream contribute to our overall revenue? Revenue streams are through
memberships, selling of services e.g. research, training, consulting. Some even sell lotto
tickets or engage in public-private partnerships
(More on www.businessmodelgeneration.com)
According to this model the Google Business Model will look as follows:
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Table 11: Example of Google Business Model
A good business model will form the basis of the business plan. There are many templates and tools
available on how to compile a business plan. Notably, the tool of the International Labour
Organisation, to create a Social Business Plan, may be used by African COs. It is easy to obtain.
Universities could also be helpful in assisting the local African COs.
4.2.8 Engaging the African Union, NEPAD and SADC
While the European counterparts actively engage the European Union in their funding efforts, the
African COs should engage with the African Union, NEPAD and SADC bodies or relevant sub-
committees. A delegation of the CI should try to lobby on that level for the support of the African
COs. Incidentally the COs initiatives complement the AU/NEPAD Development Plan 2010-2015 in
terms of governance, which is seen as the basis for sustainable development. Governance is
interlinked with institutionalised values such as democracy, observance of human rights,
accountability, transparency and greater efficiency and effectiveness of the public sector. Good
governance ensures that political, social and economic priorities are based on broad consensus in
society and that the voices of the poorest and the most vulnerable are heard in decision-making over
the allocation of development resources. Improving good governance in Africa is of central
importance. Governance is seen as an effective means of enabling and guaranteeing development,
building and/or restoring stability as opposed to conflict in countries, regions and sub-regions.
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The fact that the COs are within the field of governance of consumers’ rights make them important
role-players, deserving of a voice on the important platforms such as African Union, NEPAD and
SADC.
4.3 IN CONCLUSION
It is a long road to sustainability for those African COs that struggle most. It is evident from the
research that the African COs try harder, but get far less than their counterparts in the rest of the
world. The impediments of working in a developing country cannot be ignored.
However, sustainability is within reach of all these organisations if they could follow the MIGS model
and become social enterprises, not charities. This is the difference between winning and losing the
battle in a very tough market. It requires innovation, determination and skills to beat the odds and
serve the interests of the consumers.
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5. REFERENCES
Consumers International. (2012). Global Survey on sustainability for CI members. Surveymonkey.
Locke, K.D. (2001). Grounded theory in management Research. SAGE series in Management
Research. SAGE.
Kinash, S. (2010). Paradigms, Methodology and Methods. Bond University, Australia.
Steinman, S.M. (2008) A Draytonian Changemaker: The Story of a Social Entrepreneur. PhD thesis.
University of Johannesburg.
Steinman, S.M. (2011) The need for a state-civil society dialogue to develop public policies for the
social and solidarity economy. Theme: work and employment. A case study of South Africa. FIESS,
Canada.
Tashakkori, A & Teddlie, C. (198) Mixed Methodology. Thousand Islands: SAGE Publications.
Websites visited:
Business Model Generation. Retrieved on 20 December from
http//www.businessmodelgeneration.com
Consumers International. Retrieved from 1 November fromhttp://www.consumersinternational.org
Non-profit Organizations. Retrieved on 2 December fromhttp://www.wikipedia.org
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ANNEXURES
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ANNEXURE A
PROFILES OF MOST SUCCESSFUL INTERNATIONAL CI MEMBERS
By Rejoice Shumba
1. Australian Communications Consumer Action Network (ACCAN)
Introduction
The Australian Communications Consumer Action Network (ACCAN) is Australia’s peak body for
consumer representation and advocacy in communications. It represents residential consumers and
small businesses including not-for profit organisations in so far as they are consumers. ACCAN
focuses on goods and services encompassed by the converging areas of telecommunications, the
internet and broadcasting, including both current and emerging technologies.
The organisation aims to empower consumers to make good choices about products and services. As
a peak body, ACCAN activates its broad and diverse membership base to campaign to get a better
deal for all communications consumers. Member groups include community legal centres, disability
advocates, indigenous organisations, financial counsellors, regional organisations, farmers’
federations, parents groups, senior’s organisations as well as 30 or so interested individuals.
Organisation name and acronym: - Australian Communications Consumer Action Network (ACCAN)
First name: - Elise
Surname: - Davidson
Position: - Media & Communications Manager
Country: - Australia
Work email: - [email protected]
Telephone no (including country code): - +61292884010
General e-mail of the organisation: - [email protected]
Website URL: - www.accan.org.au
Twitter: - @ACCAN_AU
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ACCAN formally began on July 1 2009, growing from an amalgamation of smaller groups like the
Consumers Telecommunications Network and Tedicore. The organisation currently has a nine-person
board of governance, and two nine-member consumer advisory body
ACCAN’s mission is to:
• Campaign for consumers and the public interest, with particular emphasis on the needs of
consumers for whom the market is not working.
• Inspire, inform, enable and equip consumers to act in their own interests.
• Research emerging consumer and technology issues.
The organisation reaches its objectives by using the following strategies
• Influence the government and industry so the communications market is fair and inclusive for
all.
• Influence government and industry to protect network standards and consumers’ privacy and
security
• Enable consumers to make informed choices.
• Identify and engage on emerging communications consumer issues and technologies.
• Ensure adequate and sustainable resources for effective operations.
• Maintain ACCAN independence.
Funding strategies
The organisation has an annual budget of more than 1 million. In comparison to other CI member
organisation, this is a relatively large annual budget. ACCAN receives its core funding from the
government of Australia. In addition to the core funding, the organisation also engages in
The organisation conducts his finances with prudence. The organisation has an internal person or a
team dedicated exclusively to finance work, use of accounting system, daily monitoring of financial
transactions and financial records maintenance, external audits on an annual basis.
The organisation raises funds for its operations in three main ways:
• Self-financing (membership fees, publishing, testing, consultancy and advisory services)
• Government financing for overhead costs and pledges
• Conference revenue
The bulk of the funding comes from government financing for specific programmes and membership
fees.
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Using the amount of money in reserves left over in a financial year as a marker for sustainability, the
organisation makes between 5-16%. This seems to be sustainable organisation as compared to a
number of the CI member organisation.
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2. Consumer NZ Incorporated CNZ
Organisation name and acronym: - Consumer NZ Incorporated CNZ
First name: - Suzanne
Surname: - Chetwin
Position: - Chief Executive Officer
Country: - New Zealand
Work email: - [email protected]
Telephone no (including country code): - 00648012071
Fax no (including country code): - 00643858752
General e-mail of the organisation: - [email protected]
Website URL: - www.consumer.org.nz
Twitter: - twitter.com/consumernz
Introduction
Established in 1959, the New Zealand Consumer organisation aims ‘to get the best deal for New
Zealand Consumers’. The organisation is involved in a variety of activities related to consumer
protection and information. Their work includes
• comparative tests and surveys of consumer goods and services;
• research into and advice on financial, food, health, safety, welfare and environmental
matters;
• representation at parliamentary committees and public enquiries;
• an interest in consumer education and complaints advisory work.
Funding strategy
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Test reports
• Desktop all-in-ones
• Food processors
• Lawnmowers
• Stick vacuum cleaners
• Vacuum cleaners
• Washing machines
Research reports
• Buying glasses
• Christmas gift guide
• iPhone 5 vs Galaxy SIII
• Retirement savings - first steps
• Supermarket prices
Watching brief
• Consumers win from law reform
Major retailers repeat FTA offenders
• Smiths City payment protection insurance
• Taxes on overseas purchases
• Vitamix blender
Editorial
• Editorial: On notice
• Letters to the Editor
The bulk of the funding for the
organisation’s activities comes
from the sale of publications
and membership to consumer
magazines and consumer
.org.nz.
The organisation aims to
maintain its independence,
therefore, it does not accept advertising in any of their publications in order to protect the
impartiality of their reporting. In addition the organisation never accepts free goods for testing, nor
do they accept donations or sponsorships. Their publications are completely independent and have
no ties with any commercial firm or organisation
Consumer magazine is available by subscription or on the newsstand at all key supermarkets and
bookstores. Subscribing gives the convenience of the magazine being delivered to the door of the
customer, plus access to subscriber advice service. The consumer magazine contains independent
tests reports, and best buy recommendations. It is a monthly magazine which produces 11 magazines
per year
The magazine has a readership of 65 000 people. Currently, the cost of the magazine is $53 for 6
months
Their in-depth reports cover a wide range of topics such as appliances, cars, computers, phones,
groceries and food, health, home and DIY, legal rights, money, insurance, mortgages and much,
much more.
The organisation maintains that they buy all the products that they test right off the shelf just as a
consumer would do. They do not accept any sponsorship or advertising of any kind so the
information that the consumer get is completely objective.
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3. Consumer Reports (CR)
Organisation name and acronym: - Consumer Reports (CR)
First name: - Jean
Surname: - Halloran
Position: - Senior Adviser, International Affairs
Country: - USA
Work email: - [email protected]
Telephone no (including country code): - 914-378-2457
General e-mail of the organisation: - none
Website URL: - consumerreports.org and consumersunion.org
Consumer Reports (CR) is an expert, independent, non-profit organisation whose mission is to work
for a fair, just, and safe marketplace for all consumers and to empower consumers to protect them.
The organisation was founded in 1936 when advertising first flooded the mass media. The founders
of the organisation realised that consumers lacked a reliable source of information that they could
depend on to help them distinguish hype from fact and good products from bad ones. Since then CR
has filled that vacuum with a broad range of consumer information. To maintain its independence
and impartiality, CR accepts no outside advertising and no free samples and employs several hundred
mystery shoppers and technical experts to buy and test the products it evaluates.
Consumer Reports, is one of the top-circulation magazines in USA, and ConsumerReports.org, has
the most subscribers of any Web site of its kind, in addition to two newsletters, Consumer Reports
on Health and Consumer Reports Money Adviser. They have combined subscriptions of more than 8
million. All of CR’s work is informed by the more than 1 million readers who respond to the Annual
Ballot & Questionnaire, among the largest and most comprehensive consumer studies in the world.
In 2008, CR also launched several initiatives, including ConsumerReportsHealth.org and the
Consumer Reports Health Ratings Centre, which serve to educate and empower consumers to make
more informed health-care decisions and to help change the market.
To further advance its mission, Consumer Reports employs a dedicated staff of lobbyists, grassroots
organisers, and outreach specialists who work with the organisation’s more than 600,000 online
activists to change legislation and the marketplace in favour of the consumer interest.
The organisation generates more than $200 million in revenue, and a staff totalling more than 600
works at CR's 50 state-of-the-art labs and offices in Yonkers, N.Y.; its 327-acre Auto Test Centre in
East Haddam, Conn.; and three advocacy offices, in Washington, D.C., Austin, Texas, and San
Francisco. Consumer Reports is governed by a board of 18 directors who are elected by CU members
and meet three times a year.
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Since its first issue in 1936, Consumer Reports (CR) has never accepted paid ads. Free from the
pressures of advertisers and commercial influence, Consumer Reports has tackled some of the
toughest safety issues of the time, evaluating new products and technologies and warning about
potential dangers. From seat belts to strontium-90, lawnmowers to locks, and hazardous vehicles to
heaters, Consumer Reports has been on the cutting edge of reporting risks and striving to improve
the quality of the consumer marketplace.
Consumer Reports operates the largest and most sophisticated independent automobile testing
centre dedicated to consumer interest anywhere in the world. Situated on 327 acres in rural
Connecticut, the Consumer Reports Auto Test Centre is home to more than 20 staff members,
including automotive engineers, technicians, and support staff. Consumer Reports buys,
anonymously, all the cars it tests, about 80 per year, and drives each for thousands of miles.
Formal testing is done at the track and on surrounding public roads. The evaluation regimen consists
of more than 50 individual tests. Some are objective, instrumented track tests using state-of-the-art
electronic gear that yield empirical findings. Some are subjective evaluations-jury tests done by the
experienced engineering staff. These videos will provide further insights into the ways that Consumer
Reports evaluates new cars to help its readers make smart, informed choice.
Products are tested by engineers and technicians with years and sometimes decades of expertise in
their field. They live with the products for several weeks, putting them through a battery of objective
tests using scientific measurements, along with subjective tests that replicate the user experience.
We test products against existing industry or government standards and develop our own
benchmarks when we encounter new technologies or issues that require further testing. All models
within a category go through exactly the same tests, side by side, so they're judged on a level playing
field, and test results can be compared.
Testers focus on a product's primary function (evaluating image quality for TVs and cameras, for
example) and some secondary functions, too (sound quality for TVs or photos shot with a cell-phone
camera). They evaluate whether features add to usability or just make an item more complicated.
They check ergonomic functions (how intuitive controls are and how comfortable a keyboard is) and,
where appropriate, consider battery life, speed, and other attributes.
The testers use a product as any consumer would. For example, they assess how long a laptop
computer's battery will last when running everyday applications, such as word processing and photo
editing, or how quickly a digital camera can shoot photos at a fast-moving soccer game.
At Consumer Reports, they believe that objective, impartial testing, reviews and Ratings are critically
important for consumers. That is why they have a strict "No Commercial Use Policy" preventing the
use of their name and information for any promotional or advertising purposes. The policy helps
ensure that avoid even the appearance of endorsing a particular product or service for financial gain.
The policy also guarantees that consumers have access to the full context of their information and
are not hearing about our findings through the language of salesmanship.
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4. Cyprus Consumers` Association
Organisation name and acronym: Cyprus Consumers` Association - CCA
First name: - Giorgos
Surname: - Stylianou
Position: - Coordinator
Country: - Cyprus
Work email: - [email protected]
Skype: - n/a
Telephone no (including country code): - 0035722516112
Fax no (including country code): - 0035722516118
General e-mail of the organisation: - [email protected]
Website URL: - www.katanalotis.org.cy
Twitter: - n/a
Facebook: - ????????? ????????? ???????????
LinkedIn: - n/a
Introduction
The Cyprus Consumers Association was founded in 1973 and joined the Consumers' International as
a full member in 1980 and BEUC in 2002. It is a non-political, independent, non-governmental
Consumers' Organisation.
The Association is managed by a 19-member Council elected every two years during a General
Assembly. Committee members offer their services voluntarily. At present the Association employs
three full-time staff members and two part-timers, one at each of its regional offices in Limassol and
Larnaca. The Association has around 1400 paying members but it provides services to all Cyprus
Consumers.
While the Association campaigns on all consumer issues in Cyprus, their main priorities at both local
and European Union level are consistent with of the European Commission’s new strategy for
consumer policy (2002-06), which emphasises the need to
• ensure a high common level of consumer protection;
• guarantee effective enforcement of consumer protection rules;
• involve consumer organisations in EU policies and its potential impacts in both communities
of the island.
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These objectives are being pursued through a range of measures and are intended to make it easier
to integrate consumer concerns into all other EU policies, to maximise the benefits of the single
market for consumers and to prepare for enlargement.
The Association is very active in promoting public awareness and active citizenship of consumers,
consumer education and sensitivity on a wide and diverse variety of areas and issues pertaining to:
• Food Safety
• Product Safety
• Food Hygiene
• Health Care
• Genetically Modified Organisms
• Family issues
• Services to Consumers
• Consumer Rights
• Legislation
• Information and Communication Technologies
Furthermore, since its inception in 1973, and notwithstanding its financial restraints, the Association
regularly undertakes important market surveys regarding prices of goods, display of goods,
cleanliness, ease during shopping, awaiting time at cashiers, parking facilities etc., aimed at achieving
a high level of consumer protection for all consumers in Cyprus.
The activities of the organisations include:
Lobbying
The Association is very active promoting consumer interest in public life. Its representatives sit on
Cyprus Standards Committees, on the Government Council for Consumer Affairs, on Parliamentary
committees when dealing with Consumers' matters. It also participates in some 30 advisory
Committees on various issues connected with the consumers.
Advocacy
The Association is working to advance and affect pro-consumer policy on a variety of issues by
working with public officials and governmental agencies to promote beneficial policies and oppose
harmful policies and disseminating information on consumer issues to the public and the media, as
well as to policy makers and other public interest advocates.
Strengthening Consumer Protection in Cyprus
Funded by the Civil Society Programme of the European Union, this Project aimed at better-educated
citizens with regard to consumer protection issues, who will subsequently play a more active role in
the Cyprus society promoting higher standards of quality of life.
Young Consumer Competition
Funded by the Delegation of the European Commission to Cyprus, this Project is aimed at promoting
a healthy lifestyle through a positive ‘image’ shared among young consumers.
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Raising Awareness on Consumer Protection and Rights
Supported with a grant from the people of the United States of America and the United Nations
Development Programme through the United Nations Office for Project Services, this Project aims at
raising awareness on consumer protection and rights in both communities of Cyprus.
Funding strategy
The organisation is partly funded by the government of Cyprus but its main funding comes from the
sales of lotto tickets.
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ANNEXURE B
PROFILES OF AFRICAN CONSUMER ORGANISATIONS
By Yannick Tshimanga
1. Youth Education Network (Kenya)
Organisation name and acronym: - Youth Education Network
First name: - Michael
Surname: - Okumu
Position: - Director of Programmes
Country: - Kenya
Work email: - [email protected]
Skype: - mikemungoma
Telephone no (including country code): - +254729425198
General e-mail of the organisation: - [email protected]
Website URL: - www.yenkenya.org
Facebook: - yenkenya
Introduction Analysing Youth Education Network (YEN) (Kenya #40)
The Youth Education Network is a non-profit organisation established in Nairobi, Kenya. Its goal is to
empower the youth through information and vocational training. The organisation aims to achieve its
goal by helping to inform and involve citizens with skills which will effectively contribute to the socio-
economic development of their communities. YEN’s main target audience are the youth, so that they
can be educated and skilled from a young age to make informed decisions and choices in commercial
and moral challenges, as consumers.
Funding and Projects
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YEN is an organisation which does not receive any government funding, but despite this the
organisation manages to play a crucial role in bettering the skills and education of the youth. One of
the organisations means of revenue comes from any of their eight partners, but another notable
manner in which YEN manage to increase their income is by increasing their member base. The
organisation boosts of over 1000 members. The strategy which the organisation uses to increase
their members is by hosting events and they call on participants to become members by providing
information about YEN, at this stage the organisation takes the contact details of the participants and
at future meetings, they invite them to participate ideas about growing the organisation, it must also
be mentioned that membership is free and when the members like the ideas of the organisation, at
this stage it is easier to them to support where they can, including financially. According to the
director of programmes for YEN, Michael Okumu “Diversity in membership is also a key factor”, as
the organisation has members from different communities this help YEN to grow, and subsequently
increase their income source. The organisations also takes part in projects, but they don’t not charge
for this, rather they use fundraisers and exhibitions where income can be generated, such as the
annual cultural event which takes place in November. Furthermore YEN out sources for the best
prices as a means to make savings that can be used in unforeseen events. As mentioned above the
organisations partners play a key role in supporting specific activities and fundraising projects and
the fact that the organisation target group is the youth is also an advantage, as the younger
populations energy and willingness to participate in YEN grows the membership and consequently
will result in the spread of YEN influence in the Nairobi and other regions in Kenya and also an
increase in funds and income.
Conclusion
Due to the fact that YEN main target is a vibrant and youthful population, their membership size has
seen a sharp increase, which has undoubtedly has made the YEN organisation more popular in the
Nairobi communities. As the organisation engages with the youth to expand their knowledge and
skills so that they can become informed consumers with the right tools to make decisions in society.
It is clear that even though funding sources are challenging the wide communities support for the
organisation, whether financially or by other means, ensure that the organisation lives on and
spreads the knowledge among the youthful consumers.
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2. National Consumer Forum (South Africa)
Organisation name and acronym: - National Consumer Forum
First name: - Thami
Surname: - Bolani
Position: - Chairman
Country: - South Africa
Work email: - [email protected]
Telephone no (including country code): - 27 12 4287071 / 7284
Fax no (including country code): - 27 12 4285019
General e-mail of the organisation: - [email protected]
Website URL: - www.consumerfair.co.za
Introduction
Analysing Consumer Fair
Consumer Fair is a South African based independent Non Profit Company whose objective is to work
for a fair, just and safe marketplace for all consumers in South Africa and to empower the previously
disadvantaged communities. Furthermore Consumer Fair has been an affiliated member of
Consumers International since 2002. They vision a just and fair society whereby:
• All consumers enjoy the benefits of a competitive and efficient economy;
• All consumers have a choice of quality and affordable services from the private and public
sector;
• Consumers rights be respected by all;
• Previously disadvantaged consumers are empowered by to play a meaningful role in the
South African economy.
Consumer Fair try to achieve their goal among others by providing: Firstly, an online consumer
education system, where the aim is to well-inform the public so they can develop skills to decisions in
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the purchasing of goods and services; and inform consumers of their responsibilities and rights.
Secondly they participate in product testing, such as in 2005 where they laid a complaint to the South
African Bureau of Standards for the selling of under-weight products. They also provide consumer
related financial services and give advice on food safety and security advice.
Funding and projects.
Consumer Fair receives no government funding and since the newspaper Consumer Fair which is
published bi-monthly, doesn’t yield enough profit to sustain all operations which the organisation
part-takes in, Swedish Society for Nature Conservation also fund Consumer Fair with a grant which is
renewable annually. Also noteworthy in the attempt to increase their income base, is the fact that
the organisation tender for government work from time to time in the field of consumer
education/awareness, small business support and monitoring. Furthermore Consumer Fair has
projects in the pipe line which will increase their revenue and more importantly benefit its members.
They plan on doing this firstly by, negotiating with cell-phone companies for lower rate for their
members and secondly setting up an academy which will provide training and capacity building to
members and non-members for a fee.
In 2013 Consumer Fair aims to expand its operations, members and influence in society targeting
mainly the low income population group. Three projects which the organisation aims to start next
year: first, a television programme on financial education on Cape Town TV; second, an academy
which will focus on addressing the shortage of skills in the South African communities and savings
initiatives; and lastly, the organisation aims to form a partnership with universities and research
bodies, for the benefit of the academy. These three projects are expected to increase the
organisations income in the near future.
Conclusion
Consumer Fair has found means and ways to increase their influence in a working environment
where income and profits are hard to achieve, especially on the African continent, where most
governments don’t help or partially help, therefore making it more challenging for survival,
furthermore companies funding could comprise the organisation, therefore Consumer Fair has
adopted on projects and initiatives which will increase in funding and income profits. According to
Chairman Thami Bolani the organisation is planning “to speak even louder in 2013 and beyond”, and
achieve increase in their savings and funding.
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3. Association pour la défense des droits des Consommateurs au Rwanda (ADECOR)
(Rwanda)
Organisation name and acronym: - Association pour la Décence des droits des Consommateurs au
Rwanda(ADECOR)
First name: - Damien
Surname: - NDIZEYE
Position: - Executive Director
Country: - Rwanda
Work email: - [email protected]
Skype: - ndizeye.damien
Telephone no (including country code): - +250788595587
General e-mail of the organisation: - [email protected]
Website URL: - adecor.org.rw
Facebook: - adecor asbl
Introduction Analysing ADECOR (Rwanda77)
The Association for the Defence of Consumers Right in Rwanda (ADECOR) is an organisation in
Rwanda which is structured to be the consumer’s voice in the country, as it represents the
consumers’ interests and encourages the spreading of information on issues which affect consumers.
The organisation also provides a forum for discussion of consumers’ issues and act as a lobby to all
levels of government. ADECOR has a vision of a Rwandan society where consumers have access to
enough, safe and affordable goods and services; therefore consumers can influence the market
behaviour and protection of their rights. The organisation boosts of six branches, which includes one
in the capital city Kigali. The organisation main functions are: (i) research, testing and publishing
product/service evaluations; (ii) Consumer education, information, and legal advice; (iii) Lobbying on
policy formulation and decision-making processes (e.g. as consumer representatives in councils,
boards, committees or task-forces); and Representing consumers in seeking redress (tribunal,
consumer courts).
Funding and Projects
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ADECOR is partially supported by government, having the ministry of Trade and Industry; and the
Rwanda Bureau of Standards as partners. In the last financial year the organisation managed to bring
in an income of more than $ 7500. Executive Secretary Damien Ndizeye has stated that the bulk of
this income is from the research carried out by the organisation for the benefit of consumers. He
further noted that, as the organisation noticed an increase in malpractices in society, they conduct
research which in turn gets the attention of the community, government, NGOs and so on; therefore
mobilising these interest groups can also generate more income sources. The organisation also
stresses the fact that putting up credibility is also a crucial aspect as partners trust increase and
which attracts them to release more funds. Another source of income for the organisation is
membership fees. The challenge is not the fees but gathering the members according to the
organisation. It succeeds in this situation by having the ideology that “people enjoy getting back what
they have given”, therefore the organisation advises other consumer organisations to do their best
to add value on what they serve for consumers then members will be excited to contribute in the
project. This strategy has been to winning formula for ADECOR as their membership has increased
from one community to the next and therefore membership fees play a crucial role to benefit the
organisations income profile. Lastly the organisation has also advised that a strong and stable
relationship between the members and the organisation helps an important role for funding as
partners and government funding and so on, may end but membership loyalty and fees are more
sustainable and lasting for the survival of any consumer organisation.
Conclusion
ADECOR consumer organisation has multi income sources, but the most important and most valued
source, according to the organisation is the membership, which consists of the community members,
who offer just more than membership fees, they also offer security and sustainability to the
organisation.
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4. Consumer Council of Zimbabwe (CCZ) (Zimbabwe)
Organisation name and acronym: - CONSUMER COUNCIL OF ZIMBABWE CCZ
First name: - ROSEMARY
Surname: - SIYACHITEMA
Position: - EXECUTIVE DIRECTOR
Country: - ZIMBABWE
Work email: - [email protected]
Skype: - -
Telephone no (including country code): - 263-4-706968/700500/707065
Fax no (including country code): - 263-4-700500
General e-mail of the organisation: - [email protected]
Website URL: - www.ccz.org.zw
Introduction
Consumer Council of Zimbabwe (CCZ) was officially established in 1975 with its main objectives
being, protecting and empowering consumers by monitoring product quality and service. Other
objectives which the organisation aims to achieve are, to protect manufacturing standards and to
educate consumers and producers. To reach its goal, CCZ influence government policy and laws
which protect the consumer rights; monitor prices and standards of products; and by providing
research services and information. As a consumer organisation CCZ pays a lot of emphasis on
promoting, protecting and educating the public about the eight universally accepted consumer
rights, as this will also make the public aware of their duties as consumers and producers in a day to
day life. CCZ main functions are to provide
• Consumer education, information, and legal advice;
• Lobbying on policy formulation and decision-making processes (e.g. as consumer
representatives in councils, boards, committees or task-forces);
• Representing consumers in seeking redress (tribunal, consumer courts).
Funding
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It has taken a long for CCZ to convince its partners and other consumer organisations that even
though the organisation gets government funding, their operations and activities are not comprise.
But the funds covered from government only cover staff salaries, overheads and administration,
therefore making government funds insufficient. CCZ thus looks at alternative means of funding
which can be more sustainable for the organisation. The organisation managed to find other means
by partnering with the Zimbabwe Women Resource Network Centre and UN Women for a project
which is set to run for four years, starting from 2011. The project allows for CCZ to reach remote
areas and educate the public of their consumer rights. The projects funding also creates a platform
for the organisation to promote consumer clubs, and in this manner indirectly increasing the
membership size. The increase in the size of membership has also played a vital role in increasing
income for the organisation. Other means of income include that which the organisation receives on
Worlds Consumer Rights Day, whereby the corporate world which supports the cause of the
organisation contribute in kind or in cash.
Given the current economic crisis worldwide where unemployment is rife, making membership to
the organisation a huge challenge, CCZ has found means to overcome such obstacles. The fact that
an increase in membership can result in an increase of income through membership fees, therefore
CCZ have tried to increase this membership base by using radio and internet to expose their brand
but the organisation has acknowledged that another method they seek to explore is operating
through social media.
Conclusion
One of the biggest aspect which most consumer organisations such as CCZ fear is being comprised
through the process of government funding and other funding which may cause conflict of interest,
yet CCZ has shown that government funding can actually be beneficial to the consumers, executive
director of the organisation has stated that “funding from government is considered a common good
by ensuring that consumers are discerning and know their rights”. Even though the organisation
receives government funds, it has also paid emphasis on the importance of membership growth for
its sustainability.
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5. Association Burundaise des Consommateurs (ABUCO) (Burundi)
Organisation name and acronym : - Association Burundaise des Consommateurs (ABUCO)
Name : - Amédée
Surname : - NDAGIJIMANA
Position in Organisation :- Executive Director
Country : - BURUNDI
Work email :- [email protected]
Skype address : - amedee258
Telephone number, including country code: - +257 79 585453
Fax number including country code : - +257 22237686
General email address of the organisation : - [email protected]
Facebook : - [email protected]
Introduction
Association Burundaise des Consommateurs (ABUCO) is a non-profit organisation based in Burundi
whose main aim is to educate and inform consumers. Founded in 1994, ABUCO an organisation
which serves the Burundi consumer public nationwide as they seek to promote, develop and defend
the rights of consumers. The organisation has proven its worth to the Burundi communities as the
membership of the organisation has grown throughout the years, furthermore the organisations
importance has also been recognised by government, the authorities consult the organisation on all
decisions which impact consumers.
Funding
The organisations income in the last financial year was over the $75000, which is an unusual
achievement with consumer organisations on the Africa continent. This success was mainly
accomplished due to the members of ABUCO and the most source of income was the Belgian
cooperation. The organisation submits for project proposals and at times they get the projects, which
also increase their income levels. For most NPOs and other consumer organisations, such as ABUCO,
income is scarce and not enough to always sustain the organisations’ activities, therefore ABUCO
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have set up a fundraising mechanism which is defined in the organisation’s Strategic Plan. In a bid to
help the survival and sustainability of the organisation, ABUCO look to both national and
international partners who have the consumers’ interest at heart. With these partners the
organisations aims to:
1) Promotion, protection and defence of consumer rights; and
2) Promoting good governance and fight against corruption.
Many consumer organisations such ABUCO know the important role which members play in
contributing to the sustainability of the organisation. ABUCO has managed to get more than 1000
members country wide, it must also be mentioned that ABUCO is a founding member of several
collectives Burundian civil society including: Forum for the Strengthening of Civil Society (FORSC)
Obsevatoire Governmental Action (OAG), and so on. This puts the organisation in a strategic place to
increase their membership. Executive Director NDAGIJIMANA has given his words of advice to other
organisations such as ABUCO with regards to increasing funds and sustainability of the organisation
by saying that “To have more credibility, every organisation must have clear and specific goals. There
are organisations that appear to be heterogeneous, that is to say, who want to work in all sectors,
even in areas that are not consistent with their missions. This is a handicap for the organisation. Also
tied ABUCO good relations with the media and the government as a way to try ensuring sustainability
of the organisation.
Conclusion
Many consumer organisations in Africa battle with their financial stability which in turn threatens
their existence. Like many consumer organisations on the continent ABUCO has had to look at other
means of income, which include looking at local and international partners who have the consumers’
interest at heart. Furthermore ABUCO has also raised a valid point about organisations which focus
on more than what their objectives requires which becomes a costly exercise.
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ANNEXURE C
The Nine business models
(Extract from Consumers International Internal Document)
1. Diversification functions Model: This development model refers to COs with a network of
affiliated COs with specific agenda (focused causes) that complement each other’s functions.
Function based diversification of the COs into smaller organisational units enables
management, operation and fundraising to be carried out independently, and yet remain
inter-connected under one national umbrella.
FOMCA is a prime example of CO that has fully benefited from this approach. The formation
of strategic partnership with private sector has prompted the birth of Water Forum as a Unit
of FOMCA with funding being channelled by the Water Supply Commission. Another
specialised Unit on Standards within FOMCA has led to the establishment of the Malaysian
Association of Standard Users which receives its funding primarily through the Department
of standards
2. Co-Corporate Model: refers to a new trend in creating value for developing or emerging
markets, which may involve corporations and nongovernmental organisations to collaborate
or forge cross-sector partnerships, such as getting their individual membership to switch to
another provider who gives a commission.
3. Social-Enterprise Model: refers to COs having the ultimate goal of achieving sustainability by
enabling the organisation to support themselves financially through innovative ways instead
of relying solely on grants and donations, whereby the profits from the related social
enterprise are completely re-invested into the work of the organisation.
4. Government-Supported Model: where government may contribute to the development of
the COs through mechanisms provided by law or through administrative procedures,
whereby resource (financial) allocated may be provided this model may be differentiated at
different levels such as fully-supported or partially supported.
5. Information-Based Model: where COs may offer specific or specialised products/ services,
generating core value for their operation and resources. These core products/ services may
be in the form of niche publication (magazine), product testing, or product information that
has direct benefits to targeted beneficiaries or consumer segments. In this model some for,
of monetary value may be attached to the service or products, and thus, may be classified as
for profit organisations.
6. Expansion Model: This model can be applied to COs that strategically widen their core
activities either vertically or horizontally. This may include geographic expansion by means of
acquisition, merger or opening new offices. This may depend on economic scale.
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7. Integrated Social Media Model: This model may be applied to an inter-networked CO using
ICT or social media “Apps” to further enhance their relevance. This model may depend on
economics of scale.
8. Project- based Model: This model may be applied to COs having their operations and core
activities dependent on successful funding solicited through calls for proposals from specific
donors o funders,
9. Mix & Match Model: This model refers to organisations that adopt and apply a mix of
business models to carry out the operations and resource strategies.
10. Other models: Apart from the above, other potential models will also be explored.
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