Against the Odds: A History of Zimbabwe Project

17. Exploring New Territory – Can an NGO Generate its own Income? 1990–1995

— 220 — When ZimPro resolved during the ‘October Revolution’ to become self-reliant by generating its own income, it was probably unaware of the rocky road it was to travel. Making money was no easier for ZimPro than it was for the co-operatives it assisted, and for many of the same reasons. It was not something that NGOs were designed to do, and ZimPro’s bold steps were something of an experiment which encountered many dif- ficulties. The legal advisor, Bryant Elliot, recommended that a separate holding company be created, wholly owned by ZimPro. This would sidestep the non-profit-making nature of ZimPro’s registration and allow a separation of profit-making activities from its core programmes. The company was formed under the name ‘Octrev’, for October Revolution, but the directors were all members of ZimPro management. The separation occurred in name only, as management took a hands-on approach to running the businesses from the beginning. However, in addition to the profit-making enterprises that were meant to fall under Octrev’s remit were ZimPro’s two training centres, Adelaide Acres in Waterfalls, Harare, and Newlands in Gumtree, south of Bulawayo. These were not intended to be profit-making but rather to cover their own costs, in effect providing free training facilities for the organisation. Both presented innumerable problems over the years, primarily relating to management . Consultants were hired and fired, as were managers. Once its new structures were developed, Adelaide Acres should have been a money-spinner, with facilities to accommodate more than 100 residents at a time and a restaurant and a bar. 17 Exploring New Territory – Can an NGO Generate its own Income? 1990–1995 — 221 — Exploring New Territory – Can an NGO Generate its own Income? The small plot not only produced fresh food – meat, vegetables and eggs – for the dining room, but also had surplus to sell. The facility served the entire NGO and civil society communities, offering a suitable venue for meetings, conferences and training. It was far enough from central Harare that participants would not desert the venue for other business, yet close enough to be convenient in terms of transport. It did occasionally cover its annual running costs and even contributed substantially to the budget to operate the core of ZimPro, but more often it became the victim of poor management which allowed cash to slip through fingers and produce sold remain unaccounted for. Newlands was problematic from the beginning, despite repeated predictions of profits. ZimPro was aware that its water supply was going to be erratic, as it had to rely on boreholes which were not very productive. Yet they proceeded to employ a manager who, against the odds, established an orchard, piggery and poultry projects. Large numbers of workers were engaged and thus, not surprisingly, the promised profits did not materialise . Nevertheless, the centre continued to be utilised for some workshops and trainings and was of use to the organisation, even though it was a drain on resources in most years. Some dormitories were built for the use of workshop participants once the water problem was solved by sinking a second borehole, but the centre never gave a return on the investment, due primarily to unprofessional management. By the end of the 1990s it was being rented out, thus ceasing to be a drain on the organisation and earning it a small income. All the other income-generating ventures were grouped under Octrev, and were considered purely commercial ventures. The 1993–96 plan listed investments under three role-specific categories. Where ZimPro (or Octrev) had acquired a property outright, they classified themselves as ‘owners’. Listed under this description were Madeira Farm and Food Stop, a takeaway in Harare. Where ZimPro (or Octrev) was in partnership, they classi fied themselves as ‘participants’. These enterprises were taken up after the 1992 evaluation, when co-operatives protested that ZimPro was putting its money into other ventures, even though — 222 — Against the Odds: a history of Zimbabwe Project many of them were in desperate need of capital injections. This seemed to make sense, and so this type of partnership was pursued . The All Are One co-operative, which ran supermarkets in Bulawayo, Esigodini and Mbalabala, ran into difficulties, as we have seen, and ZimPro’s loan was turned into equity, with ZimPro taking over management. Another venture in Victoria Falls was taken...