This annual report discusses the work of the Grassroots Educare Trust to provide economic and technical assistance to 177 preschool communities throughout Western Cape Province in South Africa, with a heavy emphasis on those in poor, black-populated areas. After messages from the chairman of the board of trustees and the director, the report is divided into eight main sections. Section 1 examines the provision of educare (preschools) in urban areas, outlining the administration, infrastructure, education, health care, and nutrition standards in various urban preschools. Section 2 provides similar information on educare in rural areas. Section 3 discusses home-based educare programs under way and in the planning stages. Section 4 reviews training programs conducted in 1991 and 1992 in the areas of primary health, first aid, organization, and finances. Section 5 highlights some of the resources that the trust has at its disposal, including its resource center, Adventure Bus program, publications and displays, and preschool shop. Section 6 discusses the current status of educare throughout South Africa, while section 7 examines the differences in the state's subsidies for the education and care of white, colored, and black children under apartheid. Section 8 reports on the internal workings of the Grassroots organization, including administration, personnel, fundraising, and finances. Numerous black and white photographs illustrate the text. (MDM)