Africa
Successes
Mainstream MarketsIncreased penetration
of mainstream markets e.g
Crate and Barrel (USA)
Cost Plus World Market (USA)
South to South MarketsSelling to other
organisations in southern Countries
Kenya, Uganda, Tanzania, Rwanda
South Africa, Zimbabwe, Swaziland
Profitable Up Market Shops Growing number of
profitable shops in up market malls e.g KazuriUndugu
Many FT shops in the World subsidized by volunteers or discounted rents.
New Domestic MarketsIncreasing sales to Africa’s
growing middle class of:
JewelryTextilesGift items.
Also sales to companies
Previously shunned products in favour of imported ones
Now more appreciative of local products.
Information & Communication Technologies (ICT)Use of ICT such as:
Payment of suppliers by mobile money platforms e.g MPESA
Marketing through websites
Marketing social media
The Rise of the FT ProfessionalSkilled & talented
professionals entering FT e.gDesignersManagers
Transforming the way in which it is managed e.g Use of modelsProfessional
photographers,Professionally designed
websites
Profitable/Sustainable Social Enterprises Increasing number of
sustainable FTOs based on the social enterprise model.
Some paying taxes to the central Government as a way of making their contribution to the National economy. E.g Smolart KICK
FTO more professionally run by new generation of young, dynamic Fair Traders who continuosly ask, why not?
Emerging Interest in Value Adding
ExamplesMpanga Tea - TeaKCU - Coffee
FT Label will support this emerging trend
Strong Fair Trade NetworksInclude:
WFTO Africa (Previously COFTA) 99 members 30 provision members 10 years old
KEFAT 80 Members 2nd Largest National
Network 13 years old
Challenges
Seasonal Business
FT largely informal
Few permanent employees
Largely piece rate and casual
High Cost of Credit
20-30% interest rates
Long Production to Payment Cycles
Takes 60-90 days to pay individual producers
Some take more than 6 months!
Affects cash flow and production activities
Financial Crisis in the West
Decreased size of orders
Lost clients
Some FTO making losses
High Shipment Costs
Compared to Asia and Latin America
Increased real costs of the product
Affects competitivity
Narrow Fair Trade Product LinesCommodities- Tea, Coffee,
Cocoa, Honey
Wines (the Best!)
Carvings (Wood and stone)
Jewelry
Textiles
Bags
Weak/Undeveloped Fair trade Markets
Products not sold as Fair Trade
Product Label will change this!
And Changing FortunesThe riches person of African decent is no
longer
Oprah Winfrey (US$ Billion)
But
Alike Dangote..US$ 13.8 Billion