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The Development Challenges, South-South Solutions e-newsletter was published by the United Nations Office for South-South Cooperation (UNOSSC) from 2006 to 2014.

  • Pioneering African Airlines Help to Expand Routes

    Pioneering African Airlines Help to Expand Routes

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    The last decade has seen a revolution in African air travel. The number of air routes has grown and this has paralleled the economic growth across the continent. As demand has been strong for Africa’s resources, it has also fueled a consumer boom that is benefiting an increasing number of people.

    More and more people can afford to fly and flights are taking Africans to cities across Africa and out of Africa to visit cities around the world. These flights also bring in a growing number of tourists and business people.

    As growth continues despite the many obstacles and challenges, and as urbanization rolls onwards, new routes have sprung up linking the continent’s cities to each other and to the world. National and local airlines have evolved to meet growing demand for flights, with the big global airlines moving in to compete.

    Africa’s airlines, tourism and airport authorities gathered in early 2013 to discuss how better to link the continent up by air, and the fruits of this collaboration are coming to light.

    A recent new entrant is Fastjet (http://www.fastjet.com/us/). Bringing the highly competitive budget airline model to Africa that has proven so successful in Europe, it is owned by Britain’s Easyjet and has its hub in Dar es Salaam, Tanzania. It will offer low-cost flights to South Africa, Zambia, and Rwanda in autumn 2013 and, ambitiously, hopes to become “Africa’s first pan-continental low-cost airline” (BBC). It has 10 aircraft.

    If people book early, they can snag a one-way flight between Johannesburg and Dar es Salaam for just US $100.
    Fastjet is also creating a low-cost airline in Nigeria in partnership with Nigeria’s Red 1 Airways (red1air.com).

    One airline also expanding its routes is Daallo Airlines (daallo.com) from the small nation of Djibouti (http://en.wikipedia.org/wiki/Djibouti) in the northeast Horn of Africa.

    Its website shows straight away how the airline is able to help link up cities normally left out of global air routes. Flights can be booked for journeys between Djibouti and Somalia, a country only now beginning to recover from decades of civil war and anarchy. Daallo also flies to Nairobi, Kenya, the East African hub for international agencies and corporations, to Dubai in the United Arab Emirates, to Jeddah in Saudi Arabia and Hargeisa, capital of the autonomous region of Somaliland (http://somalilandgov.com/).

    It also offers weekly cargo flights to these destinations. Daallo has a Boeing 777 and an Antanov AN-12.

    Djibouti is tiny but well positioned as a transport and shipping hub. It has invested heavily recently in its port facilities and benefits from good security, with a large U.S. base located in the country, Camp Lemonnier (http://www.cnic.navy.mil/regions/cnreurafswa/installations/camp_lemonnier_djibouti.html), home to Combined Joint Task Force – Horn of Africa.

    Further improving flight access in Africa, in August 2013, South Africa saw a new low-cost airline enter the marketplace. Safair (safair.co.za) is operating 10 daily flights between Johannesburg and Cape Town using Boeing 737-400s.

    Ethiopian Airlines (http://www.flyethiopian.com/en/default.aspx) has also started a strategic partnership with Malawi Airlines as part of its Ethiopian Vision 2025. This will make the capital of Malawi, Lilongwe, Ethiopian Airlines’ third hub on the African continent. It has its main hub in Addis Ababa, Ethiopia and its West African hub in the Togo capital Lomé.

    Published: October 2013

    LINKS:

    1) Routes Online: The Routes business is focused entirely on aviation route development and the company’s portfolio includes events, media and online businesses. The company organizes and operates world-renowned airline and airport networking events through its regional and World Route Development Forums. They are held in key markets throughout the year in Asia, Africa, Europe, the Americas and the CIS. Website: http://www.routesonline.com/

    2) IATA: The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 240 airlines or 84 per cent of total air traffic. IATA support many areas of aviation activity and help formulate industry policy on critical aviation issues. Website: http://www.iata.org/Pages/default.aspx

    3) Airlines International magazine: Airlines International is IATA’s flagship magazine, available in print, on tablets and online. Website: http://www.iata.org/publications/airlines-international/Pages/index.aspx

    4) African Airlines Association: “To be the leader and catalyst for the growth of a globally competitive and integrated African airline industry”. Website: afraa.org

    Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator. 

    Creative Commons License

    This work is licensed under a
    Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

    ORCID iD: https://orcid.org/0000-0001-5311-1052.

    © David South Consulting 2023

  • The Water-Free South African Bathing Solution

    The Water-Free South African Bathing Solution

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    As the world’s population grows from its current 7 billion to a projected 9 billion in 2050 (UN), competition for access to the Earth’s resources will become fiercer. The most essential resource for life on the planet – and an increasingly precious resource – is water. Water is necessary for the very survival of humans, animals and plants, and is also used in vast quantities by industries and farms.

    As demand increases, water resources will need to be conserved more and more, while clever ways will have to be developed to use less water. And there is also another factor to consider for the world’s poor: many millions live in very constrained conditions in urban and rural areas. For their health and dignity, the ability to wash every day is critical. Being clean is vital to being able to economically advance in life: it is something that sounds obvious but is often not a possibility for many millions of people living in slums.

    Many will face lives where water is an uncertain resource that will be either expensive to purchase or will require lots of labour to obtain.

    Anyone who can come up with a way to help bring the dignity of being clean and healthy while also saving water is onto a winner.

    A clever South African, Ludwick Marishane, has developed a clear gel that works like soap and water but doesn’t need H2O to get a person clean.

    The product is called DryBath (http://headboy.org/drybath/) and uses a “proprietary blend of a biocide, bioflavonoids and moisturisers.” It differs from common liquid hand anti-bacterial cleanser products that people use to sterilize hands. Those products use alcohol to simultaneously sterilize germs and evaporate the liquid.

    DryBath works in a different way by not requiring water or alcohol to complete the washing. The liquid gel is odourless, biodegradable and moisturises and does not need to be rinsed off. It instead leaves users smelling fresh and “tackles the hygiene and water consumption problems in a manner that has never been used before.”

    It also comes in a special package developed in South Africa. EasySnap™ sachets allow users to quickly snap the package and dispense the solution on to their hands to have a wash. EasySnap is a rectangular sachet that is snapped in the middle to open.

    Marishane, a 22-year-old student at the University of Cape Town, told Reuters that the idea for DryBath came to him when he was a teenager living in his rural home. It was wintertime and his friend didn’t want to bother washing because there was no hot water available.

    “He was lazy and he happened to say, ‘why doesn’t somebody invent something that you can just put on your skin and you don’t have to bathe’,” Marishane said.

    That was when the light bulb went off in his head.

    Intrigued, he started doing research on his web-enabled mobile phone. He trawled through the search engine Google and the online encyclopedia Wikipedia to find what would work as a water-free wash. After six months of research, he came up with the formula for DryBath and acquired a patent.

    Now the strategy of Headboy Industries Inc. (headboy.org) – the company set up by Marishane – is to sell DryBath to corporate clients and in turn donate a free sachet for each sale to DryBath’s global charity partners, who will distribute DryBath to poor communities either for free or at a subsidized cost.

    Marishane believes his product will be particularly popular with certain industries: flight crews and passengers on airlines; hotels looking to save on water usage; the military for soldiers serving in the field; and NGOs and charities providing services to poor communities, in particular during emergency situations when it is difficult to provide a reliable water supply.

    Marishane has won several awards for his invention, including Global Champion of the Global Student Entrepreneurs Awards 2011, and is considered South Africa’s youngest patent holder.

    “DryBath will go a long way in helping communities,” he believes.

    Published: September 2012

    Resources

    1) How to register for a patent in South Africa. Website:https://www.sabs.co.za/index.php?page=patents

    2) SABS Design Institute: The SABS Design Institute promotes the benefits of good design in order to stimulate the economic and technological development of South Africa. Website: https://www.sabs.co.za/index.php?page=designinstitute

    Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator. 

    Creative Commons License

    This work is licensed under a
    Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

    ORCID iD: https://orcid.org/0000-0001-5311-1052.

    © David South Consulting 2023

  • Cash Machines for the Poor

    Cash Machines for the Poor

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Access to basic banking services for the poor is weak at the best of times. Many are openly discriminated against as a ‘bad risk’ by banks, and denied the sort of banking services middle and higher income people take for granted. Yet it is a myth that the poor do not have money or do not wish to save and invest for their future or for business.

    The so-called Bottom of the Pyramid (BOP) – the four billion people around the world who live on less than US $2 a day – are being targeted by a wide range of businesses. Indian business consultant and professor CK Prahalad, the man who coined the term BOP, has gone so far as to claim this is a market potentially worth US $13 trillion, while the World Resources Institute puts it at US $5 trillion in its report, The Next 4 Billion.

    And contrary to popular perception, the poor do have buying power, as has been documented by Massachusetts Institute of Technology (MIT) professors Abhijit Banerjee and Esther Duflo in their paper “The Economic Lives of the Poor”. Surveying 13 countries, they found those living on less than a dollar a day, the very poor, actually spent 1/3 of their household income on things other than food, including tobacco, alcohol, weddings, funerals, religious festivals, radios and TVs. The researchers also found that the poor increasingly used their spending power to seek out private sector options when the public sector failed to provide adequate services.

    India, where 63 percent of the BoP market is rural and 304.11 million people are illiterate (Human Development Report), makes for a particularly tricky market to reach with bank machines: the average transaction is just 100 rupees (£1.25).

    But a Madras-based company has come up with the Gramateller – a low-cost, blue-and-white bank machine custom-designed for the poor and illiterate. Vortex received funding of 2 million rupees (US $48,000) from an investment company, Aavishkar, that specializes in micro-venture capital — small sums for new business ideas. The advantage of micro-venture capital funding is its longer payback time: a young company does not get driven out of business by having to pay back the cash before the idea has been realized. Normally, venture capital helps a business to grow quickly but the venture capitalist wants to see an immediate profit on the investment.

    Vortex’s chief executive officer, V.Vijay Babu, said: “The idea was conceived by Prof. Jhunjhunwala of IITM (Indian Institute of Technology Madras) in the course of an exploratory project focused on using ICT to deliver modern banking services to rural India.”

    “It was found that branch-based banking is too expensive to be extended to remote rural locations where the volume and size of transactions are small. Using conventional ATMs (automatic teller machines) as a channel posed many difficulties because these ATMs were not built to operate in [illiterate] environments. Hence the need for developing an ATM specific to this context.”

    Costing just a 10th as much to build as an ordinary cash machine, Gramateller has a fingerprint scanner for the illiterate, and is able to accept dirty and crumpled bank notes. Vortex came up with an ingenious solution to do this, said Babu: “Vortex developed a beltless dispenser design that in many ways mimics the way a human teller would pick and count notes.”

    Vortex hopes to massively expand access to cash machines: at present, India has just 30,000 machines, or one for every 43,000 people (the US has a machine for every 1,000 people). These machines are being piloted with India’s biggest private bank, ICICI, and they have garnered interest from Indonesian banks as well.

    “We are running pilots for two leading banks with about 10 ATMs,” said Babu. “Though it is still early, the initial response has been very encouraging – rural users find fingerprint authentication intuitive and simple and the ATM convenient and easy to use. A few users also gave feedback that our ATMs look less intimidating, maybe because it is placed in a non-air conditioned room with easy access and also is different in shape from a typical ATM.”

    Furthermore the cash machines have taken a beating to see if they are robust enough for rural India: “The ATMs were tested for extended operating cycles under the harshest of environments that would prevail in the rural context — using soiled currencies, operating in non-air conditioned and dusty environments, subjecting the machine to typical fluctuations in line voltages and power outages. User-acceptance was tested by enlisting the participation of rural and semi-urban people to carry out test transactions.”

    As for thieves getting their hands on the cash before the poor, Vortex maintains the machines will not become the victim of thieves: each machine will only carry a fifth of the money of city-dwelling bank machines.

    Elsewhere in the South, a South African research and analysis company BMI-TechKnowledge (http://www.bmi-t.co.za/) in its latest report identifies a boom in banking services across Africa. In particular, South Africa, Botswana, Namibia, Angola, Mauritius, Tanzania, Kenya, Ghana, Nigeria, Egypt and Morocco – all have seen surges in profit and services as a result of improving banking regulations and political conditions. Maybe future markets for the Gramateller to reach Africa’s poor lie ahead?

    Published: August 2008

    Resources

    • Unleashing India’s Innovation: Toward Sustainable and Inclusive Growth, a report by the World Bank.
      Website: web.worldbank.org
    • xigi.net (pronounced ‘ziggy’ as in zeitgeist) is a space for making connections and gathering intelligence within the capital market that invests in good. It’s a social network, tool provider, and online platform for tracking the nature and amount of investment activity in this emerging market also referred to as blended value investing. xigi’s goal is to help this international emerging market to grow through market formation activities that guide and educate a growing wave of new money, while connecting it to the emergent entrepreneurs and deals on the internet.
      Website: http://www.xigi.net/
    • The new report Global Savings, Assets and Financial Inclusion by the Citi Foundation is packed with innovative approaches that are allowing the BoP (bottom of the pyramid) to use their income to build assets and more sustainable livelihoods.
      Website: http://www.newamerica.net
    • NextBillion.net: Hosted by the World Resources Institute, it identifies sustainable business models that address the needs of the world’s poorest citizens.
      Websites: http://www.nextbillion.net/ and World Resources Insitute

    Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator. 

    Creative Commons License

    This work is licensed under a
    Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

    ORCID iD: https://orcid.org/0000-0001-5311-1052.

    © David South Consulting 2023

  • India’s Modernizing Food Economy Unleashing New Opportunities

    India’s Modernizing Food Economy Unleashing New Opportunities

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Increasing prosperity in India is reshaping the country’s relationship to its food. A number of trends are coming together that point to significant improvements to India’s long-running problems with food supply and distribution. This matters because India, despite its two-decade economic boom – and increasing middle-class population – is still home to about 25 per cent of the world’s hungry poor, according to the World Food Programme (WFP).

    According to Indian government figures, around 43 per cent of children under five are malnourished and more than half of pregnant women between 15 and 49 suffer from anaemia (http://en.wikipedia.org/wiki/Anemia), a consequence of poor diets (WFP).

    Many Indians go hungry despite the fact that the country grows enough food for its entire population. The problem isn’t lack of food but a wasteful system that fails to distribute affordable food efficiently and to make participating in the food system a viable income source. Farming employs as much as 70 per cent of Indians. But many work small plots of land, are heavily in debt and earn a meagre income.

    However, a number of developments are improving the efficiency of India’s food system and modernizing the way it works.

    There are signs that big changes lie ahead: New restaurants exploring foreign cuisines; modern supermarkets; online food shopping services; food academies teaching new skills; food gurus proselytising for new approaches; and a thriving publishing and media sector.

    They are creating new jobs, increasing price competition and encouraging more modern delivery, marketing and distribution systems.

    In 2011 the introduction of global supermarkets into the Indian marketplace became a hot debate. The Indian government announced it would open the marketplace to global competition and foreign direct investment (FDI), but put the move on hold in December after an outcry by political parties and protests by small- and medium-sized retailers fearful it would harm livelihoods. The Indian supermarket sector is a market estimated to be worth US $475 (The Guardian).

    One retailer that is already bringing international methods to Indian retailing is the Best Price chain of wholesale stores. Best Price is a joint venture between U.S.-based Walmart and Bharti Enterprises, one of India’s largest business groups. In 2007, Walmart India made a deal with Bharti Enterprises to set up a cash and carry business called Best Price Modern Wholesale. The first store opened in 2009, and by 2012 there were 15 outlets.

    By teaming up with Walmart, Bharti Enterprises gets to learn from one of the world’s leading retailers and a pioneer in efficiencies, logistics, supply chain management and sourcing.

    The stores have all the hallmarks of modern food selling – warehouses, sophisticated inventory control, hygienic conditions and connection to new information technologies (http://www.indiaretailing.com/bharti-walmart-II.asp).

    Best Price Modern Wholesale employs 3,710 people, and the stores sell more than 6,000 items, a mix of food and non-food products. It claims 90 per cent of the goods and services are sourced locally.

    Food is a highly volatile and politicized issue in India. High food inflation – which reached 12.21 per cent in November 2011, according to India’s Finance Minister Pranab Mukherjee – has led to political tensions. Inflation has driven up the price of staple foods, essential commodities and imported products.

    At the same time, India’s commerce ministry has forecast that 10 million jobs will be created if foreign supermarkets are allowed to set up in India. Many of these jobs will be in logistics as more efficient, modern methods shake up India’s food industry. Poor logistics in the Indian food sector means that as much as 40 per cent of produced food does not reach consumers. This waste comes at a high cost in a country with 50 million malnourished children.

    New jobs are already being created in the country’s restaurant industry.

    While there have always been high-end restaurants in India’s cities, the gastronomic scene has received a recent boost from expatriate Indian restaurateurs returning from the competitive London, Tokyo and New York scenes, bringing skills and experience from some of the most demanding kitchens in the world.

    One example is Megu, a restaurant in New Delhi’s Leela hotel(theleela.com/new-delhi-megu.html) that sells Japanese-influenced food.

    Such cuisine is being called “elite Indian international gastronomy”, according to The Guardian newspaper.

    “We are aiming at the affluent traveller or the ultra-rich local,” Aishwarya Nair, a senior executive at the Leela, told The Guardian. “The idea is to give people a taste of globalization. In our restaurant you don’t know you are in India. You could be in New York, Japan, anywhere.”

    That appeals to many newly affluent Indians, food critic Vir Sanghvi told the newspaper.

    “The food (at somewhere like Megu) doesn’t matter so much as the experience and the glamour,” Sanghvi said. “There is a lot of money outside the traditional elite now and these people are looking for ways to spend it on something that seems sophisticated.”

    The new food fascination is also leading families who once would have employed a cook to watch 24-hour TV channels about food. This programming changes habits and encourages buying new foods and exploring new flavours.

    Market analysts believe these trends are likely to continue. A middle class with spending power has been growing in India for almost two decades, and forecasts see the number of middle class Indians reaching 250 million by 2016.

    “With bigger and better restaurants and international food brands coming in to the country, it’s only a matter of time before fine dining finds its place among a growing cosmopolitan population,” said Siddharth Mathur, manager of the independent Smoke House Room restaurant (facebook.com/SmokeHouseRoom).

    Online food shopping in India is also thriving. Research by Juxt found that 65 million people use the web in India, four-fifths of whom shop online. Murali Krishnan, head of eBay India, told the BBC that the country could become one of the top 10 e-commerce hubs in the world by 2015.

    Online grocery services include MyGrahak.com, which calls itself “India’s Largest Food Store” and offers home delivery of food, toiletries and pet supplies. Another is Greenytails.com, which brings together multiple food retailers into one online shopping website and is based in Bangalore and Hyderabad.

    As an example of the spin-offs that can be created from rising interest in food culture, there is the story of Nita Mehta. Considered one of India’s most celebrated cookbook authors, Mehta (nitamehta.com) not only publishes recipes but also runs a chain of cooking academies.

    As she tells it, her interest in cooking was always there and she started experimenting at home with new recipes for her friends and family. The response was encouraging and she started teaching people how to make ice cream in her home. Curious students flocked to her classes to learn how to make flavours like mint, chocolate chip and mocha.

    Following on this success, she started teaching classes in baking, Chinese cooking and what she calls “multicuisine”.

    The lessons soon turned into a cookbook, which she wrote after doing her household chores. But her battles had only begun: publishers were not interested so she self-published. She called her publishing company Snab Publishers and released her first book, “Vegetarian Wonders”. It was modestly successful but it was with her second book, “Paneer All the Way”, that things got cooking. Her publishing company has now produced 400 cook books and sold 5 million copies. She has won international awards, does TV cooking programmes, has established several cooking institutes in New Delhi and teaches classes in the U.S., Canada, Britain and other countries.

    With successes like Nita Mehta, the Indian food revolution is well underway.

    Published: March 2012

    Resources 

    1) India Retailing.com: Calling itself “a path-breaking retail information interface portal. Addressed and directed towards the retailing community across the world, the portal provides a wide-angle view and analysis of the business of retail in India”. Website: indiaretailing.com

    2) Retailers Association of India (RAI): RAI is the unified voice of Indian retailers. RAI works with all the stakeholders for creating the right environment for the growth of the modern retail industry in India. Website: rai.net.in/

    3) The Wal-Mart Effect: A book on how highly competitive retail supermarkets can drive down food prices and inflation. Website: http://www.amazon.co.uk/Wal-Mart-Effect-Out—town-Superstore/dp/0141019794/ref=sr_1_1?s=books&ie=UTF8&qid=1322570100&sr=1-1

    4) More on India’s food situation from the World Food Programme. Website: http://www.wfp.org/countries/india

    5) Report on the State of Food Insecurity in Urban India: A report from Networked Ideas. The Report reveals an alarming situation of a permanent food and nutrition emergency in urban India. Website: http://www.networkideas.org/focus/feb2012/fo28_M_S_Swaminathan.htm

    Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator. 

    Creative Commons License

    This work is licensed under a
    Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

    ORCID iD: https://orcid.org/0000-0001-5311-1052.

    © David South Consulting 2023