The damaging affects of crime and violence can ruin a city. They act as a drag on efforts to increase wealth and improve living conditions, and a city that gets a bad reputation, especially in the age of the Internet, will lose investment opportunities.
The North American nation of Mexico has been struggling against drug and gang-related violence that has left an estimated 47,000 people dead over the past five years. It is a casualty rate worthy of a war.
In Monterrey, the capital of Nuevo Leon state (http://en.wikipedia.org/wiki/Nuevo_Le%C3%B3n), an innovative initiative has brought together local businesses to tackle the root causes of violence and crime. The initiative – called Red SumaRSE, which means ‘joining a network’ – was born from anger and disgust at the situation in the city. And it was ignited by a prominent member of the business community expressing this frustration on the social media outlet Twitter (twitter.com).
The chief executive of the Cemex cement company had had enough one day. Lorenzo Zambrano tweeted a blunt message to other companies in the city: “He who leaves Monterrey is a coward.” It was to be a rallying cry for the campaign to take back the city from the violent gangs.
Monterrey is embroiled in violent drug-related gang crime. Just one incident shows how bad the situation had become. In August 2011 members of the Zetas drug gang torched a casino over a dispute over non-payment of extortion money, killing 52 people.
Law enforcement measures can often only go so far to curb violence in a community. Little impact can be made without addressing the underlying economic causes of much of the violence – poor employment opportunities, drug turf wars between rival gangs, economic instability and more.
“Violence is an expression of social inequality,” Zambrano told The New York Times.
Tragedies like the casino fire provoked the city’s business community to take action. Private companies in the city have stepped up to design and fund a recruitment campaign for the police force and are paying part of the cost for government-backed community redevelopment plans.
Corporate philanthropy in Mexico has a history of being very limited. Apart from distribution of gifts at holiday time,there was little else. But this is changing, with Red SumaRSE showing the way.
“In the last five or 10 years there has been progress both in terms of the quantity of the money and the quality,” Michael Layton, director of the Philanthropy and Civil Society Project at the Autonomous Technological Institute of Mexico, told The New York Times. “But I don’t think Mexico has caught up to Brazil and other countries where the business sector has taken corporate philanthropy to heart.”
The Red SumaRSE alliance of Monterrey’s companies is directing support to non-governmental organizations working on community development. Examples include telephone company Axtel and the tortilla maker Gruma (gruma.com/vEsp) taking charge of 20 other companies to invest in schools, building up infrastructure and reversing drop-out rates.
The Oxxo company (oxxo.com/index.php), Mexico and Latin America’s largest chain store, has started to work at improving conditions in the neighbourhood immediately behind its headquarters. The company is working on building parks, increasing job opportunities and finding ways to prevent teenagers from joining gangs in the first place.
Cemex has also opened a new community centre in a violent neighbourhood where shootings were a regular occurrence. It was based on some Latin American knowledge sharing: inspired by the case of the Colombian city of Medellin, where libraries were strategically located in violent slum areas.
And there is more good work in the pipeline. The business community has drawn up a list of 70 neighbourhoods in the city needing re-development.
Red SumaRSE has not been without its critics. They have attacked the focus on security, education and victims while ignoring corruption, which many believe is the source of many of the city’s problems.
Published: February 2012
Resources
1) Medellin: Walking between slums and dreamworlds of neoliberalism: More on the complexities of the situation in this Colombian city.Website: http://www.a0n.com/medellin/dreamworlds.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.
Food is essential for a good life and plays a critical part in overall human health and development. The better the quality of food available to the population, the better each individual’s overall health will be, and this will have a direct impact on mental and physical performance (http://www.sciencedirect.com/science/article/pii/S2213453012000055).
An innovative restaurant can be the beginning of a taste and flavors renaissance as new foods are discovered and the recipes and foods are cross-marketed. It is an effective strategy that has worked around the world. The restaurant’s brand, in turn, becomes a valuable commodity that can be used to promote a range of products. For example, Brazil’s D.O.M. Restaurante has successfully used its strong reputation to help promote a range of food products drawn from the Amazon rainforest. There is money to be made in this and it can be a major boost to the incomes of food producers, especially small-scale farmers.
As is being found across South America, a rediscovered love of local cuisines and indigenous culinary culture can also lead to profits and a growing global awareness of the continent’s varied foods and recipes.
Innovators are playing with traditional cooking and locally available foods to come up with a modern Latin American cuisine that is getting people very excited.
The latest country to benefit from this is Peru. The first Michelin star awarded to a Peruvian restaurant in Europe went to a restaurant in London, UK. The Michelin (http://travel.michelin.co.uk/michelin-guides-105-c.asp) star is awarded to a restaurant based on the quality of its food and its overall atmosphere and service.
The London restaurant Lima (limalondon.com) is part of the global rise in awareness of Latin American food. It was launched by Venezuelan brothers Gabriel and Jose Luis Gonzalez in partnership with Peruvian chef Virgilio Martinez. Their signature dishes include sea bream ceviche (a lime-preserved raw fish dish) and suckling pig done in the “Andes” style.
Martinez is also a chef consultant for the Central Restaurante (http://centralrestaurante.com.pe/es/) in Lima, Peru. It was named one of The World’s 50 Best Restaurants by S. Pellegrino (theworlds50best.com).
Gabriel Gonzalez moved to London from Paris two years ago, and is surprised at how quickly he and his colleagues have made an impact.
“It was definitely not expected. … It’s just incredible, it definitely sets a precedent for Peruvian food and gives it a stamp of credibility and a lot of promise, it’s just amazing,” he told the London Evening Standard.
As another mark of the rising profile of Latin American food, the first edition of Latin America’s 50 Best Restaurants was held in Lima in September 2013 (theworlds50best.com/latinamerica/en/). In its press release, it said: “The evolution and robustness of gastronomy in Latin America has demanded recognition.”
It comes after the first expansion of the awards to Asia with Asia’s 50 Best Restaurants, held in Singapore in February 2013.
The ceremony in Peru is being seen as another vote of confidence in Peru’s innovative restaurant scene. Other acknowledgements of the country’s culinary success include winning in 2012 the World’s Best Culinary Destination by the World Travel Awards. The Organization of American States (OAS) also declared Peru’s cuisine part of America’s World Heritage (oas.org).
The number of South American restaurants on the The World’s 50 Best Restaurants list increased to six in 2013, two more than in 2012. This year’s winners include the innovative Brazilian restaurant D.O.M in Sao Paulo, and Astrid y Gaston (http://astridygaston.com/en/) in Lima.
D.O.M. Restaurante’s (http://domrestaurante.com.br/pt-br/home.html) chef Alex Atala is a passionate champion of Brazil’s traditional ingredients and dishes. He trawls the Amazon rainforest for new taste sensations and then deploys them in his inventive dishes in the restaurant. D.O.M. was named the best restaurant in South America for four years in a row by The World’s 50 Best Restaurants.
At Astrid y Gaston in Lima, an innovative take on menus shows how the restaurant stands out from the rest. The restaurant uses storytelling techniques to build up interest in its various menus. One example is the Winter 2013 Tasting Menu with its title El Viaje, meaning trip or journey. “It is a story told through a long sequence of courses divided into five acts, a mise en scène where we attempt to take the life experiences of a restaurant beyond its traditional gastronomic limits,” the restaurant says on its website.
“During each of the five acts, the dishes, the music, the clothing, the decoration, the tableware and the book that accompanies this experience, will narrate the turning points that define this life journey”
Astrid y Gaston is a partnership between a German and a Peruvian who set out to challenge the dominance of French haute cuisine and started the restaurant in 1994.
“Twenty years later, much has happened with Peru and Peruvian cuisine. Unlike those times when inspiration was sought in foreign ingredients and recipes, when cooks locked themselves up in their kitchens and lived with suspicion of their peers, ignoring the farmers’ work and the social and ecological challenges of the environment, today’s cooking is fortunately getting a breath of fresh and beautiful air.”
Another cuisine pioneer is Pujol (pujol.com.mx) in Mexico City, Mexico. It serves Mexican cuisine focused on local ingredients blending ancient and modern culinary techniques. The food is original and exciting: for starters, there is baby corn and chicatana ant, aguachile with chia seeds and avocado, suckling lamb taco, and for desert, fermented plantain, macadamia nuts, plantain vinegar and chamomile flower petals.
The potential is enormous for marrying these restaurant innovators with the many small-scale farmers and food producers to boost awareness of their products and increase incomes across South and Central America.
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.
African fashion brands have not always been the first place fashionistas turned to when shopping for new clothes or shoes in developed economies. While Africa has long been a source of inspiration in contemporary and traditional fashion, the continent has had a weak reputation for manufacturing and selling mass market global fashion brands.
There are initiatives, such as Origin Africa (http://originafrica.org/), an ongoing campaign working to improve African trade by increasing the trade of textiles and apparels, cut flowers, specialty foods, home décor, and fashion accessories. Origin Africa matches African designers and entrepreneurs with experienced industry leaders to “facilitate, coordinate and advance ‘trade, not aid’ efforts”.
While there are many places in Africa engaged in the global clothing manufacturing outsource industry – often paying very low wages – strong African fashion brands are often absent in most developed countries. Well, at least until now.
Two recent examples have joined the well-publicized success of Ethiopia’s soleRebels, maker of rubber-soled shoes (solerebelsfootwear.co). SoleRebels became an Internet success story, harnessing the power of web-based sales to reach customers around the world.
Now another Ethiopian shoe maker is also pushing its way into the global fashion scene. Ethiopian-made sneaker brand Sawa has just been picked up by the American retailer of preppy clothing J. Crew (jcrew.com). The successful catalogue and online clothing retailer has great clout when it comes to promoting a brand, and this should be a big boost to the reputation of African fashion labels.
Sawa’s headquarters is in Paris, France (the physical home of much of the world’s fashion scene) but all its shoes are sourced and made in Addis Ababa, Ethiopia’s capital, and the company’s website is run from there.
Sawa says the key to its success is to be a business first and foremost – not a charity.
“Sawa project does not have the so-called generosity of brands which use Africa just to glorify themselves,” said Wendesen Birhanu, on the company website.
“Sawa is a fashion brand which has taken the challenge to fabricate shoes in Africa. All the added value benefits the continent.”
The company’s shoe factory is modern and has the workers positioned at their desks making the shoes. The brand logo proudly states “Made in Africa” on all the brown cardboard shoe boxes in a bold, red roundel stamp.
Sawa also uses the slogan “vote with your feet” to show the connection between purchasing the shoes and supporting African business and manufacturing.
The footwear, currently available in the United Kingdom, France and through J. Crew in the United States, has a distinctive rubber sole with the African continent embossed on the bottom – a clever design tweak ensuring the wearers will leave an interesting footprint wherever they walk.
The styles available include Dr Bess, a vintage canvas and leather shoe in a low-cut silhouette. The Tsague is a vintage shoe with a mid cut like that used for basketball shoes.
They retail in Europe for between 75 euros and 115 euros a pair – a middle-market price – and come in eye-pleasing colours, from basic black to white to sand, dark blue, grey, brown, red and light blue.
Small and medium enterprises (SMEs) (http://en.wikipedia.org/wiki/Small_and_medium_enterprises) have been identified as an essential part of Africa’s future prosperity and key to its ability to reduce poverty and achieve development objectives like the Millennium Development Goals (MDGs) (www.un.org/millenniumgoals).
Obstacles to growth for SMEs include poor infrastructure, unreliable power supplies, unscaleable business models, low quality standards and poor quality branding and design.
Developing manufacturing in Africa is key to improving incomes and wealth. Creating unique, branded products for overseas markets makes it possible to earn foreign currency and be able to benefit from consumers in other countries. The math is simple: once you have saturated the local market for your product, the only way to boost sales and profits is to seek new customers elsewhere. By selling to people in a country with a higher national income, it is possible to charge more and in turn earn more money for each product. In time, this can lead to significant income rises and in turn, human development gains as the spare cash can be put to improving local living conditions, acquiring education or better health services and consuming better quality food.
Another important feature of selling to overseas customers is competition. Having to compete with the pick of the world’s top brands means a company must raise its game to stand a chance. The pressure forces the company to sharpen its product line, become more efficient, stick to strict quality control and embrace the latest thinking in design, marketing and information technologies.
In short, an African company that can weather a few years successfully selling to overseas customers is going to be a fierce competitor back home.
And, as has been forecast many times, the rise of Africa’s middle class consumers will be a big driver of economic growth in the next decade. If this middle-income consumer class buys lots of African-made consumer products, then the impact on job and wealth creation on the continent will be significant.
Another fashion initiative boosting brand Africa is a partnership between Italian fashion lifestyle clothing retailer Diesel (diesel.com) and the Edun ethical fashion label (edun.com), founded by Ali Hewson and her husband Bono, singer with rock band U2.
The collaboration offers a contemporary take on retro street wear from Africa’s past, while having all the garments made and sourced from Africa.
In March 2013, Diesel+EDUN launched a 25-piece denim collection drawing its inspiration from African creativity. The collection uses raw, untreated denim sourced and manufactured in Uganda. It mixes up Malian textile prints for linings, with outside embroidery drawing on traditional Zulu weaving patterns. It also includes a denim jacket inspired by street wear from 1970s South Africa.
Edun was originally set up to encourage greater trade with Africa as a way to address poverty and boost incomes. Begun in 2005, the brand has tried to overturn the perception that ethical and ecologically sound fashion can’t be fashionable and desirable too.
Edun has sought to be “a creative force in contemporary fashion”, according to its website. In 2007, it launched a line dedicated to making t-shirts entirely made in Africa called Edun Live. Edun Live t-shirts “are entirely ‘Grow to Sew’ African. From cotton to finished tee, all production takes place in Africa.”
Edun has the goal of producing 40 per cent of its fashion collection in Africa by 2013. It does this by “supporting manufacturers, infrastructure and community building initiatives”.
All of Edun’s cotton is harvested to CCIU cotton standards. The Conservation Cotton Initiative Uganda (CCIU) is a cotton-farming program that helps to build sustainable farming communities in Northern Uganda.
Edun is currently working in Kenya, Morocco, Madagascar, Uganda and Tunisia.
The Diesel+EDUN (http://www.diesel.com/diesel+edun/) collaboration had its start at the beginning of 2012. After trips to East and West Africa by Diesel founder Renzo Rosso and Edun founders Ali Hewson and Bono, the idea was hatched to work together to “further apparel trade and development in Africa”. The goal is “bringing business to the continent and highlighting to the fashion world the possibility for sustainable trade and creative opportunity in Africa.”
More than 5,000 farmers participated in the 2011/2012 CCIU program, and more than 8,000 have already enrolled in the 2012/2013 season, the website states.
Edun is also working with Mikono Knits (Mikonoknits.com) to promote traditional African knitting techniques. Founded in 2005 by Froydis Dybahl Archer, Mikono makes and sells hand-crocheted sweaters and tank tops from its Nairobi, Kenya workshop. The plan is to use the success of Mikono Knits to expand the number of underprivileged women the firm can hire to work for the business. The business currently employs 10 women and uses locally sourced organic cotton and wool, supporting the local economy.
Beyond the actual clothing partnership and African-inspired fashion, there is a clever promotion campaign to raise awareness for the Diesel+EDUN line. Called Studio Africa (http://studioafrica.tumblr.com/), it is a marketing and perception-shaping initiative, “celebrating and promoting creativity in Africa”. It is doing this by promoting nine African artists to better communicate the African vibe of the collection and give the artists’ careers a boost. It is curated and edited by Okay Africa (http://www.okayafrica.com/), a cultural guide to “all the latest music/culture/politics coming from Africa and the Diaspora”.
Published: March 2013
Resources
1) Africa Fashion International: African Fashion International (AFI) is the leading Fashion authority on the African continent and is committed to the promotion and development of the best South African design talent. Website:http://afi.za.com/
2) Origin Africa: Origin Africa is an ongoing campaign and initiative dedicated to improving African trade. Comprised of producers, designers, small businesses, exporters, buyers and retailers, it is working to develop, guide and promote African trade in the following sectors: textiles/apparel, cut flowers, specialty foods, home décor, and fashion accessories. Website:http://originafrica.org/
4) How we made it in Africa: A great website packed with inspirational people and stories on business success in Africa. Website:http://www.howwemadeitinafrica.com/
5) Nigerian shoe and garment maker Fut Conceptus has been taking raw Nigerian leather that was once just sent overseas for export, and instead is turning out high-quality shoes and bags made in Nigerian factories. Website: futconceptus.com
6) SME Toolkit South Africa: A website packed with resources and support for anyone starting a small business in Africa. Website:http://southafrica.smetoolkit.org/sa/en
8) Small and Medium Enterprise Support, East Africa: A blog promoting events and support for SMEs in East Africa. Website:http://smeseastafrica.blogspot.com/
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.
In the Democratic Republic of Congo – home to the world’s largest United Nations peacekeeping mission and decades of bloody civil war – a brewery has not only survived, it has thrived to become a popular brand throughout central Africa. By being a success, the Brasimba brewery has brought prosperity and high-quality jobs to Congo’s second largest city, Lubumbashi (http://en.wikipedia.org/wiki/Lubumbashi), and proven that a modern business can do well there despite the obstacles.
The Brasimba brewery has an ultra-modern factory (http://www.viddler.com/explore/kaysha/videos/298/) complete with high-tech laboratories to constantly test the quality of the beer. It employs 700 people – most of whom are Congolese – and produces 250,000 bottles of Simba beer every day, according to Monocle magazine. The company’s beer brands are Simba Biere du Lion and Tembo Biere and its slogan is a proud Notre Biere (Our Beer).
Lubumbashi is a city described by the BBC as without “child beggars, without potholes and where there are no festering mounds of rubbish.”
A study of the economic impact of breweries in Uganda and Honduras found that more than 100 local jobs, from farmers to truck drivers, depended on every person employed by a brewery (http://www.inclusivebusiness.org/2009/10/sabmiller-impact-assessment.html). Markets across the South are seen as growth areas for beer companies: China’s beer consumers now outnumber those in the U.S. By 2003, world sales of beer reached 148 billion hectolitres (Euromonitor). Overall, it is forecast that global beer consumption will rise by 3.5 percent by 2015, mostly in the South.
Apart from creating steady employment, breweries also help to improve the development of the advertising and marketing businesses of a community as they promote their various brands, and they support local activities like sport with team sponsorship. They also offer a local example of how to run a modern beverage business, with mechanized production, distribution systems and laboratories to ensure hygiene and quality standards are maintained.
Brasimba has been operating in Lubumbashi for eight decades, through the twists and turns of the country’s history. The city has prospered from its copper mines and wisely used that wealth to improve the city’s general prosperity.
The brewery has successfully become a regional favourite, producing beer that is drunk not only in the surrounding Katanga province, but also in Zimbabwe and Zambia. It’s an impressive accomplishment for a company operating in such a turbulent environment. Distribution of the beer by truck is not easy, with the trip taking between six days and two weeks depending on the weather and the condition of the roads.
And the beer is not cheap, at around US $1.48 for a big bottle — a sure sign there is money to be made.
The healthy economic environment has also spawned a beer war with rivals Bralima, owned by the multinational Heineken. With five breweries in Congo and its head office in the capital Kinshasa, Heineken claims the lessons it has learned in Congo are helping it to change its marketing and business strategies far away in the United States.
It recently transferred its commercial director of Congo operations to head up operations in the United States. Heineken Chief Executive Officer Jean-Francois van Boxmeer told the Bloomberg news agency that working in Africa was “certainly worth three times Harvard Business School.”
Heineken’s market share doubled in the Democratic Republic of Congo in just four years and Africa has become a significant market for the brewer.
A Brandchannel: The world’s only online exchange about branding, packed with resources, debates and contacts to help businesses intelligently build their brand. Website:http://www.brandchannel.com
Just Food is a web portal packed with the latest news on the global food industry and packed with events and special briefings to fill entrepreneurs in on the difficult issues and constantly shifting market demands. Website:http://www.just-food.com
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.
David South Consulting 
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