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Rwandan Coffee Brand Boost

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

A successful Rwandan company is using coffee shops to promote the nation’s high-quality coffee brands at home and abroad. Started by two Rwandan entrepreneurs three years ago, Bourbon Coffee (http://www.bourboncoffeeusa.com) now has three shops in the country’s capital, Kigali, and a savvily positioned shop in Washington DC.

While Rwandan coffee has built a good international reputation, the country’s more than 500,000 coffee farmers (mostly small-scale) previously depended on the product’s reputation alone. But Bourbon Coffee joins several other initiatives changing this situation and starting to significantly raise the profile of Rwandan coffee and build the Rwanda brand.

The East African nation experienced the horrific genocide of almost 1 million people in 1994. Ever since, the country has been on a journey to reconcile with the damage done during this time and move on to a more prosperous future for all its citizens. A key part of the country’s future success will be its economic prosperity. And historically, coffee has played a critical role in Rwanda’s economy.

The Bourbon Coffee chain of shops (taking its name from the high quality Bourbon coffee varietal (http://en.wikipedia.org/wiki/List_of_coffee_varieties) which accounts for the majority of Rwandan coffee), started with its first shop in Kigali in 2007. Started by Emmanuel Murekezi and Arthur Karuletwa, two Rwandans living in the United States, it is modelled on the popular American brand Starbucks (http://www.starbucks.com). The entrepreneurs admired the coffee culture experience found at Starbucks. Just as Starbucks heavily markets its complete quality control over the coffee experience, their philosophy is to produce great coffee from “crop to cup.”

“There are over 500,000 farmers that own 100 to 200 trees in the back of their yards, so the only way they can come up with a product is to come together in a cooperative sense,” Karuletwa told the Washington Post. It is a learning experience for the Rwandan coffee farmers: they learn to work together, trust each other and be accountable to each other. “Neighbours that once killed each other and communities that once floated in the same bloodbath are now hand in hand producing one of the most amazing products.”

“If done right, it could be the platform to re-brand the country,” continued Karuletwa, a former chief executive and now a shareholder in the company. Coffee can “create awareness that there’s recovery, there’s trade, there’s investment opportunities, there’s tourism. There’s life after death.”

The importance of good design and a strong brand in the success of a business cannot be emphasised enough. That extra effort and thought can take a business from local success to regional and even global success. As consultants KPMG make clear, “For many businesses, the strength of their brands is a key driver of profitability and cash flow.” Yet the majority of small businesses fail to think about their brand values or how design will improve their product or service.

The shops have a very tasteful modern, African design and feel. African sculpture and furniture are surrounded by African artwork. The shop’s logo is an eye-catching orange and there is an overall recognizable brand identity for the entire Bourbon Coffee concept.

The founders see it as an opportunity to educate people about the health benefits of coffee culture and the joys of the lifestyle. They proudly serve only Rwandan coffee and promote the national brands they serve, including Akagera, Kivu Lake, Kizi Rift, Muhazi and Virunga.

Bourbon Coffee, in a clever move, opened the Washington branch in 2009 in a former Starbucks in a neighbourhood packed with aid organizations and NGOs, many of which work with Rwanda on projects.

Karuletwa says Bourbon Coffee’s ambitious vision “is to stand as a symbol of a new era in African economic development, one in which African nations rise to participate directly in the global marketplace.”

“Coffee is a very intimate, emotional product,” he said. “The preparation, the processes and the profiling of coffee is similar to wine.”

The Rwandan branches can be found at the Union Trade Centre (UTC) in Kigali’s city centre, the MTN centre in Nyarutarama and Kigali airport.

The business is funded by Rwandan investors Tristar (http://www.tri-starinvestments.com/index.html).

Another initiative is the Rwandan Farmers Brand (http://www.rwandanfarmers.com). It also hopes to raise the profile of Rwandan coffee and drive more of the profits made into the hands of farmers. It is a joint venture between the foundations of former U.S. President Clinton and philanthropist Sir Tom Hunter. They fund all the brand’s creation and operation in partnership with 8,700 farmers. They have started selling Rwanda Medium Roast Ground in the United Kingdom’s Sainsbury’s supermarkets. Sixteen percent of sales are clear profit and returned to the farmers via their own Trust Fund.

Karuletwa says he doesn’t want Rwandan coffee to be “a pity-driven mission”. It is all about the quality: “The value initiative here is because this coffee tastes great,” he says.

And Bourbon Coffee is looking further afield to grow the brand: “We hope to expand even further,” Murekezi told Monocle magazine. “Congo, Burundi, Tanzania, but also Europe. We think the concept can work there too.”

Published: August 2010

Resources

  • East African Fine Coffees Association: All the latest news on events and initiatives for East Africa’s coffee producers. Website: http://www.eafca.org/
  • Brandchannel: The world’s only online exchange about branding, packed with resources, debates and contacts to help businesses intelligently build their brand. Website: www.brandchannel.com
  • Small businesses looking to develop their brand can find plenty of free advice and resources here. Website: www.brandingstrategyinsider.com
  • The red dot logo stands for belonging to the best in design and business. The red dot is an internationally recognized quality label for excellent design that is aimed at all those who would like to improve their business activities with the help of design. Website: http://www.red-dot.de
  • Dutch Design in Development: The Dutch NGO works with producers to develop skills and adapt producers’ products to present and future demands in Europe. By following this approach, Southern producers can reduce the risk of making products nobody wants, or that lack originality in the marketplace and thus won’t sell. Website: http://www.ddid.nl/english/index.html

https://davidsouthconsulting.org/2021/03/12/afro-coffee-blending-good-design-and-coffee/

https://davidsouthconsulting.org/2022/09/29/the-battle-for-indias-coffee-drinkers-in-buzzing-economy/

https://davidsouthconsulting.org/2021/10/03/civet-cat-coffee-brews-filipino-opportunity/

https://davidsouthconsulting.org/2021/01/08/haitian-coffee-becoming-a-hit-with-american-connoisseurs/

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. 

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-2/

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 2022

Categories
Archive Development Challenges, South-South Solutions Newsletters

Grassroots Entrepreneurs Now Have Many Ways to Fund their Enterprises

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY


In the past, African entrepreneurs were extremely limited in the options for funding their plans. They had to rely on often ineffective national banks or local networks based on political, tribal or family connections to secure funding for enterprises. That has now changed, and there is an explosion in new thinking on business start-ups and how best to help grassroots entrepreneurs.

Concepts such as socially responsible investing, social enterprises and fair trade have opened up new frontiers for business development. All focus on the so-called triple bottom line: people, planet, profit. Economist Milton Friedman’s refrain that the only social responsibility of business was to increase profits, is being proven wrong. Some even go as far as to say social enterprise is the model for the 21st century.

“There’s lots of money to be made here,” said James Baderman of What If, an innovation company in the UK that employs 300 people and devotes 10 percent of its profits to helping social enterprises develop and grow. “There are huge opportunities; just look at the double-digit growth in fair trade and organic goods over the past decade. Consumers are increasingly making choices based on the ethical nature of products.”

Many in the social enterprise movement believe breaking the cycle of poverty and economic stagnation requires more than charity; it requires the creation of sustainable businesses that will pay local taxes and employ local people. They have also adopted and adapted the techniques used by multinational companies to improve the desirability of their products. A key part of these new socially responsible businesses is branding and marketing.

In Kenya, the UK’s Traidcraft (www.traidcraft.co.uk) – an organization that fights poverty through a wide range of trade-related activities combining a development charity with a trading company – is working with the Kenya Organic Agriculture Network to develop markets for Kenyan herbs, spices and related products in local and international markets. These include gums, resins (e.g. frankincense), herbs such as coriander, oregano, garlic and lemon grass; spices such as paprika, chillies, rosemary, lemon balm, and essential oils such as pepper tree oil, sinoni oil, and megalocapus oil – all grown in marginalised, arid areas.In another development focused on Kenya – but applicable across Africa – is being led by the UK-based Mark Leonard Trust (http://markleonard.net/). Called the Mainstreaming African Crafts project, it seeks to boost demand for Kenyan craft products in the UK market. It will build demand by focusing on growth areas (such as baskets, jewellery, leather), emphasizing the distinctiveness of African craft products and support product development in line with identified market trends. The aim is to launch a branded Kenyan product range at an international trade fair in 2008.

Along with improving the branding and marketing of social enterprises and fair trade businesses, funding options are becoming more varied. One new source of funding for budding social entrepreneurs is the William James Foundation’s 4th Annual Socially Responsible Business Plan Competition. It awards winners who develop business plans that blend people, planet and profit together with over US $40,000 in cash and expert advice to make sure it is spent well. Past winners have included business ventures as varied as an Afghan company that sends SMS text messages on security alerts, to others making hand-made organic clothing and portable vaccine packs for remote areas.

“We’re at a tipping point wherein the entrepreneur who builds in long-term values of sustainability is the one who will be successful,” said Ian Fisk, executive director of the William James Foundation and a long-time sustainable business activist through Net Impact (http://www.netimpact.org/index.cfm). “Most of what people think of as environmental and social activism in business is simply long-term thinking about energy costs and human resources. There are thousands of good ideas out there. The foundation wants to find those that are attached to solid business plans and help them succeed.”

The success of this approach has also attracted the attention of multinational companies like the oil company Shell. At the Shell Foundation (www.shellfoundation.org), they look at all the enterprises they support from a hardnosed, business perspective. Rather than seeing a producer who needs to produce, they look first at the market and the consumer, and then work backwards to get the producer to make the appropriate products that will sell. “No micro-enterprise is sustainable unless there is a viable route to market,” said Sharna Jarvis, Programme Manager for the Shell Foundation. “The problem with the standard model for micro-finance is that it begins with the producer, not the consumer. It is all about what someone wants to make – there is not enough emphasis on whether anyone will buy it.”

A new internet search engine has also been launched that is seeking a new way to create a steady flow of funds to nonprofit enterprises working to reduce poverty. Called GoodSearch (www.GoodSearch.com), it plows 50 percent of its advertising revenue (about a penny a search) back into nonprofits selected by its users. Powered by the well-known portal Yahoo!, if for example 1,000 supporters just searched twice a day, it would raise US $7,300 a year for an organization.

Published: February 2007

Resources

  • The Fairtrade Foundation (FTF) helps farmers and other producers to earn a decent living and obtain good healthcare and education. Fair Trade Resource Network: http://fairtraderesource.org/about.html
  • Unltd (pronounced Unlimited), a charity supporting social entrepreneurs: www.unltd.org.ukExcellent resource to link with branded social enterprises and all the resources required to get started: www.socialenterprise.org.uk
  • Equitrade helps businesses in poor countries to develop finished or part-finished products to sell in rich countries: www.equitrade.org
  • The 4th Annual Socially Responsible Business Plan Competition is open to for-profit business (or business ideas) with at least one member who is a current student or has graduated within the past five years.
  • For more information contact: www.williamjamesfoundation.org or email ian.fisk@williamjamesfoundation.org.

https://davidsouthconsulting.org/2021/02/04/cuban-entrepreneurs-embracing-changes-to-economy/

https://davidsouthconsulting.org/2022/10/09/entrepreneurs-use-mobiles-and-it-to-tackle-indian-traffic-gridlock/

https://davidsouthconsulting.org/2022/10/20/ghana-oil-rich-city-sparks-entrepreneurs-and-debate/

https://davidsouthconsulting.org/2022/11/11/havanas-restaurant-boom-augers-in-new-age-of-entrepreneurs/

https://davidsouthconsulting.org/2022/11/15/indonesia-best-for-entrepreneurs/

https://davidsouthconsulting.org/2020/12/20/mobile-phones-engineering-souths-next-generation-of-entrepreneurs/

https://davidsouthconsulting.org/2020/12/17/mongolias-musical-entrepreneurs-led-way-out-of-crisis-2018/

https://davidsouthconsulting.org/2021/02/11/turning-street-children-into-entrepreneurs/

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.  

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-2/

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

Categories
Archive Development Challenges, South-South Solutions Newsletters Southern Innovator magazine

Entrepreneurs Use Mobiles and IT to Tackle Indian Traffic Gridlock

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Around the world, traffic congestion is often accepted as the price paid for rapid development and economic dynamism. But as anyone who lives in a large city knows, a tipping point is soon reached where the congestion begins to harm economic activity by wasting people’s time in lengthy and aggravating commuting, and leaving them frazzled and burned out by the whole experience. According to the World Business Council for Sustainable Development, 95 percent of congestion growth in the coming years will come from developing countries. Even in developed countries like the United States, in 2000, the average driver experienced 27 hours of delays (up seven hours from 1980) (MIT Press). This balloons to 136 hours in Los Angeles.

Developing countries are growing their vehicle numbers by between 10 and 30 percent per year (World Bank). In economic hotspots, growth is even faster. In India, the cities of Delhi, Mumbai, Kolkata and Bangalore account for five percent of the nation’s population but have 14 percent of the total registered vehicles. In the Islamic Republic of Iran, Kenya, Mexico and Chile, 50 percent of cars are in the capital cities (www.peopleandplanet.net).

India’s Koolpool is stepping in with a 21st century upgrade to the old concept of carpooling. India’s first carpooling service (in which drivers share rides to reduce congestion and save money) uses the power of the country’s mobile phone network to link up people by SMS (short message service) text. Already launched in Mumbai, it is being rolled out in other cities as well.

Koolpool surveyed Indian drivers and found that the average car only had two passengers. Koolpool is an idea from the Mumbai Environmental Social Network (MESN), a registered charity with the mandate to come up with innovative solutions to environmental and infrastructure problems. Its goal is to prove “low-cost and high efficiency IT-based solutions are the way of the future. With no gestation period and minimal investment, they are profitable and more importantly for us, people friendly.” Koolpool claims that an increase from 1.7 passengers per vehicle to 2.04 will decrease travel time and pollution levels by 25 percent. It also claims to be the first carpooling service to combine SMS text messaging and IT.

Ride-givers send a text message to Koolpool just before going down a major road. Koolpool then sends a list of ride seekers on the route, their membership identifications, the designated stopping point for pick-up, number of riders and login time. If there are no ride givers on that route, then ride seekers are pooled together to get a taxi and share the costs. Members of Koolpool pay an annual membership fee and exchange credits by mobile phone between ride seekers and ride givers, which are then redeemed at gas stations for petrol.

And Koopool comes at just the right time: congestion in India will probably only get worse in the near term, as the government pledges to build even more roads and make the country’s cities “the flyover capital of Asia”.

In Kolkata, says Sudarsanam Padam, former director of the Central Institute of Road Transport in the city of Pune, the average speed during peak hours in the central business district (CBD) area is as low as seven km/hr. Bangalore currently has average speeds of about 13-15 km/hr in its CBD, but this is expected to go down to three to eight km/hr in the next 15 years, according to the city’s police traffic commissioner, M N Reddi.

Published: June 2007

Resources

  • Mobility 2001: World Mobility at the End of the Twentieth Century and its Sustainability published by the World Business Council for Sustainable Development.
  • Another Indian car pooling business allows people to post requests for rides on an internet bulletin board, Car Sales India.
  • Another solution to traffic congestion has been the motorcycle taxi. Beginning in Thailand, motorcycle taxis can now be found in Cambodia, India and the UK. Read more at here.
  • SENSEable City: A project at the Massachusetts Institute of Technology’s SENSEable City Laboratory to use the new generation of sensors and hand-held electronics to change how cities are understood and navigated. This includes creating real-time maps of cities that can then be used to help with avoiding traffic congestion and other problems.
  • Read more about India’s traffic congestion problem by India’s only science and environment biweekly online newsletter, Down to Earth.

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 2022