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African Countries Re-branding for New Economic Role

Post author By David South Consulting
Post date 20/10/2022
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By David South, Development Challenges, South-South Solutions

Africa’s diverse countries have been subject to years of negative stories in the media. The effect on global audiences has left many to cast the whole continent in a bad light and to know little about the individual countries and cultures.

This has damaged business confidence over the years. Just like products and people, nations need to have a strong and positive brand to do well in the global economy. Nation branding, the process by which countries alter people’s perceptions, has taken hold in Africa as the continent seeks to reverse the bad vibes.

South Africa is the continent’s leader in nation-branding, and countries including Nigeria, Kenya and Ghana are newly pursuing it. South Africa’s ‘Proudly South African’ (http://www.proudlysa.co.za/) campaign is known around the world.

The past decade has seen economic growth and rising tourism in many African countries. But the reality that many people around the world can’t tell the difference between most African countries, or have mostly negative impressions formed from news reports, means they are unaware of the positive developments and opportunities.

Author and researcher Simon Anholt, in his book Brand New Justice, claims Africa’s biggest obstacle to growth is the image of the continent itself. He argues that in a globalized world it is the responsibility of good governments to understand, measure, and exercise control over a country’s reputation if it is to prosper. However, he has criticized nation-branding if it is just a marketing strategy without substantial changes to how things are done in a country.

And it is clear the winners in nation re-branding will be the countries that prove on the ground that they are changing and living up to the fine words and catchy phrases.

In Nigeria’s Lagos State (www.lagosstate.gov.ng), Governor Babtunde Fashola – known as ‘Nigeria’s Obama’ – has launched a campaign to turn around the country’s long-standing reputation for corruption. Using the slogan Good People, Great Country, the city of Lagos has set itself ambitious goals that are dependent on significant increases in investment.

Lagos wants the city to be transformed into a place anyone can do business and be attractive to tourists.

The city has seen its population triple in the last 50 years and is on track to be the third largest city in the world by 2015. Thinking long term, plans are in place for the city to eventually be home to 40 million people.

Critics are blunt about their hostility to the re-branding exercise: “How do you re-brand a product when the content stinks?” asked Akinola M.A. on news website Mynaija News. “I can’t understand the meaning of this project when basic facilities like good roads, water and electricity are virtually not available.”

Supporters say the governor’s strategy is based on action, not words. Investment is going into a Rapid Bus Transit (BRT) system, traffic management, security, street lighting, beautification, and public-private partnerships to improve services.

“Nigeria cannot wait until it solves all her problems before it can stand to give serious thought to re-branding its battered image,” Nigeria’s information minister Dora Akunyili told Online Nigeria. “This is because our development is tied to our image. This negative perception has had destructive effects on our people and stymied our growth and national progress.”

Showing the power of trans-African approaches, the Wisdom Keys Group, a Nigerian company founded in South Africa (http://www.wkg.co.za/network.html) and working in 16 countries with partners, was contracted to do the campaign.

As the pioneer of brand power in Africa, South Africa’s International Marketing Council (http://www.imc.org.za/) heads a relentless campaign to engage an international audience and expatriate South Africans. It is a sharp, multi-media outfit tackling every aspect of South Africa’s domestic and international reputation. Products include e-newsletters, campaigns to lure back expert South Africans, a vast network of web content, and a highly targeted advertising and marketing campaign that lures businesses and tourists to the airport (via ads on taxis and in subways) and on to flights to South Africa.

For Kenya (http://www.brandkenya.go.ke/), the focus is on instilling pride within the country. As Kenyan media consultant Kwendo Opanga told the Nation Branding website, “it is not branding Kenya for foreigners that is difficult. It is branding Kenyans for Kenya and Kenya for Kenyans that is a tough call.”

“We even work with the school system to ensure that this is in the curriculum so that children are told that they need to start living dignified lives.”

Rwanda, despite experiencing a horrific genocide in 1994, is gaining attention for turning its image around. It has taken a different approach and has targeted building powerful networks of support around the world to make deals. As Rwandan government adviser Elaine Ubalijoro told FastComany, “How do you take a country that’s been through hell and bring it to security and prosperity? This is about healing, and this is about hope. We think it can be done.”

The Rwandan strategy is hinged on exploiting a global network of high-profile and powerful contacts that includes former British Prime Minister Tony Blair, Starbucks CEO Howard Schultz and Google chief Eric Schmidt. The results include a training programme where British civil servants work in Rwanda. Starbucks, meanwhile, has become one of the top purchasers of Rwandan coffee.

Ghana’s newly launched Brand Ghana office was set up to coordinate the development of an engaging national image for the country. Its head, Mathias Akotia, told Nation Branding: “We are in competition with other nations for attention, wealth, tourism and for the export of products. Country branding is about the management of our national identity and values in a way that will take us forward.”

Still in the early stages of re-branding, Ghana plans to hold a national summit to draft a plan and identify the country’s values and identity.

Branding is not merely slogans and catch phrases. Word-of-mouth can radically change a country’s image, and its prospects. The international magazine Monocle (www.monocle.com), a publication that prides itself on spotting the next big thing, has highlighted the East African nation of Burundi (http://en.wikipedia.org/wiki/Burundi) as the place to watch. The magazine thinks that by reinventing itself as a place of tourism, coffee and oil, with some of Africa’s best inland beaches and a wealth of art-deco architecture recalling Miami’s South Beach area, Burundi can distance itself from past conflict and become a must-see destination. At present, 80 percent of its earnings come from coffee and tea exports. It is hoping to become a tourist and transport hub with a new port, linking central and east Africa.

As the magazine says, “Bujumbura has got all the substance – and architecture – required to turn Burundi’s backwater capital into an African success story, and the country’s upcoming elections are a chance to create lasting peace after 15 years of civil war. But corruption could still derail the dream.”

The Nation Branding website (http://www.nation-branding.info/) (“everything about nation branding and country brands”) is the place to visit for all those interested in nation branding, country brands and how countries can improve their image abroad. Upcoming nation branding events can be found here: http://www.nationbrandingevents.com/nationbranding.

Published: November 2009

Resources

1) Monocle Magazine: Launched in February 2007, Monocle is a global briefing covering international affairs, business, culture and design. Developed for an international audience hungry for information across a variety of sectors, the magazine is a consistent champion of Southern countries and their economic opportunities. Website: http://www.monocle.com/

2) A BBC radio documentary on Nigeria’s experience of nation branding. Website: http://www.bbc.co.uk/worldservice/documentaries/2009/html

3) 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

4) Small businesses looking to develop their brand can find plenty of free advice and resources here. Website: www.brandingstrategyinsider.com

5) Catwalk for Africa: A fashion show taking place from December 4-6, 2009 in Tunisia. Website: http://www.catwalkforafrica.com/accueil/accueil_en.php

https://davidsouthconsulting.org/2022/11/11/african-breakthroughs-to-make-life-better/

https://davidsouthconsulting.org/2022/11/20/african-bus-to-tackle-african-roads/

https://davidsouthconsulting.org/2022/11/19/african-culture-as-big-business/

https://davidsouthconsulting.org/2022/10/20/african-hotel-boom-bringing-in-new-investment-and-creating-jobs/

https://davidsouthconsulting.org/2022/11/17/african-ingenuity-attracting-interest/

https://davidsouthconsulting.org/2022/11/15/african-innovators-celebrated-in-prize/

https://davidsouthconsulting.org/2022/10/21/african-media-changing-to-reach-growing-middle-class/

https://davidsouthconsulting.org/2022/11/02/african-online-supermarket-set-to-boost-trade/

https://davidsouthconsulting.org/2023/01/16/african-theatre-becomes-european-success/

https://davidsouthconsulting.org/2022/10/20/african-tourism-leads-the-world-and-brings-new-opportunities/

https://davidsouthconsulting.org/2022/11/22/happy-nigeria-west-african-nation-has-good-attitude/

https://davidsouthconsulting.org/2022/10/20/online-education-could-boost-african-development/

https://davidsouthconsulting.org/2022/10/18/woman-wants-african-farming-to-be-cool/

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/

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Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

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

© David South Consulting 2022

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West African Chocolate Success Story

Post author By David South Consulting
Post date 17/10/2022
No Comments on West African Chocolate Success Story

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

A Ghanaian chocolate company has become a big success in the United Kingdom and shown how it is possible to develop and market a high-quality product grown in West Africa. While the chocolate bars are manufactured in the Netherlands, the cooperative that owns the company initiated the push into producing a mass-market chocolate brand – and shares in the profits.

The Divine chocolate brand is available in shops and supermarkets across Britain and is the product of the Kuapa Kokoo (http://www.kuapakokoo.com/) cocoa farmers cooperative. The Divine brand was launched in the U.K. in 1998 as the first Fairtrade (http://www.fairtrade.org.uk) chocolate bar aimed at the mass market. Previously, most Fairtrade chocolate was made for high-end customers.

Apart from the chocolate bars, the co-op also sells its cocoa butter to The Body Shop (http://www.thebodyshop.co.uk/_en/_gb/index.aspx), a chain of natural beauty retailers.

In 1997, at the co-op’s annual general meeting, members decided to create a mass-market chocolate bar of their own. Ambitiously, they did not want to just be a small, niche-market chocolate bar. They wanted to take on the big brands. They set up The Day Chocolate Company in 1998 and received support from a collection of international charities, aid agencies and businesses.

The Chocolate Company is structured to have two members of the co-op on its board of directors, with one out of four yearly board meetings held in Ghana. As shareholders, the farmers also receive a share of the profits of chocolate sales. Britain’s chocolate market is worth £4 billion a year (US $6 billion) and the country has hundreds of chocolate brands, making competition for customers fierce. The Divine range of chocolate has been designed to match U.K. market tastes.

Ghana has an excellent reputation for the quality of its cocoa beans and has been growing cocoa since it was first brought to the country from Equatorial Guinea in 1878 by Tetteh Quarshie (http://www.ghanaweb.com/GhanaHomePage/people/pop-up.php?ID=128).

Kuapa Kokoo’s success story has its origins in responding to the structural adjustment programmes (http://en.wikipedia.org/wiki/Structural_adjustment) which started liberalizing Ghana’s cocoa market in 1993.

The lock the government had on selling cocoa to the Cocoa Marketing Company had been lifted. Now the opportunity was there for others to sell to the Marketing Company and some farmers decided to form a cooperative, Kuapa Kokoo – “the best of the best”. They wanted to get a better price for the cocoa and to improve working conditions and lives of the pickers.

The cooperative does all the processing of the cocoa and delivers it to market. One of the great advantages for the farmers is the honest weighing of the beans – something previous buying agents would cheat doing. By creating a more efficient and fair process, greater savings are made on the price paid for the beans and this is passed on to the co-op’s members.

The farmers are also trained to do tasks like weighing and bagging the cocoa, removing the need for outside help. Every year the farmers receive cash bonuses based on the co-op’s profits and any efficiencies made.

With this success, Kuapa Kokoo grew and now has more than 40,000 members spread over 1,300 villages.

The co-op offers various services to the farmers including a credit union to help with finances. There are also 33 Research and Development Officers employed by the co-op to oversee training and election.

The number of women farmers has grown over the years, from 13 percent to 30 percent.

Extra income-generating skills are encouraged for the women farmers as well. One project is to make soap from the potash produced from burnt cocoa husks. Women have also been given machines to crack palm kernels for cooking oil.

Comfort Kumeah, a 62-year-old co-op farmer, lives in the village of Mim in the Ashanti region. A former teacher for 39 years, she inherited 20 acres of land from her husband’s family.

“Each farmer has a passbook to record weight and payment. In the whole of Ghana, only Kuapa Kokoo … is certified Fairtrade,” she told the Sunday Times.

“I was voted chair of the farmers’ trust and national secretary for the union; once a year I attend a conference to vote on how the Fairtrade premium is spent. Last year we bought a palm-nut crusher and we sell the red oil on the market.”

“Before, I was always cheated. Purchasing clerks would come and weigh the beans and you never knew if their scales were correct, as no one checked them. Some embezzled the money instead of paying it to the farmers.”

“Owning this company has given cocoa farmers a voice for the first time.”

Kuapa Kokoo sells around 1,000 tonnes of cocoa every year to the European Fairtrade market (http://www.etfam.com/index2.php). This has many advantages for sellers if they meet certain conditions. These conditions include health and safety requirements and democratic decision making. If they are met, the producers receive a guaranteed price for their goods and long-term trading contracts. This means a stable price despite market fluctuations. With a stable price, it is easier to plan and save money.

Ghanaian cocoa has a good international reputation and trades at a higher price because of this. Cocoa once made up 66 percent of Ghana’s foreign exchange, but is now down to 35-40 percent as the economy has diversified into areas like information technology.

Cocoa is usually grown on small family farms in Ghana. Farmers also grow crops like plantain to provide food for the family. Around 1.6 million people are involved in growing cocoa and its business in Ghana. Cocoa trees grow to 15 metres in height and take three to four years to start producing a crop. An entire year’s worth of a tree’s crop can make three large chocolate bars.

A tree can produce two crops a year. Each cocoa pod produces around 40 seeds.

“A cocoa farmer’s life is hard,” admits Comfort. “In the lean season, we have no income. Also, cocoa is controlled by climate. Drought followed by too much rain causes fungus and rot, and then every farmer is poor.”

“I have saved money for my children’s education but my own needs are few: clothes, soap and toothpaste. Generally, you know, women are strong. Last year more women than men were voted onto the Kuapa Kokoo national executive and now hold some of the most senior positions.”

Learn more about cocoa trading and Africa’s role here (content provided by commodity.com): Cocoa’s Future as Commodity: What If Africa Can’t Keep Up the Supply? – Where’s Cocoa From and How Much Does It Contribute to the World’s Economy?

Cocoa has many health benefits. From the British Journal of Clinical Pharmacology: The neuroprotective effects of cocoa flavanol and its influence on cognitive performance

“In summary, the flavonoids contained in cocoa and chocolate appear able to improve various types of cognitive and visual tasks, possibly as the result of more efficient perfusion of blood to different neural tissues, clearly both forebrain and more posterior cortex and possibly also influence retinal blood flow and visual function.”

Published: April 2010

Resources

1) Divine’s online shop. Website: www.divinechocolateshop.com

2) An online shop with various Fairtrade chocolate brands for sale. Website: http://www.simplyfair.co.uk/acatalog/Chocolate.html?icid=J158-11634392-071H&gclid=CMOlycDN8KACFUkrDgodjXDsEg

3) How to make chocolate bars from the bean to bar. Website: http://www.wikihow.com/Make-Chocolate

4) Home Chocolate Factory: A website selling the moulds and other accessories for making chocolate products in small factories or at home. Website: http://www.homechocolatefactory.com/

https://davidsouthconsulting.org/2022/10/17/connoisseur-chocolate-from-the-south-gets-a-higher-price/

https://davidsouthconsulting.org/2022/11/01/indonesian-food-company-helps-itself-by-making-farmers-more-efficient/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-3/

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

Archive Development Challenges, South-South Solutions Newsletters

Connoisseur Chocolate from the South Gets a Higher Price

Post author By David South Consulting
Post date 17/10/2022
No Comments on Connoisseur Chocolate from the South Gets a Higher Price

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Like coffee beans, cocoa beans are grown around the world and are a major commodity, highly prized in wealthy countries. West Africa accounts for 70 percent of the world’s output, with the rest grown either in Indonesia and Brazil (20 percent), or on a smaller scale in countries across the South, from Belize to Madagascar.

Global sales of cocoa beans have grown by an average of 3.7 percent a year since 2001, and the World Cocoa Foundation estimates 40-50 million people depend on cocoa for their livelihood.

But harvesting cocoa comes at a price to the farmers and those who work on the farms. It is estimated that 284,000 children in West Africa work under abusive conditions to harvest the beans. Cocoa farmers usually only benefit from the price of cocoa in the harvest season between October and February. In Ghana, the second largest producer of beans, child slavery allegations have plagued the cocoa plantations, along with too-low prices paid to farmers. Fluctuating global market prices constantly put small-scale farmers at risk of losing everything they have worked for.

But consumers are developing ever-more sophisticated tastes for chocolate, paying more attention to the quality and origin of the beans. Savvy cocoa producers are using this greater awareness to increase prices for farmers and improve conditions for those who work on the farms.

Maturing consumers’ palates are now picking chocolate and other food products from the South in much the same way as connoisseurs pick wines. In the United Kingdom alone, sales of Fairtrade-branded goods (www.fairtrade.org.uk)- a scheme that offers guaranteed prices and better trading conditions to farmers – have reached £560 million (US$1.1 billion) a year. A survey of consumers in six countries found awareness of fairly traded chocolate was highest in the UK, with 43 percent of people having tried it (http://www.barry-callebaut.com).

British consumers willing to pay more for ethical products are at the forefront of a global surge in fair trade. Hans Vriens, chief innovation officer with Belgian chocolate makers Barry Callebaut, told The Independent newspaper: “Nowadays, chocolate consumption is coming to resemble the way we enjoy wine: we sample and compare different tastes.”

The world’s appetite for chocolate is voracious: For example by 2007, volume sales of chocolate confectionery increased from 1998 by 30 percent in Eastern Europe, and by 40 percent in the Asia Pacific region. Europeans devour 35 percent of the world’s cocoa.

In order to be classed as Fair Trade, a producer must meet a strict set of criteria governing how people and the environment are treated. The Fair Trade scheme pays farmers a higher price for cocoa beans, calculated on the basis of world market prices, plus fair trade premiums. The Fair Trade premium for standard quality cocoa is US$150 per tonne. The minimum price for Fair Trade standard quality cocoa, including the premium, is US$1,750 per tonne. Fair Trade ensures a minimum price of 80 US cents a pound under long-term contracts, with access to credit, and prohibits abusive child labour and forced labour.

At the Chuao Plantation in Venezuela, the local Chuao Empresa Campesina cooperative, representing 100 farmers, is reaping the benefits of developing an exclusive relationship with an Italian chocolate company. Chocolatier Alessio Tessieri was willing to pay a lot more for the beans if high standards were maintained. His sister Cecilia was struck by the aroma of the rare Criollo bean grown by the farmers: it is the least productive in terms of output, but prized for its flavour.

“We found an aroma that was greatly reminiscent of ripe red fruit and plum preserves, with an extremely delicate aftertaste,” she said. “A highly complex and sophisticated aroma lacking any trace of acidity.”

Located in Parque Nacional Henri Pittier, a road and sea trip from the capital Caracas, the town of Chuao, population 1,500, has ideal growing conditions because of its high humidity. In the village, the women take care of the drying process. Throughout the town the cocoa beans lay out in the open on verandas. In the warehouses the enormous “masorche” – the fruit of the cocoa trees, looking like big red melons – are split in half and the pulp is removed, revealing the super-sweet white-coated beans inside.

Alessio struck a good deal with the farmers in recognition of the exclusivity of the beans. He pays US$4 per kilogram against the US$1.30 per kilo paid by the local merchants. He also took on the farmers’ debts with the merchants. But most importantly, he ensured that one of his agronomists would stay behind and supervise the plantation and increase its production, from the current level of 120-130 kilos per hectare to a projected 250-300 kilos.

The Toledo Hills Cacao Cooperative in Belize, South America has developed a relationship with one of the UK’s pioneers in fair trade chocolate, Green & Blacks. The Mayan Indians who farm the cocoa live a traditional life more or less as they have done for centuries. They also live in one of the poorest areas of Belize. The profits made are ploughed back into buying machetes, or rubber boots to protect against snake bites. The cocoa harvest helps supplement their traditional way of life.

Green & Blacks has been buying organic cocoa from the farmers’ co-operative since 1994 and paying a guaranteed price above the world cocoa price. In 2003, they extended their activities with the cocoa farmers and started the Belize Programme to provide even more support. With an investment of £225,000 (US$443,350) over three years, the investment was used to help improve management and farming practices, rehabilitate hurricane-damaged crops, plant more cocoa trees, and train farmers in better growing methods. Green & Blacks continues to provide technical advice and support to the farmers. The business relationship with Green & Blacks has been so successful that other farmers in Belize are now interested in cocoa farming.

The pattern is being repeated elsewhere in Latin America. In San Martin, Peru, rice farmers have moved into cocoa to reap the rewards of the higher prices. Alvis Valles Sajami and Alberto Inou Amasifuen are both graduates of the Peru Farmer Field School. Sajami uses a plant nursery as an extra source of income by selling cocoa plants to other farmers. “I already have 4,000 plants, he said. “This (the nursery) will be so important to increase my cocoa area. I can sell planting material to other farmers in order to have a new source of income for my family.”

Amasifuen has already increased his own cocoa production from two hectares to five, and has also established a nursery to produce cocoa and timber tree seedlings to sell to area farmers.

“We have an increase in demand for cocoa plants in San Martín,” he said. “We expect to provide seedlings not only to our farm, but also to other farmers in expanding their production area.”

Published: June 2008

Resources

International Cocoa Organization, a good source of current data on the trade.
Website: http://www.icco.org/about/chocolate.aspx
The Fairtrade Labelling Organization sets the standards for fair-trade and is the place to go to receive official certification.
Website: www.fairtrade.org.uk
The Max Havelaar Foundation offers a similar service and is popular in continental Europe.
Website: http://www.maxhavelaar.nl/pages/default.asp?rID=4
The International Federation of Organic Agriculture Movements (IFOAM) represents the organic farmers’ movement.
Website: www.ifoam.org
World Cocoa Federation was formed in 2000 to play a leading role in helping cocoa farming families by developing and managing effective, on-the-ground programs, raising funds and acting as a forum for broad discussion of the cocoa farming sector’s needs.
Website: http://www.worldcocoafoundation.org/about/default.asp

More on chocolate here: West African Chocolate Success Story

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https://davidsouthconsulting.org/2022/10/14/indias-modernizing-food-economy-unleashing-new-opportunities/

https://davidsouthconsulting.org/2022/10/21/new-beer-helping-to-protect-elephants/

https://davidsouthconsulting.org/2022/10/31/rainforest-gum-gets-global-market/

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

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-3/

https://davidsouthconsulting.org/2022/10/20/trade-to-benefit-the-poor-up-in-2006-and-to-grow-in-2007/

https://davidsouthconsulting.org/2022/10/17/west-african-chocolate-success-story/

https://davidsouthconsulting.org/2022/10/18/woman-wants-african-farming-to-be-cool/

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Grassroots Entrepreneurs Now Have Many Ways to Fund their Enterprises

Post author By David South Consulting
Post date 09/10/2022
No Comments on Grassroots Entrepreneurs Now Have Many Ways to Fund their Enterprises

By David South, Development 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/