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  • Brewing Prosperity Creates Good Jobs

    Brewing Prosperity Creates Good Jobs

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    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.

    Published: December 2009

    Resources

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

    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

  • New Beer Helping to Protect Elephants

    New Beer Helping to Protect Elephants

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    How to match the often conflicting goals of protecting animal habitats and supporting local economies? One clever solution may draw amusement but is actually a sharp marketing strategy to get attention for a product that is helping to preserve the elephants of Thailand’s Golden Triangle (http://en.wikipedia.org/wiki/Golden_Triangle_(Southeast_Asia).

    A beer flavored with a special ingredient – coffee beans that have passed through elephants – is generating profits that are plowed back into improving health services for the animals. The coffee beans excreted by elephants are roasted and turned into a high-quality coffee by a company in Thailand; this coffee is then used by a Japanese company to make a special beer brand that is getting attention and winning rave reviews.

    The elephant dung coffee beans used in the beer are called Black Ivory (http://www.blackivorycoffee.com) and come from Thailand’s Golden Triangle Asian Elephant Foundation (http://www.helpingelephants.org). According to The Drinks Business, the coffee beans retail for US $100 per 35 grams.

    The beans are of the Thai Arabica variety and grow at an elevation of 1,500 metres. Elephants consume the coffee cherries and excrete the beans as part of their diet. Once the elephants have excreted the beans in their faeces they are harvested, processed, sun dried and roasted.

    It takes 10,000 beans to make a kilogram of roasted coffee, according to the Black Ivory website. A total of 33 kilograms of coffee cherries are consumed by the elephants to make a kilogram of the Black Ivory coffee.

    Elephants in Thailand are used for various activties, from heavy work to providing rides for tourists. The riders of the elephants – called mahouts (http://en.wikipedia.org/wiki/Mahout) – and their wives also benefit from the manufacturing and sale of the coffee. The income is used to pay for health costs, school fees, food and clothing.

    Additionally, 8 per cent of the proceeds from the sale of the coffee beans pays for a veterinarian to provide care to the elephants. The money is also used to pay for their medicine and the setting up of a laboratory.

    Elephants are much-revered in Thailand and feature in the country’s national iconography. They are listed as Protected Animals under Thailand’s Conservation Act 1992 (FAO). Many believe they should be classified as endangered. The last survey on the population was conducted in 1991 and elephant numbers were recorded as 1,900 (FAO).

    The main threat to elephants comes from humans – in the form of poaching for the animals’ ivory tusks, their abuse in begging on the streets, and the destruction of forests where the elephants live.

    The natural habitat and feeding grounds for the elephants have shrunk over the past decades. It is estimated the forest area in Thailand shrank from 80 per cent to 20 per cent between 1957 and 1992. Causes include major infrastructure projects, increasing farmland and the building of large resorts, all encroaching on the elephants’ territory. Limited space means elephants increasingly come into conflict with humans and this can lead to them being poisoned or killed.

    But the success of the Japanese-brewed Kono Kuro beer is creating a new funding source for helping the elephants and doing some good.

    The beer is brewed by Sankt Gallen brewery (http://www.sanktgallenbrewery.com) in Kanagawa, Japan using the Black Ivory coffee beans, imparting the beer with an earthy flavour. It may sound like a gimmick, but consumers have remarked on the beer’s distinctive taste, and sales do not lie: it has been a quick success, selling out within minutes of its launch in Japan.

    The beer comes in dark bottles with a sandy coloured label elegantly illustrated with pictograms showing the process of turning the beans excreted by the elephants into beer. It is a humorous visual tale that makes the label stand out from other beer brands.

    Brewer Sankt Gallen calls it a “chocolate stout” because of its rich, earthy flavour (it does not contain any chocolate, however).

    Although bottles of the stout sold out after going on sale on the Sankt Gallen website, the brewery has said that it has plans to put the beer on tap at its new shop, which opened in Tokyo recently.

    Published: June 2013

    Resources

    1) Coffee Alamid: Ethically produces the coffee harvested from the droppings of civet cats in the Philippines. Website: http://www.botecentral.net/

    2) Save the Elephants: A campaign to stop the poaching of elephant ivory. Website: http://www.savetheelephants.org/

    3) BBC Nature: Background on elephants. Website: http://www.bbc.co.uk/nature/life/African_elephant

    4) WWF: Facts and background on elephants. Website: http://worldwildlife.org/species/elephant

    Southern Innovator logo

    London Edit

    31 July 2013

    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

  • A New African Beer Helps Smallholder Farmers

    A New African Beer Helps Smallholder Farmers

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Africa’s growth in the past decade has held steady despite the trauma of the global economic crisis and the tumult of the “Arab Spring” in several countries of North Africa. African economies are growing because of a number of resilient trends. These include growing regional trade links, greater investment in infrastructure and the remarkable rise of China to become Africa’s number one trade partner, pushing the United States to second place (Technology + Policy). This has given birth to a growing consumer marketplace and consumer class – some 300 million people earning about US $200 a month (Africa Rising).

    The continent as a whole now stands as the 10th largest economy in the world.

    How will Africans spend this new money in their pockets (or more than likely, on their mobile phones)? They could go for the big, famous global brands that they see advertised in magazines or on television. Or they could also spend it on local products and services that seem just as enticing and life-improving. Creating local African products and services with strong brands will have an important knock-on effect of creating new wealth and jobs within Africa.

    One new product being introduced to the West African country of Ghana’s thirsty beer drinkers is the Eagle beer brand. But this is not just any beer made from the traditional ingredients of water, hops, malted barley and yeast (http://en.wikipedia.org/wiki/Beer) – it is brewed from the root vegetable cassava.

    A staple of many African diets, cassava (http://en.wikipedia.org/wiki/Cassava) is a starchy, tuberous root vegetable and a common crop across the continent.

    It is believed that 70 per cent of Ghana’s farms are just 3 hectares in size or smaller. They grow many things, but cassava is the most common crop.

    Cassava soon spoils once it has been harvested and needs to be consumed quickly. Currently, too much of it goes to waste. In Ghana, according to The Guardian, there is an annual surplus of some 40 per cent of cassava produced.

    The Accra Brewery Limited (ABL) (http://www.sabmiller.com/index.asp?pageid=1156) decided to find a way to put the cassava from smallholder farms to good use and stop the waste. The brewery had observed the success of parent company SABMiller (http://www.sabmiller.com/index.asp?pageid=27) elsewhere in Africa, in turning cassava and the grain sorghum from smallholder farmers into beer. Farmers had directly benefited from the purchase of their surplus product.

    Eagle brand cassava beer is creating opportunities for business, consumers and smallholder farmers in Ghana. According to The Guardian, the company hopes to source cassava from 1,500 smallholders.

    By having a guaranteed purchase from the brewery on a regular basis, farmers are able to move beyond subsistence agriculture and turn themselves into functioning businesses.

    The spare income from selling the cassava also can be used to improve a farmer’s household access to healthcare and education.

    The Accra Brewery provides advice on agricultural techniques and growing a diverse range of crops, to ensure farmers are not dependent on a monocrop harvest. It also offers advice on business and developing commercial relationships.

    The Eagle brand cassava beer will be sold at a 30 per cent discount to low-income drinkers in order to lure them away from illicit and informal alcohol drinks of dubious quality.

    Professor Ethan Kapstein of business school INSEAD found that ABL and its water business Voltic (GH) Ltd. was a creator and supporter of high-quality jobs in Ghana and supported 17,600 jobs throughout the Ghanaian economy.

    Adjoba Kyiamah (http://www.sabmiller.com/index.asp?pageid=1766&blogid=172), corporate and legal affairs director at Accra Brewery, told The Guardian she believes Eagle brand beer will help create even more jobs, boost government revenues and expand consumer choice.

    This is an innovative first, as cassava beer had never been made before in Ghana on a commercial scale. This had not been possible in the past because of the challenge of collecting fresh cassava from farms widely spread out over a large territory. As well as spoiling quickly, Cassava is heavy, being mostly made up of water, and is difficult to transport over large distances.

    “Part of our strategy across Africa is to make high quality beer which is affordable for low-income consumers while simultaneously creating opportunities for smallholder farmers in our markets. The launch of Eagle in Ghana ticks both these boxes,” said Mark Bowman, Managing Director of SABMiller Africa.

    “Eagle is aimed at attracting low-income consumers away from illicit alcohol. This is a virtuous circle: smallholder cassava farmers have a guaranteed market for their crop, which is then used to make consistently high quality, affordable beer for consumers; and the government realises increased revenues as people trade up into formal, taxable alcohol consumption.”

    ABL is using a mobile processing unit developed by DADTCO (Dutch Agricultural Development and Trading Company) Cassava Processing Ghana Ltd. It is designed to process the cassava on site, preserving the integrity of the starch.

    Eagle is sold in 375 millilitre bottles at a price 70 per cent lower than that charged for other lager beers. The use of local ingredients, and a reduced excise tax awarded to the brand because is it is boosting local agriculture, allows for the lower price.

    Production of cassava beer got its start first in Mozambique, with the launch of the Impala brand (http://www.sabmiller.com/index.asp?pageid=149&newsid=1748), the first commercial-scale cassava-based clear beer, in October 2011.

    Published: April 2013

    Resources

    1) Southern Innovator Magazine Issue 3: Agribusiness and Food Security. Packed with information, insights and business models to turn smallholder farmers into agribusinesses. Website: http://www.scribd.com/doc/106055665/Southern-Innovator-Magazine-Issue-3-Agribusiness-and-Food-Security

    2) Cassava can become Africa’s new cash crop: Cassava is abundant in sub-Saharan Africa, and could be an ideal crop to improve food security for millions of people. Website: http://www.guardian.co.uk/global-development-professionals-network/2013/mar/28/cassava-food-security-sub-saharan-africa

    3) Cassava recipes from the BBC. Website: http://www.bbc.co.uk/food/cassava

    Southern Innovator logo

    London Edit

    31 July 2013

    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

  • Local Animation: A Way Out of Poverty

    Local Animation: A Way Out of Poverty

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    One of the more remarkable creative developments since 2000 has been the explosion in animation production in the developing world, in particular Asia. Once seen as frivolous or unnecessary, animation is now acknowledged as a high-growth area and a critical component in the emerging economies being shaped by information technology.

    The demand for more animation is being fuelled by several trends. Lucrative outsourcing contracts with major global film studios like Walt Disney and Warner Brothers get much of the attention. But even more importantly for small entrepreneurs, the rapid growth of information technology and mobile phones is fuelling demand for animation with a local flavour, which is an excellent way to make applications more attractive to users. As computers and animation software become cheaper, it is easier for entrepreneurs to compete with the bigger studios. It all started with the popularity of Japanese anime animation, which kicked the door open in the West, sparking an appetite for fresh, new styles unseen before.

    The animation leaders in Asia are Japan, Republic of Korea, Philippines and Taiwan Province of China, with India rising quickly. As animation production is very lucrative and a labor-intensive business (labor takes up 70 to 80 percent of business costs), other Asian countries such as India, China, Vietnam, Malaysia and Singapore have recently started their own industries.

    The National Association of Software and Service Companies (NASSCOM) has forecast the Indian animation sector to gross overall turnover of US $950 million in 2009, while its gaming industry will reach US $300 million in 2009 (from US $30 million in 2005). The global industry is huge: it is estimated that games will gross US $11 billion and animation US $35 billion by 2009. In the Philippines, growth has been 25 per cent a year since 2005 (National Statistics Office), and the government has been heavily promoting animation as a viable career and business opportunity. China was able to make US $604 million in 2005. The AWN’s Animation Industry Database lists 48 studios operating in the Philippines alone. Others benefiting are Thailand, Taiwan Province of China and Republic of Korea. And even in Africa, there have been attempts to get things going.

    Ambitiously, China hopes to raise its home-made share of the animation pie from 10 per cent and to increase its overall animation programming from 5,000 hours/year to 16, 7000/year. In 2004, the Chinese government set up four animation schools: Communication University of China, Beijing Film Academy, China Academy of Art, and Tianjin Sorun Digital Media School. More than 200 animated films were produced in 2004.

    Indian animation feature productions have exploded in the past few years. In 2005, animated feature Jai Hanuman started the current boom. Its quality marked a departure from past Indian productions and heralded in a new era. Importantly, it out-grossed any Disney film in India, and proved films featuring local topics could be commercially successful. It is a difficult market with 14 official languages and 1,400 dialects. At present, the huge Indian market has little locally produced animation to feed its needs. But by 2007, 71 Indian animation films were announced to be in production.

    Productions in development draw heavily on India’s culture and love of gods. They include Epiphany Films’ The Dream Blanket, a Tibetan fairy tale, and Graphiti studios’ Action Hero BC, a teenager who fights evil.

    The world’s animation producers scour India for talent to outsource. Global films with some Indian production in them include Finding Nemo, The Lion King and The Adventures of Tenali Raman. Toonz Animation Studio based at the Technopark in Kerala, was called by Animation Magazine one of the top ten studios in the world.

    In Africa, South Africa has by far the most dynamic and sophisticated animation sector. Ten years after the birth of democracy, hundreds of production companies and several 2D animation houses were established. In turn, South Africa advertises itself as a cheaper place to produce animation.

    The highly successful South African 3D animated series Magic Cellar by Morula Pictures – the first of its kind based on African culture – was successfully sold to the US Home Box Office channel this year. Based on 20 folk tales, the stories were collected through interviews with elders in African villages. Mfundi Vundla, 58, who owns Johannesburg’s Morula Pictures, South Africa’s largest black-led studio, said his productions are meant to counter the perception of “Africans as unsophisticated, superstitious idiots who visited witch doctors to solve problems.” It employs 60 people and dozens of actors.

    In 2004, UNESCO’s Africa Animated! was launched, with East Africa’s first animation project. The participants undertook animation, drawing techniques, scriptwriting for animation and storyboarding. The project was launched to assemble resources and expertise for the production of culturally relevant children’s animated cartoons and programmes in Africa. It sought to create a high-quality “African branded” training and production model, in order to make African animation competitive for regional organizations to produce animated TV series, Public Service Announcements (PSA) and short films.

    The Nairobi office is seeking to establish a Regional Training and Production Centre for Animation in Kenya in 2008.

    Moustapha Alassane of Niger and one of Africa’s film pioneers, said: “The good thing about animation is that you can do it on a shoe-string budget. With the computer, animation is getting easier and anyone can do it now. I want to encourage young Africans to use new technologies for animation.”

    Published: December 2007

    Resources

    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