Africa. Successes Mainstream Markets Increased penetration of mainstream markets e.g Crate and...

Africa

Successes

Mainstream MarketsIncreased penetration

of mainstream markets e.g

Crate and Barrel (USA)

Cost Plus World Market (USA)

South to South MarketsSelling to other

organisations in southern Countries

Kenya, Uganda, Tanzania, Rwanda

South Africa, Zimbabwe, Swaziland

Profitable Up Market Shops Growing number of

profitable shops in up market malls e.g KazuriUndugu

Many FT shops in the World subsidized by volunteers or discounted rents.

New Domestic MarketsIncreasing sales to Africa’s

growing middle class of:

JewelryTextilesGift items.

Also sales to companies

Previously shunned products in favour of imported ones

Now more appreciative of local products.

Information & Communication Technologies (ICT)Use of ICT such as:

Payment of suppliers by mobile money platforms e.g MPESA

Marketing through websites

Marketing social media

The Rise of the FT ProfessionalSkilled & talented

professionals entering FT e.gDesignersManagers

Transforming the way in which it is managed e.g Use of modelsProfessional

photographers,Professionally designed

websites

Profitable/Sustainable Social Enterprises Increasing number of

sustainable FTOs based on the social enterprise model.

Some paying taxes to the central Government as a way of making their contribution to the National economy. E.g Smolart KICK

FTO more professionally run by new generation of young, dynamic Fair Traders who continuosly ask, why not?

Emerging Interest in Value Adding

ExamplesMpanga Tea - TeaKCU - Coffee

FT Label will support this emerging trend

Strong Fair Trade NetworksInclude:

WFTO Africa (Previously COFTA) 99 members 30 provision members 10 years old

KEFAT 80 Members 2nd Largest National

Network 13 years old

Challenges

Seasonal Business

FT largely informal

Few permanent employees

Largely piece rate and casual

High Cost of Credit

20-30% interest rates

Long Production to Payment Cycles

Takes 60-90 days to pay individual producers

Some take more than 6 months!

Affects cash flow and production activities

Financial Crisis in the West

Decreased size of orders

Lost clients

Some FTO making losses

High Shipment Costs

Compared to Asia and Latin America

Increased real costs of the product

Affects competitivity

Narrow Fair Trade Product LinesCommodities- Tea, Coffee,

Cocoa, Honey

Wines (the Best!)

Carvings (Wood and stone)

Jewelry

Textiles

Bags

Weak/Undeveloped Fair trade Markets

Products not sold as Fair Trade

Product Label will change this!

And Changing FortunesThe riches person of African decent is no

longer

Oprah Winfrey (US$ Billion)

But

Alike Dangote..US$ 13.8 Billion