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Tuesday
Jun302015

Made-in-Africa Fashion Brand Pioneers Aim for Global Success

 

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.

The shoes have been put through their paces in an independent quality assurance lab and each shoe’s details are explained on the Sawa website (http://www.sawashoes.com/index.php?option=com_content&view=article&id=2&Itemid=8&lang=en).

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”.

By David South, Development Challenges, South-South Solutions

Published: March 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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=Z_ZcAwAAQBAJ&dq=development+challenges+march+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-march-2013-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Thursday
Jun252015

All-in-One Solar Kiosk Business Solution for Africa

 

Kiosks are ubiquitous throughout commercial areas in the global South. These highly efficient little business outlets enable small-scale entrepreneurs to sell necessary products without the expense of renting and running a shop.

While they are a great solution for entrepreneurs and customers alike, they often lack connection to municipal services such as electricity and water. That means kiosk owners need to use batteries or a generator if they need a refrigerator to cool food and drink – an expensive proposition.

A new product launched this year in Addis Ababa, Ethiopia offers a solution.

Created by a team of German architects, the Solarkiosk (solarkiosk.eu) is an autonomous business unit designed for remote, off-grid areas. With solar panels across the top of the kiosk, it generates its own electricity and is basically a mini solar power plant. Inside, it is just like a conventional kiosk, with display shelves for products and a counter in the front with a flap – which can feature advertising and messages – that can be opened up for business and locked shut when the kiosk is closed.

The kiosk captures solar energy and the electricity generated can be used to run a computer, lights or a refrigerator. That makes the Solarkiosk capable of offering a wide range of services needing electricity, from Internet access to car-battery charging and mobile phone recharging – a now essential service as mobile phone use explodes across Africa.

The first kiosk was prototyped in November 2011 and the makers incorporated their first subsidiary, Solarkiosk Solutions PLC, in Addis Ababa, Ethiopia in March 2012.

According to Solarkiosk 1.5 billion people worldwide have no regular supply of electricity – 800 million of them in Africa. The makers of Solarkiosk consider this a huge market and hope to make the most of it.

The kiosk comes in a kit form ready for assembly. The kit is designed to be easy to transport and is light enough and compact enough to be transported on the back of a donkey, its makers claim.

Solarkiosk operators receive training in running and managing a kiosk. They learn about solar technology and how to maintain the kiosks and run a sustainable business. Once the operators are trained and up and running, they typically hire others to help with running the kiosk and offer the services at convenient times for the customers. The Solarkiosk then, potentially, becomes an income and employment generator for the local community.

The kiosk is designed to be durable, secure and difficult to tamper with from the outside. The kiosks have been designed to suit many environments and requirements. There is a basic platform that can be added to or expanded depending on local needs and a series of models depending on the customer’s needs. Cleverly, the largest kiosk model is powerful enough to provide electricity to telecom towers. This has proven attractive to mobile telephone companies who can power a telecom tower and make money from running the kiosk as well.

The Solarkiosk is especially useful for countries near the equator where nights are long (12 hours) and the kiosk can help people get light to read, study and work.

Solarkiosk is targeting off-grid customers who are using up to 40 per cent of their household income on electricity substitutes. According to Solarkiosk, people in off-grid households collectively spend more every year (US $30 billion) lighting their homes – using candles for example – than do all the people living in electricity grid connected countries (US $20 billion).

Solar technology is becoming more affordable at the same time as demand in developing countries for electricity and the products powered by electricity is on the rise. Mobile phones are now essential tools for doing business and staying connected – and all of them need to be kept charged up.

Solarkiosk believes it can save the average off-grid household US $10 per month, while each kiosk could supply solar electricity services to between 200 and 5,000 households.

For now, Solarkiosk is available in Ethiopia. It is based in Berlin, Germany and receives money from the German government. The kiosks themselves were designed and built by Graft Architects (http://www.graftlab.com).

By David South, Development Challenges, South-South Solutions

Published: November 2012

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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=D_A1VeiJWycC&dq=development+challenges+november+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-november-2012-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Tuesday
Jun232015

African Megacity Makeovers Tackle Rising Populations

 

Nigeria’s largest, busiest and most congested city, Lagos, has long had a reputation for dynamism mixed with chaos. Its sprawling slums and ballooning population have for decades stretched governments’ ability to provide services.

The 2006 census placed the city’s population at close to 8 million, making it the most populous city in the country and the second largest in Africa after Cairo. One forecast saw the population reaching 23 million by 2015. It was called the fastest growing city in Africa by UNHABITAT (2008). The city is Nigeria’s economic and financial hub and critical to the country’s future.

According to a report by the International Institute for Environment and Development, Africa now has a larger urban population than North America and 25 of the world’s fastest growing big cities. Getting to grips with urban development will be critical for the future of the continent and the wellbeing of its people.

In West Africa, an OECD study found the area stretching along the Gulf of Guinea in the Atlantic Ocean had a network of 300 cities larger than 100,000 people and the biggest collection of urban poverty on the planet.

It is a common problem across the South as fast-growing city populations surge past the ability of institutions and infrastructure to cope.

By 2025, Asia could have 10 or more cities with populations larger than 20 million (Far Eastern Economic Review).

It is a development challenge that urgently needs solutions.

In Lagos, the Oluwole district – formerly a crime-plagued slum – has been transformed into a new marketplace, and the plan is to follow this with new offices, homes and shops. The brainchild of the Lagos state governor Babatunde Fashola (http://en.wikipedia.org/wiki/Babatunde_Fashola), redevelopment of the 20,000 square metre site is part of his multi-stage plan to bring more order to the chaos that is daily life in Lagos. There are also ambitious plans afoot to build new roads and bridges. The area’s traffic congestion is also being targeted for solutions. The former slum is now re-branded as the Oluwole Urban Market and Multifunctional City Centre (http://tinyurl.com/2wmrscq) and is being re-developed in partnership with the private sector.

The re-developed slum is part of the much-larger Lagos Island Central Business District (CBD) Revitalisation/Marina City Project, a five-year project, jointly executed by the Lagos government and private sector players. This project has already begun with the redesigning and reconstruction of roads and infrastructure within the CBD and the adjoining axes.

Another fast-growing African city is Addis Ababa. The capital of the East African nation of Ethiopia, it has been in the grip of a building boom for the past few years. But much of this building has been unplanned and, to many, is ugly. The current building boom’s architectural legacy has been criticized for leaving buildings that are too hot for the climate and require expensive air conditioning systems. They also use imported cement and steel and are not earthquake-proof.

Addis Ababa (http://en.wikipedia.org/wiki/Addis_Ababa) was founded in 1886 by Emperor Menelik II. It is now host to the African Union (http://www.africa-union.org/) and it is this important role that has architects advocating for a new approach to the city’s development.

Addis is home to some of the highest density urban slums in the world, according to the UN. Some estimates place the population at of the city at 4.6 million people and that it could double by 2020. But its pattern is unusual for an African city. Dirk Hebel of Addis Ababa’s architecture school  (http://www.eiabc.edu.et/managing-board/scientific-director.html) told The Economist it defies the usual pattern of rich centre and poor periphery. Instead, because crime is low and the rich seem to tolerate the poor living among them, the slums are jammed between office buildings and flats in the wealthy parts of the city.

Architects favour smaller buildings that stay true to local stone and traditional guttering to collect the rain. Hebel believes turning local would cut building costs by a third and save on costly imports.

The architecture school has received funding from a technical institute in Zurich, Switzerland called ETH (http://www.ethz.ch/index_EN) to help develop new ideas.

Hebel and ETH’s head, Marc Angelil, have written a book profiling the architectural styles of the city. The city has gone through various phases: during its Marxist period (1974-1991) government buildings mimicked the Soviet Union. During the Italian fascist occupation (1935-1941) they followed the styles favoured by Italian dictator Benito Mussolini. Political problems aside, the architects believe the Italians brought good planning, allowing streets to radiate out from landmark buildings.

The city is plagued – like so many in the South – by pollution and traffic gridlock. Growth is on projection to be so large by 2050, the country would need 20 new cities of 5 million people each to accommodate it (UN). This is an epic challenge requiring imaginative thinking and new ways.

By David South, Development Challenges, South-South Solutions

Published: November 2010

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.  

Follow @SouthSouth1

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2010issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Tuesday
Jun232015

Shoes with Sole: Ethiopian Web Success Story

 

Ethiopia’s bustling capital, Addis Ababa, is experiencing a building and business boom. Foreign investors and Ethiopia’s entrepreneurial and widespread global diaspora are investing again in the country. But Ethiopia still relies for most of its foreign currency wealth on exports of unprocessed coffee beans and leather hides — a model that leaves the bulk of the profits made outside of Ethiopia.

But one shoe company provides an example of a home-grown business that is finding success in the international marketplace, while repatriating most of the profits for its goods back to Ethiopia, creating jobs and local wealth.

Ethiopia’s economy is mostly dependent on agriculture, which accounts for 60 percent of exports and 80 percent of employment (CIA World Factbook). The country has a tiny private sector and high youth unemployment. It is difficult to find funding for small businesses. Yet, because of the high population growth, the country needs to create more jobs.

The Economist magazine has forecast Ethiopia’s economy will grow by 7 percent in 2010, becoming the fifth fastest growing economy in the world, and on course to surpass Kenya to become East Africa’s biggest economy. While this sounds impressive, the country has to run hard to create enough jobs to meet its growing population and still faces significant food security problems.

One company, soleRebels, is combining a clever twist on a local tradition – recycling rubber from old truck tires into shoes, locally known as selate shoes – with sophisticated design concepts and high quality craftsmanship to make a global footwear hit.

Co-founder and managing director Bethleham Tilahun Alemu, a 30-year-old African web-vending entrepreneur, has turned this local craft into a global fashion design hit by adding colourful cotton and leather uppers to the tire shoes. The recycled rubber shoes come in many styles: from handmade flip-flops to boat shoes, loafers, and athletic trainers resembling the popular American sports shoe, Converse (http://www.converse.com/).

SoleRebels’ (http://solerebelsfootwear.weebly.com/index.html) shoe factory is on the outskirts of Addis Ababa in the historic village of Zenabework. Despite its location, it is reaching the international markets through online retailers like Amazon.com. Shipments take between three and five days to arrive in the United States.

And the secret to this small start-up’s success? Apart from great shoes and funky design, Alemu puts it down to this: “We are sitting in Addis Ababa but acting like an American company,” she told The Guardian newspaper.

It doesn’t hurt that Alemu is also money-smart: she is a former accountant.

Started five years ago, soleRebels now employs 45 full-time staff making 500 pairs of shoes a day. The shoes cost between US $33 and US $64. They are also being sold in Japan and the United Kingdom on Amazon’s shoe-selling website, http://www.javari.co.uk.

In 2010, Alemu hopes soleRebels will make US $481,000. But soleRebels has an even more ambitious goal: to become “the Timberland or Sketchers of Africa.”

Timberland (http://www.timberland.com/home/index.jsp), an American shoe and boot maker, has been a pioneer in high-quality leather footwear, breaking new ground in adopting green manufacturing processes and exploiting the power of the web by allowing customers to customise their footwear.

SoleRebels has cleverly exploited the advantages of the global marketplace to grow its customers and profits. The business has done this with just one leg-up: a line of credit from the government to help with large orders. With 6.2 million people out of a population of 80 million needing food aid, Ethiopia is still highly dependent on international aid. But Alemu is showing there is a way to build a sustainable successful business.

Inspiration for Alemu came about when she was thinking what Ethiopian product could be produced in a sustainable way. She remembered the sandals worn in the country.

“Recycling is a way of life here – you don’t throw things away that you can use again and again,” she said. “I wanted to build on that idea.”

Ethiopian shoe makers have had a difficult time in recent years, trying to compete with cheaper Chinese imports. But rather than just trying to come up with a shoe that was even cheaper than the Chinese ones, soleRebels decided to build a business selling shoes to the more lucrative export market.

Alemu reasoned that good design would attract a higher price. She did research on the internet to find out which designs worked well and what were the latest trends in footwear.

This research formed the basis of her range of shoes, which have catchy names like Class Act or Gruuv Thong. The sandals and flip-flops are either cotton-covered or leather covered. The Urban Runner shoe sells best and is inspired by the Converse All Star sneaker.

SoleRebels has a regular supplier of old truck tires and inner tubes and has women weave and dye the cotton, jute and hemp uppers for the shoes. Almost all materials are locally sourced. Old army uniforms are cannibalized for their camouflage pattern.

SoleRebels has also been canny in seeking Fair Trade certification (http://www.fairtrade.org.uk) to help with marketing and selling the shoes.

To increase the market for the shoes, Alemu bombarded American retailers with emails and shoe samples to pique their interest. Because of the U.S. African Growth and Opportunity Act (http://www.agoa.gov), soleRebels’ shoes can be imported into the United States duty-free: a big price advantage in the U.S. marketplace which has helped grab the interest of retailers like Whole Foods and Urban Outfitters.

This interest soon snowballed, and people were placing orders through the soleRebels website (http://solerebelsfootwear.weebly.com/index.html). Orders come by courier from Ethiopia in about a week to the United States.

With all this interest building, Amazon, the leviathan online retailer, decided to become a customer for the shoes. Online retailing has been a huge boost to the growth of soleRebels. According to Alemu, it has enabled the company “to understand the market needs and demands in real time” — a huge advantage to a start-up company far away from its markets.

There is another advantage to using the web to grow a business: it has enabled soleRebels to take greater control of the whole process. The company negotiates directly with retailers, handling orders and credit collection, and this makes sure most of the profits of the business return to Ethiopia.

Making soleRebels quickly profitable has been a benefit to its workers. Starters at the company make US $1.92 a day, while experienced shoe-makers earn US $11 a day (a good wage in Ethiopia).

“In Ethiopia we have become used to taking money from the West, to always getting help,” Alemu told the Guardian. “That does not make for a sustainable economy. We need to solve our own problems.” And what does success enable them to do? SoleRebels are now building a solar-powered factory to replace their current workshop. And there is a steely pride in the firm’s success: “People buy soleRebels because they are good, not just because they are green or from Ethiopia,” Alemu said. “Our product speaks for itself.”

By David South, Development Challenges, South-South Solutions

Published: January 2010

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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=rBuYBgAAQBAJ&dq=development+challenges+january+2010&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsjanuary2010issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.