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Entries in Africa Rising (2)

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Jun302015

A New African Beer Helps Smallholder Farmers

Tuesday, June 30, 2015 at 11:26AM

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.

By David South, Development Challenges, South-South Solutions

Published: April 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.

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African Media Changing to Reach Growing Middle Class

Tuesday, June 23, 2015 at 9:37AM

Africa’s growing middle classes are being targeted by a new generation of media entrepreneurs. This growing group of Africans is ambitious and intelligent, and they want media that matches their aspirational ways. Clever media people are stepping up to feed this trend.

The continent as a whole forms the 10th largest economy in the world. Of Africa’s more than 1 billion people, 900 million can be classified as part of the consumer economy. Out of this group, there a third – approximately 300 million people – make modest sums by Western standards, about US $200 a month, but have spare cash to buy things like mobile phones, DVDs and new clothes, or pay for better schools. They are the population that is overlooked when attention is focused only on the very poor living on less than US $2 a day.

Pulitzer Prize-winning Nigerian journalist Dele Olojede is one of several African media pioneers re-shaping the continent’s media and taking it to the next level. Another is Godfrey Mwampembwa, whose popular puppet television show satirizes contemporary politics and current events and brings a welcome local flavour to a programming schedule packed with foreign imports.

A book by University of Texas professor Vijay Mahajan, Africa Rising, details the phenomenon of Africa’s middle class consumer society. He calls this group of middle class consumers ‘Africa 2′, with the desperately poor called Africa 3s, and the extremely rich Africa 1s.

This new group has expanded far beyond just the ruling elites and government workers. Many of its members work in the private sector, as secretaries, computer entrepreneurs, merchants and others who have benefited from consistent growth rates in many African countries.

And because these people consume products and services – and advertising products and services are the lifeblood of private media – the opportunities are plentiful.

“I’m convinced that Africa is going to be built by Africa 2s,” Mahajan told the Washington Post newspaper. “These are the people sending their kids to school . . . who are the most optimistic, the most forward-thinking.”

Olojede, owner and publisher of Next newspaper (http://234next.com/csp/cms/sites/Next/Home/index.csp) in Nigeria’s biggest city, Lagos, has been able to grab readers by breaking original stories and offering a quality, well-designed publication. Launched in 2008, it has its sights set on going continent-wide by 2011.

“There is a need for a newspaper for the African metropolitan middle classes, along the lines of the International Herald Tribune,” he told Monocle magazine.

Olojede cut his teeth as a foreign editor for the US newspaper Newsday and has used this experience to make Next such a success.

Next has become the number one news website in Nigeria’s highly competitive media scene.

Wisely, Olojede put design at the centre of making his newspaper and website stand out from the competition. He commissioned the experienced newspaper design team of Garcia Media (http://garciamedia.com/blog/articles/in_west_africa_a_new_newspaper_is_born_—online_first) – who have designed for The Wall Street Journal, The Miami Herald and Die Zeit – to develop the template and prototypes.

Kenyan economist James Shikwati (http://en.wikipedia.org/wiki/James_Shikwati) believes Africa’s middle-income consumers are also a driving force for political change.

“It’s empowering,” he told the Washington Post. “If you give people a sense of freedom in the economic sector, then you deny it in the political sector, you have a problem.”

Kenya-based newspaper cartoonist Gado (Godfrey Mwampembwa) has profited from this phenomenon. Fed up with TV channels sticking to a menu of foreign imports and dull news programmes, he looked to famous puppet TV shows Spitting Image (from Britain) and Les Guignols (from France) for inspiration. The result is the XYZ Show (http://xyzshow.com/blog), which features grotesque puppet caricatures of well-known public and political figures. The show’s blog makes for an excellent entry point into African TV programme-making and its ups and downs. The show is broadcast on Citizen TV in Kenya’s capital, Nairobi.

“I moved to Nairobi in 1992 when I was 23,” Mwampembwa explained to Monocle. “The Daily Nation, the biggest newspaper in Kenya, had lost its editorial cartoonist so they ran a competition to look for his replacement. I sent in my drawings and came second.”

“I took a year off in 2000-2001 to study film and animation in Vancouver. When I got back to Nairobi I started thinking about the sort of TV programme I would like to make. Kenya needed a show that would make fun of our politicians and expose hypocrisy and I thought a puppet show like Les Guignols or Spitting Image would be a great way to do it.”

“We managed to raise funds for a pilot in 2007 and Citizen TV (http://www.facebook.com/pages/Citizen-TV-Kenya/261061365404), a private station, eventually agreed to broadcast a series.”

Each episode costs US $16,740 and the puppets are US $3,600 to make. The programme-makers could only get money from foreign donors: the French, Dutch, and Finnish embassies and the Ford Foundation.

Despite initial complaints from politicians, the show is preparing for its second season – and, Mwampembwa said, “there will be a lot of big stories for us to cover.”

Making a popular TV show is not an easy thing to do. Mwampembwa maintains a furious work pace to straddle his many roles:

“I have to draw a cartoon every day but editorial cartooning is not a nine-to-five job, it’s 24/7. Whenever I get ideas I have to sketch them.

“It was a steep learning curve in the first season. The show is important for Kenyan TV and everything is done here in Nairobi. We won’t change any of the politics though. We are very hard-hitting and we will stay that way.

“Over the years I’ve got nasty letters, emails and phone calls but that’s OK, it’s part of it.”

As these media innovators show, there is nothing but opportunity for entrepreneurs feeding the hungry news and information appetite of the continent’s ambitious middle class.

And Mwampembwa says becoming better informed doesn’t have to be dull: “We are informing the public but I’d like to think we are entertaining them too.”