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Tuesday
Jun162015

Decent and Affordable Housing for the Poor

 

Urban populations across the South are growing fast: by 2030, some 5 billion people around the world will live in cities. This year will be the first year in which urban dwellers (3.3 billion people) will outnumber rural residents for the first time (UNFPA).

Africa now has a larger urban population than North America and 25 of the world’s fastest growing big cities. Asia and Africa’s cities are growing by an incredible 1 million people a week, with 72 per cent of the population in sub-Saharan Africa living in slum conditions.

How well people dwell is integral to their mental and physical health. Most squatters and slum dwellers – a category that includes half the urban population of Africa, a third in Asia and a fourth in Latin America and the Caribbean – live in makeshift homes made from whatever they can get their hands on. These dwellings are usually unsafe and vulnerable to fire, floods, and earthquakes. On top of this, these sprawling slums can be depressingly grim to look at for those living there.

In Brazil’s Sao Paulo neighbourhood of Heliopolis – the largest of the city’s 400 favelas, or shantytowns – the majority of its dwellings are made from cement and brick. It is stigmatised as the ugliest part of the city, yet a unique initiative has transformed perceptions of the area – and brought pride to its residents. The project offers a model for slum areas looking to make the next leap up the ladder of development. Heliopolis first sprang up in the 1970s, wedged between highways and roads. Plagued by crime, there is a wide spread in incomes and urbanisation among the 120,000 residents packed into the one-and-a-half square mile. Older parts have many services, while newer areas lack basics like plumbing and electricity.

Well-known Sao Paulo-based Brazilian architect Ruy Ohtake (http://www.geocities.com/capitolhill/3836/saopaulo.html) mobilised the 6,000 residents to use a fixed palette of six colours – from bright yellow to deep purples – to create a look described as akin to an Italian hill town.

“Ohtake told a newspaper that Heliopolis was the ugliest part of the city, so we went to him and asked him to figure out how to make it beautiful,” Geronino Barbosa, director of the Heliopolis community group UNAS, told the design magazine Dwell.

Ohtake, famous for his hotel designs and renovating former colonial areas, rose to the challenge: “I believe in beauty as a social function, so what better way to exercise that belief,” he said. To avoid the initiative feeling like something being imposed from on high, the plan did not go ahead until the residents were happy. And to make sure they felt they owned the results, they did all the painting themselves. The result is a river of colour running through a landscape of dreary, unfinished brick homes jammed between streets and factories. The Italian hill town-effect leaves pedestrians experiencing a surprise as they turn through the streets, happening upon hidden plazas and little bars.

“Our dream is to expand this project to the entire favela,” said Barbosa. “People love their painted houses. One of our participants told me that her house has been transformed into a sort of Carnival parade.”

“Who doesn’t want to live in a beautiful house?” said UNAS’ head, Joao Miranda, to Dwell. “We want the same things as everyone else.”

Another architect has tackled the problem of how to create inexpensive but durable and beautiful homes for the poor. Iranian-born architect Nader Khalili (http://www.calearth.org/) has created what he calls ‘super adobe’ dwellings inspired by traditional Iranian rural homes. The cone-shaped homes are made from sandbags piled one on top of the other in a circular pattern. A basic home is three rooms of 400 square feet, and can be built by five people (with only one needing skills), within weeks. Being sandbags, the homes can easily be dismantled and moved or adapted to meet new space needs.

Khalili first fell in love with the sand adobe homes of Iran in the 1970s. He had been on a journey to find a home design that was both environmentally harmonious and could be built anywhere in the world quickly and cheaply. But while the original Iranian sand adobe is easily destroyed by earthquakes and bad weather, the ‘super adobes’ are earthquake, hurricane and flood resistant. They are now being built across the Americas , Asia and Africa.

“You can never build one of these that doesn’t look beautiful,” he said. “Just as you have never seen an ugly tree or an ugly flower.”

By David South, Development Challenges, South-South Solutions

Published: January 2008

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=dKaXBgAAQBAJ&dq=Development+Challenges+January+2008&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsjanuary2008issue

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
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Tuesday
Jun162015

Flurry of Anti-poverty Innovations

 

Innovation is key to transforming the lives of the world’s four billion poor. And it is at the core of much of the new thinking these days. While the world’s poor can’t rely on political developments, or wider macro-economic events to go their way, they can harness the power of invention, innovation and self-reliance to make big changes in the quality of their lives and increase income – and so can those who want to help them. New York Times journalist and author Thomas Friedman put it like this: “Africa needs many things, but most of all it needs capitalists who can start and run legal companies. More Bill Gateses, fewer foundations. People grow out of poverty when they create small businesses that employ their neighbours. Nothing else lasts.”

In the 1940s, Austrian economist Joseph Schumpeter wrote that “the function of entrepreneurs is to reform or revolutionise the pattern of production.” Schumpeter’s definition remains at the core of an entrepreneurial approach that focuses on innovation and enterprise as a means of addressing social needs. “Social innovators” are pragmatic and embrace innovation to tackle social problems through both for-profit and non-profit models.

International Development Enterprises India (IDEI) is a non-profit that uses product invention to transform the lives of the poor and tackle hunger and malnutrition. Its approach is to take existing technologies and adapt them, reducing costs and improving effectiveness. By constantly evolving the design, they can focus in on making it cheap and relevant.

One innovation is the Treadle Pump: a foot operated, water pump for small plots of land. It enables crops to be grown in winter and summer – no need to rely on rain. And since women are key to farm life, it is physically easy for women to use. So far more than 350,000 small farms are using it. It has been calculated the pump increases household incomes by a minimum of US $100/year.

Another of their innovations is the Affordable Drip Irrigation Technology Intervention. While drip irrigation systems have been for sale in India for the past 15 years, they were not relevant or affordable for small and marginal farms. IDEI adapted these technologies during trials from 1997 to 2000. Existing technologies suffer from two drawbacks: they are complicated to maintain and they are expensive to buy. A big challenge was demystifying the idea that crop irrigation methods were for only the big orchards. The irrigation systems are sold as kits and are scalable so that farmers can expand their systems if they want. IDEI has sold over 85,000 of the various irrigation kits.

Both inventions are designed to mimic traditional technologies and are inexpensive, thus maximising take-up by small farmers, who can recover the cost within one season of crops.

They not only do the research and development and product design and manufacturing, but also set up the vertically integrated marketing and sales network and make it viable for the private sector to step up and sell the kits.

Paul Polak, the founder of the global International Development Enterprises, believes progress is only possible if products are sold at a fair market price. “When you give things away, you lack discipline in how you design them because you don’t have to get feedback from the customer,” he said.

In the village of Otse, Botswana in southern Africa, the Godisa Technologies Trust has brought affordable solar-powered hearing aids to the poor. Most of the employees are deaf, and as a non-profit social enterprise, its battery chargers – and its branded Solar Aid digital behind-the-ear (BTE) hearing aid – are all for use in developing countries. It is estimated over 600 million people suffer from some form of hearing impairment. According to the World Health Organization, 278 million people in the world are affected by moderate hearing loss. Yet the global production of hearing aids does not come anywhere close to meeting the need.

The Solar Aid needs only six to eight hours of sunlight to recharge for a full week. And it is fully compliant with WHO guidelines. Conventional hearing aids and batteries are very expensive and often not locally available. Solar Aid batteries can take 400 charges before being replaced.

The Solar Aid hearing aid was developed through field testing, funds were raised for further design improvements, and it went on to win several awards. But it initially failed to earn back its production costs and so the Godisa Technologies Trust was established to sweat the details on making it sustainable. It was developed in partnership with the Botswana Technology Centre,

“I want to help other deaf people to have access to education training and employment. I would like to use my skills and opportunities to help other deaf people achieve their goals,” said one of Godisa’s technicians, Sarah Phiri. So successful are these hearing aids, there is interest around the world, including in Canada.

Adequate street lighting has been proven to cut down muggings and improve public safety, reduce traffic accidents, and boost business confidence in neighbourhoods because people feel safe going there. StarSight’s street lamps combine solar-powered street lighting and internet access in a wireless configuration, freeing up the lighting poles from needing to access the main power and telephone grids. Each one contains VoIP, wi-fi broadband, CCTV and are being rolled out in Istanbul.

StarSight street lamp poles, designed in Turkey, are also being rolled out in Martinique, Republic of Congo, Cameroon, and Cote d-Ivoire. StarSight’s goal is to install 70,000 street lamps by 2011. Malaysia and Indonesia are next.

d.light design is a social enterprise targeting the 1.6 billion people who rely on kerosene oil to light their lanterns, or use candles. There is an ambitious goal behind this business: they want to replace all the kerosene lanterns in the world with their lights within the next ten years. They use light emitting diode (LED) technology and are about commercializing light and power solutions for families living without electricity in emerging markets.

Better lighting has many benefits, including helping children and adults to study and learn during dark hours. Importantly, it will make the air inside dwellings cleaner and the environment safer without the risk of fire. Indoor air pollution is one of the biggest killers of children under five in India. UNDP has found that families with improved lighting see a 30 per cent increase in their income because they can keep doing things at night.

On high beam, the lights last five hours; on low beam, they last for 200 hours without a charge. It can be re-charged by solar panels or by normal electric outlet. They promise consumers can expect to save $150 over five years. They have received additional support from the Acumen Fund to enter the peri-urban and, later, the rural market in India.

By David South, Development Challenges, South-South Solutions

Published: December 2007

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=hoGVBgAAQBAJ&dq=development+challenges+december+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsdecember2007issue

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
Jun162015

Africa’s Fast-Growing Cities: A New Frontier of Opportunities

 

According to a new 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. Europe’s share of the world’s 100 largest cities has fallen to under 10 percent in the past century.

Counter to common misperceptions about what is luring people to big cities, the report’s author, David Satterthwaite, said it isn’t because governments and aid are attracting them: government “policies leave much to be desired as they tend to neglect the urban poor, leading to high levels of urban poverty, overcrowding in slums and serious health problems. Governments should see urbanisation as an important part of a stronger economy and their expanding urban population as an asset, not as a problem.”

But global perceptions of Africa are changing. The Mo Ibrahim Foundation has listed the most efficiently run African economies, with a strong correlation between good governance and higher growth rates (Mauritius, Seychelles, Botswana, South Africa, Namibia, Ghana and Senegal).

In most of urban French West Africa, extensive interviews with micro-entrepreneurs and micro-finance practitioners found that most operating micro-enterprises in the informal economy are entrepreneurs by necessity, and that their most basic needs drove their business activities and behaviours. Success was held back by lack of capital, poor training, and a general aversion to risk (Faculty of Management, Dalhousie University).

While access to capital has been identified as the key factor in opportunity, entrepreneurs aren’t even waiting for microfinance institutions to help them. “I started this business of selling chips (French fries) two years ago using money we raised as a group of 30 women,” said Mary Mwihaki, 27, who lives in the Mathare slum area outside Nairobi.

Each member of her group of women contributes about US 30 cents a day and the resulting US $9 is given to a different member of the group on a rotating basis, she told IRIN news agency. Mwihaki waited three months to raise the US $27 she needed. She joins many other women across the country taking the same approach to raising capital.

For some entrepreneurs, it is just the proximity to a buzzing urban atmosphere that is a spur to action. One clothes seller told the African Executive he has been able to make enough money to get a house built just selling second hand clothing. Twenty-three-year-old Henry Mutunga in Nairobi, Kenya takes advantage of the high turnover of the city’s Machakos Country bus terminal to sell second hand clothes.

“After months of searching for a job, I asked myself, ‘Why am I wasting the business studies knowledge I acquired in school?’ I was not comfortable being left in the house every morning, with nothing to do, while my uncle went to work in order to feed me and pay the house rent. I got hooked to the urban mentality and tried my hand at selling trousers.”

Now with two employees, he is able to rent his own house, and is able to use extra money to have his own house built. He urges other youth to become employers, not employees.

At the technological end of entrepreneurship, in Nairobi, Kenya, Mumbi’s Dial-a-Cab company is joining 20 fleet firms in the country to adopt a new mobile phone-based vehicle-tracking technology developed by two young African IT entrepreneurs, Waweru Kimani and Paul Mahiaini. The technology allows management to know how low fuel is, which car has gone where, when a car has been hijacked, what car doors are open, how long it has been stopped, and where it is located. Impressively, it also allows management to stop the car at the touch of a button if it has been stolen. It costs US $570 to install, and costs US $40/month to use.

Other entrepreneurs are piggy backing their success on the booming housing markets in Angola, Ivory Coast, Liberia, Nigeria, Congo, Mali, Morocco, Tunisia, Botswana, Ghana, Mozambique, Rwanda, Kenya, Mauritius, Uganda, Algeria, Egypt, Senegal: all creating enormous opportunities for entrepreneurs providing other services, like furniture, appliances, insurance, landscaping, security, architecture etc.

And the giant US internet search engine Google is now setting up operations in West Africa, based in Dakar – a sure sign that they see this as a new boom market. And Indian investment in Africa has also dramatically shot up this year, according to mergers and acquisitions magazine, The Deal. In 2005, US $81 million was invested in Africa. In 2006, US $340 million; and in 2007, US $294 million.

By David South, Development Challenges, South-South Solutions

Published: November 2007

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=XoCVBgAAQBAJ&dq=development+challenges+november+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2007issue

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
Jun162015

African Culture as Big Business

 

In the last decade the world’s creative industries (including crafts, fashion and design) have gained greater respect for being the spark that drives economic development and entrepreneurship. They are seen as fast growers and good job creators, and importantly, the lynch pin in cultural identity and cultural diversity. UNESCO, through its Global Alliance for Cultural Diversity, has been in the forefront of helping African countries re-shape their policies to take this into consideration. The promotion of cultural industries also has been incorporated into the New Partnership for Africa’s Development (NEPAD).

The global clothing industry is estimated to be worth US $900 billion a year. Culture and creativity are big businesses: according to UNESCO, in 2002 the UK exported US $8.5 billion in cultural goods, the United States US $7.6 billion, and China US $5.2 billion. The UK’s Burberry fashion label alone made £157 million in 2006.

This is good news for Africa’s growing fashion industry, which is finally getting the attention and respect it deserves. Entrepreneurs are tapping into this awareness as a great way to make money. Well-known Nigerian fashion designer Alphadi says the continent’s fashion industry is “giving Africa a chance to show its true self, its solidarity, its huge generosity and its greatness.”

Africa’s fashion entrepreneurs are showing more and more confidence and striding with pride across catwalks around the world. And despite the problems faced by black models – as highlighted by supermodel Naomi Campbell in her recent press conference in Kenya – some African models have a growing international profile: these include Alek Wek from southern Sudan, and Waris Dirie from Somalia. Campbell has said she plans to set up a modelling agency in Kenya to increase opportunities.

Just as African music has fans around the world, the continent’s growing fashion scene is gaining fans and more attention. From Hollywood stars to European catwalks, African fashion designers and apparel makers are feeding the industry’s hunger for novelty and new ideas.

African entrepreneurs, from village craftsmen to ambitious and creative urbanites, are finding ways to cash in on this rising awareness.

The rising stars of South Africa were on full display at this August’s Cape Town Fashion Week. David Tlale, who produces glamorous haute couture creations, places community empowerment in his hometown of Johannesburg at the centre of his business. Tlale was joined by rising stars Thabani Mavundla, Thula Sindi, and Craig Jacobs.

Creator and founder of the Fundudzi label of Johannesburg, Jacobs presented a couture collection at Paris Fashion Week in July. A former TV presenter-turned-fashion designer, Jacobs sees a renewed pride in African creativity and a new dialogue about Africa’s place in the world. His motto is: “Africa reworked…Africa re-inspired… Africa renewed”.

Established in 2004, his clothing company for women strives to be socially and environmentally responsible: “Fundudzi is also an eco-conscious label, utilizing materials such as organic cottons, soy and bamboo as well as cashmere produced in Africa which is not harmful to the environment,” he said. “The message which we want to resonate with the rest of the world is that Africa has always been organic.”

“Our label has grown out of the desire to help change the perception of our home, Africa, by presenting clothing designed and created here which can compete on the world stage.”

Jacob benefited from support from various organizations in South Africa to get his business plans sorted out. The country’s tourism body has focused on fashion with its C’est Couture campaign. But he has also struggled with the complexities of exporting his designs and navigating global customs regulations.

“There has been a lot of interest internationally in our collection, but I am not sure what the rules and regulations are … We need an over-riding body to help assist us young entrepreneurs. My experience in Paris, in July, has been that we do have something new and fresh to say in fashion, and we can produce at the same standard as the rest of the world.

There was validation of that. But we as Africans need to follow our own signature, look internally to come up with inspiration, and show that to the rest of the world. “The global village environment, and the access that technologies such as the Internet have provided, means that we can tune into the same stimuli in terms of trends and fashion directions to ensure that we are on par with the rest of the planet. I do believe that the world, bored with the same trends they have been exposed to for so long, are looking for a new guard of inspiration – and we need to empower ourselves with the right tools to answer that call.

“Our positioning is quite simple – our label is dedicated to creating jobs in Africa, thereby reducing our dependency on aid in securing our future …I wanted to create a label which is rooted in Africa, which tells African stories, but which is not tradition or museum curio – rather, intelligent pieces which can fit seamlessly into the global firmament of fashion. The label is focused on redressing the prejudices about the “dark continent” – each collection is designed as a travelogue, informing the world about the rich tapestry of life in Africa.”

Another hub of dynamism in the African fashion scene is Nairobi, Kenya. Kikoromeo connects its catwalk fashion designs with the principle of community development. The label uses mostly Kenyan materials – cotton, silk and wool – and works with local artisans, including women’s groups. Its bags are woven with Kenyan Sisal by Machakos women’s groups, and the beadwork is done by Maasai women’s groups.

Anna Trezbinski of Nairobi, who is popular in Hollywood and has contracts to provide items to top designers like Paul Smith, employs 800 people – mostly Masai women in her workshop in the Great Rift Valley.

This new wave of African fashion designers is proving that anyone with talent, a website and a fan base can puncture the bubble of the European and New York catwalks and make a splash.

“Africa is a haven of inspiration,” says the Tanzanian-born, Nairobi-based designer and collector Lisa Christofferson, who has clothed Ralph Fiennes, Rachel Weiss and Jane Seymour. “Africa for many years now has been the flavour of fashion,” she says. “It has really opened the door for us.”

She believes the internet has expanded her business and her brand. It gives clients and boutiques around the world the ability to import her hand-painted, African-inspired cashmere sweaters, bedspreads and throws. Many are ceremonial cloths of the Kuba Kingdom in Congo.

Another designer based in Kenya, Annabelle Thom, believes changes in the last seven years are responsible: access to TV and film, music channels and a burgeoning middle class with money. “People care more about fashion and if you look around in Nairobi, the average person is beautifully dressed – people are spending money on themselves,” she said.

Ethiopia has also been identified as a bubbling fashion hot spot for its indigenous raw cotton and potential to produce other natural fibres. Ethiopian designer Guenet Fresenbet launched Ethiopia’s first fashion magazine, Gigi, to help take the lead.

By David South, Development Challenges, South-South Solutions

Published: October 2007

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=F4GVBgAAQBAJ&dq=development+challenges+october+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsoctober2007issue

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.

 

Monday
Jun152015

Safe Healthcare is Good Business and Good Health

 

Many people have been shocked by recent stories about the proliferation of counterfeit drugs and the rate at which they are killing and harming people in Nigeria. The International Narcotics Control Board found that up to 50 percent of medicines in developing countries are counterfeit. This has driven home the point that without the presence of legitimate players in the African drug market, the illegal sharks will step in to make large profits – and a literal killing.

To counter this negative trend, what is most needed is support for reliable Africa-based companies: businesses that are long-term, sustainable and not living from one grant to the next. But as experience has shown around the world, nurturing businesses requires certain fundamentals: they must work to be profitable, they must find a market and exploit it, and they need cash infusions that are timed to the company’s growth, not to the cycle of international donors. This role, often served in developed countries by venture capitalists, who want a fast return of 35 percent – is too onerous a burden for most African businesses. What African companies need is a more conservative, long-term approach; one that expects returns of between five and 10 percent.

Kenyan company Advanced Bio-Extracts (ABE) is one good example. Only 18 months old and based in Nairobi, the company produces one of a new generation of low-cost anti-malarials known as artemisinin-based combination therapies (ACTs). The drug is produced from the green leafy plant Artemisia, or sweet wormwood. The company is the first in Africa to make this drug, and employs 7,000 local farmers in Kenya, Tanzania and Uganda, as well as scientists.

ABE has received two infusions of cash from non-profit social venture capitalists Acumen, as well as investment from Swiss drug giant Novartis. Acumen has so far invested US $9.6 million in 11 active investments focused on a diverse set of health challenges, including basic healthcare access in rural areas and treatment for malaria and HIV/AIDS.

“We are commercializing a product that had never been commercialized,” said ABE’s owner, Doug Henfrey, to the New York Times. “Those little windows of support make these things happen. We could not have done it otherwise.”

Acumen’s Kenya country director, Nthenya Mule, said “there are positive things happening in Africa, but they are not happening overnight, and some are happening quietly. ABE is exemplary. You will not see it as front-page news, but in 18 months they set up a factory with 160 people interfacing with 7,000 farmers and supplying one of the major pharma companies in the world.”

Stimulating private sector solutions to African healthcare problems is receiving an additional boost from a new fund established by the World Bank’s private sector arm, the International Finance Corporation. To be launched later in 2007, it will offer cash and loans totaling US $500 million to commercial healthcare projects in Africa. According to its own statistics, 60 percent of health expenditure in sub-Saharan Africa is privately funded, and the market, excluding South Africa, is worth US $19 billion.

By David South, Development Challenges, South-South Solutions

Published: May 2007

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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Like this story? Here is a dirty secret: this website is packed with stories about global South innovators. We spent 7 years researching and documenting these stories around the world. We interviewed the innovators to learn from them and we visited them to see how they did it. Why not use the Search bar at the top and tap in a topic and see what stories come up? As for my work, I have been involved with start-ups and media ventures since the early 1990s. While most tech entrepreneurs were either still in their nappies in the 1990s (or just a drunken night away from being conceived in the 2000s), I was developing content for this new thing they called the "Internet". In the years since I have learned a great deal about innovation and digital and have shared these insights in the stories on this website as well as in the 5 issues of Southern Innovator magazine. So, stick around and read some more!    

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

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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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