African Fashion’s Growing Global Marketplace Profile

Tales of African global fashion successes have multiplied in the last few years. African fashion is seeing its profile rise as more and more shows and festivals boost awareness of the continent’s designs, designers and models. In turn, African fashion and design is being taken more seriously as an income and job generator, and as a sector able to weather the ups and downs of the global economy: people always need to wear clothes.

If the global fashion industry were a country, it would rank 7th in global GDP (gross domestic product) (Fashion Performance Network).

In 2011, the apparel retail industry was worth an estimated US $1.1 trillion, and that could grow to US $1.3 trillion by 2016. And the sector is expanding in the global South. It is forecast that India and China combined will be as big a fashion market as the United States by 2015.

One visible aspect of this is the plethora of African fashion weeks that have sprung up.

Launched in 2011, African Fashion Week in London (africafashionweeklondon.com), or AFWL, is a reflection of how far things have come and how much higher the profile of African fashion now is.

The mission behind AFWL is “to promote emerging and established African designers and African-inspired designers from across the globe.” The number of attendees grew from 4,700 in the first year to 20,000 in 2012.

In 2012 it partnered with Côte d’Ivoire Fashion Week (https://www.facebook.com/pages/Cote-dIvoire-Fashion-Week/364950310210789), which will hold its third annual event in December 2013. This partnership has meant fashion designers from Côte d’Ivoire can benefit from the higher international profile of appearing at African Fashion Week in London. The theme in 2012 was “Ivorian Textile Products on the American Market.”

“London is one of the most important fashion capitals around the world,” said Côte d’Ivoire Fashion Week’s founder and CEO, Coulibaly Severin on the AFWL website. “It is a great honour for us and the African continent to have a professional international platform to promote African Fashion industry actors, African heritage, African values, African textiles through Africa Fashion Week London.”

The idea is to use the fashion week as a bridge to access the European market.

With the right support, African fashion businesses have huge potential for growth.

A distinctive “Afropolitan” aesthetic (http://afropolitanaesthetic.tumblr.com/) has grown as a phenomenon since 2005, influencing global urban design trends. It can be characterized as urban, sophisticated, tailored and boldly African in its use of colours and patterns. British designer Paul Smith (http://www.paulsmith.co.uk/uk-en/shop/) has been one of many designers to be inspired by the afropolitan look.

While African fashion trends have always influenced the global fashion business, the challenge has been to create viable global African fashion brands that can compete in the global marketplace and in turn create sustainable jobs in Africa.

Pioneers are showing that it can be done.

Featured at Africa Fashion Week in London in 2011, the Nigerian fashion brand Mmabon (mmabon.com) is now looking to pioneer new ways to buy and sell clothing in Africa. The company, which sells affordable casual and custom apparel, is launching a mobile phone app for all devices and is building its own Internet e-commerce website as well. Mmabon had been engaging with customers through Facebook and the BlackBerry smartphone, but realized it could offer a much better experience for customers through an app and an e-commerce website. This shows the future for fashion in Africa is going mobile and going online.

Founded by Elizabeth Idem-Ido, Mmabon is capitalizing on the fact Internet access is improving in Nigeria and is turning to online advertising to drum up customers. The fashion brand is trying to reach 16 to 34 year olds, of which 8 million are believed to be currently on Facebook in Nigeria, according to Idem-Ido.

There is a cultural change underway in the country: people are increasingly feeling comfortable doing commerce online and on mobile phones.

“Nigerian youths are now more willing to buy products over the Internet, unlike five years ago, with the likes of konga.com and jumia.com revolutionizing the online retail scene in Nigeria,” Idem-Ido, who is also a trained lawyer, told VC4Africa (https://vc4africa.biz/).

Konga (Konga.com) is Nigeria’s largest online mall. Opened in 2012, it offers a wide range of products for order across Nigeria. Jumia.com calls itself the “the biggest online shopping mall in Africa”, operating in Morocco, Egypt, Ivory Coast, Nigeria and Kenya. Another player is Ecwid (ecwid.com), which bills itself as an e-commerce solution for small businesses that “is a revolutionary shopping cart that seamlessly integrates with your existing website. It can also be added to your page on social media networks, such as Facebook or mySpace”.

Idem-Ido’s experience with Mmabon over the past two years shows how online marketing can be an effective – and cost-effective – way to broaden a company’s customer base.

“As a business, we have not physically met with 80 per cent of our current customers,” she said. “Orders have been achieved from referrals, BlackBerry Messenger contacts and our official Facebook page. Online marketing improves our visibility without owning a prime-location store and reminds, assures our already existing customers on why we are their preferred brand.”

Her fashion business began humbly as a part-time t-shirt printing hobby for her friends. Then people started ordering custom-designed t-shirts, and so she began a journey exploring fabrics in local and foreign markets.

Mmabon is now the official merchandiser for the Calabar Festival 2013-2015 (calabarfestival.com), the biggest street carnival in West Africa. Taking place in Calabar, Cross River State, Nigeria, it attracts a million people.

Mmabon is receiving help from Venture Capital for Africa, or VC4Africa (https://vc4africa.biz/), a community of entrepreneurs and investors helping to build companies in Africa, to raise further investment to grow the brand and the business.

Another success benefiting from international exposure is Malian designer Boubacar Doumbia (http://www.ndomo.net/english/index.html), who is currently making fabrics for design-savvy British furniture and home furnishings store Habitat. The prints with African themes have proven a hit with Habitat customers.

Working from a new studio in Burkina Faso’s capital, Ouagadougou, Doumbia (https://www.ashoka.org/fellow/boubacar-doumbia) is a leading advocate of bogolan (http://www.malimali.org/what-is-bogolan/), a Malian traditional textile dyeing process using mud.

He uses locally grown cotton, which is first dyed using plant-based dyes. A chemical reaction occurs when the iron in the mud is applied to the fabric and turns the existing plant dye black after three applications, or grey after two applications. The mud is washed off and the fabrics are placed in the sun to dry. It is a sustainable and chemical-free approach to dyeing fabrics and also creates vibrant patterns that have caught the attention of people in Europe and elsewhere.

Other outlets who have become enamored with African patterns and themes in Britain include Darkroom Boutique, House of Fraser and the V&A Museum, The Guardian newspaper reported.

As an Ashoka fellow (ashoka.org) – Ashoka is the largest network of social entrepreneurs worldwide – Boubacar is using the craft as a way to boost skills and opportunities for youth in Mali. He has “overhauled the traditional model of youth apprenticeship in Mali by putting young people in a central, entrepreneurial role from the outset. Rather than simply train students in the methods of textile production, he teaches professional, people and life skills, and encourages his apprentices to become self-sufficient, creative, and innovative”, according to the Ashoka website.

Elsewhere, African fashion style pioneer Gilles Belinga (https://www.facebook.com/GillesBelinga) has become a fashion phenomenon in China. The former communications engineering student had a deeply personal conversion to fashion and style upon arriving in Beijing; the buzzing and vibrant Chinese capital captured his heart.

“I discovered my talent and passion for fashion in China,” he told China Daily.

“I’ve also been given many opportunities here, so I want to pursue my fashion dream in China.”

The Cameroon native has a distinctly afropolitan take on fashion – elegant, tailored suits, strong colours, and a gentleman’s manner – and this fashionable posture landed him modeling work in fashion shows.

He arrived in China in 2008 after his parents divorced and he went from being in a wealthy family back home to having to do any job he could get to survive. He started out in Tianjin, China – an industrial city with a large high-technology sector – and then moved to Beijing to study.

It was there that he fell in love with the city’s fashion scene and hasn’t looked back.

“I never attended fashion school in Africa, but in Beijing, in this fashionable environment I realized that I like drawing clothes, matching colors and mixing fabrics,” he said.

“There are so many fabrics here, which has given me the chance to try out different things. Sometimes you might have a talent in you, but you might not discover that talent if you’re not in a place where it can come out.”

He now designs clothes and has them made by local tailors.

“When I design clothes for clients, I look at the whole person and what kind of message they want to deliver to people,” he said. “Then I check their skin color and think about style and fabric.”

He defies the elitist take on fashion that can be promulgated by fashion magazines and thinks good fashion is for everyone.

“I believe the way you dress sends a message to people about how you want them to think about you.”

He finds Beijing is full of opportunities and he is regularly stopped in the city’s trendy Sanlitun (http://en.wikipedia.org/wiki/Sanlitun) neighbourhood and asked to be in fashion shows.

“In China, you don’t know who you are going to meet. You could be anywhere and meet someone who can change your life.”

And he plans to perfect his skills and designs in China and then take them back to Cameroon one day.

And maybe, in time, Belinga will be the next big fashion thing.

By David South, Development Challenges, South-South Solutions

Published: October 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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Pioneering African Airlines Help to Expand Routes

The last decade has seen a revolution in African air travel. The number of air routes has grown and this has paralleled the economic growth across the continent. As demand has been strong for Africa’s resources, it has also fueled a consumer boom that is benefiting an increasing number of people.

More and more people can afford to fly and flights are taking Africans to cities across Africa and out of Africa to visit cities around the world. These flights also bring in a growing number of tourists and business people.

As growth continues despite the many obstacles and challenges, and as urbanization rolls onwards, new routes have sprung up linking the continent’s cities to each other and to the world. National and local airlines have evolved to meet growing demand for flights, with the big global airlines moving in to compete.

Africa’s airlines, tourism and airport authorities gathered in early 2013 to discuss how better to link the continent up by air, and the fruits of this collaboration are coming to light.

A recent new entrant is Fastjet (http://www.fastjet.com/us/). Bringing the highly competitive budget airline model to Africa that has proven so successful in Europe, it is owned by Britain’s Easyjet and has its hub in Dar es Salaam, Tanzania. It will offer low-cost flights to South Africa, Zambia, and Rwanda in autumn 2013 and, ambitiously, hopes to become “Africa’s first pan-continental low-cost airline” (BBC). It has 10 aircraft.

If people book early, they can snag a one-way flight between Johannesburg and Dar es Salaam for just US $100.

Fastjet is also creating a low-cost airline in Nigeria in partnership with Nigeria’s Red 1 Airways (red1air.com). One airline also expanding its routes is Daallo Airlines (daallo.com) from the small nation of Djibouti (http://en.wikipedia.org/wiki/Djibouti) in the northeast Horn of Africa.

Its website shows straight away how the airline is able to help link up cities normally left out of global air routes. Flights can be booked for journeys between Djibouti and Somalia, a country only now beginning to recover from decades of civil war and anarchy. Daallo also flies to Nairobi, Kenya, the East African hub for international agencies and corporations, to Dubai in the United Arab Emirates, to Jeddah in Saudi Arabia and Hargeisa, capital of the autonomous region of Somaliland (http://somalilandgov.com/).

It also offers weekly cargo flights to these destinations. Daallo has a Boeing 777 and an Antanov AN-12. Djibouti is tiny but well positioned as a transport and shipping hub. It has invested heavily recently in its port facilities and benefits from good security, with a large U.S. base located in the country, Camp Lemonnier (http://www.cnic.navy.mil/regions/cnreurafswa/installations/camp_lemonnier_djibouti.html), home to Combined Joint Task Force – Horn of Africa.

Further improving flight access in Africa, in August 2013, South Africa saw a new low-cost airline enter the marketplace. Safair (safair.co.za) is operating 10 daily flights between Johannesburg and Cape Town using Boeing 737-400s.

Ethiopian Airlines (http://www.flyethiopian.com/en/default.aspx) has also started a strategic partnership with Malawi Airlines as part of its Ethiopian Vision 2025. This will make the capital of Malawi, Lilongwe, Ethiopian Airlines’ third hub on the African continent. It has its main hub in Addis Ababa, Ethiopia and its West African hub in the Togo capital Lomé.

By David South, Development Challenges, South-South Solutions

Published: October 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

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Solar Bottle Bulbs Light Up Dark Homes

Finding ways to generate low-cost or free light has captured the imagination of innovators across the global South. The desire for light is strong: Light gives an immediate boost to income-making opportunities and quality of life when the sun goes down or in dark homes with few windows.

More than 1.7 billion people around the world have no domestic electricity supply, of whom more than 500 million live in sub-Saharan Africa (World Bank). Without a source of electricity, it is difficult to use conventional technology to switch the lights on.

While it is possible to run lights using batteries or diesel generators, these are expensive options that are not possible for many poor people. The more of a slim income that is spent on light, heat or cooking fuel, the less there is left for better-quality food, clothing, transport or education and skills development.

Low-cost light is great, but free light is even better – and one Brazilian solution is offering this.

Brazilian innovator and mechanic Alfredo Moser has taken the common plastic water bottle and created a low-cost lighting solution for dark spaces. Often makeshift homes lack decent lighting or a good design that lets the light in during the day. This means it may be a bright, sunny day outside, but inside the home or workplace, it is very dark and reading or working is difficult.

Moser came upon the idea during regular blackouts in his home city of Uberaba (http://www.uberaba.mg.gov.br/portal/principal) in southern Brazil during 2002. During the blackouts, only factories were able to get electricity, leaving the rest of the population in the dark.

The “Moser Light” involves taking plastic bottles, which are usually just thrown away or recycled, and filling them with water and bleach to draw on a basic physical phenomenon: the refraction of sunlight when it passes through a water-based medium.

It is a simple idea: Holes are drilled in the ceiling of a room and the bottles placed in the holes. The liquid-filled bottle amplifies the existing sunlight (or even moonlight) and projects it into the dark room. This turns the plastic bottle into a very bright lightbulb that does not require any electricity.

Moser uses a solution of two capfuls of bleach added to the water to prevent anything growing in the water such as algae because of the exposure to sunlight.

“The cleaner the bottle, the better,” he said.

Polyester resin is used to seal the hole around the plastic bottle and make it watertight from rain.

Moser claims his bottle innovation can produce between 40 and 60 watts of light.

Moser uses recycled plastic bottles, so the carbon footprint is minimal compared to the manufacture of one incandescent bulb, which takes 0.45 kilograms of CO2 (UN). Running a 50 Watt incandescent light bulb for 14 hours a day for a year, around the same light as produced by the bottle bulb, produces a carbon footprint of nearly 200 kilograms of CO2.

“There was one man who installed the lights and within a month he had saved enough to pay for the essential things for his child, who was about to be born. Can you imagine?” Moser told the BBC.

The plan is to try and get as many as a million homes fitted with the lighting system by the end of 2013.

In many poor areas, it is common to live in makeshift or rudimentary dwellings. These are often built to crude designs and, in order to keep costs down and boost security, will have few or no windows. These dwellings will consequently be very dark inside, even on the brightest days. This leaves people having to turn to a source of artificial light if they want to do something indoors like read or work. And this costs money. Be it electricity from a mains, or battery-powered lamps or gas-powered lanterns, the cost will eat into a person’s tight income. This is where Moser’s simple solution saves the day and saves pennies: it is free light once the bottle lamp system is installed.

Placing the bottle lights in the ceiling transforms the ceiling into something akin to the night sky, with many points of light shining down into the room like stars. It also means the occupant of the room does not just have to strain to see with the use of a single light but now has many lights illuminating the room from all angles.

“It’s a divine light,” Moser told the BBC World Service. “God gave the sun to everyone, and light is for everyone. Whoever wants it saves money. You can’t get an electric shock from it, and it doesn’t cost a penny.”

It has not been a road to riches for Moser. He has made some money installing the system in a local supermarket and nearby homes, and he has inspired a charity to install the lighting system and to train people to do the installation and make an income from it.

The MyShelter Foundation in the Philippines was inspired by Moser’s invention and has installed the system in some 140,000 homes there, the BBC reported.

“We want him to know that there are a great number of people who admire what he is doing,” MyShelter Executive Director Illac Angelo Diaz said of Moser.

Using bottle bulbs instead of electricity or generators means families can save US $6 per month, according to Diaz (CNN). The Philippines is reported to have the most expensive electricity in Asia and slum homes usually do not have electricity.

It is estimated 15 other countries also have homes using the Moser system. The MyShelter Foundation believes 1 million homes worldwide have used the Moser system as of 2013.

Liter of Light (http://aliteroflight.org), run by the MyShelter Foundation, offers instructions on how to install the lighting system on its website.

By David South, Development Challenges, South-South Solutions

Published: September 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

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China Sets Sights on Dominating Global Smartphone Market

The rise of smartphones – mobile phones capable of Internet access and able to run ‘apps’ or applications – is the latest wave of the global connectivity revolution. Mobile phones rapidly made their way around the world to become almost ubiquitous – the most successful take-up of a piece of communications technology in history – and now smartphones are set to do the same. The number of mobile phone subscriptions in the world surpassed 6 billion in 2012 (out of a population of 7 billion) and, according to the International Telecommunications Union (ITU), the number of mobile phones will exceed the world’s population by 2014.

Over the last five years, with the increasing popularity of smartphones, the focus of the mobile industry has shifted from voice and messaging to apps and data services.

Smartphones are complex pieces of technology and any country that can develop the capability to make them and innovate is set to make a lot of money.

The high export value potential of designing and making “computer equipment, office equipment, telecommunication equipment, electric circuit equipment, and valves and transistors” was flagged up as a priority for developing nations back in 2005 at a UN meeting looking for “New and Dynamic Sectors of World Trade” (UNCTAD).

At present, smartphones have a long way to go to surpass old-style mobile phones: by the end of 2016, according to Portio Research (portioresearch.com), the number of non-smartphones in the Asia-Pacific region alone will still be bigger than the entire worldwide number of all smartphones. Even so, it’s predicted that by 2016, there will be 555 million active smartphones in China alone, as well as half a billion smartphones in Europe by the end of 2014. By 2013, North America’s smartphones will make up 50 per cent of all mobile phones. All in all, a lucrative market.

The main factor holding back the rise of smartphones is price. Smartphones tend to cost more than a basic mobile phone. But as China gets more heavily involved in the smartphone marketplace with its own smartphone and mobile phone brands, low income consumers will find themselves with a wider choice of affordable and powerful smartphones, each one a mini-computer.

Out of the 10 largest global manufacturers of smartphones, four are Chinese: Lenovo, Yulong, Huawei and ZTE (Gartner).

Huawei (http://www.huawei.com/en/), the world’s biggest smartphone seller (according to research firm Canalys) (canalys.com), has started to move some of its design team to London in the United Kingdom, to better tailor its products for foreign markets. It has revenues each year of US $35 billion.

China’s mobile phone market is vast, accounting for a third of all smartphones sold in the world. Getting a foothold in this marketplace places a company in a very strong position to build the expertise and capital to push into the wider global marketplace. And that is what Chinese brands are starting to do. So far, Chinese exports of branded smartphones make up a fifth of those sold around the world (Canalys).

The big global competitors to date have been South Korea’s Samsung (samsung.com) and the American Apple brand (apple.com). Other large competitors are Canada’s troubled Blackberry and Finland’s Nokia.

To compete with them, popular and successful Chinese brands include Xiaomi (xiaomi.cn), which sells more mobile phones in China than does the American Apple brand, and ZTE (http://wwwen.zte.com.cn/en/).

For years, many of the top global brands have had their phones and the components manufactured in China. This meant Chinese manufacturers were assembling the phones but not benefiting from the high value that can be extracted from being the owner of the brand name and the originator of the innovation and holder of the copyrights and trademarks.

But now China’s Lenovo brand (http://www.lenovo.com/uk/en/), for example, has successfully pulled past U.S. electronics maker Hewlett-Packard (www.hp.com) to become the largest seller of personal computers in the world. It is also selling more mobile phones and tablet computers than personal computers.

Lenovo Chief Executive Yang Yuanqing espouses a two-part strategy to defend market share at home in China while going hard at overseas markets. Lenovo started with so-called emerging markets in Russia, India and Indonesia.

“We have very aggressive plans to explore overseas markets,” Lenovo’s mobile phone division head Liu Jun told China Daily. “We hope the overseas market will contribute more than half of Lenovo’s total smartphone revenue in the long run.”

Xiaomi founder Lei Jun is considered part of a new generation of dynamic Chinese technology leaders. His casual clothing and charismatic public presentations have had some equate him to the late Apple founder Steve Jobs. But Jun is not happy with selling smartphones and instead sees the company’s future in software and that the phones are just a tool to access the software. Xiaomi hopes to make even more money from selling games, running online marketplaces and offering social media.

The Chinese-made smartphone brand Coolpad (http://coolpadamericas.com/) – made by Yulong Computer Telecommunication Scientific Co. – is the third best-selling in the Chinese marketplace, surpassing Huawei and Apple and has global annual revenue of US $1.8 billion, according to Forbes magazine. Sino Market Research found 10.2 per cent of China’s smartphone users own a Coolpad, behind Korean brand Samsung and China’s Lenovo.

Coolpad has succeeded by investing heavily in research and development (R&D) and innovation to make the phones cheap but also powerful.

Innovations include technology that lets users have more than one phone number for the same phone by being able to connect to two different network technologies. The phones also include security and privacy protections that make them popular with businesspeople and government officials.

The Coolpad brand has also been frenetic in launching different models of the phones to appeal to its customers. In 2012, it launched 48 different models, selling for between US $50 and US $500.

Coolpad was launched in 2012 in the US as part of the company’s global expansion plans.

China has placed innovation at the core of its economic development policies. China increased its R&D spending in 2009 to US $25.7 billion, a 25.6 per cent rise over 2008, according to Du Zhanyuan, vice minister of the Ministry of Science and Technology. In 2011, China surpassed South Korea and Europe in total patents filed and was in a neck-and-neck race with Japan and the United States.

China now boasts twice as many Internet users as the United States, and is the main global maker of computers and consumer electronics, from toys to games consoles to digital everything.

China is also on course to become the world’s largest market for Internet commerce and computing.

The drive to change and transform China’s global economic role was promoted in 2011’s Beijing International Design Week (http://www.bjdw.org/en/), with its theme of transforming “Made in China to Designed in China.”

By David South, Development Challenges, South-South Solutions

Published: September 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=bfhcAwAAQBAJ&dq=development+challenges+september+2013&source=gbs_navlinks_s

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

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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Update: Huawei Loses Millions Of Users As Serious New Threat From China Gets Real

"Make no mistake—Xiaomi intends to entice Huawei consumers with upgraded phones such as the recent Mi 10 Pro, better able to compete with Huawei’s flagships in overseas markets. The company is also making a feature of its “easy access to Google,” as its marketing goes head to head with its larger Chinese rival. Right now, Xiaomi has a unique opportunity to strip away market share with Huawei helpless on the Google front. And it seems that millions of Huawei users outside China who want to maintain Google on their phones are already voting with their wallets."

Poorest Countries Being Harmed by Euro Currency Crisis

The ongoing economic crisis in Europe is forecast to harm the economies of the world’s poorest countries if it continues, according to a study by the United Kingdom’s Overseas Development Institute (ODI) (odi.org.uk).

As an example, Kenya’s shilling currency has weakened and increased the cost of imports, leading to a surge in inflation, while the number of European tourists has declined, according to Business Daily.

Raging since 2009 (http://www.bbc.co.uk/news/business-13856580), the eurozone crisis has seen several European countries struggling to pay debts built up during the boom years, and this has threatened the currency compact among countries that use the euro single currency (http://www.ecb.europa.eu/euro/html/index.en.html). Several countries have introduced harsh austerity measures to try and rein in the debts and stabilize economies while keeping countries within the eurozone.

This has had the consequence of dramatically raising unemployment levels, reducing consumption of goods and services and increasing poverty rates in many European countries. Some governments have responded by reducing the amount of legal labour migration allowed into their countries.

The study estimates that the euro crisis could amount to a loss of US $238 billion for poorer countries from 2012 to 2013 as aid, trade, investment and remittance payments sent home to relatives and friends are damaged by the crisis.

This would particularly harm export-dependent, emerging-market countries. The study found demand was weakening for products from low and low-to-middle income countries. This would in turn harm growth in these countries. Growth in the past decade has helped many countries lift millions of people out of poverty and enabled the growth of new middle classes, who in turn use their rising incomes to purchase consumer goods and invest.

The crisis will cause developing countries’ currencies to drop in value if they are pegged to the euro, and for countries to be economically harmed because of austerity policies in European countries, said the study’s author, Dr. Isabella Massa.

“The EU remains the largest single export market for poorer countries, although it is the emerging BRIC economies which are their main source of imports.”

The European Union (EU) (http://europa.eu/index_en.htm) is the biggest market in the world and the largest importer of goods from developing countries. The ODI report found a 1 per cent drop in global export demand has the knock-on affect of reducing growth in poor countries by 0.5 per cent. The countries most at risk from the crisis are Mozambique, Kenya, Niger, Cameroon, Cape Verde and Paraguay.

For example, 17 per cent of Ivory Coast’s exports go to the EU. Mozambique sends 14 per cent of its exports to the EU and Nigeria sends 10 per cent.

Tajikistan in Central Asia was the most highly dependent economy on remittance payments from its workers living outside the country to prop up its GDP (gross domestic product). Remittance payments from Tajik citizens outside the country made up 40 per cent of GDP.

Liberia and the Democratic Republic of Congo were both heavily dependent on foreign direct investment (FDI) from Europe in 2010.

Many countries have also grown used to strong demand for their resources in recent years as China has rapidly developed and urbanized, sucking in more and more resources from around the world, including sub-Saharan Africa.

“Poor countries are vulnerable to the euro crisis not only because of their exposure (due to dependence on trade flows, remittances, private capital flows and aid) but also because of their weaker resilience compared to 2007, before the onset of the global financial crisis,” said Massa.

“The ability of developing countries to respond to the shock waves emanating from the euro area crisis is likely to be constrained if international finance dries up and global conditions deteriorate sharply.

“The escalation of the euro crisis and the fact that growth rates in emerging BRIC economies, which have been the engine of the global recovery after the 2008-9 financial crisis, are now slowing down make the current situation really worrying for developing countries.”

Despite the gloom, there are many positive and powerful antidotes to this economic crisis, including rising South-South trade and innovation, which shows it is possible to reduce dependency on wealthy-developed countries alone for economic prosperity.

By David South, Development Challenges, South-South Solutions

Published: September 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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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

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