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Tuesday
Jun162015

Mobile Phones Bring the Next Wave of New Ideas from the South

 

 

Informa Telecoms and Media estimates mobile networks now cover 90 per cent of the world’s population – 40 per cent of whom are covered but not connected.

The rapid growth in take-up has made mobile phones the big success story of the 21st century. With such reach, finding new applications for mobile phones that are relevant to the world’s poor and to developing countries is a huge growth area. It is estimated that by 2015, the global mobile phone content market could be worth over US $1 trillion: relegating basic voice phone calls to just 10 per cent of how people use mobile phones.

Leonard Waverman of the London Business School has estimated that an extra 10 mobile phones per 100 people in a typical developing country, leads to an extra half a percentage point of growth in GDP per person.

The experience of the US $100 laptops from the One Laptop Per Child Project (OLPC) offers an important lesson on making technology work for the poor: the business model has to come first. In the case of OLPC, the big computer manufacturers are already offering low-cost laptops with extensive software and other support: and out-selling OLPC. And it is mobile phones that are proving how fast take-up can be if users are willing to pay for the service on offer.

A new report by the DIRSI (Regional Dialogue on the Information Society) on mobile phones and poverty in Latin America and the Caribbean, unearths the strategies the poor use to access and use mobile telephony, and the main barriers to increasing usage. It also looks at how mobile phones have improved the lives of the poor.

The poor use them to strengthen social ties, increase personal security, and improve business and employment opportunities. Few share their phones and most own them. The only exceptions are Colombia and Peru, where the incentive is to share ownership. Most importantly, the study found that mobile phones are not a luxury good, but the most cost-effective solution to many problems.

Some 250 million Indians today have mobile phones. Many of them are people who make just US $2 or US $3 a day. More and more are getting access to computers and the internet, even in villages.

India’s Mapunity is pioneering ways to reduce the stress and anguish of the daily commute to work – something that seriously erodes people’s quality of life and affects their health. Owner Madhav Pai is using SMS technology to improve transportation in Bangalore by providing the Bangalore Traffic System’s information on bus routes, locations and congestion – all in real time – to mobile phones. The service is free for subscribers to Airtel, and at a small cost for others.

The service works by collecting information on cell phone signal density to build up a map of congestion at different intersections in the city. Tracking congestion has had two benefits: it not only shows where the trouble spots are, it has also enabled mobile phone companies to know where to place extra relay towers to boost capacity and reduce network overload.

This technology effectively turns the mobile phone into a GPS (global positioning system) mapper, with real-time updates.

The company is incubated at the N S Raghavan Centre for Entrepreneurial Learning at the Indian Institute of Management, Bangalore.

In Nairobi, Kenya computer science graduate Billy Odero’s MoSoko uses an SMS text bulletin board system for buying and selling via mobile phones. He got the idea when he had to move out of his university dormitory and needed to sell things to the other students. He was also interested in finding an apartment to share with other newly graduated students somewhere downtown. Tired of sifting through irrelevant ads on bulletin boards, Billy developed an SMS bulletin board system to help connect buyers and sellers in Nairobi. Sellers text into the MoSoko SMS gateway with information regarding the type of item they would like to sell (a bicycle, TV, couch), their location, and the asking price for the item. This information is stored in a database and can be easily accessed via SMS by potential buyers.

More ingenuity can be found in Fultola, Bangladesh. A modest internet café with just four workstations it may be, but remarkably all four can access the internet: through just one mobile phone. This is all possible because of something called an EDGE-enabled (Enhanced Data Rates for GSM Evolution) mobile phone. One of the computers acts as a web server, while the other three workstations are connected to a small device no larger than a cigarette packet. All of this is wireless and possible because of the EDGE-enabled Motorola clamshell mobile phone using a USB cable connection to the server. The project is being supported by the Ndiyo Project, Grameen Phone and Grameen Telecom.

People use the internet centre to keep in touch with relatives, check market prices, and seek job opportunities or access government websites. The project was co-ordinated by a team working for the GSM Association, the global confederation of mobile phone operators. The aim was to explore the extent to which mobile networks could provide Internet connectivity in developing countries, and to demonstrate the extent to which mobile telephony can increase access to online resources.

In Ghana, mPedigree uses mobiles to fight counterfeit drugs. The plague of counterfeit medicines in Africa kill thousands, and it is estimated between 10 and 25 per cent of all drugs sold in the developing world are fakes (BASCAP – Business Action to Stop Counterfeiting and Piracy). And in Africa, this may be over 50 per cent (USFDA).

mPedigree founder Ashifi Gogo started his company to use mobile phones to protect people against counterfeit drugs and vaccines. “Buying medicine here is like Russian roulette,” said Gogo. “I don’t want people to have to choose between a drug that’s safe and more expensive and a drug that’s cheap and not genuine. Those choices shouldn’t be there.”

Ghanaian Gogo (also a graduate of Dartmouth’s Thayer School of Engineering), lets consumers send an SMS to mPedigree to verify if a drug is legitimate while they are thinking about buying it in the drug store or the street market. The consumer types in the serial number found on the drug’s packet to a short code (a five-digit number similar to the ones used to top-up mobile phone credits). The consumer then receives an SMS response verifying the drug’s authenticity.

To publicise the service, mPedigree advertises in parallel with existing drug promotion campaigns by legitimate pharmaceutical companies. It is also getting publicity help from the local mobile phone provider, Mobile Content in Ghana.

Gogo hopes to expand the service to Nigeria and Mozambique – and eventually the rest of Africa.

Gogo is really enjoying the whole experience of setting up this business: “It’s fun!” he said. “It just feels so good doing this work.”

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

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

 

Tuesday
Jun162015

Saving the Amazon Forest While Making a Living

 

 

The vast Amazon rainforest straddles Brazil (over half is there), and stretches over many countries, including Peru, Ecuador and Bolivia. It holds more than 2,500 tree species and 30 per cent of all known plant species – 30,000 in all. It contains the world’s largest tropical forest national park, Brazil’s Tumucumaque Mountains National Park(http://www.amazon-rainforest.org/places-of-interest.html). Over 25 per cent of drugs sold in pharmacies contain rainforest ingredients, and the rainforest acts as the Earth’s lungs, absorbing carbon dioxide, and emitting oxygen.

Logging in the forest is widespread and highly wasteful – 356,000 square kilometres of rainforest have been deforested (WWF). In the past 50 years, Ecuadorhas lost over 50 per cent of its tropical rainforest.

More than 26 million people live in the forest, with 11 million on the Brazilian side. While the Amazon’s indigenous people have little ecological impact, it is people drawn in to logging and farming who do most of the damage. Slash and burn techniques are common.

Preserving this critical natural environment while providing jobs for the local inhabitants is a challenge being taken up by a clutch of entrepreneurs. This new wave of entrepreneurs seeks to run businesses that respect the environment and provide a good living to those they employ.

The global garment industry is one of the most lucrative in the world (in 2000 consumers spent over US $1 trillion on buying clothes). Most of the manufacturing takes place in the poorest places on earth, and the garment and fashion industries contribute to vast quantities of pollution in these countries, either by using toxic chemicals and pesticides, by polluting and depleting water supplies, or through inefficient processes, transport and waste.

Brazilian enterprise Treetap (http://www.treetap.com.br/) (formally AmazonLife) is seeking to change the fashion industry by selling sustainable materials to top designers. Their patented rubberized natural latex is sold under the brand name Treetap. It is made from natural rubber native to the region, and it uses a fair trade system to ensure its suppliers receive a living wage. The company itself uses the substance to produce its own handbags and purses.

By promoting the sustainable use of a rainforest resource and focusing on social as well as financial returns, the company is proving the value of a “triple-bottom line” approach to business – where social and environmental concern is just as important as profit.

The company has placed the preservation of the Amazon rainforest at the centre of its business plan. Tribal communities in the Amazon depend on rubber tree tapping for their livelihoods, and Treetap works with the Rubber Tappers Association (http://www.brazilmax.com/news2.cfm/tborigem/pl_amazon/id/10) to save 900,000 hectares of forest from exploitation.

Over 45 families are supported, and they are paid eight times the market rate for their rubber. Its Rio de Janeiro factory supplies several European fashion designers with their faux-leather fabric to make clothes, backpacks, upscale furniture and handbags.

“Europe is our main market,” said Treetap Project Coordinator and designer Maria Beatriz Saldanha, “We are developing relationships in France, Italy, Germany and The Netherlands.”

High profile French fashion house Hermes Sellier has been using this rubber since 1998 for handbags. Italian furniture company Moroso uses it to upholster chairs. “They (fashion designers) love it. The material is shiny and supple and has the fair fashion appeal.”

Treetap has now moved into making bike courier bags for the world’s largest bicycle company, Giant, selling over 10,000 bags.

Saldanha’s partner, Joao Augusto Fortes, first came upon the idea of using natural rubber when the pair opened a store in Rio in the 1990s.

Wild rubber is favoured because it does not kill the trees and provides jobs for the tappers. The increase in synthetic rubber made from oil-based products has driven down the price for natural rubber, and led to people clearing forests to make way for more profitable products like timber and cattle.

After nasty battles in the 1980s to protect the rubber tappers’ way of life, the Brazilian government began to take action. It has now set aside protected forests for the tappers so they can still make a living.

Saldanha hunted around for products for her EcoMercado store. She came across the rubber tappers of the state of Amazonas, who were using the natural rubber to make their traditional rubber sacks.

“We had the idea, so we met with rubber tappers and ordered laminates from them,” said Saldanha. “We then used the rubber to make a small quantity of bags, briefcases and other products.”

Things did not go swimmingly at the beginning. The first run of 500 bags sold out quickly, but “Two months later all of the bags we had just sold melted,” said Saldanha. “We hadn’t figured out that the rubber needed to be vulcanized.”

Back at the drawing board, they adapted the vulcanizing process used by big factories to a small-scale process that the rubber tappers could do. And then they patented it. The company now sells 30,000 sheets of wild rubber a year.

Another Brazilian company, Hering Instruments, is using sustainability as a marketing boost for its musical instruments. When legendary musician and current Brazilian minister of culture, Gilberto Gil, (http://en.wikipedia.org/wiki/Gilberto_Gil) played a guitar made from Hering Instruments’ parts, there was pride: “Yes, that was a good moment for us,” said Alberto Bertolazzi, CEO of Hering Instruments. Gil’s guitar was one of the first to be made of Hering crafted parts, all sourced from high-quality woods from the Amazon forests.

They are now being sold by the world’s largest guitar and bass companies. Certified by the Forest Stewardship Council, the wood is harvested from 1.8 million hectares of managed forest in the state of Acre.

Trees are chosen for harvesting based on their age, location and how many have been cut down.

It is targeting the US $30 billion/year global market for musical instruments. The clever marketing has used celebrity musicians and a series of “Amazonas” guitars decorated by well-known painters like Gustavo Rosa and Antonio Peticov.

At Florestas (www.ikove.com) (www.florestas.com), owner Fernando Lima is producing all-natural Amazonian personal care products sourced from across the Amazon. Florestas has successfully partnered with Brazilian university labs to study indigenous Amazonian therapeutics, like Babacu oil, Acerola fruit, and Acai berries. Rain forest plants are rich in nutrients, vitamins and anti-oxidants – all highly coveted by health consumers around the world.

Certified as organic and ecologically sustainable by the French Ecocert group, all goods are purchased from Amazon cooperatives, thus enabling indigenous people to avoid cutting down forests to make a living. Brazilian nuts are purchased directly from the harvesters, avoiding middlemen and increasing the amount Florestas pays local families.

The company uses a range of methods to sell its products: e-commerce, catalogues, stores, including in Japan, France and the US.

An innovative enterprise with another university connection is Ouro Verde Amazonia. Founded in 2002 by University of Sao Paulo Professor Luiz Fernando Laranja da Fonseca, and his wife, Ana Luisa, when they moved to the southern rural region of the Amazon.

The couple has single handily revitalised the declining Brazil nut industry in Mato Grosso, while protecting the ecosystem and generating income for farmers. Ouro Verde, or green gold, enables farmers to avoid having to work in the logging industry. They make nut-based cooking oils, butters and granulated powders. Rich in omega-3, it is marketed as a healthy alternative to conventional cooking oils for the health conscious consumer. At present it is sold in 100 stores in Brazil, but wants to go global.

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

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

Turning Street Children into Entrepreneurs

 

The UN estimates that 500 million people around the world are homeless, and UNICEF estimates India alone has 11 million homeless children on its streets (though it is difficult to pin down the figure). In order to survive another day, these children will work in one way or another. While there are many campaigns to ban children from working, and charities dedicated to getting them off the streets and into shelter, the raw fact remains: many of these children slip through the cracks and remain vulnerable, poor and neglected.

Most street children suffer from malnutrition, hunger, health problems, and abuse. They make ends meet by working various jobs or by stealing. While they have dreams, there is no mechanism for them to save for the future. It is a live-for-now existence that, if they survive to adulthood, means they will probably remain homeless and vulnerable.

Street and working children have money: it is a natural consequence of having to be resourceful to survive. But what they don’t have is access to banking services or trustworthy financial advice that can help them to gain wealth and move out of poverty and into a brighter future.

The Children’s Development Bank in India is one initiative that seeks to turn these neglected children into the next generation of entrepreneurs. The bank works on banking and co-operative principles, where savers are members and joint owners of the bank. Any child can save money with the bank and earn interest, as well as take out loans if they are over 15 years old. It was started in 2001 and was inspired by the Youth Bank in the UK. Interest made by the bank is shared by its members, as with many co-operative banks and credit unions.

The bank is managed jointly by children and adults. The children have a say in how the bank is run and on what conditions it should lend money. They also keep an eye on borrowers to prevent them from running off without repaying loans.

For these vulnerable children, it has many advantages: they can put money aside without fear of it being stolen or lost, save for important things like clothes, or pay for their education.

A key part of the bank’s mandate is helping the children build entrepreneurial skills for business. Mentors help the children choose a business model, select an occupation with minimal risk and more benefits, get training and solve business problems.

The bank has branches in India, Afghanistan, and Sri Lanka.

Ten-year-old Deepak Prahlad, a street child in Delhi, dreams of being a doctor.

“I know what it takes to be a doctor. I need to study hard and need to save a lot of money,” he told the Hindustan Times. For now, he works as a rag picker but has started saving 30 to 40 rupees a day in the Children’s Development Bank. The bank has 1,300 members in the city. It pays 3.5 per cent interest on savings accounts.

“Some of them want to fly very high,” said Rita Panicker, who helped set up the bank in 2001. “We have been working with street children for the past two decades. Some of these children are very talented and have entrepreneur qualities. One of the biggest problems facing these children was that they did not have a safe place to keep their hard-earned money. In fact, it was the children who came up with the idea of the children’s bank. It started with 20 members in 2001 – and now it has 1,300 members in Delhi.”

Sudesh, a 15-year-old manager who looks after the bank’s current accounts, said: “We are extremely careful about whom to offer loans since we do not want to see our members’ savings lost because of bad loans. The skills I have learnt here are going to stand me in good stead in life.” Managers are chosen every six months by the children and they compete for the job.

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.  

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