OSEI-DURO CLOTHING Ghana, West Africa With Christopher Rampaul, Robin Poirier, and Maryanne Mathias

THE COMPANY About the company Mission and Vision

PRODUCTS AND SERVICES

MARKET Target Market – Women – Fashion forward Demand – Increasing demand for ethically made clothing Competition – Large fashion retailers: high and low end – Other like minded designers Competitive Sustainable Advantage – Diverisified business model

ADVANTAGES OF PRODUCING IN GHANA 2009 GDP was 31.3 B USD Stable environment Factor abundance of prints Inexpensive labour Sustainable clothing that offers compelling story

TARIFFS Zero tariffs under AGOA “The African Growth and Opportunity Act (AGOA) was signed into law on May 18, 2000 as Title 1 of The Trade and Development Act of The Act offers tangible incentives for African countries to continue their efforts to open their economies and build free markets” -

EXCHANGE RATES USD to the Ghanian Cedi (GHS) has been quite stable for the last five years. 1 USD = 1.43 GHS (as of February 1, 2010) History of volatility and devaluation Future outlook is for stability or slight devaluation

POLICY CONSTRAINTS AGOA IV special provision set to expire in 2012 Quotas imposed (3.5% of all American apparel), 60% of which is currently being utilized

LIMITED DIVERSIFICATION Restrictions on where fabric is sourced from Ghana maintains a 16M trade deficit of which 10M is with China. Relies heavily on imports from China The US makes up 80.9% of the Ghana apparel export market

TRANSPORTATION Transportation within Ghana is inexpensive and timely Shipments currently done by air. This is necessary given size and time constraints Ghana Post and British Airways Cargo – 9 days Cost - $400/CDN for 150kg (approx. 150 units) Cost of transportation is relatively high, price elasticity of -2.5

PROBABILITY OF TRADE Where: Factors include: Quality of governance, Trade regime, Quality of infrastructure, a dummy variable for African nations, a dummy variable for English-speaking AGOA beneficiaries, Trade relationship with EU

INFRASTRUCTURE AND STABILITY Critical trade infrastructure is weak or non- existent (electricity, telecommunications, procedures and policy) Corruption at the borders/ports Access to lending and credit is high Oil production beginning in 2010.

Q&A