Africa

Successes

Mainstream Markets Increased penetration of mainstream markets e.g Crate and Barrel (USA) Cost Plus World Market (USA)

South to South Markets Selling to other organisations in southern Countries Kenya, Uganda, Tanzania, Rwanda South Africa, Zimbabwe, Swaziland

Profitable Up Market Shops Growing number of profitable shops in up market malls e.g Kazuri Undugu Many FT shops in the World subsidized by volunteers or discounted rents.

New Domestic Markets Increasing sales to Africa’s growing middle class of: Jewelry Textiles Gift items. Also sales to companies Previously shunned products in favour of imported ones Now more appreciative of local products.

Information & Communication Technologies (ICT) Use of ICT such as: Payment of suppliers by mobile money platforms e.g MPESA Marketing through websites Marketing social media

The Rise of the FT Professional Skilled & talented professionals entering FT e.g Designers Managers Transforming the way in which it is managed e.g Use of models Professional photographers, Professionally designed websites

Profitable/Sustainable Social Enterprises Increasing number of sustainable FTOs based on the social enterprise model. Some paying taxes to the central Government as a way of making their contribution to the National economy. E.g Smolart KICK FTO more professionally run by new generation of young, dynamic Fair Traders who continuosly ask, why not?

Emerging Interest in Value Adding Examples Mpanga Tea - Tea KCU - Coffee FT Label will support this emerging trend

Strong Fair Trade Networks Include: WFTO Africa (Previously COFTA) 99 members 30 provision members 10 years old KEFAT 80 Members 2 nd Largest National Network 13 years old

Challenges

Seasonal Business FT largely informal Few permanent employees Largely piece rate and casual

High Cost of Credit 20-30% interest rates

Long Production to Payment Cycles Takes days to pay individual producers Some take more than 6 months! Affects cash flow and production activities

Financial Crisis in the West Decreased size of orders Lost clients Some FTO making losses

High Shipment Costs Compared to Asia and Latin America Increased real costs of the product Affects competitivity

Narrow Fair Trade Product Lines Commodities- Tea, Coffee, Cocoa, Honey Wines (the Best!) Carvings (Wood and stone) Jewelry Textiles Bags

Weak/Undeveloped Fair trade Markets Products not sold as Fair Trade Product Label will change this!

And Changing Fortunes The riches person of African decent is no longer Oprah Winfrey (US$ Billion) But Alike Dangote..US$ 13.8 Billion