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Published byLesley Harrell Modified over 9 years ago
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Africa
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Successes
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Mainstream Markets Increased penetration of mainstream markets e.g Crate and Barrel (USA) Cost Plus World Market (USA)
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South to South Markets Selling to other organisations in southern Countries Kenya, Uganda, Tanzania, Rwanda South Africa, Zimbabwe, Swaziland
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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.
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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.
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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
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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
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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?
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Emerging Interest in Value Adding Examples Mpanga Tea - Tea KCU - Coffee FT Label will support this emerging trend
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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
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Challenges
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Seasonal Business FT largely informal Few permanent employees Largely piece rate and casual
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High Cost of Credit 20-30% interest rates
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Long Production to Payment Cycles Takes 60-90 days to pay individual producers Some take more than 6 months! Affects cash flow and production activities
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Financial Crisis in the West Decreased size of orders Lost clients Some FTO making losses
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High Shipment Costs Compared to Asia and Latin America Increased real costs of the product Affects competitivity
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Narrow Fair Trade Product Lines Commodities- Tea, Coffee, Cocoa, Honey Wines (the Best!) Carvings (Wood and stone) Jewelry Textiles Bags
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Weak/Undeveloped Fair trade Markets Products not sold as Fair Trade Product Label will change this!
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And Changing Fortunes The riches person of African decent is no longer Oprah Winfrey (US$ Billion) But Alike Dangote..US$ 13.8 Billion
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