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The Fair Trade Reality in Different Countries Around the World

Explore the successes and challenges of fair trade in Africa and its impact on mainstream and south-to-south markets, up-market shops, new domestic markets, ICT, fair trade professionals, sustainable social enterprises, value adding, fair trade networks, and changing fortunes.

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The Fair Trade Reality in Different Countries Around the World

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  1. The Fair Trade Reality in Different Countries Around the World Africa

  2. Successes

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

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

  5. 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.

  6. 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.

  7. 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

  8. 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

  9. 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.gSmolart • KICK • FTO more professionally run by new generation of young, dynamic Fair Traders who continuosly ask, why not?

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

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

  12. Challenges

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

  14. High Cost of Credit • 20-30% interest rates

  15. 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

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

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

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

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

  20. 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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