The moon moves slowly but it crosses the town
African enterprises still face barriers in accessing lucrative Western markets. But the quality of their products is attracting the interest of major retailers — and Rebecca Dove, October ’14 Associate, feels optimistic.
In Africa the definition between social and enterprise wasn’t always clear-cut, but it’s where I was first inspired by businesses doing good. One of the many examples was Wonder Workshop, an enterprise next to my house in Dar es Salaam that trained and employed over 40 disabled people to create unique welded art. Their pieces wouldn’t be out of place in any smart London garden.
Since then, I’ve been interested in the business and sustainability case for sourcing African-made products. I recently re-connected with Francesa Tettamanzi, Manager of Wonder Workshop, who explained how “everyday new social enterprises are opening in Tanzania; often driven by Western capital and impetus”. In this climate, Wonder Workshop have found that their market is becoming increasingly competitive; combined with other factors such as the impact of Ebola on African tourism generally, they have been assessing opportunities to grow. “We see the potential of international markets but the shipping and logistics do not make it easy… payment vehicles like Paypal are not available”.
Value Added in Africa (VAA) acts as a trade facilitator between African shelf-ready products and European retailers. Michelle Hardiman, Sourcing Manager, explained how there are many barriers for producers to overcome in supplying to European markets. “They often don’t realise the sophistication of the Western consumer in terms of branding”, she told me. “Neither do they have experience pricing their product at a rate which is competitive and that also gives them a margin to play with for marketing spend”.
Retailers also have a tendency to see Africa as “a charity case which should be saved as opposed to an up-and-coming business community building brands which can compete internationally”, she said.
So, with all the challenges, will we be seeing more African products on our shelves any time soon?
Well — yes, and the shift is already happening. Businesses are realising the opportunity of sourcing value-added goods from Africa; major retailers such as H&M are buying garments from Kenya and Ethiopia to mitigate against risks in their own supply chains. My placement host, M&S, has worked with one if its Fairtrade co-operatives, Iriani, to launch the first Kenyan tea to be grown and packed at source meaning more value stays in Africa. The relative transparency of African supply chains, opportunities to enhance brand reputation, and preferential tariff rates compared to Asian markets are other benefits that VAA has identified. What stands out in my mind is the originality of the products.
As retailers diversify their network of suppliers, trade with African producers will surely increase over time. As informed consumers, entrepreneurs, purchasers and policy-makers, we can expedite this process — and benefit from it — if we put our minds to unlocking the potential that we all know is there.
For further information, see Value Added in Africa’s research: “Africa Making it: A Business Perspective” (2015).
