Tenneh and me

The women of Made in Liberia, who were on both sides of the fighting during the civil war, now own and operate a business together. About 75 percent of Made in Liberia’s profits are used for community development projects, with the remaining 25 percent staying within the enterprise, allowing the women to build equity over time. Made in Liberia’s Right to Work program includes a 4-course curriculum intended to train women in entering the workforce, personal finance and job skills. Every graduate is guaranteed a full-time job at Made in Liberia, and an opportunity to save for their future. Made in Liberia’s Working Assets program encourages women to save by matching 100 percent of their savings for one year, enabling them to invest in major assets like land, education or starting a business.

Chid Liberty and the women of Made in Liberia

The women working at Made in Liberia were eager to tell me about their goals. Tenneh Bakana has been working at Made in Liberia for two years. On the “inspiration wall” (a wall filled with employee photos and their handwritten goals) and in our conversation, her motivation is apparent: her children. She wants her job at Made in Liberia to result in a better future for them. Many of the women here are mothers, victims of rape or abuse, working together for a unified and healed Liberia. In a feature on Made in Liberia filmed by CNN last year, Tenneh talked about her journey from victim to businesswoman. It’s hard to leave these amazing women in this little factory, humming with the sound of sewing machines. But I feel so lucky to have met them, and I know that they will succeed in building a better future for their children and their country.

The aim of Le Ndomo is to give young people — particularly those who may not have had a chance to go to school — a chance to build some technical expertise and to learn some valuable life skills, including responsibility, personal commitment and solidarity. But that’s not all. They also learn firsthand what it takes to run a prosperous business — from quality management and commercialization to successful marketing and investment.

All of their products are 100 percent cotton and eco-friendly, including their packaging. They make their dyes from bark, leaves and iron-rich mud, and it was amazing to see all the different variations and possibilities the dyes can create on cloth.

The work — spinning, weaving and decorating — is all done by hand. It takes years of training to learn, but the end result is amazing. I tried to make a design myself, but I think it’s better to leave it to the masters!

ONE’s sister organization, (RED), Converse and Hallmark have all worked with Le Ndomo, and it’s no secret as to why. The craftsmanship and attention to detail on all the products is nothing but amazing. More importantly, it was extremely uplifting and inspiring to watch the proud craftsmen take such pride in their work at their stations. I was so impressed with their artistry.

Photo Credit: Flickr stream of futureatlascom

Trade = development, but only with transparency.

Last month, at the African Growth and Opportunity Act (AGOA) Forum, Secretary of State Hillary Clinton spoke about continuing challenges and new solutions for success in US-Africa trade relations.

AGOA is a trade preference program which aims to jump start economic development in Africa by allowing African businesses to export certain products to the US duty-free. As Clinton discussed AGOA’s successes in increasing exports of African valued-added products like marmalade and apparel, she also noted the need to strengthen AGOA by increasing opportunities for women, improving infrastructure and ensuring transparency in government revenues generated from AGOA.

While AGOA has successfully broken down many trade barriers and created new markets in the US for African entrepreneurs, improved transparency is necessary to realize the full benefits of AGOA. With transparency, citizens are empowered with information that allows them to recognize corruption, and to question and hold their leaders accountable. Despite an abundance of natural resources, government corruption too often stands in the way of economic development in Africa.

The extractives sector is the most lucrative industry in Africa, generating billions of dollars from oil, gas and mining, and yet public revenue generated from these resources is often lost to corruption and mismanagement. As the oil industry alone constitutes more than 90 percent of AGOA exports to the U.S., transparency in the oil sector is critical to African citizens experiencing the full benefits of AGOA.

In a May 2011 speech at the Organization for Economic Cooperation and Development donors conference, Secretary Clinton spoke about the importance of transparency to successful development:

“Corruption stifles entrepreneurship and it siphons funding away from critical services, hurting the people who rely on those services. Poor transparency makes it difficult if not impossible to determine how governments raise and spend their funds, and therefore, how to hold governments accountable.”

Some of the most resource-rich countries have the poorest populations because corrupt leaders steal public money rather than investing in public services like education, health care and infrastructure, which are necessary to societal well-being, employment and overall economic growth and security.

She reiterated this statement, this time to recipient countries, in her speech at the AGOA forum in Lusaka, and offered improved transparency as a solution to corruption and the next step in realizing AGOA’s full potential, then announced America’s new policy to implement this objective, saying:

“And let’s have a very frank conversation about corruption… The United States now requires oil, gas, and mining companies that raise capital in our markets to disclose the royalties they pay to foreign governments, which will help ensure that Africa’s natural wealth benefits the people of Africa rather than corrupt officials.”

Secretary Clinton was referring the Cardin-Lugar Transparency Amendment, which was passed on July 21, 2010. The new law requires all companies listed on the New York Stock Exchange to publish their payments made to foreign governments for oil gas and mining. The bill will go into effect once the Securities and Exchange Commission publishes the regulations implementing the law.

The Cardin-Lugar Amendment puts new muscle behind the US policy of partnering with African countries for meaningful development, of which transparency is a critical component. Once information on payments is available, African civil society, watchdog groups and law makers must use it to hold their leaders accountable. This new law has the potential to unleash billions of dollars worth of domestic resources to fund Africa’s needs and attract investment for lasting economic development.

Today was a pretty amazing day here in Kenya. We met with Kenyan entrepreneurs this morning, and a representative from USAID, which is deeply invested in building Africa’s world presence as an exporter.

Then this afternoon, we spent time in Kibera, one of Nairobi’s most well-known kagigis, or slums. The two are linked in my mind, because I think it is the first that will eventually help lift the circumstances of the second.

I heard a Kenyan joke today, “We don’t have oil here in Kenya — our people are are main exports.” We all laughed, but the truth is, though Kenya has many great natural resources, the people are an amazing asset. I have yet to meet an ordinary person. The energy, creativity, and enthusiasm they’ve given us with on this trip simply astonish me. And I don’t think they’re putting on brilliance for the out-of-towners, you really can’t fake this level of extraordinary-ness.

There, I’ve created a new word.

What do people brimming with energy, creativity, and enthusiasm do best?

That’s right. They make things.

BEAUTIFUL things that quite enthralled the 10 of us at an impromptu shop after our meeting this morning. We all left adorned with Zulugrass, Katchy Collections, and MooCow items, both gifted by the business owners and then purchased in alarming volumes by the lot of us.

The founder of Katchy Collections, Anthony Mulli, spoke of his employee philosophy:

“When I hire someone to work for me, I tell them, ‘You had a dream before you came here. Whatever it is, don’t become content in this position and forget it. If you want to go to university, do that and then there will be a place for you here in the business side. I am here to help you reach your dreams, as well.’”

That’s what will put an end to the need for places like Kibera. People with drive and spirit to spare, encouraging others to tap into their core strengths.

We visited the home of Mercy while in Kibera. She and her daughter Nicole live in a small room that is beautifully kept, but where she needs to walk to fetch water every day, cook in a small corner of the room, and risk respiratory infections and worse from living in an area that is notoriously good at spreading contagions.

But that is not even close to all of Mercy’s story. She also takes in clients and braids hair, a skill she learned from watching her mother, who learned from her mother.

She also makes beautiful jewelry, a skill she learned from a friend who taught her after she expressed interest. It rivals any that I’ve seen in shops, and I bought a beaded ring that I already know is one of my new favorite things. In fact, we’re talking about Mercy having an Etsy shop — and if and when she does, I will be so sure to let you know.

There are many Mercys in Kenya, with skill, drive, and an entrepreneurial spirit — but how to create a structure that allows for their products to reach a global market? Africa is sometimes viewed as remote, and has not always been the first place a company would look to to source products.

That’s where the ORIGIN Africa Project comes into play.

Origin Africa was developed by US AID as a part of the COMPETE program, which is part of the African Growth and Opportunies Act (AGOA). COMPETE takes an integrated approach to addressing the issues of advancing trade and economic growth in East and Central Africa.

This approach is based on the premise that regional integration is the best way to grow regional markets, and simultaneously increase the competitiveness of African products in global markets.

In other words: Trade, not aid, developed from a collaborative standpoint.

All stakeholders –- from African farmers to US retailers -– develop, guide and promote African trade in apparel, cut flowers, specialty foods, home decor and fashion accessories. They also sponsor pretty stellar events, like July’s Africa Fashion Week New York.

But does it actually work to generate new trade opportunities?

Absolutely. It’s generated more than $50 million in exports to the US in just the last two years. Diversifying the African economy can build stability, which will be a game-changer on both an individual and a continental level.

Another Kenyan entrepreneur we met this morning is Katy Leakey. Her business was founded in 2002 by Katy and her husband, Philip Leakey. They live in the rural bush of the Rift Valley in Kenya, among the Maasai. Together, they created a product called Zulugrass, which is so much more than adornment — though they’re gorgeous.

Susan Leakey Wearing Zulugrass in Karen, Kenya

Their mobile work sites in the Rift Valley provide employment for over 1200 Massai women, depending on the time of year. More than 10,000 people are supported by the work generated from assembling Zulugrass.

Traditionally, Massai women do not earn an income, so there were initial cultural barriers to overcome when Zulugrass was developed. But the men of the tribe now prize the peace it brings — with the added income, their home lives grew more peaceful.

And as we know from the Africa’s Future is Female report, women re-invest 90 percent of their earnings right back into their households, elevating the status of many. The women use the income for everything from the basics of food, education fees and medical expenses, to improving their lifestyles such as buying their own herds of goats, purchasing land and starting their own businesses. Communities become more stable financially and politically. Small service businesses begin to flourish as there was money to spend locally.

Many educated, talented and skilled African designers and entrepreneurs are quickly and indelibly creating change in their countries. The next employee Anthony hires and mentors could be Mercy, and she and her daughter could perhaps save enough to leave Kibera and pursue her other dreams — to open her own salon named after her daughter and eventually see her daughter in medical school.

Mercy

Daily Action: Today we’re meeting with entrepreneurs in Karen, Kenya who are leading in building their communities’ economies and providing opportunities to others. Check out ONE’s report “Africa’s Future is Female” to learn more about how women are leading a revolution on the continent. Then, using hashtag #ONEMoms, tell @ONECampaign one thing that surprised you. Or leave a comment on our Facebook page.

-Lindsay Maines, Rock and Roll Mama

Oasis is one of the first words that comes to mind when visiting Amani Ya Juu, a sewing and training program for African women who are marginalized and often broken.

Fleeing from war-torn countries and desperate home and personal circumstances, Amani Ya Juu, started 25 years ago in a small room in Nairobi, today provides for women from virtually every corner and culture on the continent nothing short of transformation. Where women once found no options, Amani Ya Juu, by teaching women skills in sewing, quilting, design, beading, batik and bookkeeping, is a source of both income and a way to heal.

Petroniia, until a few years ago lived a dire life in Mombasa. Rejected by her family, she suffered at the hands of her relatives and the streets.

“I was saved by Amani Ya Juu, I was not saved before. I have learned how to forgive,” Petroniia told us yesterday on a tour of the facility. She is responsible for fabric-dyeing and batik now, and showed us with great pride the beautiful patterns and colors she creates. Her fabric is used for products like clothing, place mats, quilts, toys, jewelry, handbags and many other beautiful things, which are sold in a store on the compound (as well as online and in a boutique in Washington, D.C.) Today Petroniia is the mother of two little girls and provides a steady and secure income for the family.

The Amani Ya Juu compound includes several quite beautiful buildings, many trees, flowers, plants and green space where children play, and production rooms that are neat, well kept and lovingly cared for. On the wall in the chapel hangs a unity quilt, made by the women there. Each square represents a different country and culture of Africa and different ways to solve problems and resolve conflict.

Delphi came to Amani Ya Juu from Burma to escape war, and as she told us, “to find peace.”

“Life was not easy, everything we had was taken away from us, family, friendship, food,” she said. She was unable to finish school because her family could not afford it, and as a young teen Delphi had a son who, at age 1, died of pneumonia. Soon thereafter she came to Amani Ya Juu and everything for her changed.

A quilter who creates colorful, floral designs, Delphi goes to school at night and because of her income from her quilts supports many of her siblings and other family members, including paying for their school fees.

“I look after my family. I have responsibility. Now I know I’m a strong woman,” Delphi said with a broad smile.

In Swahili, “amani ya juu” means higher peace. Take one look into the eyes of Petroniia, Delphi and the other women there and it is clear that is true.

To find out more about Amani Ya Juu please visit www.amaniafrica.org.

Daily Action: Today the ONE Moms met with teachers and students in Nairobi. Watch our video “Chieftainess” about a remarkable woman who is teaching her community about the importance of education. Then share the video with your friends and leave a comment.

Living Proof | Chieftainess from ONE Campaign on Vimeo.

-Cooper Munroe, The Motherhood Blog

Increasingly Africa is a continent of growth and opportunities for business. Secretary Mitchell’s not alone in making the case – the recent IMF’s report predicted a 5.5% growth rate for Sub-Saharan Africa in 2011, the latest Wired magazine had a feature on technology in Africa, leading business consultancies including McKinsey and Ernst & Young have written reports on the continent’s growth and its potential (available here and here).

“Financial return on foreign investment in Africa is higher than in any other developing region. All sectors contributed, including resources, finance, retail, agriculture, transportation and telecommunications.” McKinsey said.

The evidence shows businesses are making profits in Africa, and not just in oil, gas and mining. This shouldn’t be a surprise – many people, including friend of ONE Bob Geldof and Mo Ibrahim, have been speaking of Africa’s economic potential for years. And not only speaking about the potential but using their own cash to invest in African businesses.

Yet many US and European businesses still have a poor view of the continent. According to Mo Ibrahim such businesses seemingly pick the failings of some corrupt individuals, civil wars, or droughts elsewhere in the continent and put them together to “create a toxic opinion” of the continent which pollutes all 54 countries despite most countries being nonviolent, agreeable places to invest. Lack of understanding of regional variation often causes US and European businesses to overlook financial facts and not invest in Africa. And this lack of private sector investment is a problem for poverty reduction.

When a company, or individual, invests in an African business it means that business can grow. This means more jobs, more income for local people and more money to help fund regional development. In the long term business will be crucial in creating sustainable jobs and financial income for those currently living in poverty. The UK Department for International Development (DfID) recognises this, so is keen to encourage business in Africa, but DfID is also aware that responsible and sustainable investment is needed if poor citizens are to benefit. That is why it was encouraging that Mr Mitchell spoke of sustainable investment and of “the need to get mandatory laws for extractive companies to disclose the payments they make to governments”: an issue that ONE has been campaigning on. ONE commends the UK’s leadership on this crucial issue. However, more is needed to encourage responsible investment in Africa.

It is time more investors and businesses realised Africa’s potential – reducing poverty in Africa isn’t only a moral obligation…. it makes financial sense.

Africa Is Awakening, Helped by Free Trade
Six of the 10 fastest-growing economies of the last decade were in sub-Saharan Africa.
By DANIEL W. YOHANNES AND MO IBRAHIM
THE WALL STREET JOURNAL

Long a symbol of stagnation, the African continent is experiencing a reawakening. Poverty and hunger are still widespread problems, but Africa’s growing middle class is creating business and investment opportunities that are among the best in the world. With the right trade policy and development assistance, we can unlock the potential of a thriving private sector and lift millions from poverty.

Six of the 10 fastest-growing economies of the last decade were in sub-Saharan Africa, the Economist recently found. And over the next five years, the average African economy will outpace its Asian counterpart. From telecom to financial services, extractive industries and consumer goods, Africa is open for business.

Yet challenges remain steep, from export tariffs that stunt development to the dismal shape of roads, electricity grids and other infrastructure that prevent businesses from getting their goods to market. Transport costs in Africa can be as high as 77% of the value of the exports.

This is where smart development assistance must play a role. Two excellent examples that work hand-in-glove can be found in the United States, with the African Growth and Opportunity Act (AGOA) and the Millennium Challenge Corporation.

Enacted in 2000, AGOA reduces the tariffs that African exporters face in U.S. markets while providing technical assistance to help them take advantage of the legislation. In 2010, the initiative brought in $44 billion in African export earnings, a more than 438% increase since its inception in 2001, according to the U.S. International Trade Commission. Overall, calculates former Assistant U.S. Trade Representative for Africa Rosa Whitaker, the effort has created more than 300,000 African jobs.

While that law opens the U.S. market, the Millennium Challenge Corporation helps African exporters take advantage of it. In partnership with African governments, the corporation funds projects that build trade capacity, from irrigation systems that boost productivity to airports and seaports for shipping cargo.

To qualify for financing, partner countries must meet international standards for good governance, invest in their citizens, and ensure economic freedom. This means making business-friendly policy reforms, such as fighting corruption and eliminating the red tape that suffocates entrepreneurship. These are many of the same standards that businesses look for when deciding where to invest capital.

Trade and development policies often conflict with each other, but in this case the U.S. government and the Millennium Challenge Corporation have devised a coherent approach to foster the domestic and international conditions that will enable Africa’s private sector to thrive.

Now we should be working to expand opportunities for AGOA-approved goods in sectors where Africa has significant potential for growth, like agriculture. Africa accounts for 60% of the world’s arable but uncultivated land, and although 70% of Africans are involved in agriculture, the continent still faces considerable hunger and malnutrition.

The United States is doing its part by investing in agriculture projects through the Millennium Challenge Corporation. But, together with African governments and businesses, more needs to be done to build the production capacity of African farmers and improve their links with U.S. markets.

America has always given generously to the cause of poverty reduction in Africa, but moral leadership is not the only interest at stake. Other nations seeking to gain a foothold in emerging African markets are investing heavily in their development. Now is not the time to back away. The economic future and national security of the U.S. are equally compelling reasons to invest in Africa’s growth.

Mr. Yohannes is CEO of the Millennium Challenge Corporation. Mr. Ibrahim is chairman of the Mo Ibrahim Foundation and a board member of the global antipoverty advocacy group, ONE.

The 2011 AGOA Forum brings back into sharp focus the key role of trade in driving Africa’s development.

For Africa to secure its share of the benefits and gains from trade, the imperative for the international community to progress world trade agreements is matched by the need for an acceleration in the pace of economic integration in Africa to create larger and more competitive markets.

Africa faces a range of challenges that have a major impact on the rate of progress toward economic integration, and consequently higher levels of trade, economic growth and poverty reduction. Forty percent of East Africans live in landlocked countries versus a world average of 1 percent, making it much harder for producers to access international markets, and only 10 percent of African trade is with other African countries. Transport costs are 60 to 70 percent higher in Africa than the USA or Europe.

Across Africa, whilst the broader political and structural frameworks are being put in place to enable regional integration and trade, much more progress needs to be made to make common markets work in practice, and to tackle significant infrastructure constraints.

The existence of multiple trading blocs disrupts the cross-border flow of goods, and existing trade agreements are either not in place or not being implemented. Limited improvements in customs facilitation, a wide range of non-tariff barriers and a lack of standardized documents and procedures all contribute to the cost and complexity of doing business.

Hard infrastructure continues to be a major barrier to progress. At Lagos port for example, congestion and slow clearance procedures can lead to a 14 week-clearance time. It can take six weeks to clear containers in Mombasa and four weeks in Abidjan. It is currently more expensive and takes longer to move a product from Abidjan to Lagos, a distance of 940 kilometers, than to import the same product from China or India.

Business, political leaders and development partners have a key role to play to ensure that resources are effectively channeled into delivering much-needed hard and soft infrastructure improvements, and that the regulatory environment is reshaped to facilitate trade, rather than inhibit it.

Emerging models of collaboration between the private and public sector, including developing innovative forms of trade financing and tackling both hard and soft constraints to trade, are starting to make a real difference.

In West Africa, for example, a coalition of businesses, the World Bank and customs organizations of five ECOWAS countries are identifying ways to improve customs administration along the Abidjan-Lagos transit corridor. The route has five customs points and partners have been examining potential options for a green channel fast track mechanism for Authorized Economic Operators to enable reliable businesses to be granted authorization for more simplified and streamlined customs procedures.

A program known as Business Action for the Improvement of Customs Administration in Africa is a private-sector led trade facilitation effort in the EAC region that aims to improve the customs environment and to change the culture of customs administration from a controlling function to a facilitating one. Initiated by Business Action for Africa with support from member companies, in partnership with local government bodies, the World Customs Organization and the East Africa Business Council, the AEO Model being introduced will make the EAC the second region in the world, after the EU, to introduce mutual recognition of authorized economic operators and customs controls at the regional level.

Progress in regional integration and trade involves both public and private stakeholders across industries and countries, all of whom have critical and interdependent roles to play. Greater co-ordination and targeting of effort through collaborative action is necessary to address bottlenecks and accelerate progress. Developing new forms of collaboration requires experimentation and is often risky and complex, but the challenges can be overcome and the rewards can be significant.

BAA is an international network of businesses, business organizations and development partners, working collectively to accelerate growth and poverty reduction in Africa.

Did you know that many of the products at the ONE Store are sourced from organic products from African countries like Uganda, Tanzania and Swaziland?

To help raise awareness for African trade — a crucial tool in Africa’s efforts to develop their economies and escape poverty — we created a special tag to accompany all our African-made products.

It has information about the multi-tiered and multilateral benefits of doing business with Africa.

The production of ONE products in Africa helps provide jobs and independence and puts money into the pockets of hard-working men and women — money that pays for basic necessities such as food, shelter and medicine for children.

For a limited time, we’re offering 20 percent off our African-made T-shirts. Simply enter the code TRADE into the promotion code window before check out. Promotion is valid through July 17th so get your ONE shirt today. And of course, it comes with the cool new tag.

Let’s talk seriously about the solutions to poverty.

Your purchase of a fashionABLE scarf creates sustainable business for women in Africa. That’s our mission, and the reason why is because we are seriously committed to ending “extreme, stupid poverty.” The solutions to poverty do not lie in developing a business model that gives 10 percent of its profits to charity –- the solutions are in developing businesses that do trade with Africa, tying them in to the worldwide economy and giving them manufacturing opportunities.

But don’t get me wrong. Charity is still critical –- there are people in the world that are in desperate need of a “piece of bread,” or medical assistance like the drug neveropene that helps an HIV-positive mother not pass the virus on to her newborn child.

But that is not the sole solution to ending poverty. It also has to do with economics.

Part of our charitable work is providing shoes, uniforms, and school fees for children in need. But when relief is the end game, we create dependents. Instead, relief should support an economic development strategy.

Let’s look at the effects of economic impact of manufacturing scarves in Ethiopia. We:

• Buy looms from local business
• Build a factory, hire contractors, construction workers, buy materials from local business
• Purchase cotton from farmers
• Employ cotton spinners
• Hire trainer for weavers
• Employ weavers
• Hire Accountant
• Hire Business Manager
• Purchase packing materials for shipment from local company
• Ship through local logistics company
• Etc, etc, etc…

All of these steps we take to produce our scarves create jobs along the way. Currently, there are 15 employees in the Ethiopia operations. We are proud to give these employees jobs so that they can provide shoes, uniforms, and school fees for their own children.

And there are great reasons to do trade with Africa. As you have read, the AGOA treaty was created to incentivize trade with Africa, because it eliminates tariffs on certain imports from Africa to the US. The net result for us is a more competitive price point. For example, our $36 scarf would cost $40 if not for AGOA. That may not seem like a lot, but it is critical in the extremely competitive industry of fashion.

So start and support businesses that do trade in Africa, and let’s get serious about the solutions to end poverty.