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USADF Buyer Linkages Program Assists African Vendors to Trade Up to Retailing at the Global Level.
WASHINGTON - January 23, 2007
The United States African Development Foundation (USADF), an independent US government agency with a mandate to reduce poverty in Africa, is celebrating its 2006 achievements. In addition to opening country programs in Rwanda and Liberia and establishing a new regional office in Accra, Ghana to strengthen existing programs, USADF launched its Buyer Linkages Program, designed to facilitate equitable commercial relations between African vendors and U.S. retailers. On January 7, 2007, the first exports under the program became available to American consumers through retail giant Target Corporation. Handwoven baskets produced by USADF-assisted vendors in Tanzania and Ghana are being featured in Target’s Global Bazaar event nationwide.
The establishment of a Buyer Linkages Program is an ideal demonstration of USADF’s goal of expanding economic opportunities for African entrepreneurs. Focusing on the handmade sector, the Program is helping to generate employment and dependable incomes for large numbers of people, particularly rural women. The Buyer Linkages Program fosters links between African producer groups and U.S. retailers, and provides guidance on production and marketing, helping to transform cottage industries and more established craft enterprises into efficient export operations, capable of meeting international standards, attracting new buyers and acquiring repeat orders. Diane White, Chief Strategist, describes the program as “a hand-up not a hand-out model where USADF provides expert advice and funding support to African vendors for a limited time period, with the goal of graduating businesses to independent supplier status”.
The sale of Tanzanian and Ghanaian baskets at Target’s Global Bazaar event marks the culmination of a near 18-month process, during which time Kwanza Collection Company Ltd. (Tanzania) and Bolgatanga Basket Weavers Cooperative Club (Ghana) received funding and technical advice from USADF. Kwanza Collection is an established exporter of a wide range of Tanzanian crafts sourced from producer groups throughout the country, including the island of Zanzibar. Bolgatanga Basket Weavers Cooperative Club (BBWCC) is a Ghanaian women’s community group dedicated to increasing member incomes through the sale of handwoven baskets.
The Tanzanian and Ghanaian baskets currently on sale in Target are contemporary versions of traditional baskets used for centuries by the peoples of Africa. The baskets from Ghana, commonly known as ‘Bolga’ baskets, are produced by women in the Bolgatanga region of northern Ghana. Iringa baskets, named for the region in southwest Tanzania from which they are sourced, are also handwoven by rural women using grasses and natural dyes that are indigenous to Tanzania. Iringa baskets are renowned for their durability, as well as their unique shape and ‘continuous’ weave construction.
The success of this first project is reason for optimism for entrepreneurs throughout all of the 16 African countries USADF serves. Rod MacAlister, President of USADF, predicts a bright future for the Buyer Linkages Program, saying, “We are currently in conversation with a number of retailers and intermediary buyers, with a view to introducing them to vendors in Africa who are clients or potential clients of USADF. We plan to expand the Program to include clusters of vendors in west, east and southern Africa, which will make sourcing easier for retailers, and will also allow for more efficient delivery of funding and technical advice to suppliers.”
Twenty-three years after establishing field operations in Africa, USADF has country programs in 16 countries throughout west, east and southern Africa, and has funded over 1,600 projects in support of African entrepreneurs and local Afri can communities, helping to create jobs and raise the incomes of over 114,000 people. USADF currently manages a portfolio of 240 investments in African-owned, small- and medium-sized enterprises. In 2006, these enterprises generated US$80 million in gross revenues, US$11 million of which was derived from export sales.