JETRO’sJETRO’s Activities Activities to to Assist Assist Developing Developing Countries Countries in in Africa Africa
Boosting Africa’s mood through business with Japan!
We would like to introduce you to JETRO’s activities aimed at assisting developing countries in Africa and the achievements thereof.
Exhibit at IFEX2007 Workshop for improving the quality of Harvesting at tea plantation in Malawi Processing cut flowers Making shea butter soap (International Flower Expo) kiondo bags Photo provided by Fair Trade Company Photo provided by Earth Tea LLC JETRO’s Activities to Assist Developing Countries
JETRO is engaged in assisting developing countries in their achievement of sustainable economic growth through activities such as nurturing industry, establishing industrial infrastructure, developing human resources, and implementing projects aimed at developing products for export and to supporting their entry into the Japanese market. Considering the business needs of both Japanese companies and developing countries, JETRO combines various business tools, including the dispatch of experts, the acceptance of trainees, supporting presentations at exhibitions and development and import demonstration projects, all in an organized fashion with a view to supporting the establishment of business relations between Japanese and local companies.
Performances for last few years
Some of the examples of projects based on needs in developing countries include assistance of exporting products such as cut flowers from East African countries, coffee from Zambia, tea from Malawi and various natural products (oils, herbal teas and spices) to Japan. Bright-colored flowers, high-quality Zambian coffee, mellow flavored Malawian tea that goes perfectly with milk are beginning to permeate the Japanese market, and are expected to further increase in sales in Japan in the future. Conversely, JETRO has recently been focusing on projects geared for the needs of Japanese companies as well. A representative example for such projects is the support provided for the development of shea butter products and the export of these products to Japan. Tree of Life Co., Ltd. began selling these soaps at its stores in 2007. Plans are underway to include other value-added products such as hair care soap, and partnerships with local communities are being further enhanced.
Projects based on needs at developing Projects based on needs among Japanese companies countries Increase of exports of cut Local production of shea butter soap and flowers to Japan export thereof to Japan were realized
Flowers produced in Africa, especially Kenyan roses, are no longer an unusual site at stores. Shea butter is a traditional product of Ghana in West Africa that is indispensable to the local Have you seen any yourself? lifestyle as cooking oil and protective cream for skin.
Amount of roses imported to Japan (from participating countries) Inspired by the increased exports of cut flowers from Although shea butter has been exported to Europe as a raw East African countries to the European markets, in ingredient for some time, JETRO, based on the needs of Thousand 2006 JETRO began to give advice pertaining to Japanese companies, has been providing technical guidance for quality control of cut flowers produced in Kenya, the production of shea butter soap, which is a product that adds
Kenya Ethiopia and Tanzania, with a view to initiating value to shea butter used as a basic ingredient, in Tamale, a city Tanzania Ethiopia exportation to Japan. In the autumn of 2007, it located in northern Ghana. This resulted in the realization of supported a presentation at IFEX (International locally produced soap, covering the manufacturing of the soap Flower Expo). The amount of roses imported from to the packaging thereof. Sales of shea butter soap in Japan Kenya and Ethiopia to Japan is increasing began in 2007. significantly, thanks to the support provided by Shea butter used for the soap has been further developed in quality and expanded domestic and Source: Data from JFTA member-company JETRO (Left chart). international market channels under the support of UNDP/Japan Women in Development Fund. What is “Development and Import Schemes”? ･････････It is a project to support Japanese companies trying to import and sell products from developing countries.
In 2007 JETRO has inaugurated the “Development and Import Schemes,” aimed at supporting Japanese companies seeking to import and sell products from developing countries. Japanese companies’ efforts in locating promising products in developing countries and developing products in accordance with the needs in the Japanese market will increase business opportunities, which will eventually be conducive to the nurturing of industries and economic activities in developing countries. In order to realize this goal, enthusiasm, product planning capability and marketing power on the part of Japanese companies with abundant business experience are essential. JETRO is using this scheme to provide support to willing Japanese companies and to build a business model in developing countries. Below are four examples of projects that JETRO carried out in 2007.
Kiondo bags from Kenya Cut flowers from Kenya Imported in bouquet form Interweaving of Kenyan tradition High value added to Kenyan and Japanese innovation flowers
Kiondo products are baskets woven from sisal fiber by way of a traditional Kenyan technique. Kiondo products Because most of Kenya’s territory consists of are individually hand-woven by local female producers, Photo provided by Flower Auction Japan Inc. highlands with an altitude over 1000m, its Photo provided from Fair Trade Company for whom these products represent a valuable wage- average yearly temperature is around 19 degrees earning opportunity. Celsius even though the country is situated right on the equator. JETRO is supporting the improvement of the quality of kiondo products and the expansion of trade thereof. Fair Trade Company, the company that suggested this approach, is supporting The high altitude and cool weather of Kenya provides excellent conditions for growing the manufacturing and sales of kiondo products made by producer groups in the slum areas of flowers and ornamental plants (especially roses). Cut flowers are one of Kenya’s major export the capital city, Nairobi, as a part of its activities aimed at reducing poverty in African regions products and are exported mainly to European markets such as the Netherlands. However, that have been ongoing since 1998. However, there were many points that needed with flights between Dubai and Kansai International Airport by Emirates Airline introduced improvement in order for kiondo products made by these manufacturers to be sold on the in 2002, imports of cut flowers from Kenya to Japan have also been increasing significantly. Japanese market on a continuous basis. Therefore, JETRO has lent its support to the JETRO is supporting the establishment of a business model wherein Flower Auction Japan development of products with functions and design demanded by Japanese consumers in Inc. (FAJ), a major importer of flowers, processes cut flowers from Kenya into bouquets on order to make products that fulfill the needs of the Japanese market. At the same time, JETRO site before exporting them to Japan. The aim of this is to allow Japanese consumers to has dispatched staff members of Fair Trade Company and experts for the purpose of purchase high-quality bouquets in low prices by mixing various kinds of flowers other than providing guidance and holding workshops for the local producer group. It has also roses, such as carnations and hypericums, and exporting them to Japan in the form of further implemented various types of support aimed at realizing stable procurement of materials with value-added products. a decreased environmental load. The import and sale of kiondo in Japan is an effective JETRO has been supporting various efforts such as the means of providing support to the lives of local development of stylish bouquet designs in accordance with producers. In order to maintain the sustainability of Japanese consumer demands, the improvement of the quality business relations between Japan and Kenya through thereof, and the establishment of an international kiondo products, JETRO is seeking to fuse traditional transportation system. As a result, Kenyan bouquets made Kenyan technique with Japanese product planning with mixed flowers other than roses are scheduled to go on capability, and also to promote the production of sale on the Japanese market soon in 2008. high-quality products attractive to the Japanese You may find that bouquets that have traveled for more than consumer. 10,000km from Africa to Japan are being sold at flower shops in your town. Kenya
Malawian pu-erh tea Cotton products produced in Mauritius Aiming to become a new New finding! High-quality cotton production area Malawi products made on a small Efforts made on behalf of African island nation Malawian pu-erh tea Mauritius Pu-erh tea is a Chinese tea originating from the Mauritius is an island nation located east of the African Province of Yunnan in China. It is known in Japan as continent roughly the same size as the area of Tokyo a healthy tea. However, because of the recent pu-erh Prefecture. Although it is a small country with a population of around 1.3 million, tea fad in Mainland China, the price of tea imported from China has been surging. Mauritian cotton products have established a reputation for high quality, and many Therefore, there are increasing needs for finding new production areas from which pu- production bases for various well-known brands are located on this island, forming a erh tea can be stably supplied to Japan at a low price. major production area for apparel exported to western markets. By introducing manufacturing technology used in Yunnan, JETRO has developed a safe By way of cooperative relationship with Fairtrade Label Japan (FLJ), JETRO is microbial-fermented tea in Malawi, which is known as an area of production for English implementing a project aimed at introducing these high-quality cotton products still tea, and is supporting a new business aimed at introducing “Malawian pu-erh tea” to the relatively unknown in Japan to the Japanese market. In 2007, FLJ conducted an on-site Japanese market. Also, because Malawian English tea is traded in a lower price in survey of the cotton product industry in Mauritius, and confirmed that the technology, comparison with tea produced in other countries, making pu-erh tea by way of use of the production system and quality thereof sufficiently meet the criteria for introduction to the same tea leaves will make possible the export of further value-added products. Tea Japanese market. production in Malawi is expected to emerge as a promising new business. Another important perspective for this project is the establishment of a sustainable business relationship. The idea is to contribute to establishing the basis of living Earth Tea LLC, supported by JETRO, visited standards for workers in developing countries, allowing them to escape poverty, and as a Malawi several times in 2007. It selected a result to build a fair and sustainable business local partner company and conducted repeated relationship between Japan and Mauritius, trials for the production of the ingredients for through the transformation of raw cotton, a fermented tea and fermentation experiments. major export product for Africa, into product As a result, it succeeded in producing high- at local sites, allowing for their direct quality pu-erh tea suitable for introduction importation at value-added prices. onto the Japanese market. Test marketing of It will not be long until high-quality cotton Malawian pu-erh tea will begin in the spring products made in Mauritius such as T-shirts of 2008. Keep an eye on the future and shopping bags will be on store shelves in development of Malawian pu-erh tea. Japan.
Photo provided by Earth Tea LLC Photo provided by Fairtrade Label Japan
JETRO will continue to support the efforts of Japanese companies aimed at starting new business tie-ups with Africa by capitalizing on the business needs and product planning capabilities of Japanese companies. We welcome your opinions and suggestions.
For further information: Development Cooperation Division, Trade and Economic Cooperation Department, Japan External Trade Organization (JETRO) Ark Mori Building 6F, 1-12-32 Akasaka, Minato-ku,Tokyo, JAPAN TEL: +81-3-3582-5770 FAX: +81-3-3585-1630 E-mail: [email protected] April 2008 All rights reserved.