UNDUGU FAIR TRADE LIMITEDBRUSSELS POLICY BRIEFING No.44

EXAMPLE OF A PPP PROMOTING SUSTAINABLE SOURCING THROUGH

FAIR TRADE

BACKGROUND UNDUGU SOCIETY OF KENYA.

-USK was incepted in 1973 by a church missionary worker.-- As a response to the plight of street children in Nairobi.-- Just a symptom of a bigger problem Poverty !-- First Rehabilitation initiatives followed by socio economic intervention-- Identified need for Education programs for the Youth (Skills for life) and economic interventions for the families.-- Salient issues called for Skills development as a means of socio economic support.-- Communities had basic skills in crafts production – traditionally acquired in the rural communities prior to venturing for non existent jobs in the city.-- Required a multiple facet approach for income generation activities both within the urban slums and rural areas – stop gap measure.

USK PROGRAMMESUSK – PROGRAMMES: Three Pillars.1.Children and Youth – street children/ urban poor.2. Education and Training – Informal basic /skills.3. Community Empowerment – Socio- Economic interventions through S.H.G/C.B.O.-Skills acquisition and development within the Handicrafts sector a Cross cutting potential among the slums dwellers and rural communities.- Main Economic opportunity to earn income and sustain their livelihoods.-- Enhanced capacity building in production and Business skills.-- Set up an Income Generating program in 1982.-- Opened up local market outlets – 2 shops and events sales in Nairobi – popular Undugu Beat 75 Band – Youth activity.

UNDUGU FAIR TRADE LIMITED.-Established a full fledged Fair Trade unit in 1995 to coordinate market access.-- Identify diverse crafts products and expand product portfolio from marginalised communities across Kenya and beyond into Tanzania , Uganda and Rwanda.-- Seek both local and International markets .--Got linked to Alternative Trade Organizations in late 80’s which later became Fair Trade Organizations.--Experienced tremendous business growth in Exports and local retail.-- Re branded as the first Fair Trade shop in Africa.-- Up scaled our local and Export markets outlets giving sustainable incomes to about 800 families across Kenya.- Continued growth called for a separate entity with a business focus to support the unemployment problems in Kenya.-2010 Undugu Fair Trade Limited was incorporated as a joint venture between USK and Awendo Foundation as a strategic partner.

UFTL MANDATE--Managed a challenging business re structuring process in the face of global economic down turn with the following mandates.-Provision of marketing support to disadvantaged producers and artisans who have potential to positively change their lives by exploiting their crafts skills and materials found in their environment. - provision of reliable market outlets both local, regional and international.-Build capacities of producers for efficient and effective supply chain.- Promote diversity of products.- Collection and dissemination of market information.- Contribute to communities improved welfare.

UFTL SUCCESS.

-Offering work opportunities to about 800 families across Kenya producing Soapstone Carvings, Wooden Carvings, Basketry and Jewellery. (total number of household – about 12,000)-Investing in traditional skills with contemporary designs for production of market focused modern collections for home accessories , decorations and gifts.-- Provision of interest free pre-financing of orders to producers through buyer advance payments as a requirement of Fair Trade or otherwise ( Export credit facilities offered by ethical financing) for non FTO-- Ensures producers get value for their work – Fair wages/prices.-- Voluntary Savings and Investment schemes among producer groups through principal of 2/1 – Producer saves 2 cents UFTL tops up with 1.

IMPACT – UFTL.-Creating Economic opportunities in the Rural areas hence controlled rural urban movements in search of jobs.--Producers and artisan can have a decent livelihoods that guarantees ability to meet their daily needs for Food, Clothing , decent houses, good education for their children, access to health facilities and invest in alternative income sources.--Producers sensitised and supported to access /register for NHIF, Pensions and access to GOK devolved funds-- As social Fair Trade enterprise continued investment in capacity building, market access and community development.

A PRODUCER QOUTE!

It was like I never existed before Undugu and it never occurred to me that I was searching for wealth elsewhere when it was readily available and accessible within my village. The best way to pay back Undugu is to employ my privileged status in the service of others”! Says emotional Haron Nyamweya.

“FAIR TRADE MAKES A BIG DIFFERENCE THOUGH THE STRUGGLE CONTINUES”

THANK YOU!