Posts Tagged ‘market women’

Zambia’s inclusive approach to various sectors in the informal economy is worth noting

The Zambian government most recently announced that they would provide certificates to illegal (artisanal) miners in order to recognize and formalize their activities. In addition, they were being encouraged to form cooperatives – a legally recognized organizational structure – that would permit further benefits to this informal sector.

Compared to the challenges Ghana is facing with galamsey – the local word for illegal or rather, artisanal mining – one must sit up and take note of Zambia’s decision to lower the barriers to inclusion rather than build the walls higher to protect large scale formal extractive industries.

And mining isn’t the only sector to be so considered by the Zambian government. There was an announcement last year of their intent to legalize street vending – the bane of all developing country cities – and bring vendors – mostly women with families to support – within the formal employment and revenue net.

I looked for updates on this legislation and have yet to find something, though there’s lots of news on managing the street vending and hawking rather than the usual method of chasing them off the streets or confiscating their goods. That in itself gives me hope that we’ll see some pioneering advances from Lusaka.

In fact, there’s an article in the Zambia Daily Mail from a week ago that says “Its the perfect time for vendor training“:

Most of the traders on the streets are women who carry their children along due to lack of caregivers at home. For many women, this vending is considered an extension of their reproductive and domestic role. And so they are willing to risk it all and toil all day so that they could earn enough to cater for the following day’s orders and meals for the family.

However, many of these have dreams, big dreams to grow, provide and educate their children to a level where their offspring will never have to earn from the streets. And with the right training, many, with aspirations to grow their businesses and create a brand for their products, could benefit from financial and business knowledge that they could otherwise not be able to afford.

Some vendors have decided to change from trading in goods that are high-risk (these include foodstuffs such as vegetables and fruits) to those that have less risk such as clothing and other products. However, without any improvement in the level of knowledge of the new trade they are about to engage in, many are likely to fail, and they may return to what they know best, no matter how risky it is. It would therefore be prudent for organisations with the perfect know-how to take this opportunity to offer knowledge that will enable them to make the swap with better planning and more confidence.

Street vending is viewed by many as an economic activity for those with a low level of education. But what the cholera outbreak has taught us is that, if it is left without interventions, the negative effects will spread out and affect the whole nation.

The training I am suggesting could include assistance with regard to business registration, opening companies, tax remittances and branding of businesses, among other things.

I can’t help but underline all that is being said, and express my hope that other cities – Lagos, Nairobi, I’m looking at you – will take a leaf from Lusaka’s book.

What marketing 101 can teach development practitioners and academics

The entire universe of people with an unmet need that you expect your solution to fulfill is not your target audience.

The fundamentals of market analysis include the basic calculations that allow marketing managers of all stripes to calculate (guesstimate) their potential market size, and thus a realistic assessment of its value. That is their marketing universe, within which they will set targets for the acquisition of customers. That potential customer base is the targetted audience for their marketing efforts, in order to get them onto the customer journey ladder to “loyal advocates” your brand or service.

This simple yet powerful understanding is known even to Ghana’s market queens, the ladies who trade. They don’t imagine that they can serve the 100 million people without tomatoes that day. Yet these are the kinds of grand targets that development, and its little cousin once removed, social enterprises announce day in and day out in press releases.

I was lucky. Yepeka Yeebo reached out to me before a trip to Accra, where she had been commissioned to write a profile of such an entrepreneur.She has permitted me to use her photographs and to write this story of Auntie Matilda, the tomato trader of Accra, Ghana.

Yeebo_Market_01The market mummies, the market queens – the informal retail sector across most of West Africa is dominated by women. Women inherit their mother’s social and commercial networks, the goodwill of her mother’s trading relationships and thus, her social capital and repute. As Yeppi writes, there was a time when the intricate webs of economic power wielded by these ladies took the full might of the Ghanaian army to dismantle.

Gerry van Dyke has studied the customer experience design strategies the ladies use to distinguish themselves, though selling the exact same unbranded commidity. Even Unilever comes to learn at their feet, and Maggi Cubes know they can’t win if the mummies are unhappy at the margins for breaking bulk of one of those long boxes we all have at home.

Yeebo_Market_08

Break bulk is visible across the developing world’s informal economies. Just like the prepaid business model, the irregular income streams of the vast majority of the informal sector, even those who would the upper middle class of their milieu, mean that wherever one can negotiate some flexibility of time and money, their business is assured. It is a mark of trust to be able to agree to accept a payment over time.

This extends then to the way the products are sold. There is no concept of discounting for bulk purchase, simply because you’re unlikely to sink  your daily working capital into a huge bag of toilet paper. Liquidity is the real king, cash is only the manifestation in the real world. Flexibility is one of the ways to mitigate the risk of uncertainty that small business owners face daily.

Auntie Matilda’s business choices, marketing and customer development strategies, and the health of her cash flow, all depend upon her ability to build a network of working relationships predicated on trust, references, and thus, proof of performance. One wonders if the only reason she might not be formal is that there isn’t any particular segment or category in the current forms of registered businesses that apply to her kind of business.

Its time we overturned the ivory tower’s disdain of filthy lucre and trade in the city center and gave these ladies their due.

Introducing Mama Biashara

The Global Entrepreneurship Monitor (GEM) released a women’s report with some eye opening figures.

B7zTsSOIcAAA4ykSimply put, African women lead the world in being their own boss.

Mama Biashara’s business activities may perhaps be more driven by livelihood need and few alternatives but she’s not sitting around looking for a handout either. Pillar of the informal markets that supply fresh food and the solid rock that keeps homesteads running, children fed and schooled, Mama Biashara is an archetype of the informal economy that contributes so much to the national GDPs yet goes unremarked.

Under a new category “Mama Biashara“, we would like to celebrate the endurance, the survival and the commitment that these Mamas, Nanas and Mummies demonstrate every single day, across the continent. Add it to your RSS feed or bookmark it, as we’ll be filling the pipe with more stories about her as we go on.