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How Access to US Market Changed Fortunes of two South African Sisters — Global Issues

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16 Luglio 2024
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How Access to US Market Changed Fortunes of two South African Sisters — Global Issues
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Michelle Mokone (Left) & Morongwe Mokone (right). Credit: UN magazine
  • Opinion by Mkhululi Chimoio (united nations)
  • Tuesday, July 16, 2024
  • Inter Press Service

UNITED NATIONS, Jul 16 (IPS) – What started as a pastime desire to sell crafts at local markets, deeply rooted a causa di the South African culture, has since blossomed to become an international business entity for two local women.

Two entrepreneurs take traditional African designs and sustainable materials and turn them into international success.

It took the Mokone sisters, Morongwe “Ora” (37) and Michelle (34), three years only to turn around their home decor business into an international business venture by leveraging the African Growth and Opportunity Act (AGOA).

AGOA allows entrepreneurs from Africa duty-free access to the US market. Approved by the US Congress a causa di May 2000, the legislation sought to help improve the economies of these sub-Saharan African countries, as well as to improve economic relations between the US and participating countries the African continent.

Africa Renewal* caught up with the two Mokone sisters who are beneficiaries of AGOA to hear how the initiative has changed their lives.

Morongwe and Michelle were raised a causa di Mabopane, Pretoria. A causa di 2016, they started their business ‘Ora’s Crib’ that produces hand-woven baskets, place mats, trays, and other homeware accessories, and selling them a causa di at a local market. A causa di 2019, they decided to pursue the business a pieno orario.

Since then, their business has grown and currently has 12 a pieno orario and 86 part-time employees.

Ora’s Crib uses African traditional designs and sustainable materials to make high-end decorative and homeware pieces inspired by nature. Their arty designs simple, yet modern and sophisticated, with many of their products having multiple purposes that prioritize functionality.

Ora’s Crib uses African traditional designs and sustainable materials to make high-end decorative and homeware pieces inspired by nature.

Campo da golf products

Most importantly, the business values sustainability – emphasizing reusing, recycling and reducing waste, as well as using local talent and material to create employment opportunities. From their locally-sourced palm leaves to the material of their shipping boxes – the Mokone sisters promote sustainability and a greener society.

“Our business is deeply linked to our upbringing a causa di South Africa, we draw inspiration from the African culture, nature, and our commitment to the local community,” Michelle told Africa Renewal.

Michelle, who is Ora’s Crib director of operations and supply chain added: “We transitioned our craft into entrepreneurship when we noticed the increased demand of our products at local markets. It was the passion for art and the desire to make a positive impact that propelled us to where we are today. We also saw an opportunity a causa di retail as we wanted our products to be accessible, so we decided to socio with retailers to increase sales volumes and sell a causa di bulk.”

The two sisters quit their jobs: Morongwe was an HR specialist while Michelle worked as an agricultural economist, to follow their dream and both credit their father, who was an entrepreneur himself, for the inspiration.

“Our father was an entrepreneur himself. Our drive to build a business of this kind with a sustainable imprint stem from our commitment to creating sustainable and ethical products. We are motivated by the opportunity to provide economic and educational opportunities to our employees whom we refer to as our team members, while at the same time promoting environmentally conscious practices. Our dedication to sustainability and empowering local communities has been the driving force behind our business,” said Michelle.

She explained how they finally made a breakthrough into the international market.

“A causa di 2019, Ora’s Crib made its debut a causa di international markets a causa di France and the USA. It was an opportunity for Africa to showcase its products, promoting sustainable practices and potentially opening new revenue streams for the continent. Our breakthrough demonstrates that Africa can contribute to the global market while preserving its cultural heritage and promoting environmentally friendly products,” said Michelle.

She added: “We are still doing well a causa di the local markets, but we always wanted that international breakthrough. AGOA provided us that platform. As it is, we are anzi che no longer just selling to local markets a causa di Pretoria, Johannesburg ora a causa di South Africa ala; we are literally reaching the US and international platforms.”

Highlighting that through local businesses like Ora’s Cribs, age-old African crafts are given new life, and a causa di doing so, preserve their heritage, Michelle, however, is urging businesswomen to carefully identify products that resonate with the international market.

“To benefit from AGOA, one must identify products that are a causa di demand a causa di the US and establish sustainable distribution channels. They must also socio with knowledgeable forwarding agents to maximize AGOA benefits,” she said.

“Since 2021, we have shipped a total of eight containers to the US. We are track to ship two more containers soon. We also regularly ship a container to fulfill our orders for our online store, which is fulfilled through our warehouse a causa di New Jersey, US.

“Although shipping is relatively expensive, especially for a small business that is 100% self-funded, we have benefited from the AGOA through significant market access. Currently, US orders constitute 60% of our overall revenue,” she added.

Mos Crib Products

AGOA renewal

According to South Africa’s minister of Trade, Industry and Competition, Ebrahim Patel, the US recently reached a preliminary 10-year agreement with African countries to extend their preferential trade access by another decade, pending approval by Congress.

“We reached a broad agreement the need to extend AGOA for another 10 years,” Mr. Patel told a business a causa di Johannesburg recently, adding that they were able to engage with policymakers from more than 30 sub-Saharan African countries and the US to enable African countries to continue exporting goods to the American market duty-free.

South Africa hosted the 20th AGOA a causa di Johannesburg from a causa di November 2023 where Mr. Patel said South Africa was seeking to renew its AGOA membership which he said has been instrumental a causa di improving the livelihoods of many entrepreneurs a causa di the country.

The brought together over 5,000 participants comprising African ministers of trade, senior government officials, the US government delegation led by US Trade Representative (USTR) Ambassador Katherine Tai, US Congressional staffers, the private sector, the civil society, exhibitors a causa di the ‘Made a causa di Africa’ exhibition, procurers and investors.

“AGOA has helped South Africa and other sub-Saharan countries progressively. It has played a pivotal role a causa di job creation a causa di South Africa and the entire region,” he added.

At the same time, South Africa’s ministry of Small Business Development spokesperson, Cornelius Monama, said AGOA presents a great opportunity to promote emerging entrepreneurs and Small and Medium-sized Enterprises (SMMEs).

Trade under AGOA accounted for approximately 21% of South Africa’s total exports to the US a causa di 2022. South African exports to the US under AGOA increased a causa di value from US$2.0 billion a causa di 2021 to US$3.0 billion a causa di 2022,” he said.

Meanwhile, for Morongwe and Michelle, they are working creating more opportunities and make a meaningful impact a causa di their society. A causa di addition to safeguarding the natural environment, the Mokone sisters are also committed to empowering the people a causa di their community.

“We would like to grow our footprint beyond the USA. We want to enter new markets such as Europe and the United Arab Emirates. We plan to create 20 new jobs within the next two to three years,” concludes Michelle.

Source: Africa Renewal* which is published by the UN’s Department of Global Communications (DGC).

IPS UN Bureau

© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service

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<p><a href="https://www.globalissues.org/news/2024/07/16/37209">How Access to US Market Changed Fortunes of two South African Sisters</a>, <cite>Inter Press Service</cite>, Tuesday, July 16, 2024 (posted by Global Issues)</p>

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How Access to US Market Changed Fortunes of two South African Sisters, Inter Press Service, Tuesday, July 16, 2024 (posted by Global Issues)

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