Ethiopia’s inclusive distribution model
May 19, 2009 by Tielman Nieuwoudt
Filed under Africa, Distributors, Featured Articles, Not-for-Profit, Social Responsibility
Arriving in Ethiopia in 1998 the local Coca-Cola operation was hardly an operation to search for best practices. Today, the picture looks very different. Harvard University (download PDF) recently conducted research on the Coca-Cola Ethiopian manual distribution center (MDC) and published a report on the model. The Ethiopian MDC project, launched in 1999, is today viewed as a highly effective distribution model (from a business perspective) and inclusive business model for the community (from a corporate social responsibility perspective). Due to the success of the model, it has been implemented in a number of countries in Africa, generating 12,000 jobs and more than $500 million in annual revenue. Here are some key Ethiopian CSR statistics from the report:
- In Ethiopia 75% of owners are new business owners
- 80% of the owners rely on the MDC for their sole income
- 80% of the staff and 95% of the owners indicate they make more money now
- On average, 3.9 people are employed by each MDC
- 19% of owners and 8% of staff are female
- 80% of owners and 90% of pushcart operators report receiving training
Kudos to the Ethiopian team for making it such a success!
Good.