Intellectual property seen raising Africa revenues
6/06/2008

Reuters , Thursday June 5 2008 CAPE TOWN, June 5 (Reuters)

Poor African farmers can boost export revenues from agriculture by billions of dollars if they use intellectual property as part of their business plans, a report released at the World Economic Forum said on Thursday.

The report by Washington-based non-profit organisation Light Years IP and supported by Britain's Department for International Development, focuses on the potential intellectual property (IP) to raise income for low earning producers in sub-Saharan Africa.

"In the course of doing this study, we came to realise that across 14 products there could be an average increase of 230 to 350 percent in the income that could come back to the developing countries," Ron Layton, chief executive officer of Light Years IP told reporters.

"And if that's applied to as many products as we think it can be applied to, that would take what is currently about $9 billion of exports (a year) up to the order of $20 to $27 billion of exports," he said.

Among the products researched were Kenyan tea, Sudanese cotton, Ethiopian fine coffee, Malian mudcloth and Ethiopian leather.

The world's poorest continent, Africa is home to a diverse variety of unique fauna and flora, providing ample opportunity to tap into a global market eager to consume the exotic, Layton said.

Using the success of Ethiopian coffee growers, which own intellectual property on the world-famous Sidamo, Yirgacheffe and Harar brands, Layton said export incomes could improve dramatically and alleviate poverty.

Layton said in 2004 Sidamo was sold for $26 a pound in the United States, with Ethiopian producers getting about $1.30. Today they receive $2.50 a pound, with $3 on the horizon, he said.

Besides agricultural commodities, the report also said television animation and creative industries such as arts and craft could capitalise on Africa's uniqueness or traditions.

(Reporting by Wendell Roelf; editing by Christopher Johnson)