Posted on Friday, February 09, 2007 7:16 AM
Daily Nation, 9/2/2007
You wouldn't expect this type of ad in a Western world newspaper. Still it's a sign that many developing countries are less poor then you would expect.
For example in Kenya there is a huge informal sector that doesn't reflect in the official economic statistics.
The CFC Bank in Kenya seems to have understood that, and takes this major step. If you go to the rural areas of Kenya you can find people who live on less then a penny a day. They reside in grass huts, have to walk quite far to the nearest water point, and survive on a daily ration of polenta with some boiled vegetables.
What you don't see is that these people can somehow be considered rich. They might have a herd of 100 cows, slowling trotting and grazing the inmense grass plains. On the market one cow can easily go for 100 US Dollars, making that one family can sit on 10,000 USD for cows only, which is a lot of money in Kenya. Apart from that they will have another 100 goats, which can be sold for 30 USD. So that's another 3,000 US, and a total of 13,000 USD.
Then you have to realise there are millions of cows and goats in Kenya.
It's amazing that not more banks or other financial institutions are cashing in on this hidden potential. Although it is very difficult to adapt the cultural values that lie beneath having cattle. Maybe CFC Bank is taking a next step by monetising only the milk.
Enjoy your breakfast!