1. Doing Business in Greenland
St. John’s, February 18th 2014
by Inaluk Brandt by Ellen Arnskjold
2. Profile Ellen
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Greenland experience:
Greenland Business Association – Business Development 2008-2014
University of Greeland – External Lecturer
Owner of Business 4 U:
• Arctic Business Network (ABN) www.arcticbusinessnetwork.com
• Greenland Oil Industri Association (GOIA) www.goia.gl
• Greenland Representation in Copenhgen: Course for new employees in Greenland
• Marked analysis * strategy * matchmaking of business * professional secretariat services
Member of Greenland Research Council
Bachelor of Political Science
Maaster of Theology
MBA study ongoing
3. Profile Inaluk
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• Professional experience in Greenland 2006-2015
• Government of Greenland – Ministry of Labour and Education 2006-2009
• Permagreen – HR manager 2009-2012
• Greenlands Business School, High School and Navigation Centre - teacher /
examiner
• Manager at Focus - project management, reports and analysis, strategies,
professional secretary services, workshop and conference facilitation
2012-2015
• Bachelor of Biology
• Master of Biology combined with Religious studies
• Associate’s degree – HR managemen
4. Content
• Historical background: Relationship Denmark-Greenland
• Greenland
Political System
Economy
Business Structure & Sector Activities
Labour Market, Educational Level & Working Culture
Stakeholders
Understanding Media
Transportation
Tendering processes and related policies
• Opportunities and suggestions
6. Facts about Greenland – Kalaallit Nunaat
• Population: Greenlaenders 56.000 inhabitants
88.9 % born in Greenland
11.1 % born outside Greenland
• Acres 2,166,086 km2
• 46 Nationalities
• Part of the Danish Kingdom
• Official language Greenlandic
• No landclames – state owned land
10. Historical important years for Greenland
• Islandic Settlements in South West Greenland (Wedding at Hwalsey 1401)
• Inuit cultures
• 1721 Norwegian Missionary Hans Egede settled in Nuuk
• 1815 Norway left the Danish Kingdom
• 1864 Denmark lost the war to Germany
• 1920 Greenland on the agenda in DK
• 1940-45 WW2 cut connection to Denmark and close relations with USA
• 1953 Amended to th Danish Kingdom until that point a colony
• 1960’s Danish Policies G50 & G60
• 1972 Member of EU
• 1979 Greenland Home Rule
• 1985 Exit EU
• 2009 Selfgovernment – Greenland Government
11. Thule Air Base
US Military Base
Establishted 50’s
Operation Blue Jay
WW2 – Blue West Six
Crash of B-52 (Jan 21, 1968)
Nuclear missiles onboard
• providing missile warning
• space surveillance
• space control to North American Aerospace Defense Command (NORAD) & Air Force
Space Command (AFSPC).
• Thule Air Base is also home to the 821st Air Base Group and is responsible for air
base support within the Thule Defense Area for the multinational population of
"Team Thule.”
Operator: until 2016 Greenland Contractors (DK) - from 2016 Excillis (US)
12. Foreign Policy & Arctic Ambassadør
Foreign Policy is a Danish Matter
Defence Policy is a Danish Matter
Arctic Defence Command in Nuuk
(Danish fleet is patroling boarders)
Erik Vilstrup Lorentzen
(former Ambassadør to Denmark in Canada - Ottawa)
13. Debate: colony or not?
• Classic definition: slavery
• Greenland: not the case by that definition
What was the Danish/ Norwegian interests?
Missionary interest
Commerce
Defence
TODAY: Global Arctic agenda
20. Political focus
• Reforms to the Fishery Sector
• Plan for Business Development initiatives
• Educational system
• Social initiatives
• Investment in infrastructure
22. Economy
GDP 11,5 billions 2012
FISHERY export of schrimps, halibut, cod
TOURISM adventure tourism, cruise tourism, extreme tourism
(Air Iceland 3 destinations, 1-day visits from Akureiry,
Island, new potential flight operators)
EXPLORATION activities related to exploration within licensees
(Minerals and Hydrocarbon)
EU OLT-status – 300 mio DKK/ year
GRANT 3,6 billions DKK/ year (fix numbers 2009)
27. Action needed
MULTIPLIER
Greenland is a small economy – level of activity in
one sector affects other sectors very quickly
”Status quo is not an option”
29. Business structur
Greenlandic companies are registered at the GER-register: www.ger.gl
Size and types of companies:
• Many small one-man-companies: 73 %
• Few large limited companies: 4,2 %
• Private limited companies, funds, : 15 %
• Other: 7,8 %
36. Sectors on shore
Onshore Offshore
• Commerce
• Building & Construction
• Repairs & Renovation
• Service sector
• Engineering
• Consultancy
• Transportation
• Tourism
• Mining
• Fisheries
• Maritime sector
37. COMMERCE
Intro: the largest sector by income
Banking
Bank of Greenland
Bank Nordic
Food stores
KNI -
Pisiffik – Dagrofa (DK)
Brugseni – (link to COOP in DK)
Shops
38. BUILDING AND CONSTRUCTION
Intro:
– depending on public spending
– only little private construction work
– a lot of old buildings in bad shape
– rising focus on use of materials for sustainable & Arctic
adjusted building materials
Larger players:
Permagreen (Greenlandic)
Atcon (Greenlandic)
Aarsleff (DK headquater)
Adserballe (DK headquater)
MTHøjgaard (DK headquater)
Istak (Island based company)
39. REPAIR & RENOVATION
Intro:
▫ many smaller companies are specialised for repairing and renovating
▫ depending on public spending
▫ shift in size of renovation assignments gives new players space
▫ rising focus on use of materials for sustainable Arctic adjusted building
materials
Buildings
Machinery
Cars
41. ENGINEERING
Intro
▫ depending on public spending
▫ huge demand for engineering work & new management areas
– rising focus on use of materials for sustainable Arctic adjusted building
materials
43. TRANSPORTATON
Infrastructure in remote areas…
Large public operators:
Royal Arctic Line (goods)
Air Greenland (persons and goods)
Arctic Umiaq Line (persons)
Small scale private operators:
Blue Ice – South Greenland
Martek – Nuuk
ABC Charter – Nuuk
Ilulissat Water taxi
44. Consession 2006-2022
Transportaion of goods until 2022 (RAL & Port of Aalborg, DK)
• Public service routes – not open for competition (Air Greenland)
• Open routes by air and by water – a few possibilities
• What happens in 2022?
45. Tourism
Facts Potentials
Tourism numbers: 37.160 (2013) • Increase numbers of tourists
• Increased marketing & branding
• Connection of air ports and habours
• Legal matters
• Connections from new destinations
• Focus on investment
• Education and professionalism
47. Mining
Current status Potentials
1854 Mining nation (Kryolit, Zink, Lead)
2015 Current status
40 companies (mostly Canadian &
Australian junior mining companies)
True North Gems Ruby Mine
Tandbreez Rare earth Elements
GME Rare earth Elements with Uranium
Hudson Ressources Rare earth Elemen
Ironbark Zink-Lead
North American Nickel
Nunaminerals
Increase of explorationlicenses
4500 estimated workspaces
Challenges:
Young adminisration
Small group of experts
Early fases of exoploration
INVESTMENTS
50. Fisheries
Industry
Interest organisation:
Greenland Business Association
(GA)
Polar Seafood
Royal Greenland
Upernavik Seafood
Polar Raajat
Greenland Halibut
Interest organisation: KNAPK
Topics of the agenda:
Quotas
Seafood buyer
Classic debate:
Inshore (small fishermen)
contra
Offfshore (large trawlers)
Fishermen
51. Need of reforms
Fishery Reform
• Several attempts since 2009 –
modernisation needed
• Ownership (investments)
• Switch of generations
• Challenges:
• Stable workforce
• New technologies needed
MSC certification
Small fishermen more effective
Focus on development:
Water use
Reduction of energy use
Disposal of waste
Reduction of use of paper,
plastic etc
Reduction fo chemicals
High quality products
Potentials
55. Maritime Sector
Current description Potentials
• Shipyards in larger towns
• Arctic competences
Sailing routes to the NW and NE
Polar Code
Education – Greenland Maritime
Center, Nuuk
56.
57. Greenland Business Association - GA
• Established 1966 by building and construction companies
• Since 1995 open for all kind of business
• 9 branches
• 350-400 members all over Greenland
• Political influence – lobbying
• Negotiating agreements
• Legal advise for members
• Business Development
MEMBERSHIP: member or associated member
59. Official business strategies
Naalakkersuisuts strategies:
Natural Ressources Strategy 2014-2018
Employment Strategy 2012-2017
National Tourismstrategy 2012-2015
New government coalition agreement 2014-2018
- Infrastructure initiatives, development of fisheries, investments
- Generel business plan
60. Report on stronger collaboration between Danish
and Greenlandic Companies
Published Feb 4, 2015
Key focus areas:
Potentials within mining and tourism
Critics: lack of focus on exsisting businesses
Barrieres:
Legal adjustments
Investments and finance adjustments
Stronger collaboration
61. Public Business Development support
• Regional Development Strategy (RUS)
• Economic support
• Public Business Counciling:
▫ Greenland Business
▫ Greenland Venture
▫ Visit Greenland
▫ Greenland Petroleum Services on a service contract
▫ Municipalities have local business councils for entreperneuers
62. Private business development initiatives
• Preparations for potential rising mineral and oil-gas sector: course,
education, ISO, Achilles, konferences and trade shows in and
outside Greenland
• Co-operations: joint ventures, partnerships
• Network & clusters: international perspective
▫ www.arcticbusinessnetwork.com
▫ www.acrm.dk
63. “Growth and welfare – scenarios for the development of Greenland”
A few of the many questions the conference will seek to answer, are:
· How do we set realistic goals for the development of society?
· What will Greenland live on in the coming years?
· How should we cooperate with Denmark – and the rest of the world?
· How can we make Greenland an attractive country to invest in?
www.futuregreenland.gl
B2B-meetings May 5th
68. Labour Market initiatives
• PKU: projekt kompetenceudvikling for ufaglærte
• ILO: Internationale Arbejdskonvention
• Handlingsplan for ledige 2012-2015
• Vejlednings- og opkvalificeringscentre: Piareersafik
• Udefrakommende arbejdskraft
• Mobilitetsfremmende ydelser
72. Greenlandic Working Culture
Generel approach:
Bi-langual working culture
Note:
The official language is Greenlandic, but you have to know how to
manouvre in both the Greenlandic & the Danish culture. Especially if you
look for partners in Greenland via Danish companies. English is emerging
but still not dominant as in Island.
74. Media in Greenland
Online and printed news www.sermitsiaq.ag
National Broadcasting Company KNR www.knr.gl
Local stations e.g. Nuuk TV ww.nuuktv.gl
1. Easy to influence the agenda – but no long debate
2. Facebook reactions like elsewhere
3. Important source – oppinions are formed by these media
4. Ressourcer, deadlines, number of journalists
75. English media on Greenland
Professional media surveillance services
77. Greenlandic Journalism
Education:
Bachelor degree at Ilisimatusarfik – University of Greenland
All news have to be in both Greenlandic and Danish
Language is a central tool in the general nation building process for
Greenland
Challenge is ressources – both money, personel, competences
New PhD Naimah Hussain to study media in Greenland
81. Educational Institutions
• Ilisimatusarfik – University of Greenland (Nuuk)
• Artek – Arctic Engineers (DTU) – (Sisimiut+ Copenhagen)
• Sanilin - Mining School (Sisimiut)
• Business School (Nuuk, Qaqortoq)
• Technical School (Nuuk)
• Greenland Maritime Center (Nuuk)
• Leader Academy (Nuuk)
• Gymnasium (Aasiaat, Nuuk, Qaqortoq)
• Food Technology School (Narsaq)
• Social Education Collage (Ilulissat)
• Fisherman and hunters School (Uummannaq)
• Building and construction School, (Sisimiut og Nuuk)
• Iron and Metal School, Nuuk (er i dag slået sammen med bygge og anlægsskolen
under navnet kti),
• Art School (Nuuk)
• Acting School (Nuuk)
• Language School (Sisimiut)
• Nurses School (Nuuk)
82. Society – NGO’s
• ICC
• AVALAK
• WWF
• Social focus:
▫ Foreningen Grønlandske Børn
▫ Red Cross
▫ Red Barnet
▫ Bedre Børneliv
▫ MIO
• Transparency Greenland
• CSR Greenland
83. CSR Greenland: www.csr.gl
CSR Greenland blev stiftet i oktober 2010, mange vidste bare ikke at det hed CSR, dét
som virksomhederne gjorde.
Sagt enkelt så handler det om, at virksomheder ikke kan få succes, hvis samfundet ikke
udvikler sig positivt. Samtidig har et samfund brug for succesfulde virksomheder for at
sikre vækst og udvikling. Med andre ord handler CSR om at løfte i flok til gavn for alle.
Motivationen var at adressere de store sociale udfordringer i Grønland, at få skabt gode og
nyttige partnerskaber og dialoger på tværs af sektorer, og at forberede Grønlands
erhvervsliv på at arbejde med de CSR-krav, som stilles til virksomheder, der gerne vil være
leverandører til en begyndende råstofsektor
CSR Greenland har fokus på
At skabe opmærksom omkring CSR-dagsorden og-CSR temaer
At opbygge kompetence i virksomheden omkring CSR i Grønland gennem kurser,
At skabe et fora for erfaringsudveksling gennem netværk
84. How CSR is part of the work?
• Spring clean up event – Cross Contry
• Sustainability focus in general
• Health at work
• Voluntary work
• Growing number of companies with policies
• Financial Statements – include CSR
85. Transparency Greenland
• www.transparency.gl
Transparency International Greenland initiativ working on preventing
corruption, informing and encourage to work in a more transparent
way:
“Korruption er misbrug af betroet myndighed for egen
vindings skyld. Det skader alle, hvis liv, forsørgelse og lykke
afhænger af integriteten hos mennesker i en
autoritetsposition”
