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NABCMagazine
Netherlands-African
Business Council
www.nabc.nl
2011/2012
Dutch
Business
in Africa
During the global downturn, Africa turned out to be very
resilient and sub-Saharan Africa even more so! With growth
predictions at 5,5 % for 2011 and 5,9 %, the macro­
economic context looks promising. Only China and India
are growing considerably faster. Despite these emerging
market figures, Africa is not perceived by most companies as
a promising new market. It is our mission at NABC to make
companies aware of the opportunities and to facilitate
them in doing business in a successful way in Africa.
Instead of “What can I do for Africa?”, the question is:
“What can Africa do for you?”
Founded in 1946, NABC is celebrating 65 years full of
activities. Our company network has never been as big as
it is now and our activity level is higher than ever. With
almost 300 enthusiastic companies in our network, we
have now become the primary private sector network in
the Netherlands for business in Africa. All of these compa-
nies are looking for profitable business in Africa and their
NABC membership provides them with useful contacts,
information and advice.
Local knowledge and local partners are a prerequisite for
success. Business can only work in the long run if there is
a win-win situation. This means that the success of Dutch
companies goes hand in hand with the success of African
companies. This is increasingly recognized by the Dutch
government and by African governments: sustainable
development is only possible with a healthy and vibrant
private sector.
In this annual magazine, which is distributed widely across
Africa, as well as the Netherlands, you will find useful
information about doing business in Africa. We hope
that it will inspire readers to take their first step towards
the many opportunities that Africa has to offer. You will
also find a detailed list of the companies that have become
a member of the extensive NABC network. Through their
websites or through the NABC office you can contact them
and make your enquiries.
Supported by our ­ent­husiastic team, our ­network is ready
to make your ­business ventures in Africa into a success!
Best regards,
Bob van der Bijl
Managing Director NABC
What can Africa
do for you?
PREFACE
www.remcoafrique.com
Efficient industrial halls constructed exactly to size
Bâtiments industriels efficases et sur mesure
Want to know more? Intéressé?
Mrs. Matondo Angélique Mbundu
+31 6 12 46 75 11
+31 499 36 64 00
a.mbundu@remcoafrique.com
NABC2011/2012
3
content
03	 Preface
07	Partners  Board Members NABC
08	 NABC Vision and Mission
10	 In the picture
12	 Interview
	Joe Mucheru, Lead for Google
Sub Saharan Africa
14	 The Future of Data in Africa
16	 Interview
	 Jan Slange, Intercommerce
20	 African Competitiveness Index
24	 Interview
	Bethlehem Tilahun Alemu -
Co-Founder and Managing
­Director of soleRebels Ethiopia
28	Mushroom Bob, Your guide to
growing mushrooms
30	 Interview
	Pieter van Boom, Managing
Director at Bartels Consulting
Engineers
32	Development in Africa from a
historical perspective: Is poverty
fate?
36	Carbon financing for energy
projects in Africa?
	'Clean Development Mechanism
(CDM) for Dummies'
39	 Interview
	Her Excellency - Immaculée
Uwanyiligira, Ambassador to the
Republic of Rwanda
41	 Interview
	Chiem van Houweninge Jr.,
Blue Dolphin Entertainment
Group
42	Chinese competition in Africa
	 What can we do about it?
44	Dutch private sector enters meat
and poultry sector Ethiopia
47	 NABC Trade Missions
	 48	Nigeria
	 50	Algola
	 52	Algeria
	 54	Burundi
56	 Events 2010
59	 NABC Activities 2011
61	 NABC Members
NABC magazine 2011/2012 is a
­publication by Netherlands-
African Business Council (NABC).
This ­magazine provides an
insight into doing business in
or with Africa and the activities
NABC organizes.
NABC
Prinses Beatrixlaan 614
2595 BM Den Haag
Postbus 93082
2509 AB Den Haag
The Netherlands
Tel: +31 (0)70 304 3618
Fax: +31 (0)70 304 3620
e-mail: info@nabc.nl
www.nabc.nl
Editorial Committee
Bob van der Bijl and Henk
Veldman
Editor  Translator
Texty
Design  Lay-out
Roquefort Ontwerpers
Concordiastraat 68 - 024
3551 EM Utrecht
Tel: +31(0)30 707 0291
e-mail: info@roquefort.nl
www.roquefort.nl
Printing
Boekdrukdeal
Solutions for
tomorrow’s world
Van Oord is a leading international dredging and marine contractor.
Worldwide we offer solutions that contribute to a safe and prosperous
world. We build and maintain ports, construct river and coastal
defences to protect against the effects of climate change, build energy
and tourism facilities that sustain our economies, and reclaim land
to accommodate the growing world population.
www.vanoord.com
Dredging port of Beira, Mozambique
Dredging and Marine Contractors
Soil ImprovementMarine Engineering Offshore Wind Projects Dry InfrastructureOffshore
NABC2011/2012
5
Board Members
nabc
Mr.Kees van Heijst
Director HF Technics
Chairman NABC
Mr. Patrick Verbiest
Director V HI- P
Treasurer NABC
Mr. Michiel Hillen
Owner EMSA Emerging Markets
Secretary NABC
Mr. Tom de Man
President Middle  East and Africa
Heineken International
Mr. Ben Zwinkels
Senior Investment Manager FMO
Finance for Development
Mr. Jacob van der Vis
Senior Advisor International Trade at
Chamber of Commerce of Rotterdam
Ms. Rachel Tocklu
Director Teampro
Ms. Anne Marie Lantinga
Director Lantinga Consultancy
Mr. Paul van de Ven
Area Manager Africa Institut de
­SélectionAnimale
Ms. Leontine van ‘t Hooft
Director GreenDream Company
Mr. Eduard Backer
Senior Business Manager Containers
Harbor Rotterdam
Mr. Frank Nagel
Regional Manager Africa Rabobank
Dr. Ir. Kees van ‘t Klooster
Project Director AfricaAlterra,
­Wageningen University  Research
Mr. Pieter van Welzen
Lawyer Clifford Chance LLP
Mr. Bob van der Bijl
Managing Director NABC
Partners NABC
Europe
•	 EBCAM - Business Council Europe
Africa Mediterranean
•	 Afrika Verein (Germany)
•	 AHEAD Global – African/ Asian
Hungarian Economic Association
for Development
•	 BCA UK – Business Council for
Africa United Kingdom
•	 D.I. – Dansk Industri
•	 Hellenic African Chamber of ­Com­
merce and Development (Greece)
•	 C.B.L. A.C.P. - Chamber of
Commerce Belgium and
Luxembourg for ACP countries
•	 C.I.A.N. - French Association of
Investors in Africa
•	 E.L.O. - Portugese Association
for Economical Development and
Cooperation
•	 Swisscham - Africa
Africa
•	 I.B.N. - Intra Business Network
•	 BADIS - Bureau of Auditing and
Industry and Social Development
•	 Ghana-Netherlands Chamber of
Commerce and Culture (GHANECC)
•	 Nigerian – Netherlands Chamber
of Commerce (NNCC)
•	 Tunisian Trade and Promotion
Office
•	 Addis Ababa Chamber of
Commerce and Sectoral
Associations
•	 Burundi Chamber of Commerce,
Industry, Agriculture  Handicrafts
•	 Kenya National Chamber of
Commerce and Industry
•	 Uganda National Chamber of
Commerce and Industry
•	 Mauritius Chamber of Commerce
and Industry
sdv.com
IMAGINE THERE'S NO LIMIT
There’s more to what we do than simply transporting
goods worldwide. We provide integrated global logistics
solutions. We coordinate all the people involved all the
way along the chain and ensure true visibility of
operations. Needless to say, we take an environmentally-
friendly approach. And last but not least, we know how to
be creative at a planning stage, and flexible through
execution. In meeting these challenges, our imagination
creates a world without limits.
The leading logistics network in Africa
41 countries, 200 agencies, 20 000 staff
NABC2011/2012
7
Bob van der Bijl
Managing Director
b.vanderbijl@nabc.nl
+31 (0)6 531 920 99
Nerea Musita
Events Coordinator
nerea.musita@nabc.nl
+31 (0)6 438 450 33
Henk Veldman
Project Coordinator
henk.veldman@nabc.nl
+31 (0)6 290 962 23
Marina Diboma
Business Development
Coordinator
marina.diboma@nabc.nl
+31 (0)6 434 76 502
very limited: in relative terms, it is less than 50 percent
of the amount of trade that takes place between Ger-
many and Africa. The level of Dutch investments in Africa
is also relatively low, but partly because of the subsidiary
programs implemented by the Dutch government (PSI and
ORIO), we have lately seen a gradual increase in interest.
In our opinion, trade instead of aid does not mean that
aid can be halted immediately, but that donors should
shift their focus more towards the budding productive
sectors in ­Africa. It would be necessary to restructure the
budget for development aid: more money for PSI and ORIO,
and the development of the private sector. In addition,
there would have to be more investments into local business
support in Africa, to further support the activities that Dutch
embassies in Africa are already developing with regards to
trade support.
In recent years, NABC has played an excellent role with
regards to generating interest into doing business in Africa,
through a large number of activities in The Netherlands
and by organizing various trade missions. We organized
no less than sixteen trade missions to Africa in three years!
However, we still face a lot of resistance in our efforts to
take away the negative ­perception of Africa and replacing
it with a more realistic view. There is still much work to be
done. We are not claiming that doing business in Africa is
always easy. However, with a population that will double
in the next 40 years from 1 billion to a staggering 2 billion
and an economic growth that is ­structurally higher than in
the EU, Africa is certainly an emerging market that Dutch
companies need to take note of. Companies that are putting
a lot of energy into developing the African market now will
definitely reap the benefits of that work in the next few
decades.
NABC, with its young and enthusiastic team, prides itself
in being able to help these Dutch companies through
expert advice and assistance!
In case you have any questions, please contact Marina
Diboma at +31 70 304 36 18 or send an email to ­marina.
diboma@nabc.nl or visit www.nabc.nl
Nabc
our vision
and
mission
The history of NABC dates back to 1946, when it was
founded by Dutch businesses with business interests in
Africa. In its 65 years of existence, NABC has remained
true to the aims of its founders: to share knowledge and
contacts through a common platform. Until several years
ago, NABC was an organization with a very select group
of companies with a lot of experience in doing business
in Africa. Starting in 2006, we decided to become more
­proactive towards the Dutch business community. Every
Dutch company that aspires to do business in Africa is
welcome to join our network. We are always on the look-
out for new markets and new business partners in Africa,
and the knowledge and experience of all the ­companies
in our network has proven invaluable. NABC is the only
Dutch organization that is a member of the European
Business Councils for Africa and the Mediterranean (EBCAM).
This European network is another great source of knowledge
and contacts that members of NABC can profit from.
Our motto is: “Trade instead of Aid”: our opinion is that
an absolute prerequisite for the development of Africa
is strong development of the private sector in Africa.
Once the African economies improve, the dependence
on development aid can decrease. A development that is
particularly welcome for the African nations. As a Ugandan
saying goes: Water that has been begged for does not
quench the thirst. Entrepreneurism and commercial col-
laboration guarantee ­structural growth and relationships
that become based on equality instead of depen­dence.
The Dutch business sector can be ranked among the best in
sectors such as water and agriculture. Economic ­relations
lead to the exchange of knowhow and offer a clear
advan­tage to both parties. This makes these commercial
relations particularly sustainable!
Our mission is to strengthen the economic relations be-
tween The Netherlands and Africa. Dutch companies have
a lot to offer for Africa and for many Dutch companies,
Africa offers new markets that are often undiscovered.
The trade between The Netherlands and Africa is currently
Nouria Ouibrahim
Project Manager
nouria.ouibrahim@nabc.nl
+31 (0)6 102 562 52
Employees
NABC2011/2012
NABC2011/2012
8 9
Burundi
On a yearly basis NABC organizes around five trade mission to Africa. These
business missions – with on average fifteen Dutch companies – are an
excellent opportunity to meet potential business partners and gain a
detailed insight in the opportunities and challenges a country has to offer.
Destinations vary from emerging economies such as Angola and Nigeria
which NABC visits regularly to smaller markets such as Madagascar and
Cape Verde. One of these smaller markets NABC recently visited is Burundi.
Probably not on the radar for the majority of Dutch entrepreneurs in Africa
– Burundi has something to offer!
» Read more about the trade mission to Burundi on page 54.
In the picture
NABC2011/2012
11
NABC2011/2012
10
» Africa is connecting rapidly to the
worldwide web. What is Google’s
strategy to make use of this growing
potential?
Google’s mission in Africa is to make
the internet an integral part of every­
day life and to strengthen Africa’s
internet ecosystem, by increasing its
relevance and usefulness, eliminat-
ing access barriers for potential users,
and developing products that are
meaningful for the countries in the
region. We see huge opportunities
there.
» How many internet users are there
in Africa and what is the expected
growth for the near future?
It’s hard to predict the growth for the
near future and give very precise usage
figures, but it’s definitely necessary to
make the internet relevant and more
useful for Africans. Africa has 14% of
the world’s population, but only 2%
of its internet users.
» Internet accessibility at home is
still relatively expensive and 40%
of the search requests come from
mobile devices. Does Google expect
this to change in the future?
Mobile has become incredibly impor-
tant in Africa. It took 20 years for the
African cell phone population to get
to 200 million subscribers, but less
than 3 years to get to the next 200
million. For many people in Africa,
their mobile is the first point of access
to the internet. Mobile technology
provides a more cost effective way
to get online, and it is already a sig-
nificant driver of positive economic
and social change. The mobile web
will be a key enabler for finance and
commerce, social interactions and
health initiatives, and Google wants
to be at the forefront of these de-
velopments. Globally, mobile search
has grown by 500% over the past 2
years, and 400% on devices with full
browsers in the last year. We expect
similar trends in Africa.
» Is Google developing specific
products for the African market?
Most definitely. We’re not only work-
ing to make many of our products
available in African languages (for
example, Web Search in Swahili,
Zulu, Amharic and many others),
but we are also creating products
specifically for Africa. For example,
we recently launched Gmail Chat
SMS in Ghana, Senegal, Kenya and
Uganda, allowing mobile users to
chat with desktop Gmail users via
SMS, thereby addressing a social
need and bridging the gap between
mobile and internet.
We are also enabling Africans to
develop locally meaningful products
with things like iGoogle (allowing
developers to create gadgets), maps
API (allowing developers to leverage
our Maps products to build other
apps and websites), the Android
platform (providing the opportunity
to develop Android apps), Chrome
(for the development of browser-
based applications), App Engine and
our cloud offerings.
» What are the main challenges for
Google in Africa?
Our users’ challenges are our chal-
lenges. Access to the internet is still a
challenge for many people. Devices,
access and SMS pricing are often very
Zack Matere -
Kenya
Zack Matere has reaped handsome
dividends by using the internet
(starting with Google Search) in
farming, saving his last potato crop
and now opening new markets.
Last year, a strange disease invaded
his potatoes, his biggest source
of livelihood. “I knew I had to do
something or else I could lose all
my crops.”
“I knew there was a way I could
rescue them. I cycled 10 kilometres
to the local cyber café, Googled
‘potato disease’ and discovered
that ants were eating the potato
stems” he says. On the same web-
site, Matere found that the cure for
his potato disease was to sprinkle
wood ash on the crop. Two months
later the crops were back in shape
and Matere knew it was time to
invest in the Internet.
Using the net again, he found a
­local buyer for his rescued crop, and
invested in an internet enabled
phone that he now uses to get
information on farming, spending
roughly Sh50 a day. This is far too
expensive for many small-scale
farmers, but Matere says he intends
to be the link between the internet
and the community. He believes he
is a bit of a pioneer. “I think I am
the only farmer in the area who
uses the Internet” he says.
Source: Weberaza (surf to the website
www.webarazafarmer.com to read the rest
of story, which includes how he is also using
Facebook)
BabyM – Nigeria
Mrs Funke is the owner of BabyM
store in Ikoyi, Nigeria. She was
introduced to Google Adwords by
the digital agency 'Wild Fusion'
(www.wildfusions.com) and finally
decided to give it a try after she
was assured of her money back
guarantee. Her website,
www.babymafrica.com, was very
simple and comprised of 4 pages
and a feedback form. Her budget
was just about N50,000 ($400 USD)
with which she chose her keywords
(baby, maternity, pregnancy, baby
names, kindergarten etc). All ads
were geo-targeted to Nigerians
and she started receiving rapid
responses. Visitors to her ­website
completed forms which were
auto-emailed to her with contact
information for her to follow up
on. Hundreds of emails, calls and
conversations later, prospective
buyers came to BabyM from across
the country to order, until she lit-
erally ran out of stock. Even at this
point she benefited from customers
putting down money for the next
season of baby clothes.
Mrs Funke’s experience is a leading
example for similar small ­businesses
across Nigeria who, with the
increase in broadband speed and
rising internet penetration, are
seeing the opportunity to benefit
from online advertising.
Abas of WildFusion, a digital media
sales company in Nigeria at which
Mrs Funke is a client, says Google
tools have had a positive impact
on our local market, especially
with small businesses. they are
inexpensive, 'deskilling' and are
very accessible. You don't need a
degree in rocket science or lots of
money to use these tools. We have
seen SMEs improve their bottom
line through the combination of
Adwords, ­Analytics and Google
Sites and Places. We have also
seen increased sales and customer
retention through strategic use of
these technologies. I will advise
SMEs, especially ones in difficult
business environments like ours,
to take advantage of these op-
portunities.
expensive. Users will benefit from an
open and more competitive access
market, with lower prices and an
improved user experience. Also, there
is a lack of local content. We need
the internet to be more relevant to
people that live in Africa. We need to
encourage people to get online and
add original content. This can be in the
form of a simple website, a blog, or
for instance a QA via Google Baraza,
a QA platform created specifically
for Africa.
» Is Africa a profitable market for
Google?
While we currently only have a com-
mercial presence in South Africa,
we see significant opportunities for
the internet to empower businesses
across Africa. In the long run, this
will be beneficial to anyone in the
internet space. That is why we are
focusing first on access, relevance
and strengthening of the African web
ecosystem. It's not about short term
profitability. This is about a long term
vision and investment, because we're
excited about Africa's potential.
» Where in Africa is Google
­represented and are there any
plans to expand in the near future?
We have six offices across Africa
(South Africa, Kenya, Uganda, Nigeria,
Ghana, Senegal) though we are also
working on many projects in a host
of other countries, (e.g. Gmail Chat
SMS in Malawi, and providing product
interfaces in Amharic for Gmail and
YouTube). We are hiring many new
Googlers this year in Africa (see
http://www.google.com/jobs/africa/),
but we don’t have anything to
­announce about office locations at
this time.
Joe Mucheru, Lead for Google Sub
Saharan Africa
Interview
Google inAfrica
50%
growth in search requests 40%
of search requests coming
from mobile devices
0.2%
of the world’s 255 million web
pages is created by Africans
45 USD a month
price of an average home
connection in Africa – highest
average in the world
© flickr/CharlesFred
NABC2011/2012
12 13
NABC2011/2012
example; the effort to draw a map
of Kibera, supposedly Africa’s largest
slum area. Armed with smartphones,
local volunteers scouted the area on
foot, digitally marking roads, footways
and points of relevance, ­including
health stations, churches, water
pumps, shops and so on. The result is
one of the first comprehensive maps
of Kibera. In the very near future,
getting lost in an African city will be
a thing of the past.
The information that is gathered when
such a map is created can have a
profound impact. Kibera is listed as
having a population of 1 million, and
even more sometimes. The develop-
ment of a concise map of the slum
has led to considerable doubts about
this estimate. Followed up by ­satellite
imagery studies and household sur-
veys, the number is now estimated
to be between 170.000 and 270.000,
a fraction of the former estimates.
The official Kenyan census now puts
Kibera’s population at 170,070.
Paradoxically, improving data can also
cause misperceptions. 'Ghost trends'
can appear: if an indicator has been
consistently underestimated, an
increase in accuracy will result in an
upward trend, regardless of whether
this reflects an actual change. The
correction of an overestimation will
result in a downward trend; for
instance, while Kibera’s population
is probably growing, the data will
show a significant downward trend
as soon as the correction for the
overestimation is processed.
Therefore, for the moment, remain
wary of putting all your trust in
data. However, you can start looking
forward to learning more and more
 The evolution of fibre-optic cables connecting Africa in (a) 2010 and (b) 2012.
Source: manypossibilities.net-African-undersea-cables, copyright: CC-BY
 Open Street Map of Kibera.
Source: Open-StreetMap contributors, CC-BY-SA.
Jasper Grosskurth is author of
‘Futures of Technology in Africa’.
Paper copies and free pdf down-
loads of the book are available at
www.stt.nl/AfricanFutures.
about your markets, and ­uncovering
new business opportunities in the
process. From now on, Africa is a
player in the age of information. Be
sure to take that into account during
your future ventures, in which I wish
you the best of luck.
By Jasper Grosskurth, STT, www.stt.nl
Paul Butler is an intern at Facebook’s
data infrastructure engineering team.
In December 2010, the company
released a world map of Facebook
friendships, engineered by Butler.
Those giving presentations on Africa
will soon use the image to replace
NASA’s popular Earth by Night images
to showcase the centres of economic
and technological activity in Africa.
We clearly see South Africa’s Gauteng
province light up, still the economic
powerhouse on the continent. We
see East Africa’s large cities, well con-
nected to each other. In West Africa,
Nigeria and Ghana lead the way.
The number of ‘friendships’ is going
to explode over the next year, with
major submarine cables landing in
West Africa. 2011 will bring afford-
able internet to Nigeria and the rest
of the African west coast. When the
Facebook map was made, 10 ­million
Africans were registered users of
Facebook, with a growth rate of 5
percent per month. As you read this,
at least a million more will have
joined them, mostly through mobile
phones rather than computers.
Facebook is not alone. Google has
a heavy presence on the continent,
with offices in at least six African
countries. YouTube, Twitter and Wiki-
pedia see a constant and fast growth
in the number of African users. Local
sites also rank high, such as Nigeria’s
Nairaland and Kenya’s Daily Nation.
In fact, the word ‘Ghana’ is the most
popular Google query in Ghana,
­underlining the call for local content.
The reason that I am writing about
this in a magazine for entrepreneurs,
is to draw attention to the fact that
Africa is undergoing an ICT revolution
that will take many businesses by
surprise. It is going to drive some to
new heights and others to bank-
ruptcy. The African market is going to
change. Customers and suppliers will
become much better informed and
even better connected. Their life-
styles and means of production will
change. And every business model
that had until now been hampered
by high transaction costs with regards
to information or money, is suddenly
becoming a possibility. From selling
insurances in rural areas to ­printing
on demand in urban areas, ICT is
about to change Africa.
Perhaps the most important change
is that your own market knowledge
will change. In countries where
currently even such standard indica-
tors as population size or national
income are subject to error margins
of 30 percent or more, setting up a
business is not simply a matter of
using spreadsheets, but of excelling
at navigating the mists of uncertainty.
Many decision makers have to deal
with extreme uncertainties and biased
information when it comes to Africa.
However, as accurate information
becomes available through improved
ICT, it will become possible to target
investments more efficiently, estimate
volumes more accurately and speed up
the testing of new business ­models.
Improved ICT infrastructure will
facilitate an explosive increase of the
quantity and quality of your data.
Let me illustrate this with a recent
The Future of
Data in Africa
December 2010
article
NABC2011/2012
NABC2011/2012
14 15
needs of a country; some industries
are expanding considerably in many
African countries, but they lack the
equipment to facilitate such ex-
pansion. We aim to assist in these
situations. A further key factor for
choosing a market is accessibility.
Many markets in Africa are landlocked
and require road or train transport.
For Intercommerce, it is crucial to
have reliable contacts in the country
where our cargo arrives by sea. We
can rest easily once we have secured
a safe transport route for our cargo to
a landlocked country.
Our operations in Nigeria are solely
focused on the Nigerian market at
present. It is a vast country, with
so many possibilities. We have also
chosen some other countries that we
operate in from a strategic point of
view. We have had offices in Tanzania
since last year; we now have many
reliable contacts there who can assist
answer the original question; the big-
gest constraints would be not having
the right representation in your chosen
market on the African continent.
» Together with a local partner and
a subsidy from the Dutch govern-
ment (PSI Plus), you started a stone
crushing and ready mix-concrete
plant in Burundi. Why did you
decide to step into such an invest-
ment project?
These kind of industries are where I
started working and I still do some
consultancy work in this sector.
I was contacted by Mr. Michel Hillen
from EMSA Emerging Markets, who
asked me whether or not I would
be interested to assist and become
a partner in the largest ­construction
company in Burundi, GETRA. It
­appeared to be a nice opportunity
and after several meetings with the
director from GETRA, we decided to
go for it.
us with inland freight forwarding to
countries such as Zambia, DR Congo
and Burundi. The same applies to
Senegal; due to our connections
there we can now securely transport
freight to our customers in Mali.
» Doing business in Africa can be
challenging – what do you consider
to be the biggest constraints for
your activities?
When trying to develop a successful
company in Africa, it is imperative
that you are well represented in the
country where you wish to do busi-
ness. We regularly receive calls from
people who wish to represent us in
their country; we wouldn’t grant such
a position to just anyone. The person
who represents us must be reliable and
trustworthy. The only way to verify this
is to travel to the country and meet
potential applicants. We now have
reliable representatives in Nigeria,
Tanzania, Senegal and Zambia. So to ››
Jan Slange, Intercommerce
Winner NABC
Dutch Business
in Africa Award
2010
At the start of 2010, Jan Slange from Intercommerce joined NABC on a trade
mission to Nigeria, which was the start of a successful year of doing business in
Africa. Together with his colleague Mark O’Connor he explored the opportunities
Africa had to offer and travelled extensively throughout the continent. At the end
of 2010, he joined one of our trade missions again; this time to Burundi, where
Intercommerce is involved in setting up a stone crushing and ready-mix concrete
plant. These achievements, in combination with actively using the NABC network,
resulted in winning the annual NABC DUTCH BUSINESS IN AFRICA AWARD in 2010.
Interview
the slums next to the river. Extremely
poor living conditions everywhere
you looked. Those were definitely
some very impressive sights as a first
impression.
» Nigeria suffers from a bad
reputation – what has been your
experience with regards to doing
business there?
Due to our participation in the NABC
trade mission, we were able to meet
established companies in Nigeria.
This gave us a very good perspective
on doing business in Nigeria. We
knew however that our experience
wouldn't necessarily represent the
entire Nigerian market. It could not
(and it would not) always be so easy.
Through our dealings with established
companies in Nigeria, we managed to
gain the trust of the ordinary Nige-
rian business person. Our advertising
in the country and word of mouth from
existing customers also helped a lot.
We suddenly started getting calls from
locals asking us whether we could sup-
ply 25 trucks to Lagos, or 50 Trailers to
Abuja. We realized that we were now
dealing with the real Nigerian custom-
er. Before coming to Nigeria we were
warned about these customers, with
stories about scams. However, most of
these warnings came from people with
little experience in the African ­market,
fuelled by negative media reports
and of course the well-known e-mail
scams that claim that a member from a
Nigerian royal family inherited millions
of dollars and he now needs to move it
to a European bank.
Still, Nigeria is a country with a pop-
ulation of 150 million and growing
steadily; it would be very naïve for
us to assume that a land of this size
would have zero con artists. It is very
important, no matter what country
you decide to do business in, that
you keep your eyes open. Vigilance is
key; if something sounds too good to
be true, it usually is. We take stand-
ard precautions when dealing with
all our customers, not just in Nigeria.
We operate in only two ways: cash
prior to delivery or a Letter of Credit
approved by our bank.
We are expanding our business in
Nigeria and to date we have had no
negative experiences. Long may that
continue.
» Africa has over 50 countries –
how do you choose your markets?
Before choosing a market we look
at the possibilities that a country
can offer us. We assess the current
» What are the main activities of
Intercommerce?
InterCommerce BV is active in markets
throughout Asia, Europe and Africa.
We regularly supply trucks, ­trailers,
machinery and spare parts to com­
panies in the public and private
sector. We are also available as con-
sultants and have filled positions at
companies seeking our help.
» In 2009 you joined NABC on a
trade mission to Nigeria. What was
your first impression as you were
driving through Lagos?
I had been to several African countries
before, so I wasn't too shocked by
seeing all the rubbish, old trucks, the
many old yellow buses and the large
amount of people on the streets.
Lagos was similar. One thing that did
amaze me was the traffic; very heavy
and very disorganised.
What was new for me was the ex-
perience of crossing the bridge from
the airport to Lagos City and seeing
NABC2011/2012
NABC2011/2012
16 17
» Intercommerce is an active mem-
ber of NABC. In what way was the
NABC network useful for your busi-
ness activities in 2010?
In 2010, we frequented many meet-
ings and trade missions with NABC.
Together, all of that proved to be very
valuable in the success of Intercom-
merce on the African continent. Every
meeting gave us an opportunity to
meet representatives from other
companies, who can be of assistance
to us and vice versa. Members of the
NABC staff were very helpful in pro-
viding helpful contacts in countries
that we travelled to independently.
We look back on 2010 as a very suc-
cessful year, in which we laid many
foundations in Africa, all with help in
one way or another from NABC.
» What are the plans for 2011?
In 2011, we hope to expand further
while also working closely with our
existing customers. We will be look-
ing to increase our export of trucks,
equipment and vehicles to these
markets. 2011 also marks the start of
the previously mentioned Burundi
project; much time will be spent
on the development of the Burundi
ready mix and stone crushing plant.
We will have to position many ma-
chines and personnel in Burundi, so
this will require some coordination
between our office here, our contacts
in the port of Dar es Salaam and the
local workers at our site in Bujumbura.
The year 2011 also marks Intercom-
merce’s 25th year in business. We
have acted on this by redeveloping
the image of the company, printing
new business cards, creating a new
website, connecting with contacts
through Twitter and LinkedIn, etc. We
now have a strong online presence
and it would be foolish not to use
these online tools for meeting new
contacts.
» Any final words for Dutch entre-
preneurs not yet active in Africa?
I recall that last year at the NABC
convention in Wassenaar, during a
QA session, the question was posed
how to make the convention big-
ger and more successful next year?
A reply came from a participant that
really astounded me. The gentleman
stated that it would be impossible
to become bigger next year, as small
companies do not have the time to
visit these events. I had to disagree
with the comment. Meetings like the
one in Wassenaar play an important
role in the survival and growth of
a small company. These meetings
provide the opportunity to meet
like-minded entrepreneurs and new
possibilities of expanding your exist-
ing business. A few simple sayings
that I keep in mind while working
emphasise that point: If you are not
in, you cannot win, and of course
once you get there remember: If you
fail to prepare, prepare to fail.
Interview
V E R I T A B L E H O L L A N D A I S - S I N C E 1 8 4 6
WWW.VLISCO.COM
WWW.VLISCO.COM
NABC2011/2012
18
Accessibility
The later part of the 20th century saw the development of
global air linkages and new network hubs in conjunction
with the globalization of economic activities. The forma-
tion of new transport routes, especially in the rapidly
developing realm of logistics and supply chain manage-
ment, contributed to the increasing integration of African
economies in the world economy. An excellent example
is Kenya’s vegetable and flower exports - worth close to
$1 billion last year - that amount to roughly one fifth of
the entire Kenyan economy.
Across the wide range of determinants of a country’s
business climate, the importance of strong accessibility is
often underestimated by corporate investors. Yet, having
frequent and direct linkages with home markets not only
saves a considerable amount of time, it also adds to the
mobility of resources and increased interaction. Based on
the number and frequency of international and domestic
destinations and flights, and the number of airline carriers
serving the country airports, the index shows that Egypt
and South Africa offer the highest accessibility by air,
with Morocco and Algeria as runners-up.
0
10
20
30
40
50
60
70
80
90
100
Mauritius
Seychelles
CapeVerde
Botswana
SouthAfrica
Namibia
Ghana
Tunisia
Lesotho
Egypt
100
90
80
70
60
50
40
30
20
10
0
During the last decade, Africa has outperformed ­worldwide
economic growth figures. Despite the economic downturn,
this trend is likely to continue in the future. Although
huge investment projects made the headlines, many other
interesting economic developments remain unknown,
­preventing even more investors from entering this untapped
continent.
Country benchmark rankings are popular media items
nowadays for providing insight into the competitiveness
of countries. However, the importance of these rankings
is disputed. Opponents claim that these country statistics
are too rough and do not reflect local economic circum-
stances. Conversely, positive country rankings are used by
Investment Promotion Agencies to promote their business
environment in the global market of (foreign) investment
attraction.
Business Environment
One of the sub-variables of the African Attractiveness
Index is the composite Business Envrionment Index.
This Index is based on human development factors,
business climate indicators, participation and human
rights, safety and rule of law, and sustainable economic
performance criteria. Out of 53 African countries, we
can conclude that the African island economies are well
positioned.
Botswana's impressive economic record has been built
on a foundation of diamond mining, prudent fiscal
policies, international financial and technical assistance,
and a cautious foreign policy. It is rated the least corrupt
country in Africa according to an international corruption
watchdog, Transparency International. Moreover, it has
the fourth highest gross national income at ­purchasing
power parity in Africa, giving it a standard of living
­similar to that of Mexico and Turkey.
0
10
20
30
40
50
60
70
80
90
100
Egypt
SouthAfrica
Morocco
Algeria
Kenya
Nigeria
Tunisia
Madagascar
Libya
Tanzania
article
African
Competitiveness
Index
The fact remains that competitiveness rankings and country
business intelligence are increasingly being used by
corporate investors to make investment decisions. Accord-
ing to a recent study by Forbes Magazine, 74% of the
executives use Internet Intelligence for their day–to–day
decisions. In this context, LocationSelector.com provides
an online platform that allows for benchmarking invest-
ment locations and ranking their competitiveness.
NABC2011/2012
NABC2011/2012
20 21
1
At some distance, South Africa ranks first with a
competitiveness score of 74.4. It is the most developed
economy in Africa, and hosting the successful World
Cup tournament this year was yet another indicator that
showed that this country is ready to absorb more inward
investment.
2
With all of them ranking within the top 10 countries,
Island nations such as Mauritius, Seychelles and
Cape Verde are performing remarkably well. Rev-
enues generated by tourism recipients and significant real
estate and leisure investments are fuelling local economic
growth. In addition, a tax friendly investment climate
with a growing financial sector is positively influencing
growth indicators.
3
Botswana, Namibia and Ghana are the remaining
two countries that occupy a position in the African
top 10 ranking. Botswana has shown sustained
economic progress through prudent macroeconomic man-
agement, institutional development, and good govern-
ance. Even though many Sub-Saharan African countries
still struggle with the negatives of HIV victims, Namibia
has seen a remarkable increase in HIV treatment coverage:
antiretroviral therapy coverage has risen from under 1%
in 2003 to 88% in 2007. Ghana is developing a reputation
as a country that produces high quality agrarian products
through technological innovations. One product in which
they have achieved a leadership position is the ­production
of high quality cocoa. The country is also successfully
reducing poverty, particularly in recent years.
4
North African countries, such as Egypt, Morocco and
Tunisia, are also performing well. Besides generating
revenue through tourism, these countries success-
fully diversified their economies. Egypt's strategic location
at the crossroad of Europe, the Middle East and Africa has
made it an important trade nation. Due to recent legislative
reforms - and for a second consecutive year - Egypt1
was
named one of the World Bank's top 10 reformers that are
making it easier to do business.
1
The African Attractiveness Index was published prior to the series of
events that momentarily occur in Egypt.
100
90
80
70
60
50
40
30
20
10
0
0
10
20
30
40
50
60
70
80
90
100
SouthAfrica
Mauritius
Egypt
Seychelles
Botswana
Morocco
CapeVerde
Tunisia
Namibia
Ghana
For further information, please contact Investment
Consulting Associates at info@ic-associates.com or
contact Mr. Matthijs Weeink –
matthijs@ic-associates.com or +31 20794 6084
Emerging
Markets?
Ede T +31 318 67 27 00 Amsterdam T +31 20 623 48 12 info@advanceconsulting.nl www.advanceconsulting.nl
©decrealisten.nl
Advance Consulting assists companies to realize their international business activities in the
emerging economies of Africa, Asia and Latin America. We identify commercial opportunities,
facilitate strategic cooperation with international business partners, assist with acquiring the
necessary financing and provide technical and management support services. We acquire grants
(subsidies) and loans from donor agencies, banks, venture capital funds and other sources on the
strength of a business plan and/or project proposal. Our team of business advisors and project
managers has broad international experience, an eye for quality and detail and is known for its
innovativeness, flexibility, customer-orientation and focus on results. We work on a performance
basis - often no cure, no fee - with full commitment to deliver the results that we set out to achieve.
Adv_170x120 NABC.indd 1 25-01-11 12:17
Other competitiveness
indicators
Our experience with cross-border investment projects has
taught us that potential investors put much emphasis
on mitigating business risks, rather than enjoying short
term benefits. Boardroom discussions address complex
matters such as financial risks, operational risks, political
risks, and socio-economic risks. Is there a track record
with other international investors? Is the infrastructure
sufficiently developed to secure the corporate ­supply
chain? To reflect these matters in the overall African
­Attractiveness Index we have also included the following
composite criteria: Business Risks, Environmental and
Rural Indicators, Inward Foreign Direct Investments, Infra­
structure, Political Stability, and Quality of Life factors.
African Attractiveness
Index
Disclosing quantitative as well as qualitative country data
is one way to close the information gap and to improve
the country image building efforts. This ranking highlights
the African Attractiveness Index, which is based on 70
location factors, corresponding to 9 composite ­criteria:
Accessibility, business environment, business risks,
­environment and rural sector, inward Foreign Direct
Investments, Infrastructure, Macro Economy, Political
Stability and Quality of Life.
Macro Economy
The African continent has witnessed an impressive growth
rate in the last decade, outperforming most of the devel-
oped economies. Nevertheless, there are significant differ-
ences between African countries in terms of macroeconomic
growth indicators. The ten year average GDP growth rate for
Zimbabwe is -4.54%, while Equatorial Guinea (large oil and
petroleum reserves) shows an impressive +18.09%, a gap
of 22.63%. Also taking into account qualitative macroeco-
nomic indicators such as Public Debt, the Quality of Budget
Management, Unfair Competition, and Bureaucracy and Red
Tape, resulted in the following Macro Economy Index.
Botswana ranks first, followed by Mauritius and South
Africa. Foreign investments and management are wel-
comed in Botswana, and as a result, financial and services
sectors have increased at an exponential rate in the past
ten years. This is in line with its efforts to diversify the
economy and to replace mining as the leading industry.
Botswana abolished foreign exchange controls, has a
low corporate tax rate (15%), no prohibitions on foreign
ownership of companies, and a moderate consumer in-
flation rate (8.1% in 2010). The Government of Botswana
is currently considering additional policies to enhance
competitiveness, including a new Foreign Direct Invest-
ment Strategy, Competition Policy, Privatization Master
Plan, and a National Export Development Strategy.
Mauritius is also successfully implementing new legislation
to encourage foreign direct investment. One of the main
advantages is the rate of corporate income tax in Mauritius,
which is currently 15% on chargeable income, having been
reduced from 25% as of 1st July, 2007. In combination with
an efficient Export Processing Zone (EPZ), this has fostered
the exporting capabilities (i.e. sugar) of Mauritius.
0
10
20
30
40
50
60
70
80
90
100
Botswana
Mauritius
SouthAfrica
Tunisia
Namibia
BurkinaFaso
CapeVerde
Egypt
Morocco
Rwanda
Four main conclusions
NABC2011/2012
NABC2011/2012
22 23
During the preparations for the trade
mission to Ethiopia, Henk Veldman
visited Bethlehem near Addis Ababa
for an exclusive interview and a tour
around her factory.
» What made you decide to make
shoes in Ethiopia?
Having grown up watching our family
and neighbors struggling, we decided
to create the “better life” that we were
all hoping for by harnessing our com-
munity’s incredible artisan skills and
channeling them into a sustainable,
global, fair trade footwear business.
We have done that and more, and we
are proud to say that the soleRebels
brand is currently sold in over 10
countries around the world. Shoes
became our product because we saw
that footwear was an excellent product
for sharing many of the indigenous
eco-sensible crafts and artisan talents
that we have here in Ethiopia with
the rest of world!
Interview
Bethlehem Tilahun Alemu - Co-Founder
and Managing Director of soleRebels Ethiopia
Made in Ethiopia
is a strong brand”
“
Based in the suburbs of Addis Ababa, Ethiopia, soleRebels produces the finest artisan-
crafted footwear using only eco-sensible materials. Founded in 2004, the company has
become a big success on Amazon and has firmly established itself on the American,
French, Japanese and UK market. Managing Director Bethlehem Tilahun Alemu has
been praised worldwide for her efforts to promote business in Africa, which resulted in
winning the World Economic Forum's 2011 Young Global Leader Award. With this award,
Bethlehem joins a distinguished list of previous winners that include Google co-founders
Larry Page and Sergey Brin and the founder and CEO of Facebook, Mark Zuckerberg.
NABC2011/2012
25
NABC2011/2012
24
» How do you make the shoes?
There are basically three different
processes. First of all, there is the
spinning and weaving, to make the
different parts of the shoe (the sole is
made of rubber). Secondly, we prepare
and sew the different parts and in
the final process we manufacture the
actual shoe. To make it an authentic
Ethiopian product, around 97% of the
inputs are local. The remaining 3%
- the inner foam - comes from China.
» How do you explain the success
of soleRebels in the US, France and
the UK – why do people buy shoes
from Ethiopia?
'Made in Ethiopia' has become a strong
brand; people buy our shoes because
they like them and the quality is
good. In addition, our shoes are
different from mainstream products,
and it is also an authentic product. If
you read the comments on Amazon,
you get a fairly good insight into why
people buy our shoes.
» Is there also an idealistic reason
for soleRebels for producing shoes
in Ethiopia?
Of course! For too long Ethiopia has
had a reputation of being a poor
country that is dependent on aid.
I want to demonstrate that we –
the Ethiopian people - are perfectly
capable of creating something our­
selves. We do not need NGOs; we need
more businesses. By demonstrating
that it is possible to produce some­
thing unique in Ethiopia, we hope to
inspire more people in Africa.
» But there must be some challenges
as well in setting up your business
here?
As I mentioned earlier, productivity is
low, and due to logistical challenges
shipping products to Europe and the
US is expensive. It costs around 25USD
to ship one pair of shoes to the US.
In addition, soleRebels became an
official Fair Trade brand in 2007. In
order to retain this status, we have to
adhere to strict international stand-
ards. It is hard work to maintain that
status, but it is an important part of
our marketing strategy.
» Is labor not relatively cheap in
Ethiopia?
That is a mistake that many people
make when they invest in Ethiopia.
You are right when you say that labor
is not expensive by the day. However,
the productivity is very low, which
makes it expensive when you add
it all up. As a result, I have to put a
lot of time and energy in training my
employees. But I believe that part of
the success of soleRebels is investing
in my employees. SoleRebels recruits
people from the streets who are
motivated and determined to work.
By involving them in every step of the
production process, they become a
part of the company. They are proud
to work for soleRebels, they work
hard and they stay on board. Currently
we employ 75 people, full time.
» Finally, what are your plans for
the future?
I want soleRebels to become the Tim-
berland or Nike of Africa. An important
step is to further ­professionalize the
production process, improve ­capacity
and to enhance and expand our
brand. I believe that Africa is going to
be a strong brand in the near ­future
and soleRebels is going to profit
from it. I am also trying to build up
a strong presence on the Dutch retail
market; we are already online in the
Netherlands through our spartoo.
com partnership. So if any of your
­readers are interested in marketing
our ­product in the Netherlands to
footwear retailers, please contact me.
soleRebels shoes are sold world-
wide through retailers such as
Urban Outfitters, Endless.com,
Amazon.com and Spartoo.com,
and can also be ordered directly
through the official soleRebels
website: http://solerebelsfootwear.
weebly.com/.
We do not
need NGOs;
we need more
businesses
Interview
NABC2011/2012
26
It is time for Africa! From 19 to 21 September 2011 a high-level B2B Forum is
taking place in Nairobi, Kenya. The Forum is initiated by European and East
­African Chambers of Commerce as part of the Proinvest project SOPSED. Over
200 companies from Europe and Eastern Africa will participate in this event
which makes it an excellent opportunity to increase your network and expand
your business in the region.
Experts and leading from the following sectors will be present:
•	 ICT  Media
•	 Agribusiness  Fisheries
•	 Construction  Real Estate
•	 Fashion, Textile  Leather
•	 Tourism
•	 Consumer Market
To ensure everyone reaches Nairobi comfortably – the organization partnered
up with Kenya Airways – The Pride of Africa. Participants of the forum will
receive a discount on Kenya Airways, from wherever you fly from in the world.
For more information or registration please contact Nerea Musita at Nerea.
musita@nabc.nl or +31 (0)70 3043618
Organizing
partners
Europe
•	 Afrika-Verein
•	 Birmingham Chamber of
Commerce  Industry
•	 Paris Chamber of Commerce 
Industry
•	 Chamber of Commerce 
Industry of Brussels
•	 Centre for Mediation 
Arbitration – Paris
•	 Promofirenze
•	 Netherlands-African Business
Council
East Africa
•	 Kenya National Chamber of
Commerce  Industry
•	 Addis Ababa Chamber
of Commerce  Sectoral
Associations
•	 Uganda National Chamber of
Commerce  Industry
•	 Mauritius Chamber of
Commerce  Industry
•	 Burundi Chamber of
Commerce, Industry,
Agriculture  Handicrafts
EU – East Africa
Business Forum
19 – 21 September 2011
•	 Infrastructure  Energy
•	 Education  Health
•	 Access to Finance
•	 Doing Business in the EAC
•	 How to find the Right Business Partner
•	 Aid Funded Business
First mushroom farm in Libya
We are currently delivering and
instal­ling a mushroom farm in Libya.
Our contact, the entrepreneur Mr.
Mahmoud Salem, has proven to be
a visionary with regards to new mar­
kets. He will be the first one to set
up a commercial mushroom farm in
Libya.
The farm is being built by local contrac­
tors. Architectural advice with regards
to the optimal dimensions for a
mushroom farm is being provided
from the Netherlands. The complete
inventory is purchased from Mush
Comb in the Netherlands. In this
particular case the whole inventory
comes from an existing Dutch farm
that recently closed down.
Such a deal is financially very interes­
ting, especially during the initiation
phase. However, the disadvantage of
working with used equipment is its
limited availability. In the long run, it
is easier to work with new equipment
because it can be reproduced. We
even provide an Economy product
line, which is very interesting for
countries with low labour costs.
Conclusion
History speaks for itself: when Europe
was dealing with food shortages,
mushroom cultivation rapidly ex­
panded and alleviated the problem.
Why not do the same in Africa?
For those of you who are inspired by
this article, and who wish to know
more about the subject; please do
not hesitate to contact me.
Founded in 1878 SGS is recognized
as the global benchmark in quality and
integrity. WIth over 60,000 employees,
SGS operates a network of over 1,000
offices and laboratories over the world.
SGS is the world’s leading inspection,
verification, testing and certification
company. www.sgs.com
WHERE STRENGTH
MEETS SPEED
Growing mushrooms
Growing mushrooms on a commercial
farm can be done anywhere in the
world. Mushrooms grow in dark,
environmentally controlled growing
rooms. Such an environment makes
it possible to grow mushrooms the
whole year round.
Mushrooms grow on a layer of ­com­post
and casing soil. The compost contains
the mushroom spawn, which is the
Agaricus Bisporus in this exam­ple. Each
growing cycle lasts six weeks, from
when the beds are filled with compost
until the end of the harvest.
A small farm can easily produce 300
tons of mushroom per year. And
creating such a farm does not require
a million dollar investment. That is
why growing mushrooms is also very
interesting economically.
Mushroom Bob
Your guide
to growing
mushrooms
 Agaricus Bisporus growing at a commercial farm.
For my work I visit many places in the
world. I have travelled to Australia,
Asia and Europe, but I had never
visited the African continent. The
NABC agribusiness mission to Nigeria
was my first visit to Africa. And it
inspired me. Seeing Nigeria and
speaking to people who have a lot
of experience with doing business in
Africa made me realize the potential
of this continent. Part of the goal
of the NABC mission was to find
potential business opportunities.
That goal was definitely achieved.
A positive side effect of becoming
in­spired is that you also get new
views and have new ideas. After
doing some research I realized that
mushrooms could be an ideal food
product for many African countries.
I dared to dream; could mushrooms
be the food of the future for Africa?
Short introduction of
mushrooms
Mushrooms have been a part of the
human diet for centuries, as food and
as a medicine. Wild mushrooms have
been a staple food in some regions
and many varieties are still used as
prized delicacies in haute cuisine.
Interest in using mushrooms as a part
of a regular diet expanded in the
1940s due to wartime food shortages.
This interest has continued to grow
as commercial cultivation methods
have enabled mushroom growers to
produce a secure and reliable food
source all year long.
Although mushrooms belong to neither
the plant nor the animal king­dom,
in culinary terms they are regarded
as a vegetable, and are considered
as such by most nutritional guides.
Background information states that
the vegetable category is primarily
defined by its vitamin A (β-carotene)
composition and also by its content
of carbohydrate, fibre, magnesium,
iron, vitamin C, folic acid and potas­
sium. The Chinese Food Pagoda Guide
also includes mushrooms in its
vegetable category. One half cup of
mushrooms is considered one daily
vegetable serving.
article
By Bob Holtermans, Mush Comb
NABC2011/2012
NABC2011/2012
28 29
At that moment we could do two
things. Either say goodbye to each
other or start a subsidiary in Africa
together. We chose the latter.
» Can you tell us more about your
experiences in Ghana? What kind of
projects have you been developing
in Ghana or elsewhere in Africa?
We always start new subsidiaries as
a greenfield development. Once a
new office is up and running, we
have them working on projects from
other Bartels offices. This provides
the new office with the ­opportunity
to learn from the knowhow of the
existing Bartels offices. We have
been doing that for about two years
(which is a short term for engineering
companies) in Ghana. Just recently
we started looking around for local
clients and businesses to work with.
In our business it normally takes a
few years to build up a local network
of clients. However, Ghana turned
out to be different, because we just
started working on a small ­hospital.
A short while ago we were also in-
volved in a building project with the
company Coco industrial ­building.
Our offices in Ghana enable us to
operate anywhere within Western
Africa.
Pieter van Boom is ­Managing
Director at Bartels Consulting
Engineers. Together with his
­co-managing director, Taco
­Klevering, he is responsible for
the international offices and
expansion of Bartels.
have to explain all about roof loads
after snowfall, but we learn as much
from them as they learn from us.
Many of our Dutch colleagues line up
for a chance to work in Ghana when
we announce that we want to create
an international design team for a
project. Working in Africa is great!
» What are the most impressive
changes you have seen in Africa
over the years?
We have only been active in Africa for
a short while. What we see now is
the fast growing presence of Chinese
companies in Africa. I wonder why
so many European companies don’t
see the possibilities in Africa. After so
many years of development aid, by
sending money and ‘welfare workers’,
many seem to believe that there will
never be any real business opportuni-
ties. I think they are wrong there.
» What is your vision on Africa’s
future development?
I would not dare to state an opinion
about all of Africa. We are just involved
in a small part of West Africa. For this
area we have high hopes. The area
is rich in energy and materials. In
some countries there seems to be a
kind of a sellout of these materials to
Chinese partners. But I believe that
this is different in Ghana. Ghana has
the right political setting to become
very successful in the long run.
» In what ways do you cooperate
with NABC?
We have been a member for one year
now. This means we are still ­looking
for good ways to cooperate. We have
attended some of the events and
started to do some networking. We
see some good chances there, but
there is still much for us to learn.
» What is the relation between the
Dutch headquarters and the Accra
office? For example: what is the
ratio expats/local employees? Are
you ever confronted with cultural
differences and how do you deal
with them?
In every country Bartels is organized
locally. We have a network of offices
located in Germany, Ghana, Poland,
Turkey, Bulgaria and Ireland. Because
of this network we are in a ­position
to provide consultancy services
throughout much of Europe, and
now also the western part of Africa.
These local offices possess knowledge
and experience with regards to local
regulations, conditions, work ethos
and culture, and are also a source of
up-to-date information ­regarding
regional market developments. We
also form multidisciplinary teams
from different countries for specific
projects.
So, in our organization it is necessary
to really be ‘the local company’. The
only non-African employee in Ghana
is our director there, Dick Werkman.
We are used to dealing with ­different
cultures. Every country has its own
specific conditions, threats and re-
quirements, especially in real estate
and building activities. Our clients
know that we can deal with all these
conditions.
We feel lucky to be able to work with
so many talented and well educated
Ghanaian engineers. Of course we
Bartels Consulting Engineers is an inter­
national private partnership company
with offices in Bulgaria, Germany,
Ghana, Ireland, Poland, The Netherlands
and Turkey. With over 300 employees
and 40 years of experience in the
field, Bartels provides a wide range of
consulting engineering services.
Bartels is highly experienced in the
field of civil and structural engineering,
building management, fire safety,
high rise designs and geotechnical
engineering. Within the total ­building
process Bartels fulfills the role of
proactive advisor in the development
of solid, economical solutions for
structural and civil engineering. Our
projects vary from high rise (up to 250
meters) to office buildings, housing,
underground structures, infrastructural
work and sports and leisure.
» Why Africa? What were your con-
siderations that led you to doing
business in Africa for the first time?
We are not the kind of people that
think and talk a lot about strategy
and planning. We address all oppor-
tunities that seem reasonable as soon
as these opportunities occur. It’s
our way of entrepreneurship. Africa
became a topic when one of our very
experienced Dutch senior engineers,
Dick Werkman, mentioned he wanted
to leave Bartels and emigrate to Africa.
Bartels
Consulting
Engineers
expands to
Ghana
Interview
Pieter van Boom, Managing Director
at Bartels Consulting Engineers
NABC2011/2012
31
NABC2011/2012
30
The existence of a large gap between rich and poor is one
of the most fundamental questions that has been racking
the minds of our world's brightest minds. Economists all
over the world agree on the fact that sub-Saharan Africa
is by far the world's poorest and least developed region
in the world. Looking at the Gross National Product per
capita - the most frequently used international benchmark
by which quality of life is measured - Africa is ­increasingly
lagging behind other developing regions such as Latin-
America and Asia. Other indicators for the quality of
life, such as infant mortality rates, literacy rates and life
expectancy at birth yield the same conclusion: a large
number of African countries consistently rank at the bottom
of international comparisons.
What many economists cannot agree on is why Africa is
the poorest region of the world. This question is of great
importance because the answer directly influences the
development policies of organizations such as the World
Bank and the International Monetary Fund (IMF). For years
and years, the models that have been used to describe
the African economies were based on analyses of data
gathered between 1950 and the present day. There was
scarcely any reliable data on the first part of the 20th
century. The dissatisfaction with the effectiveness of
the policy advice of these organization has increasingly
shifted the attention of development economists and
economic historians to the long term perspective. Does
the current 'growth tragedy' have deeper historic roots?
Are there any structural obstructions hampering African
economic development?
	
Some economists emphasize the adverse ­geographical
location of the African continent. In comparison to other
parts of the world, there is an increased prevalence of
tropical infectious diseases, such as malaria. In addition,
they claim that there were limited possibilities for devel-
oping the African trade network because of a relatively
limited number of natural transportation routes. For
instance, compared to Europe, Africa has fewer rivers,
of which the majority is also much harder to access. On
top of that, the continent has a very large interior, far
removed from the coastlines. Africa's fragile ecosystem
is also often mentioned as an obstacle when it comes to
increasing agricultural production.
Another group of economists has mostly emphasized the
negative consequences of colonial rule. This is in itself not
a novel idea. An earlier version, also known as the 'world
system theory', argued that Europe caused the under­
development of Africa by making unfair trade agreements
that were based on persistent exploitation. More recent
studies on the long term consequences of colonialism
focus more on the institutional heritage of the European
dominance. Instead of institutions that stimulate growth,
such as secure rights of ownership and access to important
public services such as education, colonialism emphasized
'extractive' institutes instead: high taxes and expropriation
(land) would, in that light, have had a persistent negative
effect on the structure of economic incentives in Africa, and
would have therefore continued to be a hindrance to the
development of the postcolonial economy.
What many economists
cannot agree on is why
Africa is the poorest
region of the world
Lastly, there is a school of thought in the economic ­literature
that points to the problems caused by a high degree of
ethnic fragmentation - a phenomenon that certainly has
strong historical roots, but which was intensified by the
artificial borders that were created by the colonial powers
in the 19th century. The idea is that the larger the ethnic
diversity of a national state, the more difficult it is to
reach a consensus on the distribution of political power
and public goods, such as schools, infrastructure and
hospitals. The high intensity of the slave trade between
1400 and 1900 (in which not only Europeans, but also
Africans themselves played a large role) is said to have left
a permanent scar on African societies because of a deeply
seated inter-ethnic distrust.
The explanations given above might differ in their primary
causes, but all of them are marked by a certain ­pessimism,
bordering on historical determinism; if the African growth
potential was indeed affected by these structural ­barriers
- whether it be the adverse geographical location, the bad
institutions or the ethnic diversity - one would be inclined
to conclude: 'It was never particularly noteworthy and it
isn't much now, so it will never become anything note-
worthy'. After all, the implicit consequence of thinking in
terms of structural barriers is that Africa was destined to
be poor. Is this the right conclusion? Or is there enough
evidence for a more optimistic vision?
In my thesis I aim to prove that one of the problems of
the studies mentioned above is that they were based on
disputable statistical evidence. I will try to explain this in
layman's terms. If the historical factor X (for instance, the
intensity of slave trade in 1700) would produce outcome Y
(a low level of economic development in 2000), and this
relation is based on the assumption of a persistent effect
(the consequences of factor X are persistent), then these
negative consequences would have to exist throughout
all three centuries between X and Y. In other words, the
relation should constantly be statistically significant. But
what if Y changed drastically throughout the years? What
if the economic growth was a lot higher in for instance
the 1920s, compared to the 1990s of the last century?
Development in Africa from
a historical perspective:
article
NABC2011/2012
33
NABC2011/2012
32
I use this example to illustrate that it is important to first
know more about the actual functioning of the African
economies under colonial rule, as opposed to the assumed
functioning of these economies. We can of course assume
that Y remained relatively unchanged throughout the
years, but without empirical data such a conclusion will
be merely speculation. Was Africa always worse off than
other parts of the world? Answering this question means
we have to try and map the colonial growth pattern as
much as possible, regardless of how rare the quantitative
material is. In my thesis I have tried to contribute to this
by reconstructing the development of the purchasing
power of the urban uneducated workers in eight British-
African colonies during the period 1880-1945. My main
question was: did the purchasing power of this group
increase or decrease during this colonial period?
Real income development is often used as an alternative
for GDP data (the Y in the example above). Unfortunately,
we do not have GDP data on Africa from before 1950, and
it turns out to be difficult to reconstruct this benchmark.
What we do have is income and pricing data. These num-
bers can give an even clearer picture of the development
of the quality of life of the African wage worker than GDP
data, because they are directly related to the income per
member of a household. The disadvantage is that only a
relatively small part of the native population was a wage
worker in those days; the majority worked in self-sufficient
agriculture. Therefore, for this group the crop yield is a
much better benchmark for their quality of life than the
real income levels. However, the group of wage workers
grew substantially during the colonial period and their
numbers can certainly not be neglected. Taken together,
my data can give an indication of the overall economic
dynamic and, indirectly, also the level of Y.
The outcome of my research uncovered a varied history of
purchasing power development in British colonial Africa.
On the one hand, the average wage worker in East Africa
did not gain much, and their wages barely covered their
daily living expenses. However, the situation in West Africa
and Mauritius was very different; real wages increased
quickly during the colonial era and were almost 300%
above the level of South and East Asia. In some parts of
Africa, Y therefore seems to be a lot higher than what was
previously assumed, and it is hard to reconcile this data
with the pessimistic tone that dominates the literature.
There seems to be little historical evidence supporting the
proposition that Africa is destined for poverty.
However, adopting a more optimistic view with regards
to the functioning of West African economies should not
be confused with the notion that colonialism 'wasn't as
bad as they say'. Exploitation comes in many shapes and
forms: psychological, social, physical, cultural, etc. For
many Africans, the colonial era stands for oppression,
humiliation and various forms of exploitation. In addi-
tion, the strong development of purchasing power is not
necessarily an indication of 'good intentions' from the
colonial government. In places where the control of the
colonial powers over the local labour market was more
absolute, such as East Africa, we see more extraction:
lower wages and higher taxes.
Current pessimism with
regards to the African
growth potential has no
historical basis
It also does not necessarily mean that the colonial era had
no negative long term consequences for the development
of African economies. It is plausible that the negative
economic heritage of colonialism did not fully surface until
the post-colonial era. These kinds of associations or links
are hard to discern with the current statistical analysis that
is so often used by economists, and it demands a more
thorough knowledge of the functioning of the African
economies throughout the entire 20th century. The clearer
picture we have of the years before 1950, the better we will
be able to discern patterns of continuity and discontinuity
in the history of African economic development.
So what are the implications of this kind of research
for creating effective development policies? First and
foremost it shows that it is important to know where
something went wrong in the past. We should not try to
heal a patient based on a wrong diagnosis. Secondly, we
should constantly remind ourselves that there is enormous
variation within African economic growth patterns and
that economic policies will have to take this diversity
into account. Lastly, we have to acknowledge that the
current pessimism with regards to the African growth
potential has no historical basis. Looking at matters from
a long term perspective seems to indicate that the crash
of African economies in the seventies (and its aftermath)
was more an exception than the rule. Let's hope that Y
confirms this view in the year 2025.
Marlous van Waijenburg studied Economic History
at Utrecht University. Her master thesis, titled Living
Standards in British Africa in a Comparative Perspec-
tive, 1880-1945. Is Poverty Destiny? received both the
prize for best master thesis at the faculty of Humani-
ties at Utrecht University, as well as the best thesis
award from the International Institute for Social His-
tory and the Volkskrant. She is currently working on
her dissertation in Chicago.
In 2009 three Dutch companies NAWI,
WINK PARTNERS and LINECO founded
the Netherlands-African Meat ­
Tech­no­logy Partners. For innovative
slaughtering and meat technology
solutions for projects in Africa N-A MTP
is your partner.
More than just a supplier
Man. Dir. of LINECO Robert Lintvelt,
experience with capital equipment
projects in Africa since 1985, is
respon­sible for marketing and export
sales for N-A MTP in Africa: “We are
more than just a supplier of slaughter
systems. Together we design and do
the engineering of complete ­abattoir
solutions, cold stores, effluent
treat­ment systems, rendering plants
and all utilities and facilities. Meat
processing and packaging solutions
complete our range.”
N-A MTP can handle all projects. From
start capacities to the highest ­capacity
industrial systems. From just the
slaughter line to integrated turnkey
solutions. Design, engineering, supply,
installation and, if needed, the entire
project management.
High quality market
High quality local market segments
in Africa (business and tourist hotels,
restaurants, retailers etc.) demand a
safe and high quality meat. Hygienic
and food safe slaughtering practices
are a must to meet the requirements
of the HQ market. Also in case
the objective is to export meat
products to international markets
maximum hygiene during the entire
production process plays a key role.
N-A MTP supply slaughter systems
of the highest EU quality and in full
conformity with the highest hygiene
and food safety norms.
NAWI, a global player
Leading meat companies in the Nether­
lands, but also in the rest of EU, East
Europe and worldwide, have chosen
for NAWI slaughter, deboning and
logistic systems. “The Dutch industry
has high quality requirements and
wants custom-made, but at the
same time cost-effective solutions”,
says Alfred Klunder, Sales Director of
NAWI. “Since 1972 we have proven
to be a leading player, innovative
and customer-oriented.” Lintvelt
emphasizes: “Innovative and proven
technology developed by NAWI in
close partnership with their numerous
customers is now introduced by N-A
MTP in emerging markets in Africa.”
Projects in Africa
In 2010 NAWI has delivered a ­slaughter
line for cattle and sheep for a ­project
in Tanzania. The abattoir will be
­operational in the near future.
Lintvelt: “The choice for a high quality
NAWI solution for Tanzania is a very
good example of the attractive price
/ quality ratio. At the moment we
­develop similar projects in other
African countries.”
Advice and consultancy
Many abattoirs in Africa are old and
need to be rehabilitated or upgraded.
Specialists of WINK PARTNERS visit Africa
to investigate the site, production
lines and facilities of the old ­abattoirs
and to recommend the most optimal
solution. N-A MTP can advise on an
operational and strategic level.
Dick Wink, CEO of WINK PARTNERS:
“If required we provide operational
management and search for invest­
ment or trading partners. It is imper-
ative to have an important network.
With N-A MTP this is the case.”
Ethiopian cuisine
During one of his visits to Ethiopia
in 2009 his local business partner
invited Lintvelt to enjoy the typical
Ethiopian cuisine: Raw beef with
injera (the pancake-like bread) and
hot spices. Lintvelt: “I accepted the
invitation. Our subsequent discussion
about beef and the potential of the
meat sector in Ethiopia triggered
LINECO to join forces with NAWI and
WINK. We founded N-A MTP and now
support customers all over Africa with
the realization of their projects.”
PARTNERSHIP LEADS
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technology for Africa
 Demonstration to customer from Africa
 Cattle in Ethiopia on the way to abattoir
– ADVERTORIAL –
MORE INFORMATION
info@namtp.nl
www.namtp.nl
NABC2011/2012
34
often realise emission reduction at
lower costs than similar reductions
in industrialised countries. In order
to qualify for CDM, the project must
lead to emission reductions that are
truly additional in comparison to the
business as usual scenario (otherwise
the CDM project activities would not
contribute to a net decrease of global
levels of greenhouse gas emissions).
Emission reductions achieved with
CDM projects are awarded credits
called Certified Emission Reductions
(CERs). One CER represents an emis-
sion reduction of one tonne of CO2
equivalent. A CO2 equivalent is the
accounting unit . Other greenhouse
gasses can be expressed in CO2 equiv-
alent by using a multiplier reflecting
the global warming potential of the
particular greenhouse gas. For exam-
ple, reducing methane (CH4) emissions
by one ton would be equivalent to
reducing CO2 emissions by 25 tons.
The Kyoto Protocol recognises six
different greenhouse gases (three
natural and three synthetic gases).
European companies in certain ­sectors
are granted annually a specific
budget for greenhouse gas ­emission.
The companies may either keep
their emissions within the budget or
buy CERs to expand their emission
budget. CERs can be traded privately
or in the international market. There
are various market places for inter­
national trade in CERs such as NASDAQ
OMX Commodities Europe, the Euro-
pean Climate Exchange (ECX), etc. Also
banks and governments are significant
traders in CERs. Prices of CERs range
from about € 22 mid 2008 to about
€ 10 early 2009. Current prices are
around € 13.
Apart from the trade in CERs, there is
also a voluntary carbon market driven
by companies and organizations aim-
ing at achieving their own emission
reduction targets. In the voluntary
market, acknowledged emission
reductions are called Verified Carbon
Units (VCUs). Just as CERs, VCUs are
used as credits for financing projects.
However, unlike CERs, VCUs cannot be
used by Annex I countries to comply
with the emission reduction target
under the Kyoto Protocol. This results
in a price level of VCUs that is signifi-
cantly lower as compared to CERs. We
will focus on the CERs in the remainder
of this article.
How can you use CDM for
finan­cing your project in Africa?
Step 1
Describe the project idea in a
so-called Project Idea Note (PIN)
document. Ensure that you include a
well-argued estimation of the emis-
sion reduction in the document. On
the basis of the PIN, you may obtain
a pre-validation (for example by TÜV
or SGS) and a letter of support by the
government of the country where
the project is going to be imple-
mented. Although this first step is
not mandatory, it may be useful in
assessing the feasibility of the CDM
project and facilitate an early go / no
go decision.
Step 2
Present the project in detail in a so-
called Project Design Document (PDD).
In the PDD you apply an approved
methodology to calculate the emission
reductions that will be achieved by
your project. If a suitable methodology
does not yet exist, a new one has to
be elaborated first. The PDD must also
present an analysis of environmental
and socio-economic impacts of the
project. The PDD must be accompa-
nied of a letter of approval from the
government of the country where the
project is going to be implemented.
Step 3
Organise validation of the PDD by an
independent organization accredited
by the CDM Executive Board of the
UNFCCC (an executive body of the
United Nations), such as TÜV, DNV or
SGS. If the project receives a positive
recommendation, you can officially
register the CDM project at the CDM
Execute Board of the UNFCCC.
Step 4
Implement the project and monitor
the actual emission reductions on the
basis of the approved ­methodology
which includes an approach to
monitor against a baseline emissions
scenario. Provide monitoring reports
and request for verification and certi-
fication.
Step 5
Organise verification by an interna-
tional accredited organization, which
is not the same as the one that did
the validation (step 3). The verifier has
to make statements on the ­integrity
and accuracy of the monitoring re-
ports.
Step 6
Request the CDM Executive Board of
the UNFCCC to issue CERs on the basis
of the verification reports (step 5).
Once issued, you can sell the CERs on
the international market places. In
many cases, investors make upfront
finance available for CDM projects on
the basis of an emission reduction
purchase agreement (ERPA). In fact,
the investor buys the credits that
'Clean Development
Mechanism (CDM)
for Dummies'
Africa has the lowest electrification
rate worldwide at 26% of all house-
holds, meaning that as many as 547
million people do not have access
to electricity. According to the World
Bank, the total financing need for
Africa to solve the problem of poor
power supply, is US$40 billion per
annum, which is around 6.4% of the
region‘s GDP. With a current average
investment of US$19 billion in energy
infrastructure per year, there is a
remaining investment gap of more
than 50%. The private sector plays a
crucial role in increasing the access to
energy in Africa. Companies operating
in Africa can provide hardware (varying
from small-scale solar systems to
large-scale power plants), ­know-how,
business models and investment
capital. Dutch companies have proven
to be successful in increasing ­access
to energy in countries such as South
Africa, Tanzania, Malawi, Mali and
Ghana. Nevertheless, business op-
portunities in Africa are not fully
used. Lack of financing and a weak
investment climate seem to be major
obstacles for realising energy infra-
structure projects in Africa. Additional
finance generated through carbon
credits may tip the balance in favour
of the investment in certain cases. A
relevant instrument in this context is
the Clean Development Mechanism
(CDM) established under the Kyoto
Protocol. Although some experts
claim CDM has peaked already, it is
remarkable that many ­companies
for which the mechanism can be
relevant, are not yet fully aware
of it. Most CDM projects have been
developed in China and Brazil where
investments in cleaner technologies
in large polluting industries generate
significant amounts of carbon credits.
In Africa, the number of CDM projects
is extremely low: less than 2% of
the CDM projects is located on this
continent. Out of a worldwide total
of 457 million CERs annually gener-
ated, Sub-Saharan countries account
for less than 10 million. The region
hardly benefits of the carbon ­trading
­industry that has generated over
30 billion US dollars in investment
capital for climate change efforts in a
relatively short period. Unfamiliarity
with CDM and complexity of its proce-
dures ­undoubtedly contribute to the
low level of successful collaboration
­between African and European players
in developing CDM projects. Hence, is
it time for a “CDM for Dummies”.
What is the Clean
Development Mechanism?
The Clean Development Mechanism
(CDM) was established under the
Kyoto Protocol. The Kyoto Protocol
was adopted in 1997 as part of the
UN Framework Convention on Climate
Change. The Protocol enables indus-
trialised countries with a greenhouse
gas reduction commitment (so-called
‘Annex 1 countries’), through the
CDM, to achieve their emission
reductions in developing countries.
The philosophy behind it is that
CDM projects in developing countries
Carbon financing for energy projects in Africa?
article
Percentages of approved CDM projects per
region (Source: UNFCCC, March 2011)
Africa
Asia and the Pacific
Eastern Europe
Latin America and
the Carribean
80%
1,95%
0,5%
18%
NABC2011/2012
NABC2011/2012
36 37
This article has been written by
Kim Geleynse, Fons de Zeeuw
and Eveline Trines.
Kim Geleynse and Fons de Zeeuw
are working at the management
consultancy firm Berenschot.
Berenschot is active in many
countries in Africa, ­supporting
multinationals and SMEs in
­developing new business. Beren-
schot is specialised in ­developing
business strategies, public-private
partnerships, grants  financing.
Eveline Trines works for Silvestrum,
a consultancy firm specialised
in the creation of carbon assets
in the agriculture, forestry and
land-use sector for compliance
and voluntary markets world-
wide, and the development of
environmentally responsible and
carbon neutral business strate-
gies based on responsible land
management in the same sector.
Contact information
k.geleynse@berenschot.com
f.dezeeuw@berenschot.com
eveline.trines@silvestrum.com
will be generated in the future, thus
providing finance for project imple-
mentation. Of course, the investor
will calculate the risk of unsuccessful
verification in the price offered for
the CERs.
What are future perspectives
on the CDM carbon market?
The future of the CDM as a source
of investing capital is difficult to
predict. The first budget period of
the Kyoto Protocol will end after 2012.
However, most experts believe that
schemes such as the CDM will be con-
tinued after 2012 because economies
are expected to continue supporting
greenhouse gas reductions. Besides,
much has been invested in CDM
projects and ending the mechanism
would be capital destruction. The
political willingness to accept that is
virtually non-existent. International
agreements for the longer term are
nevertheless crucial as pricing signals
for CERs.
The Copenhagen 2009 international
climate conference did not result in
concrete agreements as a follow up
on the Kyoto Protocol. The Cancun
2010 international climate ­conference
was somewhat more successful.
Expectations are high for the climate
summit in Durban, end 2011. The
global economic crisis caused de-
creasing demand and prices for CERs,
because it enabled many companies
to meet emission targets without
much effort as production decreased
anyway. Current economic recovery
and political intentions to realise
significant emission reductions may
contribute to increasing demand and
prices for CERs in the near future.
It is beyond questioning that Africa
offers ample opportunities for smart
initiatives to address the large scale
need for energy. Taking into account
the criticism on the impact of CDM
projects thus far (little innovation, low
long-term sustainability, unbalanced
regional focus), it is more ­obvious
that CDM projects in Africa will be
strongly encouraged. This is also
proven by the diverse available grant
schemes to support climate saving
initiatives and investments in renew-
able energy. Grants in combination
with carbon-financing mechanisms
make it worthwhile to investigate
­investment opportunities on the
African continent.
What are opportunities for
CDM projects in Africa?
According to UN statistics, most CDM
projects have been realised in the
category ‘clean’ energy followed by
landfill projects. In Africa, invest-
ments in solar, wind, hydro-power
and bio-fuels production have
the potential to be financed partly
through CERs. Large-scale ‘clean’
energy generation projects may
offer good opportunities as CDM
projects. These projects are interest-
ing for urban and industrial centres
in countries such as Nigeria, DRC,
Tanzania and Ethiopia. However, two
third of the African population live
scattered in rural areas. For these
areas, small-scale renewable energy
solutions (off-grid lighting, biogas
installations, innovative woodstoves)
are very relevant. If well designed,
combined investments in small-scale
energy solutions also qualify as CDM
projects.
Many Dutch companies offer relevant
(components of) energy solutions
for urban and rural Africa. By being
creative and developing alliances with
African partners, these products can be
at the basis of interesting CDM projects.
And the finance obtained by generat-
ing CERs can just make the difference
between a project that is financially
and commercially viable or not.
» What were your thoughts on the
Netherlands and the Dutch before
coming here? What were your ex-
pectations and did they turn out to
be correct?
I came here with a completely open
heart and mind, with no ­expectations
other than to focus on my job. I have
been delighted to find that The
Hague is such a livable city: green,
friendly, and relatively slow-paced
compared to New York, where I was
previously based.
» Do you have specific goals that
you wish to achieve while you are
here? What are your priorities as a
relatively new ambassador in the
Netherlands?
Of course! First and foremost, I would
like to cement bilateral relations be-
tween Rwanda and the Netherlands.
I also realize that there is little or no
trade between our two countries and
that in fact many people in the busi-
ness community and the population
in general do not know or under-
stand Rwanda. I therefore will work
toward changing that, by promoting
Rwanda in the business community
and beyond as an attractive invest-
ment and tourism destination.
» What are currently the most
promising sectors in Rwanda for
the Dutch to invest in? What does
Rwanda do to attract foreign in-
vestment?
The field is wide open. Two important
growth sectors are agriculture (agro-
processing, animal husbandry, seeds,
irrigation and water harvesting, etc.)
and energy (hydro-electricity, methane
gas extraction, LED technology transfer,
solar power, etc.), but there are many
other sectors that are very promising.
» Can you give some advice to Dutch
businessmen that might be going
to Rwanda for the first time? Would
you have any specific business ad-
vice or any tips with regards to local
customs? Is there a typical Rwandan
style of doing business?
I would say: Rwanda is ready for you;
are you ready for Rwanda? We are
open for business. Well-respected
indicators speak for us (such as the
World Bank Group's 'Doing Business'
index and Transparency Inter­
national's favorable rating on cor-
ruption), but I encourage those who
seriously consider doing business in
Rwanda to just visit the country first.
Visit the Dutch embassy, and talk to
Rabobank and Heineken, two compa-
nies that are already well established
in Rwanda. Don’t take it from me,
but go see for yourself. And our local
customs? Averting one’s gaze does
not signify dishonesty; it is a sign of
respect for the person you are talking
with. A warm handshake extends to
the elbow, and don’t say no when
someone offers you something; it is
considered rude. With regards to do-
ing business, I would advise anyone
to keep in mind that Rwandans are
not as direct as the Dutch. A typical
conversation, even on serious issues,
starts with a slow warm up, made
up of greetings and pleasantries.
» How would you like to cooperate
with NABC in the future?
I think that the services you offer that
connect Dutch businesses with ­African
economies and markets are very
unique. I would like to avail myself of
every opportunity to cooperate with
NABC in this endeavor.
» What is your favorite Dutch dish?
My favorite savory dish would be
Stamppot, and my favorite sweet dish
is vlaai.
Interview
Her Excellency - Immaculée
Uwanyiligira, Ambassador to the
Republic of Rwanda
Don't take it
from me,
but go see for
yourself
NABC2011/2012
NABC2011/2012
38 39
» What exactly is the Blue Dolphin
Entertainment Group and what are
your activities?
The Blue Dolphin Entertainment
group (BDEG) is a film/TV production
company, but I guess these days we
are more an all media production
company. We produce all kinds of
media such as films, TV-series, com-
mercials, documentaries and corpo-
rate films. And of course these days
we are also active in smartphone
applications and iPad magazines.
You could call us a one-stop shop.
Any client can come in with an idea
and we help realizing that idea from
A to Z.
» How is BDEG involved in Africa?
We have been active in Africa for
many years now. We have filmed
in Kenya, Namibia, Nigeria, Sudan,
Uganda and very often in South
Africa. We mainly shoot commercials
and documentaries, but we have also
done corporate films and promotion-
al films about the country or a certain
area. I love going to Africa to work. It
is a beautiful continent and many of
its people are very hospitable.
» In September 2010, BDEG joined
the NABC trade mission to Cape
Verde. What made you decide to
join us and what did you gain by it?
Several good friends of mine are Cape
Verdean, and they live in Rotterdam.
They told me that maybe I could
start something in Cape Verde. I had
never been there, so the NABC trade
mission was a good opportunity for
us to figure out whether we could
start something there. During the
trip I talked with some people in the
film/TV industry and basically they all
told me that the Cape Verdean film/
TV sector is rather undeveloped. If I
recall correctly there is just one Cape
Verdean channel that broadcasts
on all the islands and people can
also receive several Portuguese and
Brazilian channels. Starting a produc-
tion company there is possible, but
first you will need to extend the
broadcasting facilities (TV network),
upgrade the equipment and of course
educate the crew, and only then can
you start producing programs within
Cape Verde. All this will cost a lot of
money and time. So to just go there
and start a production company is
not so simple. However, I enjoyed
Cape Verde very much. It is a ­beautiful
country with a very interesting his-
tory that few people know about, so
during the trip I got some ideas for
documentaries about Cape ­Verdean
history. To also make this idea inter-
esting for Cape Verde, I came up with
the idea of setting up a production
company and combining it with a
media school, where we can train
crews that will help us in creating
the documentaries. This way we can
develop and professionalize the film/
TV industry within Cape Verde while
simultaneously promoting the country
abroad at the same time. I hope we
can make this happen.
» Are there any particular countries
in Africa that you would like to
work in?
I worked in many already, so I am
open to any suggestions!
» To conclude, do you have any plans
of setting up a production company
in Africa in the near future?
That would be wonderful! Africa has
many things to offer. Amazing loca-
tions, wonderful people and it is
comparatively affordable to film there.
Of course the weather, compared to
the Netherlands, is also something
that helps! I think the production
company/film school idea would be a
nice way to start something there.
One of our productions that made a
big impression on me was the com-
mercial that we made for the Nelson
Mandela Children's Fund. We filmed
in South African townships and met
Nelson Mandela. It was an experience
that I will never forget.
Interview
Chiem van Houweninge Jr.,
Blue Dolphin Entertainment Group
NABC2011/2012
41
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business
What Africa Can Do for Your Business

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What Africa Can Do for Your Business

  • 2. During the global downturn, Africa turned out to be very resilient and sub-Saharan Africa even more so! With growth predictions at 5,5 % for 2011 and 5,9 %, the macro­ economic context looks promising. Only China and India are growing considerably faster. Despite these emerging market figures, Africa is not perceived by most companies as a promising new market. It is our mission at NABC to make companies aware of the opportunities and to facilitate them in doing business in a successful way in Africa. Instead of “What can I do for Africa?”, the question is: “What can Africa do for you?” Founded in 1946, NABC is celebrating 65 years full of activities. Our company network has never been as big as it is now and our activity level is higher than ever. With almost 300 enthusiastic companies in our network, we have now become the primary private sector network in the Netherlands for business in Africa. All of these compa- nies are looking for profitable business in Africa and their NABC membership provides them with useful contacts, information and advice. Local knowledge and local partners are a prerequisite for success. Business can only work in the long run if there is a win-win situation. This means that the success of Dutch companies goes hand in hand with the success of African companies. This is increasingly recognized by the Dutch government and by African governments: sustainable development is only possible with a healthy and vibrant private sector. In this annual magazine, which is distributed widely across Africa, as well as the Netherlands, you will find useful information about doing business in Africa. We hope that it will inspire readers to take their first step towards the many opportunities that Africa has to offer. You will also find a detailed list of the companies that have become a member of the extensive NABC network. Through their websites or through the NABC office you can contact them and make your enquiries. Supported by our ­ent­husiastic team, our ­network is ready to make your ­business ventures in Africa into a success! Best regards, Bob van der Bijl Managing Director NABC What can Africa do for you? PREFACE www.remcoafrique.com Efficient industrial halls constructed exactly to size Bâtiments industriels efficases et sur mesure Want to know more? Intéressé? Mrs. Matondo Angélique Mbundu +31 6 12 46 75 11 +31 499 36 64 00 a.mbundu@remcoafrique.com NABC2011/2012 3
  • 3. content 03 Preface 07 Partners Board Members NABC 08 NABC Vision and Mission 10 In the picture 12 Interview Joe Mucheru, Lead for Google Sub Saharan Africa 14 The Future of Data in Africa 16 Interview Jan Slange, Intercommerce 20 African Competitiveness Index 24 Interview Bethlehem Tilahun Alemu - Co-Founder and Managing ­Director of soleRebels Ethiopia 28 Mushroom Bob, Your guide to growing mushrooms 30 Interview Pieter van Boom, Managing Director at Bartels Consulting Engineers 32 Development in Africa from a historical perspective: Is poverty fate? 36 Carbon financing for energy projects in Africa? 'Clean Development Mechanism (CDM) for Dummies' 39 Interview Her Excellency - Immaculée Uwanyiligira, Ambassador to the Republic of Rwanda 41 Interview Chiem van Houweninge Jr., Blue Dolphin Entertainment Group 42 Chinese competition in Africa What can we do about it? 44 Dutch private sector enters meat and poultry sector Ethiopia 47 NABC Trade Missions 48 Nigeria 50 Algola 52 Algeria 54 Burundi 56 Events 2010 59 NABC Activities 2011 61 NABC Members NABC magazine 2011/2012 is a ­publication by Netherlands- African Business Council (NABC). This ­magazine provides an insight into doing business in or with Africa and the activities NABC organizes. NABC Prinses Beatrixlaan 614 2595 BM Den Haag Postbus 93082 2509 AB Den Haag The Netherlands Tel: +31 (0)70 304 3618 Fax: +31 (0)70 304 3620 e-mail: info@nabc.nl www.nabc.nl Editorial Committee Bob van der Bijl and Henk Veldman Editor Translator Texty Design Lay-out Roquefort Ontwerpers Concordiastraat 68 - 024 3551 EM Utrecht Tel: +31(0)30 707 0291 e-mail: info@roquefort.nl www.roquefort.nl Printing Boekdrukdeal Solutions for tomorrow’s world Van Oord is a leading international dredging and marine contractor. Worldwide we offer solutions that contribute to a safe and prosperous world. We build and maintain ports, construct river and coastal defences to protect against the effects of climate change, build energy and tourism facilities that sustain our economies, and reclaim land to accommodate the growing world population. www.vanoord.com Dredging port of Beira, Mozambique Dredging and Marine Contractors Soil ImprovementMarine Engineering Offshore Wind Projects Dry InfrastructureOffshore NABC2011/2012 5
  • 4. Board Members nabc Mr.Kees van Heijst Director HF Technics Chairman NABC Mr. Patrick Verbiest Director V HI- P Treasurer NABC Mr. Michiel Hillen Owner EMSA Emerging Markets Secretary NABC Mr. Tom de Man President Middle East and Africa Heineken International Mr. Ben Zwinkels Senior Investment Manager FMO Finance for Development Mr. Jacob van der Vis Senior Advisor International Trade at Chamber of Commerce of Rotterdam Ms. Rachel Tocklu Director Teampro Ms. Anne Marie Lantinga Director Lantinga Consultancy Mr. Paul van de Ven Area Manager Africa Institut de ­SélectionAnimale Ms. Leontine van ‘t Hooft Director GreenDream Company Mr. Eduard Backer Senior Business Manager Containers Harbor Rotterdam Mr. Frank Nagel Regional Manager Africa Rabobank Dr. Ir. Kees van ‘t Klooster Project Director AfricaAlterra, ­Wageningen University Research Mr. Pieter van Welzen Lawyer Clifford Chance LLP Mr. Bob van der Bijl Managing Director NABC Partners NABC Europe • EBCAM - Business Council Europe Africa Mediterranean • Afrika Verein (Germany) • AHEAD Global – African/ Asian Hungarian Economic Association for Development • BCA UK – Business Council for Africa United Kingdom • D.I. – Dansk Industri • Hellenic African Chamber of ­Com­ merce and Development (Greece) • C.B.L. A.C.P. - Chamber of Commerce Belgium and Luxembourg for ACP countries • C.I.A.N. - French Association of Investors in Africa • E.L.O. - Portugese Association for Economical Development and Cooperation • Swisscham - Africa Africa • I.B.N. - Intra Business Network • BADIS - Bureau of Auditing and Industry and Social Development • Ghana-Netherlands Chamber of Commerce and Culture (GHANECC) • Nigerian – Netherlands Chamber of Commerce (NNCC) • Tunisian Trade and Promotion Office • Addis Ababa Chamber of Commerce and Sectoral Associations • Burundi Chamber of Commerce, Industry, Agriculture Handicrafts • Kenya National Chamber of Commerce and Industry • Uganda National Chamber of Commerce and Industry • Mauritius Chamber of Commerce and Industry sdv.com IMAGINE THERE'S NO LIMIT There’s more to what we do than simply transporting goods worldwide. We provide integrated global logistics solutions. We coordinate all the people involved all the way along the chain and ensure true visibility of operations. Needless to say, we take an environmentally- friendly approach. And last but not least, we know how to be creative at a planning stage, and flexible through execution. In meeting these challenges, our imagination creates a world without limits. The leading logistics network in Africa 41 countries, 200 agencies, 20 000 staff NABC2011/2012 7
  • 5. Bob van der Bijl Managing Director b.vanderbijl@nabc.nl +31 (0)6 531 920 99 Nerea Musita Events Coordinator nerea.musita@nabc.nl +31 (0)6 438 450 33 Henk Veldman Project Coordinator henk.veldman@nabc.nl +31 (0)6 290 962 23 Marina Diboma Business Development Coordinator marina.diboma@nabc.nl +31 (0)6 434 76 502 very limited: in relative terms, it is less than 50 percent of the amount of trade that takes place between Ger- many and Africa. The level of Dutch investments in Africa is also relatively low, but partly because of the subsidiary programs implemented by the Dutch government (PSI and ORIO), we have lately seen a gradual increase in interest. In our opinion, trade instead of aid does not mean that aid can be halted immediately, but that donors should shift their focus more towards the budding productive sectors in ­Africa. It would be necessary to restructure the budget for development aid: more money for PSI and ORIO, and the development of the private sector. In addition, there would have to be more investments into local business support in Africa, to further support the activities that Dutch embassies in Africa are already developing with regards to trade support. In recent years, NABC has played an excellent role with regards to generating interest into doing business in Africa, through a large number of activities in The Netherlands and by organizing various trade missions. We organized no less than sixteen trade missions to Africa in three years! However, we still face a lot of resistance in our efforts to take away the negative ­perception of Africa and replacing it with a more realistic view. There is still much work to be done. We are not claiming that doing business in Africa is always easy. However, with a population that will double in the next 40 years from 1 billion to a staggering 2 billion and an economic growth that is ­structurally higher than in the EU, Africa is certainly an emerging market that Dutch companies need to take note of. Companies that are putting a lot of energy into developing the African market now will definitely reap the benefits of that work in the next few decades. NABC, with its young and enthusiastic team, prides itself in being able to help these Dutch companies through expert advice and assistance! In case you have any questions, please contact Marina Diboma at +31 70 304 36 18 or send an email to ­marina. diboma@nabc.nl or visit www.nabc.nl Nabc our vision and mission The history of NABC dates back to 1946, when it was founded by Dutch businesses with business interests in Africa. In its 65 years of existence, NABC has remained true to the aims of its founders: to share knowledge and contacts through a common platform. Until several years ago, NABC was an organization with a very select group of companies with a lot of experience in doing business in Africa. Starting in 2006, we decided to become more ­proactive towards the Dutch business community. Every Dutch company that aspires to do business in Africa is welcome to join our network. We are always on the look- out for new markets and new business partners in Africa, and the knowledge and experience of all the ­companies in our network has proven invaluable. NABC is the only Dutch organization that is a member of the European Business Councils for Africa and the Mediterranean (EBCAM). This European network is another great source of knowledge and contacts that members of NABC can profit from. Our motto is: “Trade instead of Aid”: our opinion is that an absolute prerequisite for the development of Africa is strong development of the private sector in Africa. Once the African economies improve, the dependence on development aid can decrease. A development that is particularly welcome for the African nations. As a Ugandan saying goes: Water that has been begged for does not quench the thirst. Entrepreneurism and commercial col- laboration guarantee ­structural growth and relationships that become based on equality instead of depen­dence. The Dutch business sector can be ranked among the best in sectors such as water and agriculture. Economic ­relations lead to the exchange of knowhow and offer a clear advan­tage to both parties. This makes these commercial relations particularly sustainable! Our mission is to strengthen the economic relations be- tween The Netherlands and Africa. Dutch companies have a lot to offer for Africa and for many Dutch companies, Africa offers new markets that are often undiscovered. The trade between The Netherlands and Africa is currently Nouria Ouibrahim Project Manager nouria.ouibrahim@nabc.nl +31 (0)6 102 562 52 Employees NABC2011/2012 NABC2011/2012 8 9
  • 6. Burundi On a yearly basis NABC organizes around five trade mission to Africa. These business missions – with on average fifteen Dutch companies – are an excellent opportunity to meet potential business partners and gain a detailed insight in the opportunities and challenges a country has to offer. Destinations vary from emerging economies such as Angola and Nigeria which NABC visits regularly to smaller markets such as Madagascar and Cape Verde. One of these smaller markets NABC recently visited is Burundi. Probably not on the radar for the majority of Dutch entrepreneurs in Africa – Burundi has something to offer! » Read more about the trade mission to Burundi on page 54. In the picture NABC2011/2012 11 NABC2011/2012 10
  • 7. » Africa is connecting rapidly to the worldwide web. What is Google’s strategy to make use of this growing potential? Google’s mission in Africa is to make the internet an integral part of every­ day life and to strengthen Africa’s internet ecosystem, by increasing its relevance and usefulness, eliminat- ing access barriers for potential users, and developing products that are meaningful for the countries in the region. We see huge opportunities there. » How many internet users are there in Africa and what is the expected growth for the near future? It’s hard to predict the growth for the near future and give very precise usage figures, but it’s definitely necessary to make the internet relevant and more useful for Africans. Africa has 14% of the world’s population, but only 2% of its internet users. » Internet accessibility at home is still relatively expensive and 40% of the search requests come from mobile devices. Does Google expect this to change in the future? Mobile has become incredibly impor- tant in Africa. It took 20 years for the African cell phone population to get to 200 million subscribers, but less than 3 years to get to the next 200 million. For many people in Africa, their mobile is the first point of access to the internet. Mobile technology provides a more cost effective way to get online, and it is already a sig- nificant driver of positive economic and social change. The mobile web will be a key enabler for finance and commerce, social interactions and health initiatives, and Google wants to be at the forefront of these de- velopments. Globally, mobile search has grown by 500% over the past 2 years, and 400% on devices with full browsers in the last year. We expect similar trends in Africa. » Is Google developing specific products for the African market? Most definitely. We’re not only work- ing to make many of our products available in African languages (for example, Web Search in Swahili, Zulu, Amharic and many others), but we are also creating products specifically for Africa. For example, we recently launched Gmail Chat SMS in Ghana, Senegal, Kenya and Uganda, allowing mobile users to chat with desktop Gmail users via SMS, thereby addressing a social need and bridging the gap between mobile and internet. We are also enabling Africans to develop locally meaningful products with things like iGoogle (allowing developers to create gadgets), maps API (allowing developers to leverage our Maps products to build other apps and websites), the Android platform (providing the opportunity to develop Android apps), Chrome (for the development of browser- based applications), App Engine and our cloud offerings. » What are the main challenges for Google in Africa? Our users’ challenges are our chal- lenges. Access to the internet is still a challenge for many people. Devices, access and SMS pricing are often very Zack Matere - Kenya Zack Matere has reaped handsome dividends by using the internet (starting with Google Search) in farming, saving his last potato crop and now opening new markets. Last year, a strange disease invaded his potatoes, his biggest source of livelihood. “I knew I had to do something or else I could lose all my crops.” “I knew there was a way I could rescue them. I cycled 10 kilometres to the local cyber café, Googled ‘potato disease’ and discovered that ants were eating the potato stems” he says. On the same web- site, Matere found that the cure for his potato disease was to sprinkle wood ash on the crop. Two months later the crops were back in shape and Matere knew it was time to invest in the Internet. Using the net again, he found a ­local buyer for his rescued crop, and invested in an internet enabled phone that he now uses to get information on farming, spending roughly Sh50 a day. This is far too expensive for many small-scale farmers, but Matere says he intends to be the link between the internet and the community. He believes he is a bit of a pioneer. “I think I am the only farmer in the area who uses the Internet” he says. Source: Weberaza (surf to the website www.webarazafarmer.com to read the rest of story, which includes how he is also using Facebook) BabyM – Nigeria Mrs Funke is the owner of BabyM store in Ikoyi, Nigeria. She was introduced to Google Adwords by the digital agency 'Wild Fusion' (www.wildfusions.com) and finally decided to give it a try after she was assured of her money back guarantee. Her website, www.babymafrica.com, was very simple and comprised of 4 pages and a feedback form. Her budget was just about N50,000 ($400 USD) with which she chose her keywords (baby, maternity, pregnancy, baby names, kindergarten etc). All ads were geo-targeted to Nigerians and she started receiving rapid responses. Visitors to her ­website completed forms which were auto-emailed to her with contact information for her to follow up on. Hundreds of emails, calls and conversations later, prospective buyers came to BabyM from across the country to order, until she lit- erally ran out of stock. Even at this point she benefited from customers putting down money for the next season of baby clothes. Mrs Funke’s experience is a leading example for similar small ­businesses across Nigeria who, with the increase in broadband speed and rising internet penetration, are seeing the opportunity to benefit from online advertising. Abas of WildFusion, a digital media sales company in Nigeria at which Mrs Funke is a client, says Google tools have had a positive impact on our local market, especially with small businesses. they are inexpensive, 'deskilling' and are very accessible. You don't need a degree in rocket science or lots of money to use these tools. We have seen SMEs improve their bottom line through the combination of Adwords, ­Analytics and Google Sites and Places. We have also seen increased sales and customer retention through strategic use of these technologies. I will advise SMEs, especially ones in difficult business environments like ours, to take advantage of these op- portunities. expensive. Users will benefit from an open and more competitive access market, with lower prices and an improved user experience. Also, there is a lack of local content. We need the internet to be more relevant to people that live in Africa. We need to encourage people to get online and add original content. This can be in the form of a simple website, a blog, or for instance a QA via Google Baraza, a QA platform created specifically for Africa. » Is Africa a profitable market for Google? While we currently only have a com- mercial presence in South Africa, we see significant opportunities for the internet to empower businesses across Africa. In the long run, this will be beneficial to anyone in the internet space. That is why we are focusing first on access, relevance and strengthening of the African web ecosystem. It's not about short term profitability. This is about a long term vision and investment, because we're excited about Africa's potential. » Where in Africa is Google ­represented and are there any plans to expand in the near future? We have six offices across Africa (South Africa, Kenya, Uganda, Nigeria, Ghana, Senegal) though we are also working on many projects in a host of other countries, (e.g. Gmail Chat SMS in Malawi, and providing product interfaces in Amharic for Gmail and YouTube). We are hiring many new Googlers this year in Africa (see http://www.google.com/jobs/africa/), but we don’t have anything to ­announce about office locations at this time. Joe Mucheru, Lead for Google Sub Saharan Africa Interview Google inAfrica 50% growth in search requests 40% of search requests coming from mobile devices 0.2% of the world’s 255 million web pages is created by Africans 45 USD a month price of an average home connection in Africa – highest average in the world © flickr/CharlesFred NABC2011/2012 12 13 NABC2011/2012
  • 8. example; the effort to draw a map of Kibera, supposedly Africa’s largest slum area. Armed with smartphones, local volunteers scouted the area on foot, digitally marking roads, footways and points of relevance, ­including health stations, churches, water pumps, shops and so on. The result is one of the first comprehensive maps of Kibera. In the very near future, getting lost in an African city will be a thing of the past. The information that is gathered when such a map is created can have a profound impact. Kibera is listed as having a population of 1 million, and even more sometimes. The develop- ment of a concise map of the slum has led to considerable doubts about this estimate. Followed up by ­satellite imagery studies and household sur- veys, the number is now estimated to be between 170.000 and 270.000, a fraction of the former estimates. The official Kenyan census now puts Kibera’s population at 170,070. Paradoxically, improving data can also cause misperceptions. 'Ghost trends' can appear: if an indicator has been consistently underestimated, an increase in accuracy will result in an upward trend, regardless of whether this reflects an actual change. The correction of an overestimation will result in a downward trend; for instance, while Kibera’s population is probably growing, the data will show a significant downward trend as soon as the correction for the overestimation is processed. Therefore, for the moment, remain wary of putting all your trust in data. However, you can start looking forward to learning more and more  The evolution of fibre-optic cables connecting Africa in (a) 2010 and (b) 2012. Source: manypossibilities.net-African-undersea-cables, copyright: CC-BY  Open Street Map of Kibera. Source: Open-StreetMap contributors, CC-BY-SA. Jasper Grosskurth is author of ‘Futures of Technology in Africa’. Paper copies and free pdf down- loads of the book are available at www.stt.nl/AfricanFutures. about your markets, and ­uncovering new business opportunities in the process. From now on, Africa is a player in the age of information. Be sure to take that into account during your future ventures, in which I wish you the best of luck. By Jasper Grosskurth, STT, www.stt.nl Paul Butler is an intern at Facebook’s data infrastructure engineering team. In December 2010, the company released a world map of Facebook friendships, engineered by Butler. Those giving presentations on Africa will soon use the image to replace NASA’s popular Earth by Night images to showcase the centres of economic and technological activity in Africa. We clearly see South Africa’s Gauteng province light up, still the economic powerhouse on the continent. We see East Africa’s large cities, well con- nected to each other. In West Africa, Nigeria and Ghana lead the way. The number of ‘friendships’ is going to explode over the next year, with major submarine cables landing in West Africa. 2011 will bring afford- able internet to Nigeria and the rest of the African west coast. When the Facebook map was made, 10 ­million Africans were registered users of Facebook, with a growth rate of 5 percent per month. As you read this, at least a million more will have joined them, mostly through mobile phones rather than computers. Facebook is not alone. Google has a heavy presence on the continent, with offices in at least six African countries. YouTube, Twitter and Wiki- pedia see a constant and fast growth in the number of African users. Local sites also rank high, such as Nigeria’s Nairaland and Kenya’s Daily Nation. In fact, the word ‘Ghana’ is the most popular Google query in Ghana, ­underlining the call for local content. The reason that I am writing about this in a magazine for entrepreneurs, is to draw attention to the fact that Africa is undergoing an ICT revolution that will take many businesses by surprise. It is going to drive some to new heights and others to bank- ruptcy. The African market is going to change. Customers and suppliers will become much better informed and even better connected. Their life- styles and means of production will change. And every business model that had until now been hampered by high transaction costs with regards to information or money, is suddenly becoming a possibility. From selling insurances in rural areas to ­printing on demand in urban areas, ICT is about to change Africa. Perhaps the most important change is that your own market knowledge will change. In countries where currently even such standard indica- tors as population size or national income are subject to error margins of 30 percent or more, setting up a business is not simply a matter of using spreadsheets, but of excelling at navigating the mists of uncertainty. Many decision makers have to deal with extreme uncertainties and biased information when it comes to Africa. However, as accurate information becomes available through improved ICT, it will become possible to target investments more efficiently, estimate volumes more accurately and speed up the testing of new business ­models. Improved ICT infrastructure will facilitate an explosive increase of the quantity and quality of your data. Let me illustrate this with a recent The Future of Data in Africa December 2010 article NABC2011/2012 NABC2011/2012 14 15
  • 9. needs of a country; some industries are expanding considerably in many African countries, but they lack the equipment to facilitate such ex- pansion. We aim to assist in these situations. A further key factor for choosing a market is accessibility. Many markets in Africa are landlocked and require road or train transport. For Intercommerce, it is crucial to have reliable contacts in the country where our cargo arrives by sea. We can rest easily once we have secured a safe transport route for our cargo to a landlocked country. Our operations in Nigeria are solely focused on the Nigerian market at present. It is a vast country, with so many possibilities. We have also chosen some other countries that we operate in from a strategic point of view. We have had offices in Tanzania since last year; we now have many reliable contacts there who can assist answer the original question; the big- gest constraints would be not having the right representation in your chosen market on the African continent. » Together with a local partner and a subsidy from the Dutch govern- ment (PSI Plus), you started a stone crushing and ready mix-concrete plant in Burundi. Why did you decide to step into such an invest- ment project? These kind of industries are where I started working and I still do some consultancy work in this sector. I was contacted by Mr. Michel Hillen from EMSA Emerging Markets, who asked me whether or not I would be interested to assist and become a partner in the largest ­construction company in Burundi, GETRA. It ­appeared to be a nice opportunity and after several meetings with the director from GETRA, we decided to go for it. us with inland freight forwarding to countries such as Zambia, DR Congo and Burundi. The same applies to Senegal; due to our connections there we can now securely transport freight to our customers in Mali. » Doing business in Africa can be challenging – what do you consider to be the biggest constraints for your activities? When trying to develop a successful company in Africa, it is imperative that you are well represented in the country where you wish to do busi- ness. We regularly receive calls from people who wish to represent us in their country; we wouldn’t grant such a position to just anyone. The person who represents us must be reliable and trustworthy. The only way to verify this is to travel to the country and meet potential applicants. We now have reliable representatives in Nigeria, Tanzania, Senegal and Zambia. So to ›› Jan Slange, Intercommerce Winner NABC Dutch Business in Africa Award 2010 At the start of 2010, Jan Slange from Intercommerce joined NABC on a trade mission to Nigeria, which was the start of a successful year of doing business in Africa. Together with his colleague Mark O’Connor he explored the opportunities Africa had to offer and travelled extensively throughout the continent. At the end of 2010, he joined one of our trade missions again; this time to Burundi, where Intercommerce is involved in setting up a stone crushing and ready-mix concrete plant. These achievements, in combination with actively using the NABC network, resulted in winning the annual NABC DUTCH BUSINESS IN AFRICA AWARD in 2010. Interview the slums next to the river. Extremely poor living conditions everywhere you looked. Those were definitely some very impressive sights as a first impression. » Nigeria suffers from a bad reputation – what has been your experience with regards to doing business there? Due to our participation in the NABC trade mission, we were able to meet established companies in Nigeria. This gave us a very good perspective on doing business in Nigeria. We knew however that our experience wouldn't necessarily represent the entire Nigerian market. It could not (and it would not) always be so easy. Through our dealings with established companies in Nigeria, we managed to gain the trust of the ordinary Nige- rian business person. Our advertising in the country and word of mouth from existing customers also helped a lot. We suddenly started getting calls from locals asking us whether we could sup- ply 25 trucks to Lagos, or 50 Trailers to Abuja. We realized that we were now dealing with the real Nigerian custom- er. Before coming to Nigeria we were warned about these customers, with stories about scams. However, most of these warnings came from people with little experience in the African ­market, fuelled by negative media reports and of course the well-known e-mail scams that claim that a member from a Nigerian royal family inherited millions of dollars and he now needs to move it to a European bank. Still, Nigeria is a country with a pop- ulation of 150 million and growing steadily; it would be very naïve for us to assume that a land of this size would have zero con artists. It is very important, no matter what country you decide to do business in, that you keep your eyes open. Vigilance is key; if something sounds too good to be true, it usually is. We take stand- ard precautions when dealing with all our customers, not just in Nigeria. We operate in only two ways: cash prior to delivery or a Letter of Credit approved by our bank. We are expanding our business in Nigeria and to date we have had no negative experiences. Long may that continue. » Africa has over 50 countries – how do you choose your markets? Before choosing a market we look at the possibilities that a country can offer us. We assess the current » What are the main activities of Intercommerce? InterCommerce BV is active in markets throughout Asia, Europe and Africa. We regularly supply trucks, ­trailers, machinery and spare parts to com­ panies in the public and private sector. We are also available as con- sultants and have filled positions at companies seeking our help. » In 2009 you joined NABC on a trade mission to Nigeria. What was your first impression as you were driving through Lagos? I had been to several African countries before, so I wasn't too shocked by seeing all the rubbish, old trucks, the many old yellow buses and the large amount of people on the streets. Lagos was similar. One thing that did amaze me was the traffic; very heavy and very disorganised. What was new for me was the ex- perience of crossing the bridge from the airport to Lagos City and seeing NABC2011/2012 NABC2011/2012 16 17
  • 10. » Intercommerce is an active mem- ber of NABC. In what way was the NABC network useful for your busi- ness activities in 2010? In 2010, we frequented many meet- ings and trade missions with NABC. Together, all of that proved to be very valuable in the success of Intercom- merce on the African continent. Every meeting gave us an opportunity to meet representatives from other companies, who can be of assistance to us and vice versa. Members of the NABC staff were very helpful in pro- viding helpful contacts in countries that we travelled to independently. We look back on 2010 as a very suc- cessful year, in which we laid many foundations in Africa, all with help in one way or another from NABC. » What are the plans for 2011? In 2011, we hope to expand further while also working closely with our existing customers. We will be look- ing to increase our export of trucks, equipment and vehicles to these markets. 2011 also marks the start of the previously mentioned Burundi project; much time will be spent on the development of the Burundi ready mix and stone crushing plant. We will have to position many ma- chines and personnel in Burundi, so this will require some coordination between our office here, our contacts in the port of Dar es Salaam and the local workers at our site in Bujumbura. The year 2011 also marks Intercom- merce’s 25th year in business. We have acted on this by redeveloping the image of the company, printing new business cards, creating a new website, connecting with contacts through Twitter and LinkedIn, etc. We now have a strong online presence and it would be foolish not to use these online tools for meeting new contacts. » Any final words for Dutch entre- preneurs not yet active in Africa? I recall that last year at the NABC convention in Wassenaar, during a QA session, the question was posed how to make the convention big- ger and more successful next year? A reply came from a participant that really astounded me. The gentleman stated that it would be impossible to become bigger next year, as small companies do not have the time to visit these events. I had to disagree with the comment. Meetings like the one in Wassenaar play an important role in the survival and growth of a small company. These meetings provide the opportunity to meet like-minded entrepreneurs and new possibilities of expanding your exist- ing business. A few simple sayings that I keep in mind while working emphasise that point: If you are not in, you cannot win, and of course once you get there remember: If you fail to prepare, prepare to fail. Interview V E R I T A B L E H O L L A N D A I S - S I N C E 1 8 4 6 WWW.VLISCO.COM WWW.VLISCO.COM NABC2011/2012 18
  • 11. Accessibility The later part of the 20th century saw the development of global air linkages and new network hubs in conjunction with the globalization of economic activities. The forma- tion of new transport routes, especially in the rapidly developing realm of logistics and supply chain manage- ment, contributed to the increasing integration of African economies in the world economy. An excellent example is Kenya’s vegetable and flower exports - worth close to $1 billion last year - that amount to roughly one fifth of the entire Kenyan economy. Across the wide range of determinants of a country’s business climate, the importance of strong accessibility is often underestimated by corporate investors. Yet, having frequent and direct linkages with home markets not only saves a considerable amount of time, it also adds to the mobility of resources and increased interaction. Based on the number and frequency of international and domestic destinations and flights, and the number of airline carriers serving the country airports, the index shows that Egypt and South Africa offer the highest accessibility by air, with Morocco and Algeria as runners-up. 0 10 20 30 40 50 60 70 80 90 100 Mauritius Seychelles CapeVerde Botswana SouthAfrica Namibia Ghana Tunisia Lesotho Egypt 100 90 80 70 60 50 40 30 20 10 0 During the last decade, Africa has outperformed ­worldwide economic growth figures. Despite the economic downturn, this trend is likely to continue in the future. Although huge investment projects made the headlines, many other interesting economic developments remain unknown, ­preventing even more investors from entering this untapped continent. Country benchmark rankings are popular media items nowadays for providing insight into the competitiveness of countries. However, the importance of these rankings is disputed. Opponents claim that these country statistics are too rough and do not reflect local economic circum- stances. Conversely, positive country rankings are used by Investment Promotion Agencies to promote their business environment in the global market of (foreign) investment attraction. Business Environment One of the sub-variables of the African Attractiveness Index is the composite Business Envrionment Index. This Index is based on human development factors, business climate indicators, participation and human rights, safety and rule of law, and sustainable economic performance criteria. Out of 53 African countries, we can conclude that the African island economies are well positioned. Botswana's impressive economic record has been built on a foundation of diamond mining, prudent fiscal policies, international financial and technical assistance, and a cautious foreign policy. It is rated the least corrupt country in Africa according to an international corruption watchdog, Transparency International. Moreover, it has the fourth highest gross national income at ­purchasing power parity in Africa, giving it a standard of living ­similar to that of Mexico and Turkey. 0 10 20 30 40 50 60 70 80 90 100 Egypt SouthAfrica Morocco Algeria Kenya Nigeria Tunisia Madagascar Libya Tanzania article African Competitiveness Index The fact remains that competitiveness rankings and country business intelligence are increasingly being used by corporate investors to make investment decisions. Accord- ing to a recent study by Forbes Magazine, 74% of the executives use Internet Intelligence for their day–to–day decisions. In this context, LocationSelector.com provides an online platform that allows for benchmarking invest- ment locations and ranking their competitiveness. NABC2011/2012 NABC2011/2012 20 21
  • 12. 1 At some distance, South Africa ranks first with a competitiveness score of 74.4. It is the most developed economy in Africa, and hosting the successful World Cup tournament this year was yet another indicator that showed that this country is ready to absorb more inward investment. 2 With all of them ranking within the top 10 countries, Island nations such as Mauritius, Seychelles and Cape Verde are performing remarkably well. Rev- enues generated by tourism recipients and significant real estate and leisure investments are fuelling local economic growth. In addition, a tax friendly investment climate with a growing financial sector is positively influencing growth indicators. 3 Botswana, Namibia and Ghana are the remaining two countries that occupy a position in the African top 10 ranking. Botswana has shown sustained economic progress through prudent macroeconomic man- agement, institutional development, and good govern- ance. Even though many Sub-Saharan African countries still struggle with the negatives of HIV victims, Namibia has seen a remarkable increase in HIV treatment coverage: antiretroviral therapy coverage has risen from under 1% in 2003 to 88% in 2007. Ghana is developing a reputation as a country that produces high quality agrarian products through technological innovations. One product in which they have achieved a leadership position is the ­production of high quality cocoa. The country is also successfully reducing poverty, particularly in recent years. 4 North African countries, such as Egypt, Morocco and Tunisia, are also performing well. Besides generating revenue through tourism, these countries success- fully diversified their economies. Egypt's strategic location at the crossroad of Europe, the Middle East and Africa has made it an important trade nation. Due to recent legislative reforms - and for a second consecutive year - Egypt1 was named one of the World Bank's top 10 reformers that are making it easier to do business. 1 The African Attractiveness Index was published prior to the series of events that momentarily occur in Egypt. 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 SouthAfrica Mauritius Egypt Seychelles Botswana Morocco CapeVerde Tunisia Namibia Ghana For further information, please contact Investment Consulting Associates at info@ic-associates.com or contact Mr. Matthijs Weeink – matthijs@ic-associates.com or +31 20794 6084 Emerging Markets? Ede T +31 318 67 27 00 Amsterdam T +31 20 623 48 12 info@advanceconsulting.nl www.advanceconsulting.nl ©decrealisten.nl Advance Consulting assists companies to realize their international business activities in the emerging economies of Africa, Asia and Latin America. We identify commercial opportunities, facilitate strategic cooperation with international business partners, assist with acquiring the necessary financing and provide technical and management support services. We acquire grants (subsidies) and loans from donor agencies, banks, venture capital funds and other sources on the strength of a business plan and/or project proposal. Our team of business advisors and project managers has broad international experience, an eye for quality and detail and is known for its innovativeness, flexibility, customer-orientation and focus on results. We work on a performance basis - often no cure, no fee - with full commitment to deliver the results that we set out to achieve. Adv_170x120 NABC.indd 1 25-01-11 12:17 Other competitiveness indicators Our experience with cross-border investment projects has taught us that potential investors put much emphasis on mitigating business risks, rather than enjoying short term benefits. Boardroom discussions address complex matters such as financial risks, operational risks, political risks, and socio-economic risks. Is there a track record with other international investors? Is the infrastructure sufficiently developed to secure the corporate ­supply chain? To reflect these matters in the overall African ­Attractiveness Index we have also included the following composite criteria: Business Risks, Environmental and Rural Indicators, Inward Foreign Direct Investments, Infra­ structure, Political Stability, and Quality of Life factors. African Attractiveness Index Disclosing quantitative as well as qualitative country data is one way to close the information gap and to improve the country image building efforts. This ranking highlights the African Attractiveness Index, which is based on 70 location factors, corresponding to 9 composite ­criteria: Accessibility, business environment, business risks, ­environment and rural sector, inward Foreign Direct Investments, Infrastructure, Macro Economy, Political Stability and Quality of Life. Macro Economy The African continent has witnessed an impressive growth rate in the last decade, outperforming most of the devel- oped economies. Nevertheless, there are significant differ- ences between African countries in terms of macroeconomic growth indicators. The ten year average GDP growth rate for Zimbabwe is -4.54%, while Equatorial Guinea (large oil and petroleum reserves) shows an impressive +18.09%, a gap of 22.63%. Also taking into account qualitative macroeco- nomic indicators such as Public Debt, the Quality of Budget Management, Unfair Competition, and Bureaucracy and Red Tape, resulted in the following Macro Economy Index. Botswana ranks first, followed by Mauritius and South Africa. Foreign investments and management are wel- comed in Botswana, and as a result, financial and services sectors have increased at an exponential rate in the past ten years. This is in line with its efforts to diversify the economy and to replace mining as the leading industry. Botswana abolished foreign exchange controls, has a low corporate tax rate (15%), no prohibitions on foreign ownership of companies, and a moderate consumer in- flation rate (8.1% in 2010). The Government of Botswana is currently considering additional policies to enhance competitiveness, including a new Foreign Direct Invest- ment Strategy, Competition Policy, Privatization Master Plan, and a National Export Development Strategy. Mauritius is also successfully implementing new legislation to encourage foreign direct investment. One of the main advantages is the rate of corporate income tax in Mauritius, which is currently 15% on chargeable income, having been reduced from 25% as of 1st July, 2007. In combination with an efficient Export Processing Zone (EPZ), this has fostered the exporting capabilities (i.e. sugar) of Mauritius. 0 10 20 30 40 50 60 70 80 90 100 Botswana Mauritius SouthAfrica Tunisia Namibia BurkinaFaso CapeVerde Egypt Morocco Rwanda Four main conclusions NABC2011/2012 NABC2011/2012 22 23
  • 13. During the preparations for the trade mission to Ethiopia, Henk Veldman visited Bethlehem near Addis Ababa for an exclusive interview and a tour around her factory. » What made you decide to make shoes in Ethiopia? Having grown up watching our family and neighbors struggling, we decided to create the “better life” that we were all hoping for by harnessing our com- munity’s incredible artisan skills and channeling them into a sustainable, global, fair trade footwear business. We have done that and more, and we are proud to say that the soleRebels brand is currently sold in over 10 countries around the world. Shoes became our product because we saw that footwear was an excellent product for sharing many of the indigenous eco-sensible crafts and artisan talents that we have here in Ethiopia with the rest of world! Interview Bethlehem Tilahun Alemu - Co-Founder and Managing Director of soleRebels Ethiopia Made in Ethiopia is a strong brand” “ Based in the suburbs of Addis Ababa, Ethiopia, soleRebels produces the finest artisan- crafted footwear using only eco-sensible materials. Founded in 2004, the company has become a big success on Amazon and has firmly established itself on the American, French, Japanese and UK market. Managing Director Bethlehem Tilahun Alemu has been praised worldwide for her efforts to promote business in Africa, which resulted in winning the World Economic Forum's 2011 Young Global Leader Award. With this award, Bethlehem joins a distinguished list of previous winners that include Google co-founders Larry Page and Sergey Brin and the founder and CEO of Facebook, Mark Zuckerberg. NABC2011/2012 25 NABC2011/2012 24
  • 14. » How do you make the shoes? There are basically three different processes. First of all, there is the spinning and weaving, to make the different parts of the shoe (the sole is made of rubber). Secondly, we prepare and sew the different parts and in the final process we manufacture the actual shoe. To make it an authentic Ethiopian product, around 97% of the inputs are local. The remaining 3% - the inner foam - comes from China. » How do you explain the success of soleRebels in the US, France and the UK – why do people buy shoes from Ethiopia? 'Made in Ethiopia' has become a strong brand; people buy our shoes because they like them and the quality is good. In addition, our shoes are different from mainstream products, and it is also an authentic product. If you read the comments on Amazon, you get a fairly good insight into why people buy our shoes. » Is there also an idealistic reason for soleRebels for producing shoes in Ethiopia? Of course! For too long Ethiopia has had a reputation of being a poor country that is dependent on aid. I want to demonstrate that we – the Ethiopian people - are perfectly capable of creating something our­ selves. We do not need NGOs; we need more businesses. By demonstrating that it is possible to produce some­ thing unique in Ethiopia, we hope to inspire more people in Africa. » But there must be some challenges as well in setting up your business here? As I mentioned earlier, productivity is low, and due to logistical challenges shipping products to Europe and the US is expensive. It costs around 25USD to ship one pair of shoes to the US. In addition, soleRebels became an official Fair Trade brand in 2007. In order to retain this status, we have to adhere to strict international stand- ards. It is hard work to maintain that status, but it is an important part of our marketing strategy. » Is labor not relatively cheap in Ethiopia? That is a mistake that many people make when they invest in Ethiopia. You are right when you say that labor is not expensive by the day. However, the productivity is very low, which makes it expensive when you add it all up. As a result, I have to put a lot of time and energy in training my employees. But I believe that part of the success of soleRebels is investing in my employees. SoleRebels recruits people from the streets who are motivated and determined to work. By involving them in every step of the production process, they become a part of the company. They are proud to work for soleRebels, they work hard and they stay on board. Currently we employ 75 people, full time. » Finally, what are your plans for the future? I want soleRebels to become the Tim- berland or Nike of Africa. An important step is to further ­professionalize the production process, improve ­capacity and to enhance and expand our brand. I believe that Africa is going to be a strong brand in the near ­future and soleRebels is going to profit from it. I am also trying to build up a strong presence on the Dutch retail market; we are already online in the Netherlands through our spartoo. com partnership. So if any of your ­readers are interested in marketing our ­product in the Netherlands to footwear retailers, please contact me. soleRebels shoes are sold world- wide through retailers such as Urban Outfitters, Endless.com, Amazon.com and Spartoo.com, and can also be ordered directly through the official soleRebels website: http://solerebelsfootwear. weebly.com/. We do not need NGOs; we need more businesses Interview NABC2011/2012 26 It is time for Africa! From 19 to 21 September 2011 a high-level B2B Forum is taking place in Nairobi, Kenya. The Forum is initiated by European and East ­African Chambers of Commerce as part of the Proinvest project SOPSED. Over 200 companies from Europe and Eastern Africa will participate in this event which makes it an excellent opportunity to increase your network and expand your business in the region. Experts and leading from the following sectors will be present: • ICT Media • Agribusiness Fisheries • Construction Real Estate • Fashion, Textile Leather • Tourism • Consumer Market To ensure everyone reaches Nairobi comfortably – the organization partnered up with Kenya Airways – The Pride of Africa. Participants of the forum will receive a discount on Kenya Airways, from wherever you fly from in the world. For more information or registration please contact Nerea Musita at Nerea. musita@nabc.nl or +31 (0)70 3043618 Organizing partners Europe • Afrika-Verein • Birmingham Chamber of Commerce Industry • Paris Chamber of Commerce Industry • Chamber of Commerce Industry of Brussels • Centre for Mediation Arbitration – Paris • Promofirenze • Netherlands-African Business Council East Africa • Kenya National Chamber of Commerce Industry • Addis Ababa Chamber of Commerce Sectoral Associations • Uganda National Chamber of Commerce Industry • Mauritius Chamber of Commerce Industry • Burundi Chamber of Commerce, Industry, Agriculture Handicrafts EU – East Africa Business Forum 19 – 21 September 2011 • Infrastructure Energy • Education Health • Access to Finance • Doing Business in the EAC • How to find the Right Business Partner • Aid Funded Business
  • 15. First mushroom farm in Libya We are currently delivering and instal­ling a mushroom farm in Libya. Our contact, the entrepreneur Mr. Mahmoud Salem, has proven to be a visionary with regards to new mar­ kets. He will be the first one to set up a commercial mushroom farm in Libya. The farm is being built by local contrac­ tors. Architectural advice with regards to the optimal dimensions for a mushroom farm is being provided from the Netherlands. The complete inventory is purchased from Mush Comb in the Netherlands. In this particular case the whole inventory comes from an existing Dutch farm that recently closed down. Such a deal is financially very interes­ ting, especially during the initiation phase. However, the disadvantage of working with used equipment is its limited availability. In the long run, it is easier to work with new equipment because it can be reproduced. We even provide an Economy product line, which is very interesting for countries with low labour costs. Conclusion History speaks for itself: when Europe was dealing with food shortages, mushroom cultivation rapidly ex­ panded and alleviated the problem. Why not do the same in Africa? For those of you who are inspired by this article, and who wish to know more about the subject; please do not hesitate to contact me. Founded in 1878 SGS is recognized as the global benchmark in quality and integrity. WIth over 60,000 employees, SGS operates a network of over 1,000 offices and laboratories over the world. SGS is the world’s leading inspection, verification, testing and certification company. www.sgs.com WHERE STRENGTH MEETS SPEED Growing mushrooms Growing mushrooms on a commercial farm can be done anywhere in the world. Mushrooms grow in dark, environmentally controlled growing rooms. Such an environment makes it possible to grow mushrooms the whole year round. Mushrooms grow on a layer of ­com­post and casing soil. The compost contains the mushroom spawn, which is the Agaricus Bisporus in this exam­ple. Each growing cycle lasts six weeks, from when the beds are filled with compost until the end of the harvest. A small farm can easily produce 300 tons of mushroom per year. And creating such a farm does not require a million dollar investment. That is why growing mushrooms is also very interesting economically. Mushroom Bob Your guide to growing mushrooms  Agaricus Bisporus growing at a commercial farm. For my work I visit many places in the world. I have travelled to Australia, Asia and Europe, but I had never visited the African continent. The NABC agribusiness mission to Nigeria was my first visit to Africa. And it inspired me. Seeing Nigeria and speaking to people who have a lot of experience with doing business in Africa made me realize the potential of this continent. Part of the goal of the NABC mission was to find potential business opportunities. That goal was definitely achieved. A positive side effect of becoming in­spired is that you also get new views and have new ideas. After doing some research I realized that mushrooms could be an ideal food product for many African countries. I dared to dream; could mushrooms be the food of the future for Africa? Short introduction of mushrooms Mushrooms have been a part of the human diet for centuries, as food and as a medicine. Wild mushrooms have been a staple food in some regions and many varieties are still used as prized delicacies in haute cuisine. Interest in using mushrooms as a part of a regular diet expanded in the 1940s due to wartime food shortages. This interest has continued to grow as commercial cultivation methods have enabled mushroom growers to produce a secure and reliable food source all year long. Although mushrooms belong to neither the plant nor the animal king­dom, in culinary terms they are regarded as a vegetable, and are considered as such by most nutritional guides. Background information states that the vegetable category is primarily defined by its vitamin A (β-carotene) composition and also by its content of carbohydrate, fibre, magnesium, iron, vitamin C, folic acid and potas­ sium. The Chinese Food Pagoda Guide also includes mushrooms in its vegetable category. One half cup of mushrooms is considered one daily vegetable serving. article By Bob Holtermans, Mush Comb NABC2011/2012 NABC2011/2012 28 29
  • 16. At that moment we could do two things. Either say goodbye to each other or start a subsidiary in Africa together. We chose the latter. » Can you tell us more about your experiences in Ghana? What kind of projects have you been developing in Ghana or elsewhere in Africa? We always start new subsidiaries as a greenfield development. Once a new office is up and running, we have them working on projects from other Bartels offices. This provides the new office with the ­opportunity to learn from the knowhow of the existing Bartels offices. We have been doing that for about two years (which is a short term for engineering companies) in Ghana. Just recently we started looking around for local clients and businesses to work with. In our business it normally takes a few years to build up a local network of clients. However, Ghana turned out to be different, because we just started working on a small ­hospital. A short while ago we were also in- volved in a building project with the company Coco industrial ­building. Our offices in Ghana enable us to operate anywhere within Western Africa. Pieter van Boom is ­Managing Director at Bartels Consulting Engineers. Together with his ­co-managing director, Taco ­Klevering, he is responsible for the international offices and expansion of Bartels. have to explain all about roof loads after snowfall, but we learn as much from them as they learn from us. Many of our Dutch colleagues line up for a chance to work in Ghana when we announce that we want to create an international design team for a project. Working in Africa is great! » What are the most impressive changes you have seen in Africa over the years? We have only been active in Africa for a short while. What we see now is the fast growing presence of Chinese companies in Africa. I wonder why so many European companies don’t see the possibilities in Africa. After so many years of development aid, by sending money and ‘welfare workers’, many seem to believe that there will never be any real business opportuni- ties. I think they are wrong there. » What is your vision on Africa’s future development? I would not dare to state an opinion about all of Africa. We are just involved in a small part of West Africa. For this area we have high hopes. The area is rich in energy and materials. In some countries there seems to be a kind of a sellout of these materials to Chinese partners. But I believe that this is different in Ghana. Ghana has the right political setting to become very successful in the long run. » In what ways do you cooperate with NABC? We have been a member for one year now. This means we are still ­looking for good ways to cooperate. We have attended some of the events and started to do some networking. We see some good chances there, but there is still much for us to learn. » What is the relation between the Dutch headquarters and the Accra office? For example: what is the ratio expats/local employees? Are you ever confronted with cultural differences and how do you deal with them? In every country Bartels is organized locally. We have a network of offices located in Germany, Ghana, Poland, Turkey, Bulgaria and Ireland. Because of this network we are in a ­position to provide consultancy services throughout much of Europe, and now also the western part of Africa. These local offices possess knowledge and experience with regards to local regulations, conditions, work ethos and culture, and are also a source of up-to-date information ­regarding regional market developments. We also form multidisciplinary teams from different countries for specific projects. So, in our organization it is necessary to really be ‘the local company’. The only non-African employee in Ghana is our director there, Dick Werkman. We are used to dealing with ­different cultures. Every country has its own specific conditions, threats and re- quirements, especially in real estate and building activities. Our clients know that we can deal with all these conditions. We feel lucky to be able to work with so many talented and well educated Ghanaian engineers. Of course we Bartels Consulting Engineers is an inter­ national private partnership company with offices in Bulgaria, Germany, Ghana, Ireland, Poland, The Netherlands and Turkey. With over 300 employees and 40 years of experience in the field, Bartels provides a wide range of consulting engineering services. Bartels is highly experienced in the field of civil and structural engineering, building management, fire safety, high rise designs and geotechnical engineering. Within the total ­building process Bartels fulfills the role of proactive advisor in the development of solid, economical solutions for structural and civil engineering. Our projects vary from high rise (up to 250 meters) to office buildings, housing, underground structures, infrastructural work and sports and leisure. » Why Africa? What were your con- siderations that led you to doing business in Africa for the first time? We are not the kind of people that think and talk a lot about strategy and planning. We address all oppor- tunities that seem reasonable as soon as these opportunities occur. It’s our way of entrepreneurship. Africa became a topic when one of our very experienced Dutch senior engineers, Dick Werkman, mentioned he wanted to leave Bartels and emigrate to Africa. Bartels Consulting Engineers expands to Ghana Interview Pieter van Boom, Managing Director at Bartels Consulting Engineers NABC2011/2012 31 NABC2011/2012 30
  • 17. The existence of a large gap between rich and poor is one of the most fundamental questions that has been racking the minds of our world's brightest minds. Economists all over the world agree on the fact that sub-Saharan Africa is by far the world's poorest and least developed region in the world. Looking at the Gross National Product per capita - the most frequently used international benchmark by which quality of life is measured - Africa is ­increasingly lagging behind other developing regions such as Latin- America and Asia. Other indicators for the quality of life, such as infant mortality rates, literacy rates and life expectancy at birth yield the same conclusion: a large number of African countries consistently rank at the bottom of international comparisons. What many economists cannot agree on is why Africa is the poorest region of the world. This question is of great importance because the answer directly influences the development policies of organizations such as the World Bank and the International Monetary Fund (IMF). For years and years, the models that have been used to describe the African economies were based on analyses of data gathered between 1950 and the present day. There was scarcely any reliable data on the first part of the 20th century. The dissatisfaction with the effectiveness of the policy advice of these organization has increasingly shifted the attention of development economists and economic historians to the long term perspective. Does the current 'growth tragedy' have deeper historic roots? Are there any structural obstructions hampering African economic development? Some economists emphasize the adverse ­geographical location of the African continent. In comparison to other parts of the world, there is an increased prevalence of tropical infectious diseases, such as malaria. In addition, they claim that there were limited possibilities for devel- oping the African trade network because of a relatively limited number of natural transportation routes. For instance, compared to Europe, Africa has fewer rivers, of which the majority is also much harder to access. On top of that, the continent has a very large interior, far removed from the coastlines. Africa's fragile ecosystem is also often mentioned as an obstacle when it comes to increasing agricultural production. Another group of economists has mostly emphasized the negative consequences of colonial rule. This is in itself not a novel idea. An earlier version, also known as the 'world system theory', argued that Europe caused the under­ development of Africa by making unfair trade agreements that were based on persistent exploitation. More recent studies on the long term consequences of colonialism focus more on the institutional heritage of the European dominance. Instead of institutions that stimulate growth, such as secure rights of ownership and access to important public services such as education, colonialism emphasized 'extractive' institutes instead: high taxes and expropriation (land) would, in that light, have had a persistent negative effect on the structure of economic incentives in Africa, and would have therefore continued to be a hindrance to the development of the postcolonial economy. What many economists cannot agree on is why Africa is the poorest region of the world Lastly, there is a school of thought in the economic ­literature that points to the problems caused by a high degree of ethnic fragmentation - a phenomenon that certainly has strong historical roots, but which was intensified by the artificial borders that were created by the colonial powers in the 19th century. The idea is that the larger the ethnic diversity of a national state, the more difficult it is to reach a consensus on the distribution of political power and public goods, such as schools, infrastructure and hospitals. The high intensity of the slave trade between 1400 and 1900 (in which not only Europeans, but also Africans themselves played a large role) is said to have left a permanent scar on African societies because of a deeply seated inter-ethnic distrust. The explanations given above might differ in their primary causes, but all of them are marked by a certain ­pessimism, bordering on historical determinism; if the African growth potential was indeed affected by these structural ­barriers - whether it be the adverse geographical location, the bad institutions or the ethnic diversity - one would be inclined to conclude: 'It was never particularly noteworthy and it isn't much now, so it will never become anything note- worthy'. After all, the implicit consequence of thinking in terms of structural barriers is that Africa was destined to be poor. Is this the right conclusion? Or is there enough evidence for a more optimistic vision? In my thesis I aim to prove that one of the problems of the studies mentioned above is that they were based on disputable statistical evidence. I will try to explain this in layman's terms. If the historical factor X (for instance, the intensity of slave trade in 1700) would produce outcome Y (a low level of economic development in 2000), and this relation is based on the assumption of a persistent effect (the consequences of factor X are persistent), then these negative consequences would have to exist throughout all three centuries between X and Y. In other words, the relation should constantly be statistically significant. But what if Y changed drastically throughout the years? What if the economic growth was a lot higher in for instance the 1920s, compared to the 1990s of the last century? Development in Africa from a historical perspective: article NABC2011/2012 33 NABC2011/2012 32
  • 18. I use this example to illustrate that it is important to first know more about the actual functioning of the African economies under colonial rule, as opposed to the assumed functioning of these economies. We can of course assume that Y remained relatively unchanged throughout the years, but without empirical data such a conclusion will be merely speculation. Was Africa always worse off than other parts of the world? Answering this question means we have to try and map the colonial growth pattern as much as possible, regardless of how rare the quantitative material is. In my thesis I have tried to contribute to this by reconstructing the development of the purchasing power of the urban uneducated workers in eight British- African colonies during the period 1880-1945. My main question was: did the purchasing power of this group increase or decrease during this colonial period? Real income development is often used as an alternative for GDP data (the Y in the example above). Unfortunately, we do not have GDP data on Africa from before 1950, and it turns out to be difficult to reconstruct this benchmark. What we do have is income and pricing data. These num- bers can give an even clearer picture of the development of the quality of life of the African wage worker than GDP data, because they are directly related to the income per member of a household. The disadvantage is that only a relatively small part of the native population was a wage worker in those days; the majority worked in self-sufficient agriculture. Therefore, for this group the crop yield is a much better benchmark for their quality of life than the real income levels. However, the group of wage workers grew substantially during the colonial period and their numbers can certainly not be neglected. Taken together, my data can give an indication of the overall economic dynamic and, indirectly, also the level of Y. The outcome of my research uncovered a varied history of purchasing power development in British colonial Africa. On the one hand, the average wage worker in East Africa did not gain much, and their wages barely covered their daily living expenses. However, the situation in West Africa and Mauritius was very different; real wages increased quickly during the colonial era and were almost 300% above the level of South and East Asia. In some parts of Africa, Y therefore seems to be a lot higher than what was previously assumed, and it is hard to reconcile this data with the pessimistic tone that dominates the literature. There seems to be little historical evidence supporting the proposition that Africa is destined for poverty. However, adopting a more optimistic view with regards to the functioning of West African economies should not be confused with the notion that colonialism 'wasn't as bad as they say'. Exploitation comes in many shapes and forms: psychological, social, physical, cultural, etc. For many Africans, the colonial era stands for oppression, humiliation and various forms of exploitation. In addi- tion, the strong development of purchasing power is not necessarily an indication of 'good intentions' from the colonial government. In places where the control of the colonial powers over the local labour market was more absolute, such as East Africa, we see more extraction: lower wages and higher taxes. Current pessimism with regards to the African growth potential has no historical basis It also does not necessarily mean that the colonial era had no negative long term consequences for the development of African economies. It is plausible that the negative economic heritage of colonialism did not fully surface until the post-colonial era. These kinds of associations or links are hard to discern with the current statistical analysis that is so often used by economists, and it demands a more thorough knowledge of the functioning of the African economies throughout the entire 20th century. The clearer picture we have of the years before 1950, the better we will be able to discern patterns of continuity and discontinuity in the history of African economic development. So what are the implications of this kind of research for creating effective development policies? First and foremost it shows that it is important to know where something went wrong in the past. We should not try to heal a patient based on a wrong diagnosis. Secondly, we should constantly remind ourselves that there is enormous variation within African economic growth patterns and that economic policies will have to take this diversity into account. Lastly, we have to acknowledge that the current pessimism with regards to the African growth potential has no historical basis. Looking at matters from a long term perspective seems to indicate that the crash of African economies in the seventies (and its aftermath) was more an exception than the rule. Let's hope that Y confirms this view in the year 2025. Marlous van Waijenburg studied Economic History at Utrecht University. Her master thesis, titled Living Standards in British Africa in a Comparative Perspec- tive, 1880-1945. Is Poverty Destiny? received both the prize for best master thesis at the faculty of Humani- ties at Utrecht University, as well as the best thesis award from the International Institute for Social His- tory and the Volkskrant. She is currently working on her dissertation in Chicago. In 2009 three Dutch companies NAWI, WINK PARTNERS and LINECO founded the Netherlands-African Meat ­ Tech­no­logy Partners. For innovative slaughtering and meat technology solutions for projects in Africa N-A MTP is your partner. More than just a supplier Man. Dir. of LINECO Robert Lintvelt, experience with capital equipment projects in Africa since 1985, is respon­sible for marketing and export sales for N-A MTP in Africa: “We are more than just a supplier of slaughter systems. Together we design and do the engineering of complete ­abattoir solutions, cold stores, effluent treat­ment systems, rendering plants and all utilities and facilities. Meat processing and packaging solutions complete our range.” N-A MTP can handle all projects. From start capacities to the highest ­capacity industrial systems. From just the slaughter line to integrated turnkey solutions. Design, engineering, supply, installation and, if needed, the entire project management. High quality market High quality local market segments in Africa (business and tourist hotels, restaurants, retailers etc.) demand a safe and high quality meat. Hygienic and food safe slaughtering practices are a must to meet the requirements of the HQ market. Also in case the objective is to export meat products to international markets maximum hygiene during the entire production process plays a key role. N-A MTP supply slaughter systems of the highest EU quality and in full conformity with the highest hygiene and food safety norms. NAWI, a global player Leading meat companies in the Nether­ lands, but also in the rest of EU, East Europe and worldwide, have chosen for NAWI slaughter, deboning and logistic systems. “The Dutch industry has high quality requirements and wants custom-made, but at the same time cost-effective solutions”, says Alfred Klunder, Sales Director of NAWI. “Since 1972 we have proven to be a leading player, innovative and customer-oriented.” Lintvelt emphasizes: “Innovative and proven technology developed by NAWI in close partnership with their numerous customers is now introduced by N-A MTP in emerging markets in Africa.” Projects in Africa In 2010 NAWI has delivered a ­slaughter line for cattle and sheep for a ­project in Tanzania. The abattoir will be ­operational in the near future. Lintvelt: “The choice for a high quality NAWI solution for Tanzania is a very good example of the attractive price / quality ratio. At the moment we ­develop similar projects in other African countries.” Advice and consultancy Many abattoirs in Africa are old and need to be rehabilitated or upgraded. Specialists of WINK PARTNERS visit Africa to investigate the site, production lines and facilities of the old ­abattoirs and to recommend the most optimal solution. N-A MTP can advise on an operational and strategic level. Dick Wink, CEO of WINK PARTNERS: “If required we provide operational management and search for invest­ ment or trading partners. It is imper- ative to have an important network. With N-A MTP this is the case.” Ethiopian cuisine During one of his visits to Ethiopia in 2009 his local business partner invited Lintvelt to enjoy the typical Ethiopian cuisine: Raw beef with injera (the pancake-like bread) and hot spices. Lintvelt: “I accepted the invitation. Our subsequent discussion about beef and the potential of the meat sector in Ethiopia triggered LINECO to join forces with NAWI and WINK. We founded N-A MTP and now support customers all over Africa with the realization of their projects.” PARTNERSHIP LEADS TO SUCCESS Innovative and hygienic Dutch meat technology for Africa  Demonstration to customer from Africa  Cattle in Ethiopia on the way to abattoir – ADVERTORIAL – MORE INFORMATION info@namtp.nl www.namtp.nl NABC2011/2012 34
  • 19. often realise emission reduction at lower costs than similar reductions in industrialised countries. In order to qualify for CDM, the project must lead to emission reductions that are truly additional in comparison to the business as usual scenario (otherwise the CDM project activities would not contribute to a net decrease of global levels of greenhouse gas emissions). Emission reductions achieved with CDM projects are awarded credits called Certified Emission Reductions (CERs). One CER represents an emis- sion reduction of one tonne of CO2 equivalent. A CO2 equivalent is the accounting unit . Other greenhouse gasses can be expressed in CO2 equiv- alent by using a multiplier reflecting the global warming potential of the particular greenhouse gas. For exam- ple, reducing methane (CH4) emissions by one ton would be equivalent to reducing CO2 emissions by 25 tons. The Kyoto Protocol recognises six different greenhouse gases (three natural and three synthetic gases). European companies in certain ­sectors are granted annually a specific budget for greenhouse gas ­emission. The companies may either keep their emissions within the budget or buy CERs to expand their emission budget. CERs can be traded privately or in the international market. There are various market places for inter­ national trade in CERs such as NASDAQ OMX Commodities Europe, the Euro- pean Climate Exchange (ECX), etc. Also banks and governments are significant traders in CERs. Prices of CERs range from about € 22 mid 2008 to about € 10 early 2009. Current prices are around € 13. Apart from the trade in CERs, there is also a voluntary carbon market driven by companies and organizations aim- ing at achieving their own emission reduction targets. In the voluntary market, acknowledged emission reductions are called Verified Carbon Units (VCUs). Just as CERs, VCUs are used as credits for financing projects. However, unlike CERs, VCUs cannot be used by Annex I countries to comply with the emission reduction target under the Kyoto Protocol. This results in a price level of VCUs that is signifi- cantly lower as compared to CERs. We will focus on the CERs in the remainder of this article. How can you use CDM for finan­cing your project in Africa? Step 1 Describe the project idea in a so-called Project Idea Note (PIN) document. Ensure that you include a well-argued estimation of the emis- sion reduction in the document. On the basis of the PIN, you may obtain a pre-validation (for example by TÜV or SGS) and a letter of support by the government of the country where the project is going to be imple- mented. Although this first step is not mandatory, it may be useful in assessing the feasibility of the CDM project and facilitate an early go / no go decision. Step 2 Present the project in detail in a so- called Project Design Document (PDD). In the PDD you apply an approved methodology to calculate the emission reductions that will be achieved by your project. If a suitable methodology does not yet exist, a new one has to be elaborated first. The PDD must also present an analysis of environmental and socio-economic impacts of the project. The PDD must be accompa- nied of a letter of approval from the government of the country where the project is going to be implemented. Step 3 Organise validation of the PDD by an independent organization accredited by the CDM Executive Board of the UNFCCC (an executive body of the United Nations), such as TÜV, DNV or SGS. If the project receives a positive recommendation, you can officially register the CDM project at the CDM Execute Board of the UNFCCC. Step 4 Implement the project and monitor the actual emission reductions on the basis of the approved ­methodology which includes an approach to monitor against a baseline emissions scenario. Provide monitoring reports and request for verification and certi- fication. Step 5 Organise verification by an interna- tional accredited organization, which is not the same as the one that did the validation (step 3). The verifier has to make statements on the ­integrity and accuracy of the monitoring re- ports. Step 6 Request the CDM Executive Board of the UNFCCC to issue CERs on the basis of the verification reports (step 5). Once issued, you can sell the CERs on the international market places. In many cases, investors make upfront finance available for CDM projects on the basis of an emission reduction purchase agreement (ERPA). In fact, the investor buys the credits that 'Clean Development Mechanism (CDM) for Dummies' Africa has the lowest electrification rate worldwide at 26% of all house- holds, meaning that as many as 547 million people do not have access to electricity. According to the World Bank, the total financing need for Africa to solve the problem of poor power supply, is US$40 billion per annum, which is around 6.4% of the region‘s GDP. With a current average investment of US$19 billion in energy infrastructure per year, there is a remaining investment gap of more than 50%. The private sector plays a crucial role in increasing the access to energy in Africa. Companies operating in Africa can provide hardware (varying from small-scale solar systems to large-scale power plants), ­know-how, business models and investment capital. Dutch companies have proven to be successful in increasing ­access to energy in countries such as South Africa, Tanzania, Malawi, Mali and Ghana. Nevertheless, business op- portunities in Africa are not fully used. Lack of financing and a weak investment climate seem to be major obstacles for realising energy infra- structure projects in Africa. Additional finance generated through carbon credits may tip the balance in favour of the investment in certain cases. A relevant instrument in this context is the Clean Development Mechanism (CDM) established under the Kyoto Protocol. Although some experts claim CDM has peaked already, it is remarkable that many ­companies for which the mechanism can be relevant, are not yet fully aware of it. Most CDM projects have been developed in China and Brazil where investments in cleaner technologies in large polluting industries generate significant amounts of carbon credits. In Africa, the number of CDM projects is extremely low: less than 2% of the CDM projects is located on this continent. Out of a worldwide total of 457 million CERs annually gener- ated, Sub-Saharan countries account for less than 10 million. The region hardly benefits of the carbon ­trading ­industry that has generated over 30 billion US dollars in investment capital for climate change efforts in a relatively short period. Unfamiliarity with CDM and complexity of its proce- dures ­undoubtedly contribute to the low level of successful collaboration ­between African and European players in developing CDM projects. Hence, is it time for a “CDM for Dummies”. What is the Clean Development Mechanism? The Clean Development Mechanism (CDM) was established under the Kyoto Protocol. The Kyoto Protocol was adopted in 1997 as part of the UN Framework Convention on Climate Change. The Protocol enables indus- trialised countries with a greenhouse gas reduction commitment (so-called ‘Annex 1 countries’), through the CDM, to achieve their emission reductions in developing countries. The philosophy behind it is that CDM projects in developing countries Carbon financing for energy projects in Africa? article Percentages of approved CDM projects per region (Source: UNFCCC, March 2011) Africa Asia and the Pacific Eastern Europe Latin America and the Carribean 80% 1,95% 0,5% 18% NABC2011/2012 NABC2011/2012 36 37
  • 20. This article has been written by Kim Geleynse, Fons de Zeeuw and Eveline Trines. Kim Geleynse and Fons de Zeeuw are working at the management consultancy firm Berenschot. Berenschot is active in many countries in Africa, ­supporting multinationals and SMEs in ­developing new business. Beren- schot is specialised in ­developing business strategies, public-private partnerships, grants financing. Eveline Trines works for Silvestrum, a consultancy firm specialised in the creation of carbon assets in the agriculture, forestry and land-use sector for compliance and voluntary markets world- wide, and the development of environmentally responsible and carbon neutral business strate- gies based on responsible land management in the same sector. Contact information k.geleynse@berenschot.com f.dezeeuw@berenschot.com eveline.trines@silvestrum.com will be generated in the future, thus providing finance for project imple- mentation. Of course, the investor will calculate the risk of unsuccessful verification in the price offered for the CERs. What are future perspectives on the CDM carbon market? The future of the CDM as a source of investing capital is difficult to predict. The first budget period of the Kyoto Protocol will end after 2012. However, most experts believe that schemes such as the CDM will be con- tinued after 2012 because economies are expected to continue supporting greenhouse gas reductions. Besides, much has been invested in CDM projects and ending the mechanism would be capital destruction. The political willingness to accept that is virtually non-existent. International agreements for the longer term are nevertheless crucial as pricing signals for CERs. The Copenhagen 2009 international climate conference did not result in concrete agreements as a follow up on the Kyoto Protocol. The Cancun 2010 international climate ­conference was somewhat more successful. Expectations are high for the climate summit in Durban, end 2011. The global economic crisis caused de- creasing demand and prices for CERs, because it enabled many companies to meet emission targets without much effort as production decreased anyway. Current economic recovery and political intentions to realise significant emission reductions may contribute to increasing demand and prices for CERs in the near future. It is beyond questioning that Africa offers ample opportunities for smart initiatives to address the large scale need for energy. Taking into account the criticism on the impact of CDM projects thus far (little innovation, low long-term sustainability, unbalanced regional focus), it is more ­obvious that CDM projects in Africa will be strongly encouraged. This is also proven by the diverse available grant schemes to support climate saving initiatives and investments in renew- able energy. Grants in combination with carbon-financing mechanisms make it worthwhile to investigate ­investment opportunities on the African continent. What are opportunities for CDM projects in Africa? According to UN statistics, most CDM projects have been realised in the category ‘clean’ energy followed by landfill projects. In Africa, invest- ments in solar, wind, hydro-power and bio-fuels production have the potential to be financed partly through CERs. Large-scale ‘clean’ energy generation projects may offer good opportunities as CDM projects. These projects are interest- ing for urban and industrial centres in countries such as Nigeria, DRC, Tanzania and Ethiopia. However, two third of the African population live scattered in rural areas. For these areas, small-scale renewable energy solutions (off-grid lighting, biogas installations, innovative woodstoves) are very relevant. If well designed, combined investments in small-scale energy solutions also qualify as CDM projects. Many Dutch companies offer relevant (components of) energy solutions for urban and rural Africa. By being creative and developing alliances with African partners, these products can be at the basis of interesting CDM projects. And the finance obtained by generat- ing CERs can just make the difference between a project that is financially and commercially viable or not. » What were your thoughts on the Netherlands and the Dutch before coming here? What were your ex- pectations and did they turn out to be correct? I came here with a completely open heart and mind, with no ­expectations other than to focus on my job. I have been delighted to find that The Hague is such a livable city: green, friendly, and relatively slow-paced compared to New York, where I was previously based. » Do you have specific goals that you wish to achieve while you are here? What are your priorities as a relatively new ambassador in the Netherlands? Of course! First and foremost, I would like to cement bilateral relations be- tween Rwanda and the Netherlands. I also realize that there is little or no trade between our two countries and that in fact many people in the busi- ness community and the population in general do not know or under- stand Rwanda. I therefore will work toward changing that, by promoting Rwanda in the business community and beyond as an attractive invest- ment and tourism destination. » What are currently the most promising sectors in Rwanda for the Dutch to invest in? What does Rwanda do to attract foreign in- vestment? The field is wide open. Two important growth sectors are agriculture (agro- processing, animal husbandry, seeds, irrigation and water harvesting, etc.) and energy (hydro-electricity, methane gas extraction, LED technology transfer, solar power, etc.), but there are many other sectors that are very promising. » Can you give some advice to Dutch businessmen that might be going to Rwanda for the first time? Would you have any specific business ad- vice or any tips with regards to local customs? Is there a typical Rwandan style of doing business? I would say: Rwanda is ready for you; are you ready for Rwanda? We are open for business. Well-respected indicators speak for us (such as the World Bank Group's 'Doing Business' index and Transparency Inter­ national's favorable rating on cor- ruption), but I encourage those who seriously consider doing business in Rwanda to just visit the country first. Visit the Dutch embassy, and talk to Rabobank and Heineken, two compa- nies that are already well established in Rwanda. Don’t take it from me, but go see for yourself. And our local customs? Averting one’s gaze does not signify dishonesty; it is a sign of respect for the person you are talking with. A warm handshake extends to the elbow, and don’t say no when someone offers you something; it is considered rude. With regards to do- ing business, I would advise anyone to keep in mind that Rwandans are not as direct as the Dutch. A typical conversation, even on serious issues, starts with a slow warm up, made up of greetings and pleasantries. » How would you like to cooperate with NABC in the future? I think that the services you offer that connect Dutch businesses with ­African economies and markets are very unique. I would like to avail myself of every opportunity to cooperate with NABC in this endeavor. » What is your favorite Dutch dish? My favorite savory dish would be Stamppot, and my favorite sweet dish is vlaai. Interview Her Excellency - Immaculée Uwanyiligira, Ambassador to the Republic of Rwanda Don't take it from me, but go see for yourself NABC2011/2012 NABC2011/2012 38 39
  • 21. » What exactly is the Blue Dolphin Entertainment Group and what are your activities? The Blue Dolphin Entertainment group (BDEG) is a film/TV production company, but I guess these days we are more an all media production company. We produce all kinds of media such as films, TV-series, com- mercials, documentaries and corpo- rate films. And of course these days we are also active in smartphone applications and iPad magazines. You could call us a one-stop shop. Any client can come in with an idea and we help realizing that idea from A to Z. » How is BDEG involved in Africa? We have been active in Africa for many years now. We have filmed in Kenya, Namibia, Nigeria, Sudan, Uganda and very often in South Africa. We mainly shoot commercials and documentaries, but we have also done corporate films and promotion- al films about the country or a certain area. I love going to Africa to work. It is a beautiful continent and many of its people are very hospitable. » In September 2010, BDEG joined the NABC trade mission to Cape Verde. What made you decide to join us and what did you gain by it? Several good friends of mine are Cape Verdean, and they live in Rotterdam. They told me that maybe I could start something in Cape Verde. I had never been there, so the NABC trade mission was a good opportunity for us to figure out whether we could start something there. During the trip I talked with some people in the film/TV industry and basically they all told me that the Cape Verdean film/ TV sector is rather undeveloped. If I recall correctly there is just one Cape Verdean channel that broadcasts on all the islands and people can also receive several Portuguese and Brazilian channels. Starting a produc- tion company there is possible, but first you will need to extend the broadcasting facilities (TV network), upgrade the equipment and of course educate the crew, and only then can you start producing programs within Cape Verde. All this will cost a lot of money and time. So to just go there and start a production company is not so simple. However, I enjoyed Cape Verde very much. It is a ­beautiful country with a very interesting his- tory that few people know about, so during the trip I got some ideas for documentaries about Cape ­Verdean history. To also make this idea inter- esting for Cape Verde, I came up with the idea of setting up a production company and combining it with a media school, where we can train crews that will help us in creating the documentaries. This way we can develop and professionalize the film/ TV industry within Cape Verde while simultaneously promoting the country abroad at the same time. I hope we can make this happen. » Are there any particular countries in Africa that you would like to work in? I worked in many already, so I am open to any suggestions! » To conclude, do you have any plans of setting up a production company in Africa in the near future? That would be wonderful! Africa has many things to offer. Amazing loca- tions, wonderful people and it is comparatively affordable to film there. Of course the weather, compared to the Netherlands, is also something that helps! I think the production company/film school idea would be a nice way to start something there. One of our productions that made a big impression on me was the com- mercial that we made for the Nelson Mandela Children's Fund. We filmed in South African townships and met Nelson Mandela. It was an experience that I will never forget. Interview Chiem van Houweninge Jr., Blue Dolphin Entertainment Group NABC2011/2012 41