The document discusses the opportunities for Dutch businesses in Africa, noting that Africa has experienced strong economic growth and has a large young population, yet Dutch trade with and investment in Africa remains relatively low compared to other European countries. It presents the Netherlands-African Business Council (NABC) as an organization working to strengthen economic ties between the Netherlands and Africa by helping Dutch companies understand and access opportunities on the African continent. NABC organizes trade missions and provides advice/assistance to Dutch businesses interested in the African market.
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
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
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