Africa represents a wealth of opportunity in all commercial sectors which is highly untapped. The problem when 'westerns' arrive to take advantage of these open fields of gold is that they forget that there have been many who have come before them. The people of this land have learned very well over the years that when someone with a tie and fancy watch appear saying how they can make their life better it ususally means a con-artist; what else can a slick commercial person be called?
Environmental is one of those fields which is in its infancy here, with room to grow. The people are both aware and unaware at the same time. Botswana is a good example of a country that is waking up to its responsibity of proper stewardship of the environment of their country.
Working with the national government in the area of energy planning I have found that there are many who understand the need to balance both the production of energy and protection of their environment. The use of 'temporary' diesel generators is a norm in most all countries throughout Africa. The companies that provide them tend to be short-sighted and are like the slick salesman mentioned above only thinking about how they can take advantage of the 'ignorant' people of developing countries.
Through my work to educate the 'decision makers' on the pros and cons of the various energy options I hope to show how they themselves can address their energy needs while maintaining a clean environment. They are the ones responsible for their house, and not let the commercial teams who only care for today destroy their home.
Our work will take us to Ghana in the next month, where I hope to have as productive a time as I have had here.
11/01/2012
8/26/2012
Strange Happenings in the Horn of Africa
26 August 2012--currently I am working on a electric energy project in the Republic of Djibouti. This project sort of just happened. That is not a really accurate statement, because something like this just doesn't just happen by accident. It actually started in 2009 when I spent a year and a half in Djibouti where I spent most of my time learning all about the US military base's operations (utility, and environmental), as well as the various aspects of the country. Through the connecting of the dots, networking with a wide variety of people including one who would be a high level government official I am now back in Djibouti.
That isn't the strangest part of this story, and not what I am writing about here. Since working on this project I have been approached by two international companies about potential projects in this country and in Somaliland. Somaliland is a un-recognized break away province that has very little resemblance to the Somalia that makes the news on a daily basis. Never mind that, these companies have asked me to partner with them on "Camel Milk" production, and now on Jojoba.
Side Note: The international companies that are speaking with me are located in Israel. As Jewish corporations they would not be openly accepted by a Muslim country especially one that is part of the Arab League; not good public politics. But under the covers these 'anti-Jewish' governments welcome Israel companies. How do do it? Well the Israeli folks are a practical lot, they simply form secondary and third level corporations that eventually are located out of the USA or Europe. These subsidiary companies are still owned and managed by the same people, but on paper they are not from Israel. So the public is none the wiser.
Camel milk is a good product, and is logical for this region. Unfortunately the local populace doesn't know it, and the level of effort to create a market does not make it viable; in my opinion.
Jojoba on the other hand is logical. It grows a bean that comes from a plant that grows in desert conditions, which Djibouti is full of. Jojoba oil, from the bean, is used for many commercial purposes to include expensive perfumes.
The opportunity to be distracted are many. The primary project of developing 55MW of gas turbines, and 50MW of PV solar is a tough road to haul. 12 hour days traveling back and forth from Washington DC, Stuttgart Germany, and Naples Italy are normal, so I can imagine what life would be like if I took on another major project.
But then again, Camels might be fun :-)
That isn't the strangest part of this story, and not what I am writing about here. Since working on this project I have been approached by two international companies about potential projects in this country and in Somaliland. Somaliland is a un-recognized break away province that has very little resemblance to the Somalia that makes the news on a daily basis. Never mind that, these companies have asked me to partner with them on "Camel Milk" production, and now on Jojoba.
Side Note: The international companies that are speaking with me are located in Israel. As Jewish corporations they would not be openly accepted by a Muslim country especially one that is part of the Arab League; not good public politics. But under the covers these 'anti-Jewish' governments welcome Israel companies. How do do it? Well the Israeli folks are a practical lot, they simply form secondary and third level corporations that eventually are located out of the USA or Europe. These subsidiary companies are still owned and managed by the same people, but on paper they are not from Israel. So the public is none the wiser.
Camel milk is a good product, and is logical for this region. Unfortunately the local populace doesn't know it, and the level of effort to create a market does not make it viable; in my opinion.
Jojoba on the other hand is logical. It grows a bean that comes from a plant that grows in desert conditions, which Djibouti is full of. Jojoba oil, from the bean, is used for many commercial purposes to include expensive perfumes.
The opportunity to be distracted are many. The primary project of developing 55MW of gas turbines, and 50MW of PV solar is a tough road to haul. 12 hour days traveling back and forth from Washington DC, Stuttgart Germany, and Naples Italy are normal, so I can imagine what life would be like if I took on another major project.
But then again, Camels might be fun :-)
7/21/2012
Use of Foreign Workers
WORKERS
Over the past several blogs I have been covering legal and some ethical items related to international environmental business. In this blog I will shoot squarely at the ethical issue of using foreign sub-contractors at your work sites located overseas.
At one of my most recent positions the business model for the company entailed the use of foreign sub-contractors to provide 99.9% of the labor for the projects which were located in under-developed and developing countries. 75% of these workers were not 'locals', but people located from another country who worked under a sub-contractor agreement with another foreign company.
What does all of this mean? Quite simply it means no liability for injury or death. So that no matter how many deaths, or injuries the company would look very safe to the outside world because there would be no injuries or deaths to its workers. Zero injury/death rate means great insurance rates not to mention the warm and fuzzy for the investors and board of directors.
Now I would say for this particular company they did take some steps to minimize safety issues, but only so much to give the impression to the board of directors and potential investors of doing things safe. Like so many other companies profits are the driving factor of the operation, and safety a distant 2nd. Yes, of course profits are the driving factor for any company, why else be in business and deal with all the stress? Now I will not mention that the profit margins of this company exceed 35% and would get up to the 45%, while the average professional foreign field worker was making less than $3000/month.
So what is so unethical about building a profitable business on the backs of foreign labor? That has been the world model for centuries, to include the slave and indentured servant business models. Well, if this were the 18th century and the work being conducted was not dangerous I would agree, no problem. But when the work is inherently dangerous and there is a complete disregard for safety then I say shame. No number of Ferrari, Lamborghini, or any other type of exotic car justifies a business model such as this.
Safety does not have to negatively impact profits. It just takes a smart program that is implemented with the support of all corporate management. It is to bad that most 'smart' corporate managers do not know how to do this. So it is easier to hire the 3rd party foreign worker to staff a project in another country, and pay a little blood money when he gets hurt so that everyone can sleep well at night.
CONSIDER INVESTING IN THIS PROJECT:
Over the past several blogs I have been covering legal and some ethical items related to international environmental business. In this blog I will shoot squarely at the ethical issue of using foreign sub-contractors at your work sites located overseas.
At one of my most recent positions the business model for the company entailed the use of foreign sub-contractors to provide 99.9% of the labor for the projects which were located in under-developed and developing countries. 75% of these workers were not 'locals', but people located from another country who worked under a sub-contractor agreement with another foreign company.
What does all of this mean? Quite simply it means no liability for injury or death. So that no matter how many deaths, or injuries the company would look very safe to the outside world because there would be no injuries or deaths to its workers. Zero injury/death rate means great insurance rates not to mention the warm and fuzzy for the investors and board of directors.
Now I would say for this particular company they did take some steps to minimize safety issues, but only so much to give the impression to the board of directors and potential investors of doing things safe. Like so many other companies profits are the driving factor of the operation, and safety a distant 2nd. Yes, of course profits are the driving factor for any company, why else be in business and deal with all the stress? Now I will not mention that the profit margins of this company exceed 35% and would get up to the 45%, while the average professional foreign field worker was making less than $3000/month.
So what is so unethical about building a profitable business on the backs of foreign labor? That has been the world model for centuries, to include the slave and indentured servant business models. Well, if this were the 18th century and the work being conducted was not dangerous I would agree, no problem. But when the work is inherently dangerous and there is a complete disregard for safety then I say shame. No number of Ferrari, Lamborghini, or any other type of exotic car justifies a business model such as this.
Safety does not have to negatively impact profits. It just takes a smart program that is implemented with the support of all corporate management. It is to bad that most 'smart' corporate managers do not know how to do this. So it is easier to hire the 3rd party foreign worker to staff a project in another country, and pay a little blood money when he gets hurt so that everyone can sleep well at night.
CONSIDER INVESTING IN THIS PROJECT:
6/29/2012
Toxic Waste in developed countries 1.1
Over the past several decades there has been the issue of what to do with a nation's toxic waste, no matter how it is generated. The Basel Ban was established as an extension to the Basel Agreement. It came into being because of the huge issue of this waste being taken to "developing" (new word for 3rd world) countries for illegal disposal. Keep in mind the focus of this international issue was not the proper disposal of toxic waste, but the illegal disposal of it in developing countries (DC).
It is strongly believed that no matter what the circumstance, it is wrong for any country (primarily economically advanced) to dispose of waste in a DC. There are some good justifications of this stance, and some bad ones. One of the ideas is that if a developed country is allowed to move its waste to a DC then there will be no reason for them to change their production methods and resulting waste streams (reduction). Good idea. Another idea, almost a truism in the minds of most, is that any waste that is taken to a DC will be illegally disposed.
But the behind the scene presumption of this idea is that the DC is not capable of establishing a proper waste disposal facility, and that the waste will end up in a critically sensitive environment within the DC for a number of reasons.
The illegal dumping of wastes has been on sites that are within population centers, or in critical environments (rivers, wetlands, within groundwater recharge zones, etc). These are typically logistically easier to get to for the trucks doing the dumping. The average corrupt national/local politician turns a blind eye, or facilitates with a call to the security office not to patrol a certain area.
Fact of the matter is that there are some really good locations within some of these DC for establishing efficient disposal facilities. What would make for a good location? This is something the average reader should easily be able to identify that include things such as location or weather. Location speaks to geology, endangered species, human contact, etc.
For argument sake let us assume that a perfect location exists that is remote, no groundwater, arid, and generally hostile. The next issue is the facility.
A properly designed treatment and disposal facility can be built in this ideal location, that would meet all the requirements of being protective of humans and the environment. The end product of the treatment process could then be placed into a proper landland fill within the disposal facility. The cost factor would be significantly less at this facility than one in say Denmark.
The Basel Convention (BC) was birthed as a means to establish some control over the practice of toxic waste disposal. It was not uncommon for the bad actors of the world to dump toxic wastes in these DC at a very low cost. The DC that accepted this waste was hard pressed for currency, or legally or illegally. The people of the world responded well to the acts being committed by the few, but who's actions were impacting a lot of people. The BC requires a notification of transport of these wastes to various parties who can be impacted by a release of these materials (intentional or un-intentional). This makes the people who transport them more likely to think twice about documenting their illegal activity.
It is strongly believed that no matter what the circumstance, it is wrong for any country (primarily economically advanced) to dispose of waste in a DC. There are some good justifications of this stance, and some bad ones. One of the ideas is that if a developed country is allowed to move its waste to a DC then there will be no reason for them to change their production methods and resulting waste streams (reduction). Good idea. Another idea, almost a truism in the minds of most, is that any waste that is taken to a DC will be illegally disposed.
But the behind the scene presumption of this idea is that the DC is not capable of establishing a proper waste disposal facility, and that the waste will end up in a critically sensitive environment within the DC for a number of reasons.
The illegal dumping of wastes has been on sites that are within population centers, or in critical environments (rivers, wetlands, within groundwater recharge zones, etc). These are typically logistically easier to get to for the trucks doing the dumping. The average corrupt national/local politician turns a blind eye, or facilitates with a call to the security office not to patrol a certain area.
Fact of the matter is that there are some really good locations within some of these DC for establishing efficient disposal facilities. What would make for a good location? This is something the average reader should easily be able to identify that include things such as location or weather. Location speaks to geology, endangered species, human contact, etc.
For argument sake let us assume that a perfect location exists that is remote, no groundwater, arid, and generally hostile. The next issue is the facility.
A properly designed treatment and disposal facility can be built in this ideal location, that would meet all the requirements of being protective of humans and the environment. The end product of the treatment process could then be placed into a proper landland fill within the disposal facility. The cost factor would be significantly less at this facility than one in say Denmark.
The Basel Convention (BC) was birthed as a means to establish some control over the practice of toxic waste disposal. It was not uncommon for the bad actors of the world to dump toxic wastes in these DC at a very low cost. The DC that accepted this waste was hard pressed for currency, or legally or illegally. The people of the world responded well to the acts being committed by the few, but who's actions were impacting a lot of people. The BC requires a notification of transport of these wastes to various parties who can be impacted by a release of these materials (intentional or un-intentional). This makes the people who transport them more likely to think twice about documenting their illegal activity.
Considerations In Negotiations
International business requires that the negotiator be in tuned with the client's personality, which includes cultural norms. In many places, including the USA, the client may request a 'taste' of the deal that is being negotiated. The USA, and most of the EU, client knows that this is not acceptable and in many cases illegal, but it happens every day, and many businesses hungry for the sale turn a blind eye. Other countries the culture is more accommodating and accepting of this practice.
The use of bribes to expedite a contract signing, or getting the necessary permits is considered by many in the international community as the way to get things done. When dealing with governments this is a very dangerous road that can put the participants in jail and the business on a black list. There are many schemes that are drafted up to make the bitter taste of the bride palatable for the giver, and giving the receiver a sense of legitimacy. The lesser known localities typically have less sophisticated practitioners of the pinch and will openly have their hands out. The more advanced countries use key words, and have places to funnel the money that sound legitimate to all involved.
A USA firm going to Africa to set up shop will have to deal with the hands in the pocket at every turn, especially if the first hand is filled. Once you start down the path it will quickly turn into a highway of traffic heading one way out. Once the term "Brother" is used be prepared for the hand coming out. Also the use of the "you don't understand this country" is another sign that the game is at hand.
How to avoid this trap? Do not start down the dark path in the first place. Show how your good/service can benefit the user (financially) without the complications of the taste. This takes a tactful negotiator that understands the culture, who has done his/her homework, and has the patience to deal with the 'stall' tactic that will be used.
The use of bribes to expedite a contract signing, or getting the necessary permits is considered by many in the international community as the way to get things done. When dealing with governments this is a very dangerous road that can put the participants in jail and the business on a black list. There are many schemes that are drafted up to make the bitter taste of the bride palatable for the giver, and giving the receiver a sense of legitimacy. The lesser known localities typically have less sophisticated practitioners of the pinch and will openly have their hands out. The more advanced countries use key words, and have places to funnel the money that sound legitimate to all involved.
A USA firm going to Africa to set up shop will have to deal with the hands in the pocket at every turn, especially if the first hand is filled. Once you start down the path it will quickly turn into a highway of traffic heading one way out. Once the term "Brother" is used be prepared for the hand coming out. Also the use of the "you don't understand this country" is another sign that the game is at hand.
How to avoid this trap? Do not start down the dark path in the first place. Show how your good/service can benefit the user (financially) without the complications of the taste. This takes a tactful negotiator that understands the culture, who has done his/her homework, and has the patience to deal with the 'stall' tactic that will be used.
4/28/2012
Captialism, Energy, and Sustainability
It is not a new concept to make money from sustainable projects. Long term project returns and properly planned and managed projects can return large secured gains. It is the focus on long term returns while working with countries that have had less than stellar pasts that can cause the monetary community to shy away.
There are a number of countries who's outward appearance would seem to indicate a lack of resources that could be of interest to a investment company. The non-developed community of nations. But it is within these nations in which the greatest returns with the lest amount of competitive landscape exists.
The leading indicator for economic development within a nation is always correlated directly with its energy consumption. So that in order to increase economic prosperity within a nation the first thing that must occur is the securing of a energy source.
Fossil fuels are not a secure source of energy for any country no matter a highly developed or a newly formed republic. Even if a country has a large reserve of this fuel it is not a good strategy to develop these reserves for energy production within the developing nation. The smart long term strategy is to sell these fuels to the 'developed' nations at a premium, and reinvest the revenues into developing renewable energy.
The renewable energy infrastructure can be financed through the private sector so that general revenues funds can be maintained within the treasury. The energy then pays for the infrastructure on a pay as you go system which includes the government as a partner so that the pay back period is shortened. There are numerous financial vehicles that can be used to finance these projects through the private sector, but the key is a trusting relationship between a knowledgeable government and the capital/management group. The key element is trust.
Trust can take a few weeks or a few years to establish in any relationship. But without it the private investment group would always be at a disadvantage.
There are a number of countries who's outward appearance would seem to indicate a lack of resources that could be of interest to a investment company. The non-developed community of nations. But it is within these nations in which the greatest returns with the lest amount of competitive landscape exists.
The leading indicator for economic development within a nation is always correlated directly with its energy consumption. So that in order to increase economic prosperity within a nation the first thing that must occur is the securing of a energy source.
Fossil fuels are not a secure source of energy for any country no matter a highly developed or a newly formed republic. Even if a country has a large reserve of this fuel it is not a good strategy to develop these reserves for energy production within the developing nation. The smart long term strategy is to sell these fuels to the 'developed' nations at a premium, and reinvest the revenues into developing renewable energy.
The renewable energy infrastructure can be financed through the private sector so that general revenues funds can be maintained within the treasury. The energy then pays for the infrastructure on a pay as you go system which includes the government as a partner so that the pay back period is shortened. There are numerous financial vehicles that can be used to finance these projects through the private sector, but the key is a trusting relationship between a knowledgeable government and the capital/management group. The key element is trust.
Trust can take a few weeks or a few years to establish in any relationship. But without it the private investment group would always be at a disadvantage.
4/17/2012
Business Opportunties
International environmental business opportunties are wide open, and will be expanding exponetially over the next ten years. It is the company or individual that opens their eyes, and can connect the dots who will benefit. The old mentality of just doing a task is only so good, as it is no different than a store front enterprise on main street. Excelling in this world requires creative marketing, development of a strong network, and above all looking out for the benefit of everyone.
So many companies focus on their bottomline and miss the ship. They are today people who then miss the treasures found with diligence, and hard work. Through compassionate capitalism the international business will see no bounds or limits to the opportunties that are presented.
The key is to look out for the people whom are part of the overall project. Not just the people in the organization, but those who will directly impacted as well as the client. This requires a lot of work, and looking outside.
So many companies focus on their bottomline and miss the ship. They are today people who then miss the treasures found with diligence, and hard work. Through compassionate capitalism the international business will see no bounds or limits to the opportunties that are presented.
The key is to look out for the people whom are part of the overall project. Not just the people in the organization, but those who will directly impacted as well as the client. This requires a lot of work, and looking outside.
2/21/2012
Environmental - Argentina
Argentina is a country of mystery. The environmental laws are in place to protect the people, but the application is stuck in the 1960's. Very minimal understanding of what the laws mean, and less understanding of how to implement.
Businesses that engage in activities that may impact the environment are required to obtain various permits, but these are not required in advance of the activity. In fact a business can extend the permit application out a year or longer with no major issues. The political issue is the worse that one will experience, unless the business is involved in a high visible activity.
The government is proud of their laws, but are more interested in checkboxes and less in content. It is best to find a 'connected' consultant to complete the required permits and not be concerned about what they write. Once you have the permit you can modify as needed based on the reality of the operation.
If the government does get 'serious' do not expect any major fine, only a finger pointing and a month to get into compliance.
Businesses that engage in activities that may impact the environment are required to obtain various permits, but these are not required in advance of the activity. In fact a business can extend the permit application out a year or longer with no major issues. The political issue is the worse that one will experience, unless the business is involved in a high visible activity.
The government is proud of their laws, but are more interested in checkboxes and less in content. It is best to find a 'connected' consultant to complete the required permits and not be concerned about what they write. Once you have the permit you can modify as needed based on the reality of the operation.
If the government does get 'serious' do not expect any major fine, only a finger pointing and a month to get into compliance.
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