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SPECIAL EDITION No. 245/2016 :: www.polishmarket.com.pl
POLAND
economic cooperation
keNyA tANzANiA
polish market
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he economic future in the coming decades will belong to Africa, as prophesised almost unanimously by economic experts. Even today, a half of the twelve fastest developing countries are in Africa. Over a dozen of other countries are ready to follow in their footsteps and also exceed the 7% pace of their economic growth. What is the basis of these calculations? First, the demographics. Today Africa is the youngest continent, and also the most dynamic. It is bound to double its population from the present 1.1 billion by the year 2050. Second: the internal market. The world’s poorest population today is already indicating a demand for goods worth USD 1.5 billion annually, and this demand is increasing half as fast as in the much richer OECD countries. Third: investments. As soon as the first wave of the global crisis passed, the flow of foreign direct investment has turned towards the African continent. For example, the poorest region up to now, the Sub-Sahara region, the FDI has doubled from USD 30 billion to USD 60 billion in just four years between 2010-2014. China has become the leader of this investment offensive as it has been looking not only for natural resources, but also, what used to seem unlikely, a place for cheaper than Chinese production. They are followed by India, Brazil and Turkey and the former European colonial powers. This time they are successful under the European Union flag providing almost half of the African imports. Since the prospect of the “African boom” is rather obvious, one cannot avoid raising the question of its relation to our Polish economy. The answer is not so ease, though. As a country that has never had any colonies, we do not have any tradition of economic activity in Africa on a larger scale. Nor have we gathered experience and knowledge . Moreover, many Polish refugees or immigrants that have come to Africa across ages have never established Polish only settlements. A substantial revival of the Polish-African relations occurred only in the period between 1960-80 coinciding with the peak of the decolonisation process. The young countries which were becoming independent from their colonial metropoles were also eager to take advantage of Polish supplies of investment, infrastructural equipment or vehicles, especially at a technological level allowing their absorption, in return for raw materials. A number of bilateral agreements were signed, followed by cultural and scientific exchange. Polish universities accepted several thousand African students. Together with the start of the political transformation in Poland following the collapse of the communist system, relations with African countries eroded almost completely. The political and geographic reorientation of our economy
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AFRICA NEEDS PARTNERSHIP
forced us to change the priorities and one of the conditions of Poland’s accession to the European Union was termination of the existing bilateral treaties with African countries and their replacement with appropriate agreements between the EU and Africa. However, after 2010 the new “European shoes” proved too tight for the fastgrowing Polish economy. We quickly forgot of the “economics of scarcity,” despite the fact that only twenty years had passed since a period of universal rationing of staples. The Polish economy needed new partners. The “Go Global” slogan became one of the basic challenges. We began remembering our past economic partners and creating regionally oriented strategies. One of them was titled “Go Africa” and named Algeria, Nigeria, Angola, Kenya, Mozambique and the RSA as our strategic partners. By means of diplomatic activity and support for promotion, the Polish government wanted to increase the interest of the business communities in those directions of economic expansion. That move turned out to be effective. While in 2011 the trade with African countries was worth approximately USD 3.5 billion, by 2014 it increased to USD 5 million. Although this was still just over 1% of our foreign trade, the double-digit annual increases confirmed the correctness of the strategy. “Go Africa” has renewed the Polish-African relations. Polish capital has been invested in oil production in Nigeria, gas production in Tunisia and Morocco, phosphorites mining in Senegal, coal mining in Mozambique, iron ore production in Congo (Brazzaville) and gold in Namibia. Polish companies are building a power station in Mozambique, a pharmaceutical factory in Algeria, delivering thousands of agricultural tractors to Ethiopia and mining machinery to the RSA. We have become a grain supplier to Egypt, Morocco, Sudan, Kenya and Tanzania. This is just the beginning and just a part of our offer. What is going to happen next? The start of the Polish “Go Africa” programme has shown that we understand the needs of African countries best described by the following slogan: “Africa does not need help, Africa needs partnership.” Today, partnership is not just trade, but also capital and investment co-operation. The contemporary Africa is no longer an area of quick profits, but a world which should be built together. Krystyna Woźniak-Trzosek Editor-in-Chief President Rynek Polski Publishers Co. Ltd.
SPECIAL EDITION
Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.) President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl
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DTP: Godai Studio www.godai.pl Printing: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. Nr KRS 0000080385, Sąd Rejonowy dla m.st. Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł. REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unso licited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what soever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.
AFRICAN
COUNTRIES ARE AN IMPORTANT PARTNER FOR
POLAND
RADOSŁAW DOMAGALSKI-ŁABĘDZKI, deputy Minister of Economic Development
O
ne of the priorities of the Ministry of Economic Development is the creation of a new system of support for international expansion of Polish companies. This will be an ambitious package of changes tailored to our needs and expectations, offering businesses conditions conducive to the development of their export activity in international markets. Providing support in non-European markets, such as Africa, which is an important and prospective economic partner for Poland, is of particular significance. In recent years our trade relations have been growing. Polish exports to Africa have increased by nearly 68% since 2012. However, the level of trade between us remains unsatisfactory. Last year, we exported goods to Africa worth just under EUR 2.6 billion while the value of imports exceeded EUR 1.6 billion. The African continent remains a huge unexplored area in Poland’s international trade. In 2015, its share in exports was under 1.5% and imports under 1%. We can see that the potential for greater co-operation is considerable and for this reason we hope to see the effects of our initiatives reflected in the trade statistics. Companies from East Africa, especially from Kenya and Tanzania, remain important business partners. Co-operation opportunities exist, above all, in the electromechanical, chemical and pharmaceutical industries. We also see chances for Polish companies in the transport infrastructure, power, ICT or agri-food sectors, in particular, when it comes to agricultural machinery. Since we want to extend our economic relations with African countries, we intend to continue and develop the “Go Africa” programme, launched in 2013 and supported by the Ministry of Foreign Affairs and the Polish Information and Foreign Investment Agency PAIiIZ. This programme includes the organisation of trade missions, such as this one, to individual African countries.
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Today, three years after the launch of this project, we can see changes in the attitude of Polish business to investing in Africa. In 2015, against 2012, the number of Polish entrepreneurs interested in exporting to Africa increased by more than 700. It is important that their involvement is not limited to basic trade co-operation. Increasingly we also see investments of Polish companies in individual countries and the establishment of close manufacturing ties with local partners. Examples of such initiatives include the project of the Ursus company consisting in assembling agricultural tractors in Ethiopia or the investment of the Azoty Group in a phosphorite mine in Senegal. We hope that further Polish investments will appear soon in Kenya and Tanzania, among others, owing to the performance of contracts financed with credits granted by Poland to the governments of these States. In the near future we intend to continue strengthening our diplomatic and business presence in African countries because this way we can significantly reduce investment risk for Polish investors. Currently, we have in Africa only four Trade and Investment Promotion Sections. They are located in Morocco, Algeria, Egypt and South Africa. In accordance with the assumptions of the Plan for Responsible Development, their number is to be doubled. New missions will be set up in Senegal, Nigeria, Angola and Kenya. The number of Polish diplomatic missions is also going up. This year, after a gap of several years, Poland’s Embassy in Senegal has been reopened and early next year our Embassy in Tanzania will commence its activity. I hope that Poland will increase its participation in this dynamic economic growth of African countries. I wish you constructive business meetings leading to concrete offers and trade contracts, thus contributing to further development of our economic co-operation. I hope that initiatives such as the present trade mission of Polish entrepreneurs visiting Kenya and Tanzania serve the develop• ment of these relations well.
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PERSONAL CONTACT IS EXTREMELY IMPORTANT IN BUSINESS PIOTR PNIEJNIA-OLSZYŃSKI, Deputy Head of Mission Embassy of the Republic of Poland in Kenya (Nairobi) What Polish products stand a chance of succeeding in the Kenyan market. What sectors should be interested in the trade mission? In recent years Kenya has maintained a healthy rate of economic growth of 5-6% a year. This means that the purchasing power of Kenyans is increasing fast, just as the material aspirations of the expanding local middle class. Consequently, almost all groups of products made in Poland which are competitive in global markets have a chance to succeed here. I have in mind various products, such as furniture, sweets, specialist construction machinery and specialpurpose machines and production lines for the food sector. IT technologies are of particular interest. Nairobi is considered one of the most important IT development centres not just in East Africa but in the entire continent. In view of Kenya’s ambitious international obligations in the area of environmental protection and CO2 emissions reduction, one of the main priorities of the Kenyan government are renewable energy technologies. On the other hand, the drive towards diversification of energy sources combined with the intention to exploit the recently discovered coal deposits leads to interest in the so-called clean coal mining technologies. As the economy develops, so the demand for energy in Kenya increases exponentially. One can say that Kenyans are most interested in investing in the development of their manufacturing base, equipment and technologies enabling them to become independent manufacturers and exporters. The priority areas include agriculture, processing and the energy industry. Exporting goods to Kenya is possible but requires effort. One must bear in mind that most goods are carried to the capital in lorries from Mombasa, which means a journey of some 500 km. The only other option is air freight. Next year there are plans to open a Chinese-built railway line between the two cities, which should improve the situation somewhat. On the other hand, foreign entrepreneurs who show invention, PM
determination and are lucky to find the right partner achieve highly satisfying results. Is this a one-way mission? Does it mean that only Poland wants to present its companies and products? Is the Kenyan side also interested in economic co-operation? This is a one-way mission: a presentation of some of Poland’s investment and export capabilities, but above all an opportunity for making direct B2B contacts. In Kenya, and generally in Africa, personal contact is extremely important in business. Pursuing any commercial activity without a local partner is simply impossible. Therefore, meetings between Kenyan and Polish entrepreneurs who see them as business opportunities for our countries have been planned during the mission. PM
Does the Kenyan government offer economic incentives for Polish entrepreneurs, for example, in the form of special economic zones or lower taxes? The Kenyan government does not offer any incentives to Polish businesses. Let me remind you that our trade relations with non-EU partners are subject to the common trade policy of the European Union. Poland and other EU Member States trade with Kenya on the basis of existing agreements between the Community and Kenya. Finally, I would like to mention that Kenya belongs to a regional integration project called EAC – East African Community which is a free-trade zone (subject to certain exceptions and restrictions). This means that after gaining a foothold in Kenya it is possible to consider expanding the operations to include the remaining countries belonging to the EAC (Tanzania, Uganda, Rwanda, Burundi, and recently South Sudan). Together, they constitute a market with approximately 150 million consumers. Those interested in the rules applying to Polish (EU) exports to Kenya should visit the EU Market Access Database (MADB) at: http://madb.europa.eu/madb/indexPubli.html. • PM
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REPUBLIC OF KENYA INFORMATION ON ECONOMIC RELATIONS WITH POLAND
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he bilateral agreements regulating Polish-Kenyan economic relations include:
• The Agreement between the Government of Poland and the Government of Kenya on scientific and technical co-operation, signed on April 20, 1964, • The Tied Aid Credit Agreement between the Government of the Republic of Poland and the Government of the Republic of Kenya of September 22, 2015 – this agreement provided for granting Kenya a credit of USD 100 million towards financing agriculture modernisation projects. The credit was given on the conditions of the so-called “tied aid” and classified as official development aid.
In Poland’s development co-operation programmes (for the years 2012-2015 and 2016-2020) Kenya has been classified as one of the priority countries. Polish aid to Kenya is provided directly through the implementation of projects within the framework of bilateral co-operation, and also indirectly through contributions to the EU budget and other aid organisations operating in Kenya. In 2015, Poland allocated EUR 530,000 towards the bilateral aid project in Kenya. Development projects are also implemented by Polish missionaries (the small grants system) using funds at the disposal of the Polish Embassy in Nairobi. A key initiative in the area of bilateral economic cooperation with Kenya are the activities of the Polish Government pursued under the “Go Africa” project. Launched in 2013, the project, born out of analyses of the global
economic trends, proposes a coherent strategy of co-operation with the African markets. The main participants include the Ministry of Economic Development, Ministry of Foreign Affairs and the Polish Information and Foreign Investment Agency (PAIiIZ). The aim of the “Go Africa” project is to increase Poland’s investments in Africa and trade, and to build a positive image of Poland in African countries. The project supports businesses interested in operating in countries all over Africa. In 2015, the value of trade between Poland and Kenya reached USD 109.8 million. Exports of goods from Poland to Kenya amounted to USD 78.4 million, while imports reached USD 31.4 million. The balance of trade was positive at USD 47.1 million. In the first four months of 2016 the value of exports amounted to USD 23.1 million, imports to USD 11.2 million, with the overall value of trade reaching USD 34.3 million. Exports to Kenya were dominated in 2015 by the following commodity groups: • textile materials and products (mostly secondhand clothes), • plant products (mostly wheat), vehicles (mainly road tractors), • mechanical and electrical equipment, • products of the chemical sector and related industries (including medicines). Imports from Kenya were dominated in 2015 by one item – plant products. They mostly included black tea, cut flowers and fruits (such as avocado and pineapples). •
Trade with Poland (in USD million) J a n . - A p r i l Change 2016 Jan.-April 2015/ Jan.-April 2016
2012
2013
2014
2015
Change 2015/ 2014
Exports
28.5
38.9
53.6
78.4
146.3
23.1
52.4
Imports
18.5
23.6
24.6
31.4
127.5
11.2
133.1
Turnover
47
62.5
78.2
109.8
140.4
34.3
65.3
Balance
+10
+15.3
+29
+47.1
-
11.9
-
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UNITED REPUBLIC OF TANZANIA INFORMATION ON ECONOMIC RELATIONS WITH POLAND
6 polish marketspecial edition 2016
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ince Poland’s accession to the European Union economic relations between Poland and Tanzania have been regulated by the Economic Partnership Agreement, whose new version was negotiated between the bloc of East African countries and the European Union on October 14, 2014. On September 28, 2015 a Tied Aid Credit Agreement was signed between the Government of the Republic of Poland and the Government of the United Republic of Tanzania, providing for a credit of USD 110 million. Under the terms of the Agreement the credit was extended towards financing agriculture modernisation projects. A key initiative in the area of bilateral economic co-operation with Tanzania are the activities of the Polish Government pursued under the “Go Africa” project launched in 2013. As part of the initiatives aimed at the development of bilateral economic relations, on October 23-25, 2014 a delegation of the Government of the United Republic of Tanzania, led by Prime Minister Mizengo P. Pinda, paid an unofficial visit to Poland. On October 23, 2014 at the Polish Chamber of Commerce a meeting was held between the Tanzanian delegation and a large group of Polish entrepreneurs interested in developing mutual business contacts. The itinerary of the delegation also included trips to Wrocław, Sokółka and Białystok, where its members visited production plants. For several years now the Polish Government has been pursuing a development aid programme addressed to African countries, including Tanzania, as part of projects
initiated by Polish non-governmental organisations, embassies and missionaries. This year, over EUR 830,000 has already been allocated to bilateral development aid for Tanzania. Last year, the total amount spent on development aid reached approximately EUR 150,000. In 2015, the value of trade between Poland and Tanzania reached USD 68.5 million. Exports of goods from Poland increased by 44% compared with 2014 to USD 24.9 million. Imports reached USD 43.6 million (an increase by more than 16%). This resulted in a negative trade balance of USD 18.7 million. In the first four months of 2016 the value of exports amounted to USD 13.3 million, imports to USD 16.7 million, with the overall trade worth USD 32 million. Exports to Tanzania were dominated in 2015 by the following commodity groups: • grain (mainly wheat and meslin) – 65.4% of exports, • textile articles (clothes and other second-hand articles) – USD 4.8 million, a share of 19.4%, • cables, insulated wire, electrical wires – a share of 1.7%, Imports from Tanzania were dominated in 2015 by the following commodity groups: • tobacco – USD 40.3 million – more than 92.5% of the total imports • coffee, tea and spices – USD 2.9 million – a share • of 6.5%.
Trade with Poland (in USD million) J a n . - A p r i l Change 2016 Jan.-April 2015/ Jan.-April 2016
2012
2013
2014
2015
Change 2015/ 2014
Exports
32.3
18.4
17.2
24.9
144.2
13.3
98.6
Imports
22.8
39.4
37.5
43.6
116.3
16.7
102.6
Turnover
55.1
57.8
54.7
68.5
125.1
32.0
100.9
Balance
9.5
- 21.0
-20.2
-18.7
-
-5.4
-
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POLAND IS READY FOR
GOAFRICA The growing Polish economy needs a high-octane fuel for even faster progress. This fuel, on the one hand, is foreign investment, but on the other, it is exports, which are now highly promoted by the Polish government.
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he need for conquering the world clearly came into play in Poland several years ago. In response, the pioneer programmes were started: Go China and Go Africa. They are dedicated to regions, which are going through a big metamorphosis these days. Both projects were made to, on the one hand, open the necessary door, and on the other, embrace Polish entrepreneurs with a “safety bubble”. The programmes aim to simplify contacts with new markets with their distinctive business culture. It was also about the proper first impression, an impression containing not only the good prices and quality of products „Made in Polska”, but also showing the most important Polish institutions standing behind the companies. Both projects have become a multi-element support tool, and are highly appreciated by the Polish business community. Often, the “Go” programmes start with a “fact finding mission”, when the experts from governmental institutions supported by Polish diplomatic missions and authorities of the given country go for a reconnaissance of the new market. The following step is a business mission of Polish companies, which participate abroad in conferences, B2B meetings, fairs, or specially arranged meetings with local authorities and potential partners. The “Go Africa” programme has been popular for over three years. At the beginning, the goal of the project was to help both sides to better know each other. PAIiIZ, as the main institution involved in the implementation of the programme, organised 11 missions to Africa, to present the potential of African countries to Polish entrepreneurs. Over 120 Polish companies visited African markets with PAIiIZ, but also took part in the conferences and seminars devoted to different countries. The long-term consulting activities led by PAIiIZ as well as organizing 10 market research missions and over 50 trade events, soon delivered effects. One of the biggest successes is supporting a Polish tractor producer, the Ursus company as an investor in Ethiopia and Tanzania. Participating in the Go Africa programme has made an African door wide open also to a Polish innovator, Izodom, which builds eco houses. At the same time, Zakłady Chemiczne Police SA, a chemical company from Azoty Group, invested in Senegal, taking over a controlling stake in African Investment Group in Dakar. And the Polish company Navimor International signed a contract with the Ministry of Fisheries of Angola for the construction of Namibe Fishery Academy. In the course of the programme (2012-2015) the value of trade between Poland and African countries increased from USD 3.67 billion to USD 4.64 billion (an increase of approx. 25%). Still, this is only 1.4% of Poland’s total trade and does not use the full potential of both sides. There are over 50 countries in Africa with different economies. For entrepreneurs, the most interesting are the countries with the biggest populations and economic potentials - Nigeria, Ethiopia, RSA, Algeria, Democratic Republic of the Congo. Polish companies, however, can easily find a niche, so they successfully deal in smaller markets like Senegal, Rwanda and Ghana. According to the Ministry of Economic Development and the Ministry of Foreign Affairs, the “Go Africa” programme will be continued and even developed. Also the new diplomatic posts are to be opened – the soonest in Senegal and Tanzania.
THE CONFERENCES AND SEMINARS ARE ORGANISED IN POLAND AT THE OCCASION OF DELEGATIONS FROM AFRICA. THE INCREASING NUMBER OF SUCH VISITS CLEARLY DEMONSTRATES A SERIOUS INTEREST IN POLAND AND POLISH ECONOMY. This will ease the burden on existing Polish consulates and embassies in Africa. The Ministry of Economic Development will be responsible for agreements on the mutual promotion and protection of investments, which are very important for Polish companies dealing with African partners. The Ministry also plans to strengthen the network of Trade and Investment Promotion Sections of Polish embassies in Africa. The “Plan for Responsible Development” provides for the establishment of new Section in Senegal, Nigeria, Ethiopia and Kenya. Polish entrepreneurs willing to discover African markets should follow the portal www.goafrica.gov.pl where invitations to missions, fairs and conferences are published. The missions, dedicated to all Polish companies interested in expansion to Africa, are a great opportunity to know better undiscovered markets, talk with the representatives of economic administration in these countries and get access to reliable business partners. This “governmental umbrella” offered by GoAfrica is particularly important in the countries with different legal and business organisations. The missions are always arranged on the same principle: the company cover the cost of flights and accommodation, while PAIiIZ finances the organisation of conferences, B2B meetings, local transport, and translation, if necessary (for example in Portuguese-speaking countries). Companies that cannot afford to go to Africa or simply do not want to participate in the missions, may take part in the meetings devoted to African countries. The conferences and seminars are organised in Poland at the occasion of delegations from Africa. The increasing number of such visits clearly demonstrates a serious interest in Poland and Polish economy. Poland started active cooperation with African partners relatively late, but this is due to the specific economic situation, which we have seen in the last twenty-odd years. Polish entrepreneurs first had to build their position in their own country, then they started expansion in the UE. Today Polish companies are mature enough to go beyond Europe. •
Source:PAIiIZ polish market
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INNOVATIVE AND
RELIABLE
P
olish researchers and engineers from Feerum company have designed and built a range of huge, lightweight silos for storing bulk agricultural materials. Some of these silos, though made from steel combined with textiles, are among the most durable in the world, the designers say. Such large silos, which are sometimes the size of a multi-story apartment building, are used on big farms and in food processing plants. They are intended for the storage of bulk materials such as grain, maize and oilseed plants, including rapeseed and soybeans. This material is stored in silos before being processed into animal feed or biofuel. The more that steel is used in the construction of such a holding tank, the more expensive it is. The Polish silos are innovative in that their structure has been reinforced while the weight of individual parts has been reduced. They are also easier to empty. The new range of silos was built jointly by engineers from the Feerum company, based in Chojnów near Legnica in southwestern Poland, and researchers from the Wrocław University of Technology. Feerum is carrying out a project called “Innovative Lightweight Silos Made from Steel and Steel-and-Textiles.” The company produces a variety of silos, from small ones intended for storing several tons of grain to huge ones. Its largest silo has a capacity of 20,000 tons, a height of 40 meters and a diameter of 35 meters, which means it is as large as a 12-story apartment building. The idea to combine steel with textiles for the production of silos is protected by a patent and Feerum has bought a license to use it.
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“A silo is usually emptied from the bottom. A plain steel tank is not suitable for storing nonbulk material,” says Feerum’s CEO. When the bottom layer is removed, the top layer may cave in and destroy the tank. A tank can also be damaged by a lump of dense material, similar in structure to flour, if it falls from a height of several stories to the bottom. That’s why a special textile sack was hung permanently inside the steel tank. This ensures safe storage of about 400 to 500 tons of material. The use of the textile material makes it possible to deal with the resistance that occurs when the silo is emptied. The stored commodity does not stick to the walls of the silo and there is no need to increase the weight of the tank and reinforce it with steel parts, which would jack up the price. “Previously steel and textiles were not combined when silos were designed,” says Janusz. “This is a completely innovative idea that has great significance for reducing production costs because it reduces the weight of the silo and the power consumption. As a result, such a tank can be sold at a more attractive price.” “We have been taking part in various innovative projects since the start of the previous decade,” says Janusz. “Back then research institutes led the way. Now it is we who are leading the charge, and universities are doing work for our company. As the leader of this project, we can make a giant leap technology-wise.” Parts of the structures designed by Feerum are sent to a laboratory at the Wrocław University of Technology right after being produced. “The university has the right equipment for determine the actual strength parameters of whole tanks and their
individual parts,” Janusz says. “The market is too demanding and we have too much to lose to sell our structures without such tests.” In the case of silos, prototypes developed in the research programs become finished products fit for mass production. They only require some minor adjustments following studies which may detect something that needs to be improved or corrected. Theoretical calculations are thus checked in practice, mainly in terms of strength. Feerum produces 24,000 parts from which silos tailored to the needs of an individual customer can be produced. The company’s employees are ready to assemble these on-site. There are about 100,000 large farms in Poland—ranging from several hundred to several thousand hectares— whose owners are potential buyers of Feerum’s silos. The company also has industrial customers who buy grain, store it and produce feed for farm animals from it. Other customers include bioethanol production plants, oil mills, and companies that buy and store commodities for sale later at a higher price, Janusz says. Feerum was founded in 2002. About 80 percent of its output is sold domestically, but the company also handles orders from customers in Moldova, Mongolia, Belarus, Ukraine, Lithuania and Germany. Feerum employs 70 engineers in its research-and-development and design department. The company produces silos, grain dryers, grain cleaners, transportation equipment. It supplies the most modern grain storage technology. In 2015 Feerum received an Award “Quality of the Year” for the modern and energy - saving grain • dryer.
www.mago.com
MAGO S.A.
ALEJA KATOWICKA 119/121, 05-830 NADARZYN K/WARSZAWY, POLAND Tel.: +48 22 729 81 01, Fax: +48 22 729 81 09; sprzedawcy@mago.com, www.mago.com
AFRICA EVEN CLOSELY
A
MAŁGORZATA BONIKOWSKA, Ph.D., President of Centre for International Relations
frica is one of the most dynamically developing continent in the presentday world. Among 13 rapidly developing economies in 2015, six of them were from Africa, particularly Ethiopia, Republic of Congo, Ivory Coast, Mozambique, Tanzania and Rwanda.1 According to the World Bank, Africa might be now entering a path of rapid growth similar to that of China 30 years ago and India 20 years later. Africa’s economic forecasts for the next decades are clear – the continent GDP might grow by 7% annually. In addition, Africa will also experience fast demographic development – it is estimated that by the end of 2050 Africa will have a population of approximately 2 billion people; that is, over twice than it has got today. What it means is that African markets will have an increased demand and capacity. Although Africa is still one of the poorest continents in the world, it has got the fastest developing middle class and a consumer market growing three times faster than OECD markets. It is already worth more than 1,4 trillion USD. The fact has been already noticed by entrepreneurs – FDI in the Sub-Saharan Africa grew from 29,5 billion USD in 2010 to 61 billion USD in 2014.2
POLAND IN AFRICA Modern Africa has been a discovery for Polish business recently. After two decades of focusing on Europe and the surroundings, Polish business is again becoming active on the African continent. 1 The 13 fastest-growing economies in the world, http://www.businessinsider.com/world-bank-fastgrowing-global-economies-2015-6. 2 McKinsey Global Institute estimates, accurate data: www.mckinsey.com, raport Lions on the move: The progress and potential of African economies, http:// www.ft.com/cms/s/0/79ee41b6-fd84-11e4-b82400144feabdc0.html#axzz422GnNrSk; Foreign direct investments in Africa surges, http://www.ft.com/intl/ cms/s/0/79ee41b6-fd84-11e4-b824-00144feabdc0. html#axzz42JFLu14c.
12 polish marketspecial edition 2016
However, without appropriate cooperation of Polish entrepreneurs and the State, limited business experience of Polish companies in the region and difficult environment of African economies might make the expansion impossible. The most promising Polish industries present in Africa are food, pharmaceutical, mining, hospitality, fishing, energy and technology industries. Polish food products – having relative low price and being branded as “European” – have got big chances of success as well. Although Africa imports food – total imports from the European countries grew by 26% in 2014 – trade is being impeded by regulatory barriers (the number of required licenses) and poor retail infrastructure. Intercommunication systems and office appliances trade is also very promising. Export of those goods is still growing because of the technological revolution. In recent years Africa has become one of fastest developing market for mobile phones.3 On the other hand, African companies could make use of a well-organized Polish service markets - including BPO services - as an expansion base for the European single market. Apart from Polish products, that often are considered as an alternative for products from Western Europe, Polish entrepreneurs are offering knowledge and experience not only in change management but also in building the environment for an effective local entrepreneurship in the region. It is worth to mention that also African administration can benefit from recent Polish transformational experiences on both central and self-governance level. It is a very interesting offer especially in times when more and more African countries are trying to build a strong economy and stabilize their political situation.
Polish people). Polish communities in African countries, although negligible, are often a part of the local cultural and social elites (for instance, Barbara Goshu, a famous painter in Ethiopia4 or Sapiehas family in Kenia5). Furthermore, Polish missionaries are actively working in the field of education, culture and healthcare in many African countries for years. In contrary to Polish diaspora in Africa, there is a significantly bigger number of people who graduated from Polish universities or have worked in Polish Academy of Sciences institutions (active in almost 135 countries on all continents including Africa). It is estimated that at least 16 000 people with citizenship different than Polish have been granted with a university diploma since 2000 – although the number seems to be slightly understated. The biggest number of graduates came from Asia, then from Africa; e.g. Nigeria, Sudan, Ethiopia Tunisia and Ghana6. Only a slight number of them have decided to stay in Poland – the majority of them came back to their home country to work in science, business or governmental structures – often on high professional positions. Part of them still speaks Polish and maintain connections with Poland. It is a pity that their potential is still neglected as they could be easily engaged in promoting Poland in their home countries. They could also become important allies in strengthening closer political, economic and social relations with Poland. •
WHY NOT USE THE HUMAN CAPITAL In contrary to both Americas, Polish Diaspora in Africa is not as numerous as it is there (Except Republic of South Africa with approximately 30 000
4 Read more: Dossier Polska-Etiopia, Centre for dialogue and analysis THINKTANK, 2012.
3 Dossier Polska- Afryka, Centre for dialogue and analysis THINKTANK, 2013.
6 According to Central Statistical Office of Poland and Ministry of National Education, 2010 data.
5 Państwa Afryki - Vademecum, Centre for International Relations with its partners, 2015.
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