NABC magazine 2014 by Stephen Lewis

NABC MAGAZINE

NETHERLANDS-AFRICAN BUSINESS COUNCIL www.nabc.nl

Dutch Business in Africa

FOREWORD

Telephone numbers are of enormous value to telecoms regulators and providers. They are not just entrusted to anyone.

“The Future’s So Bright, I Gotta Wear Shades”

PortingXS is the specialist in the supervised execution of automated and administrative processes in the telecoms sector. Our experience covers worldwide implementations of Number Portability and Numbering Management solutions for telecoms regulators and providers, Do-Not-Call registers, IMEI registration platforms and Fraud Exclusion services. PortingXS is always in search of technical and IT partnerships. After successful implementations in Kenya and Ghana, we are currently looking for suitable partners to join us in our new African endeavours. Knowledge of the local Telecoms environment, highly experienced in Hosting and Databases and excellent Network connections required. Interested in a partnership? Contact us at PortingXS.com/NABC

Your numbers are safe with PortingXS

This is the title of a song by Timbuk3, released in 1986. At the time, it was part of an ironic text, which was written in the context of the nuclear arms race and an emerging “fin de siècle” feeling. Now, almost three decades later, we are using this piece of musical history in a much less ironic way: indeed for Africa the future does look bright and even much brighter than most Dutch people would see the future of the Netherlands. In the coming decades, we hope that Africa’s brightness will increasingly brighten up the Netherlands by becoming a more and more interesting business destination.

Scan me!

However, there is still some irony left, even while writing this preface: Africa’s promise is now much better known and NABC as well as African countries are doing their utmost to convince Dutch companies to go there and start their business. Slowly the tide is turning and interest in Africa is rising. But how can we reach more companies? What message do we give them? Often, we use the same strong terms and speak of the many advantages without mentioning the pitfalls. Maybe this can come across as overly optimistic or unrealistic. We have to give the right picture to those that still have doubts. Newcomers on the African markets have many challenges and often don’t know where to start. However, when faced with the cold, hard facts, as elegantly displayed in this magazine’s many interesting ar-

2 www.portingxs.com NABC Dutch Business in Africa

ticles, one cannot help but be blown away by the huge progress Africa has made and its even bigger remaining room for future growth. Throughout the magazine, the deep insights from experienced entrepreneurs on the hottest business sectors paint the picture NABC has always envisaged so clearly: Africa is the real growth powerhouse for the 21st century. Last but not least, we are seeing the first examples of African investments in the Netherlands. The steady stream of African companies joining our Africa Network shows that NABC is the bridge connecting the African continent with the Netherlands. We trust you enjoy this magazine and recognize that NABC is the key point of entry for business with Africa!

Bob van der Bijl Managing Director, NABC

Kees van Heijst Chairman, NABC

Table of Content Colophon Dutch Business in Africa - NABC Magazine is a publication by the Netherlands-African Business Council (NABC). This magazine provides an insight into doing business in or with Africa and the activities NABC organises.

PART 1

Thijs Rutgers, Anja Köthe, Pedro Besugo

Printing

Drukwerkconsultancy Veilingweg 69 3981 PB Bunnik Tel: +31 (0)30 273 11 24 info@drukwerkconsultancy.nl

Contact Details

NABC Prinses Margrietplantsoen 37 (WTC) 2595 AM Den Haag Postal Address P.O. Box 93082 2509 AB Den Haag The Netherlands T: +31 (0)70 304 3618 E-mail: info@nabc.nl www.nabc.nl

Energy

Finance

Let’s convert Africa to organic production!

Rebasing African GDP

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The Ghana Netherlands Business and Culture Council ‘GNBCC’

Step by step, an egg starts walking

Dutch Good Groeth fund DGGF

Interview Avocados from Kenya

Re-Thinking African Urbanism

SuperReturn Afric 2014, Cape Town

Dutch Dairy Development Partners

Port Development Partnership

Vegetable Sector in Ghana

Interview What to do when you receive 60 identical applications?

Agri Business Support Facility Ethiopia

Interview From Sweet to Hot Spice

Interview Lidi Remmelzwaal, Ambassador to Ethiopia

Major Trends in Africa

18 15 22

Towards Economic Transformation Interview Risk Management Interview Rise of the African Business Woman

The African Consumer

The potential of the Silicon Savannah

African public sector interested in Dutch expertise

Interview De Heus Animal Nutrition

58 60

Africa to Become the World’s Next Factory? Interview H.E. Mrs Rose Makena Muchiri, Ambassador to the Republic of Kenya

Interview There is a lot more to doing business in fast-growing markets than meets the eye Interview The African Dream can come true! Interview BIG Machinery in Africa

Why local content, job creation and youth entrepreneurship are viewed as core business activities by the oil and gas giant Interview Honeywell Group

Bringing East Africa’s potential to full fruition

Africa: new oil frontier

Interview Building solid relationships

The Great Leapfrog: Africa is Doing it Again! Africa’s Renewable energy supply

PART 7

Social Entrepreneurs

81 82

Interview Koneksie: A passion for Africa, Entrepreneurship and Motorcycles AFRICApitalism

Interview Investing in the Missing Middle

Dutch Entrepreneurship without borders

PART 8

Member Index

Dutch Business in Africa

PART 6

Infrastructure

©iStock.com/alvaher

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PART 5

Agriculture

Cover Credtis

PART 4

About NABC

PART 2

Editorial Committee

PART 3

88 90

NABC Activities 2014

NABC Members

PART 1

ABOUT NABC

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Dutch Business in Africa

NABC’s Strategy

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Board Members Kees van Heijst Chairman NABC

Kees van ’t Klooster Wageningen University & Research

Paul van de Ven Institut de Selection Animale

Siep Hiemstra Heineken International

Victor Langenberg Deltares Knowledge Institute

Patrick Verbiest V Hi - P B.V. Treasurer NABC

Leontine van Hooft Green Dream Company

Tom de Man VNO/NCW

Jan van der Horst Vlisco

Frank Nagel RABO Development

Jacob van der Vis Chamber of Commerce Rotterdam Ben Zwinkels AfricInvest Group

It is our belief that the Dutch private sector has a prominent role to play in the sustainable development of Africa. Africa’s governments are opening up their economies to foreign investment, implementing reforms to shape positive business environments and trying to attract foreign companies to establish local ventures. As the narrative of Africa has changed worldwide, businesses from all over the world are looking to invest in the continent.

NABC’s strategy is specifically geared towards the active engagement of the developments that have sprung from this trend, thereby helping the Dutch and African private sector to seize the associated new business opportunities. Three pillars form the foundation of this strategy: NABC serves as the business facilitator between Africa and the Dutch private and public sectors, NABC is the meeting point for Dutch and African entrepreneurs and NABC is a trusted

contact point for African and Dutch governments, knowledge institutes and other organisations. Developments in the past year show that these pillars shape our operations.

Partners C.C.A. Corporate Council on Africa www.africacncl.org

European Partners A.S.C. African Studies Center www.ascleiden.nl EBCAM European Business Council for Africa and the Mediterranean www.ebcam-eu.eu Afrika Verein (Germany) www.afrikaverein.de Ahead Global (Hungary) www.ahead.hu BCA Business Council for Africa (UK) www.bcafrica.co.uk Camara (Spain) www. camaratenerife.com C.B.L.A.C.P. Chamber of Commerce Belgium and Luxemburg for Africa, Carribean, Pacific Countries (Belgium) www.cblacp.org Central Poland Chamber of Commerce www.rig.lodz.pl

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C.I.A.N. Conseil Français des Investisseurs en Afrique (France) www.cian.asso.fr Dansk Industri (Denmark) www.di.dk E.E.A. Eastern Africa Association (UK) www.eaa-lon.co.uk E.L.O. Portuguese Association for Economic Development and Cooperation (Portugal) www.elo.org

African Partners NABC cooperates with various Chamber of Commerce and employers federations in almost every African country. A few of our members are: Addis Ababa Chamber of Commerce and Sectoral Associations NNCC Nigerian-Netherlands Chamber of Commerce www.nncconline.com

FAFA Finnish-African Trade Association (Finland) www.fafa.fi Hellenic African Chamber of Commerce and Development (Greece) www.helafrican-chamber.gr N.A.B.A. Norwegian - African Business Association (Norway) www.norwegianafrican.no SWEACC Swedish-East African Chamber of Commerce (Sweden) www.sweacc.se SWISSCHAM-Africa (Swiss) www.swisscham-africa.ch

An increasing number of African entrepreneurs is reaching out to our network, in order to connect with Dutch entrepreneurs and expertise. By organising incoming missions of African businesses and government delegations, NABC facilitates the convergence of African and Dutch business interests. Via our African network we establish contact between entrepreneurs from Africa and our Dutch members.

NABC maintains strong relations with non-business actors and works actively to align their activities with the Dutch business community. Examples are collaborations with the Rotterdam School of Management, the ESAMI Business Schools in East Africa and the African Studies Centre. We work closely with Dutch government, both in The Hague and through the diplomatic network in the African countries, and African government agencies.

In order to provide more in-depth services to our relations, NABC will establish local offices in African countries, preferably with local partner organisations. We strive to grow this Pan-African network, emphasising the truly reciprocal nature of business. We have already opened local offices in Ghana, Ethiopia and Algeria.

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PART 1: About NABC

NABC Team

Bob van der Bijl Managing Director b.vanderbijl@nabc.nl

Nouria Ouibrahim Senior Programme Manager nouria.ouibrahim@nabc.nl

Boukje van Turenhout Programme Manager boukje.vanturenhout@nabc.nl

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Dutch Business in Africa

Thijs Rutgers Manager Business Services thijs.rutgers@nabc.nl

Hilde Duns Senior Programme Manager hilde.duns@nabc.nl

Leonie Botter Programme Manager leonie.botter@nabc.nl

Daphne Willems Programme Manager daphne.willems@nabc.nl

Quirine de Graaf Project Manager quirine.degraaf@nabc.nl

Marlou Rijk Programme Manager marlou.rijk@nabc.nl

Maaike Feltmann Membership Manager maaike.feltmann@nabc.nl

Maryn Kleingeld Project Manager maryn.kleingeld@nabc.nl

Pedro Besugo Africa Network Manager pedro.besugo@nabc.nl

Heleen Keijer Project Manager heleen.keijer@nabc.nl

Angela Craig Office Manager angela.craig@nabc.nl

Anja Kรถthe Intern Magazine

Auke Boere Local Representative Ethiopia auke.boere@nabc.nl

Fleur Hoog Antink Local Representative Ghana fleur.hoog-antink@nabc.nl

Taghzout Ghezali Local Representative Algeria taghzout.ghezali@nabc.nl

Maudy Keulemans Manager Business Development maudy.keulemans@nabc.nl

Marina Diboma Senior Project Manager marina.diboma@nabc.nl

Lars Kramer Programme Manager lars.kramer@nabc.nl

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PART 1: About NABC

Strategic Programmes 53

Trade Missions Trade missions have long been a staple of the international business world for establishing relevant networks. NABC has extensive experience with both outgoing and incoming missions to and from virtually every African nation. These missions are excellent opportunities to establish local contacts, get a taste of the local business climate and get to know other Dutch businesses active in Africa. Our close cooperation with Dutch embassies and local agencies presents plenty of possibilities to lay the groundwork for or to further expand enterprises in Africa. The number of incoming missions is increasing rapidly, as we bring business delegations from all over Africa to the Netherlands for matchmaking, company visits and seminars.

Port Development Partnership

Roundtable Oil & Gas

Dutch Dairy Development Partners

NABC has organised more than 50 outgoing trade missions to Africa in the last 7 years and visited almost 40 African countries. For more information, please contact Marina Diboma (marina.diboma@nabc.nl) or Quirine de Graaf (quirine.degraaf@nabc.nl)

Holland-Africa Poultry Partners

GhanaVeg

NABC currently manages several strategic programmes in prominent Dutch sectors. The programmes strive to strategically position these sectors in the African markets. At the same time, they are strengthening local supply chains, businesses and infrastructure and facilitating the transfer and exchange of practical business knowledge. These programmes not only focus on current opportunities

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Dutch Business in Africa

Events NABC’s events are the perfect opportunities to enlarge networks, gain knowledge and just in general meet a lot of interesting people. Throughout the year we offer a wide selection of activities related to key topics in the area of doing business in Africa. Our monthly African Business Clubs are always hosted at different member companies. Besides these monthly events, we organise plenty of events and seminars that are more sector-specific. To give but a sample: events on commodity trade and renewables, a webinar on Ebola and a Dutch Good Growth Fund seminar. Our flagship event is our annual Ambassadors’ Dinner. More and more African Ambassadors accredited to the Benelux attend this prestigious event, giving companies the opportunity for high-end matchmaking. In 2014, in collaboration with the African Studies Centre, we organised the second edition of Africa Works!, entitled ‘Creating new partnerships’. With 750 individual participants, 36 workshops and a total of 125 speakers, we can look back on another successful edition and look forward to the next.

For more information, please contact Maryn Kleingeld (maryn.kleingeld@nabc.nl)

Agri Business Support Facility

for Dutch companies, they form a great and sustainable contribution to the social and economic development of Africa as well. In the upcoming year, NABC will seek to develop new programmes for the following sectors: Healthcare, Finance, ICT, Consumer goods and Urbanisation. All sectors wherein Dutch expertise can make a difference for African economies.

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PART 1: About NABC

Member Support Service The core of our business is providing Dutch companies with the tools and knowledge they need to succeed in Africa. We are always ready to provide answers to any questions you might have. Business contacts. Through our many years of activities in Africa and our extensive network, we have amassed a large database of potential business partners in nearly every industry. Individual trade mission. Whether you are looking to start out in a new market or to expand your business in a market you already know, our individual trade missions can open up new possibilities. Market scan. Knowing the market is key for any business. Our market scan can provide necessary information on a whole range of subjects: socio-economic developments, trends in trade and investments, macro-economic developments, political situation, financing options, logistics, and business etiquette.

Find out more by contacting Thijs Rutgers (Thijs.Rutgers@nabc.nl)

On request of one of our members, we produced a due diligence report on a tannery company in Ethiopia. Besides an assessment on various aspects of the company, the report also gave insight in the Ethiopian leather market in general

Africa Network

Local office Algeria INTERVIEW

In 2014 NABC took another step in bridging the gap between Dutch and African entrepreneurs. The Africa Network is a business community for the African private sector, giving it the opportunity to get into contact with their Dutch counterparts and, through our EBCAM-network, other European partners. From the moment of inception, we have received a tremendous amount of applications to join, signaling the growing ambition of African entrepreneurs to globalize their operations. The advantages of joining the Africa Network are manifold. It provides African companies with easy access to Dutch businesses active in the same sector. We put our services at the disposal of African members, meaning we can provide project analyses, trade & investment inquiries and sector focus scans. And of course our events and trade missions are open to our African members, providing the perfect venues to meet new business partners and exchange ideas and know-how. We call upon African companies to join our Africa network today!

For more information, please contact Pedro Besugo (pedro.besugo@nabc.nl)

Yazid Taalba Managing Director, AfricInvest Algeria NABC is working on establishing a local representation in Algeria. How do you feel about that? This is very good news. I am happy to see the increasing interest of NABC towards Algeria and the strong potential for economic cooperation between Algeria and the Netherlands. I believe that there are several areas in which Algerian and Dutch entrepreneurs could partner successfully. I wish you a lot of success and I hope this opportunity will contribute to accelerating the growth of Algeria’s young and emerging private industrial sector. A major contribution that NABC could make to accelerate this growth, is commitment to a win-win model based on a strong transfer of knowledge. Its local presence is paramount in achieving this ambition. Can you please elaborate on ‘a young private industrial sector’? What I mean is that the Algerian private sector has only just started to emerge and that it has a strong potential for fast growth in the coming years. Following the country’s independence in 1962, the Algerian economy had to be rebuilt after a brutal war that imposed severe setbacks on its economic and financial potential. The economic model chosen at that time to revitalise the Algerian economy was closer to a state-controlled economic system than to a market economy. This model remained in place from independence until the oil shock that occurred in the mid-eighties. This model was not conducive to the emergence of a solid private sector. Only a handful of private players have succeeded in creating and sustaining businesses in such a difficult economic environment dominated by state-controlled companies. The transition to a market economy was initiated by the government during the nineties, with the adoption of structural reforms aimed at gradually liberalising the

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Dutch Business in Africa

economy. But this dynamic was unable to produce tangible results for a number of years, as it coincided with the outbreak of terrorism and the insecurity that ensued during what has become known as the dark decade. Another hurdle to the transition to a market economy was the fragile macroeconomic situation prevailing at that time, which led to a structural adjustment programme and to a drastic devaluation of the Algerian dinar. After this very difficult period of war against terrorism and economic recovery and thanks to rising oil prices in the international market starting in 2002, Algeria’s economic situation has improved significantly. This, combined with the structural reforms undertaken by the government, gave an impulse to the private sector and we have started to witness the creation of companies in diverse sectors with significant potential. We hear a lot about difficulties that foreign investors encounter in Algeria. What is your comment? Algeria is usually perceived as a challenging market for foreign investment. Heavy bureaucratic formalities, such as the introduction of restrictions on ownership and investment instruments by the regulatory changes adopted in 2009 and 2010, sustain this perception. In reality, the environment remains friendly to foreign investors. So, while it is clear that the overall business environment for both local and foreign investors needs to be improved through a reduction in bureaucracy and the simplification of procedures at all levels, I would like to stress the fact that there is no fundamental issue in transferring dividends and proceeds, provided that from day one of the investment, legal formalities are followed strictly. However, there is certainly room for improvement by reducing administrative delays.

NABC

PART 1: About NABC

Bilboard ad for Ghana teleom, Tamale © Arne Hoel / World Bank

PART 2

MAJOR TRENDS The Ghana Netherlands Business and Culture Council Business interest between the Netherlands and Ghana has increased significantly over the past decades and is expected to continue to grow. The former Ghana Netherlands Chamber of Commerce and Culture (GHANECC) and the NABC recognised the need to better serve these business interests. The two organisations have joined their efforts, networks and activities in the Ghana Netherlands Business and Culture Council (GNBCC), a professional organisation based in Accra. The GNBCC is a private sector initiative to further support the business interests of both Ghanaian and Dutch companies. GNBCC: “High quality expertise for an affordable price” Depending on the level of expertise required for and/or volume of any service request, the GNBCC either works with its own staff or with third party suppliers. Each third party supplier has been carefully selected on its merits and has signed a service level agreement with the GNBCC. For services delivered by our own staff, the GNBCC goes by the credo: “high quality expertise for an affordable price.” For the services delivered by our third party suppliers, GNBCC and NABC members pay discounted prices, which are 10-30% lower than regular market prices. The GNBCC will deliver its services along four main lines: 1.Business Development Services: The first step • If you want to extend your business either to Ghana or to the Netherlands we offer market & opportunity research. • If you already know in which direction you want to extend your business, but need to find reliable partners before you go abroad, we provide company matching & visits. • You do not want to spend time and money on traveling and visiting the companies, we can offer you company representation.

2. Business Support Services: The next step Our Business Support Services are perfect if you already have a business or if you are in a more advanced stage of establishing your business in Ghana. Issues surrounding your (new) organisation may require the support of an expert. The GNBCC offers you a wide range of services, through our own employees or third parties. This includes qualified advice on judicial, financial, recruitment, subsidy, CSR, and HRM matters. 3. Trade Mission & Event Services: An easy step In case you want to organise an event or business trip to display your business to relevant companies, the GNBCC offers the following services: • Programme management We can develop a programme around a particular theme or sector. Through our expansive network we can arrange the attendance of important stakeholders. NABC brings a long track record in putting together successful programs. • Event management Whether it is a congress, a symposium or a trade mission, the GNBCC can take care of every aspect of event management. A dedicated project team develops and executes a detailed plan from invitation to accommodation, from food to PR, and of course everything else required to make your event a success. 4. Travel Support Services: Always travel light! Arranging travels can be a hassle. We are here to take care of all your logistical needs, so you can focus on your core business. We can make your stay as convenient and affordable as possible. For more information, please contact the GNBCC in Accra at info@gnbcc.com or +233 (0) 20 87 23 01. www.gnbcc.net

NABC

Dutch Business in Africa

Numerous cell phone vendors and small repair shops are found along Nkrumah Circle in Accra © Arne Hoel / World Bank

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PART 2: Major Trends

Towards Economic Transformation:

ARTICLE

Placing Africa’s recent growth on firm foundations By Yaw Ansu, Chief Economist African Center for Economic Transformation (ACET)

The African Center for Economic Transformation (ACET) is an economic policy institute supporting Africa’s long-term growth through transformation. It was established in 2008 by K.Y. Amoako, former Executive Secretary of the United Nations Economic Commission for Africa. Headquartered in Accra, ACET’s core staff of about 30 has included professionals from every sub-region of the continent plus the diaspora, augmented by a global network of seasoned business leaders and development experts.

frica is growing again; that is the good news. The not-so-good news is that so far the growth has yet to open up new modern and higher technology opportunities in production and exports. And the growth is yet to create the formal sector jobs that the burgeoning and increasingly educated youth aspire to. However, the growth is beginning to provide glimpses of the possibilities: possibilities that both governments and private investors should position themselves to seize. The story of Africa’s recent growth should be common knowledge by now. That many African economies are growing faster than they have done in 40 years. That, in recent years, Angola, Nigeria, Ethiopia, and Rwanda, for example, have consistently exceeded the seven percent threshold needed to double their economies in a decade. And alert investors should know that the continent’s global share of foreign direct investment has increased from 3.2 percent in 2007 to 5.6 percent in 2012—this, in spite of the economic downturn that began in 2008. This is terrific news.

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Dutch Business in Africa

But growth so far has come mostly from macroeconomic reforms, better business environments, and higher commodity prices. African economies continue to rely excessively on the production and export of primary commodities—unprocessed agricultural products and unrefined minerals, oil, and gas. Manufacturing is stagnating (in many countries, falling) and while the service sector has been expanding, the expansion has been mainly in the low-productivity informal sector. And growth is not producing the formal sector jobs required to absorb the burgeoning and increasingly educated youth population.

In the report, we compare the economies of African countries to those of eight non-African countries that have been notably successful at transforming their economies: Brazil, Chile, Indonesia, Malaysia, Singapore, South Korea, Thailand and Vietnam. Forty years ago, their economies had features similar to those of most African economies today: widespread poverty, low productivity, low technology, and limited exports. But they have since ignited and sustained long periods of transformation. Compared on diversification, for instance, the comparators have raised their share of manufacturing value added from roughly 15% in 1970 to currently around 25%, while Africa’s average share of manufacturing value added in GDP has been stuck below 10%. Big gaps also emerge when African countries are compared to one another. When we index all of the elements of DEPTH, of the 21 countries we looked at in Africa, Mauritius, South Africa, Côte d’Ivoire, Senegal, Uganda, Kenya, and Gabon emerge as the top seven on economic transformation in 2010. The middle seven are Cameroon, Madagascar, Botswana, Mozambique, Tanzania, Zambia, and Malawi. The least transformed are Benin, Ghana, Ethiopia, Rwanda, Nigeria, Burundi, and Burkina Faso. Some in this last group, like Botswana, Ghana and Nigeria, have experienced high growth, but have done poorly on manufacturing and export diversification. Ethiopia and Rwanda made rapid progress on economic transformation between 2000 and 2010, but compared to the other countries, they started from a rather low base, hence their low ranking in 2010. Transforming Economies Governments in many African countries realise the need to put their recent growth on firmer foundations by transforming their economies. In their strategies and pro-

nouncements on economic transformation, almost all of these governments acknowledge the critical role that the private sector has to play in promoting transformation, and many are putting in place policies and incentives to attract private investments. Indeed, in the 2014 African Transformation Report, ACET discusses how governments can strengthen their capacities and reform their policies in order to attract investors and work fruitfully with the private sector to promote economic transformation. This means opportunities for investors. Countries to watch include Ethiopia, Kenya, Uganda, Mozambique, and Rwanda, which made the most progress during the period examined, and also Nigeria by virtue of its market size. One promising recent example is Ethiopia, ranked number 13 out of 21 on our index in export competitiveness in 2010. Since then, the country’s export picture has changed dramatically, with establishment of a shoe factory by Chinese firm Huajian in 2012, creating 550 Ethiopian jobs and boosting their productivity to 90% of that of their counterparts in China within three months (leading Bloomberg to describe Ethiopia as China’s China). Companies from other countries — UAE, Taiwan, and India for example — have also invested in Ethiopia, in both labour and uncultivated land to grow cotton. In horticulture, one of the world’s biggest private equity firms, KKR, is investing USD 200 million in Afriflora, an Ethiopian company that grows roses for the global market. With Africa’s booming youth population, abundant labour, and a fast-growing middle class, the types of investments happening in Ethiopia, (plus Rwanda, Nigeria and others) can be replicated around the continent. Labour-intensive light manufacturing is just one of the potential pathways that ACET has identified for Africa’s transformation. Other pathways include tourism, agroprocessing, oil & gas and mining.

Growth with DEPTH Africa’s bright spots of the future will be those countries that not only grow, but also transform their economies. Those nations that, while pursuing further improvements in the macroeconomic and business environments, also diversify their production and exports and become more competitive on international markets. Those countries that increase the productivity of all resource inputs, especially labour, and the economies that upgrade the technologies they use in production. Only by transforming, countries can ensure that growth produces greater formal sector jobs and higher incomes that contribute to shared prosperity improved human-wellbeing. Economic transformation, as we advocate it at the African Center for Economic Transformation (ACET), is therefore growth with Diversification, Export competitiveness, Productivity increases, Technological upgrading, and improved Human well-being. In short, Growth with DEPTH. With our 2014 African Transformation Report, ACET has set about painting a whole new picture for Africa through the lens of Growth with DEPTH.

To compare African countries among themselves, ACET developed a subindex for each of the five main aspects of economic transformation and combined them to form the African Transformation Index. Countries are compared for three-year periods centered on 2000 and 2010 (1999–2001 and 2009–11). Twenty-one countries are currently represented.

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PART 2: Major Trends

BY KARIN DU CHENNE, TNS – AFRICA, MEDITERRANEAN, MIDDLE EAST

RISK

9 simple insights to drive successful business growth in Africa

Management Rob van der Klei , Account Director Global Accounts, AON

Aon recognizes that ‘Africa is Booming’. What are the major trends related to this development? The overall trend is that more and more companies see the potential of doing business in Africa. The insurance industry is responsive to this development. Although the products and services are not yet as developed as in Europe or the United States, there is a noticeable improvement. Investments in Africa entail some specific risks that need to be taken into account. For example, how do companies deal with continuity of production facilities? Continuity is one of the most important aspects of a successful business, but the challenges faced in Africa differ from those in Europe, as interruptions, for instance due to energy shortages, happen more often. Due to the increased interest in Africa, companies have become more aware of the specific risks related to doing business in Africa. What about financial risks, can you see a trend? Previously, there was a lot of unawareness about the solutions to financial risks in Africa. Nowadays it is definitely a trend that more companies are actively looking to cover their financial risks. For instance, if a company wishes to acquire funds for an investment, it has the choice between appealing to local or foreign capital. In most cases, local capital is more easily accessible and offers cheaper terms. It does, however, carry more risk than global, established institutions. We can provide insurance to cover for this risk. Doing business in Africa, instead of Europe, entails that companies are more exposed to deal with sudden deteriorations. The political unrest in Egypt, for example, caused massive delays in its ports, with perishable stock withering away. Companies that had insurance for their stock minimized financial damages.

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Dutch Business in Africa

Lion’s Share Over the next five years, Africa will rise as the emerging market hotspot with growth expected to be two-to-three times more than in developed nations. The simple fact is seven out of the world’s top ten fastest growing economies are in Africa.

Stefan J. Weda , Executive Account Director Global Accounts, AON

Rapid urbanisation and the growing middle class are being fueled by substantial infrastructure investment and increased connectivity with reduced access costs. Grabbing the lion’s share of opportunity in Africa requires an intimate understanding of regional and individual country growth drivers. To win, brands must think like the king of the jungle and capitalise on these key insights from TNS’s in-market business intelligence experts.

INTERVIEW

Aon Risk Solutions is a major player in the field of risk management and insurance broking. The increase in inquiries concerning Africa, has made Africa more of a priority for their Global Accounts department. Aon has 600 local branches in over 120 countries, with a presence in 38 African countries.

Taking the

What is the major development in the area of employees? We see that companies think very seriously about risks concerning their employees. The term ‘Duty of care’ is becoming essential for their business. The key is data and information. A company needs to know at all times how many people are present in a certain country, where they are and how they can be evacuated if necessary. We have seen this with clients in Libya and Egypt. Even when the situation has calmed down, the company always needs to be prepared and have crisis plans ready.

01 Be fiercely focused Each of Africa’s unique and vibrant countries are proud of their ambitions, languages and cultures. The small but emerging middle class is growing incredibly fast. Technology savvy, globally progressive, well-travelled and frequent trendsetters, the middle class is a growing pool of disposable income with a hunger for goods and services beyond the very basics. 02 Connect with the environment

At TNS we are your connection with the people of Africa

Finally, what is the role for local insurance companies? In Africa we see a strong development, with previously less developed local insurance markets now making strides to develop themselves further. This is an appraisable development, as it provides businesses with more insurance options, designed by people with local and therefore intimate knowledge of the market. It gives us more potential providers of input for our products, meaning we can sharpen our risk management services for our customers. Since the local insurance markets are in a developmental phase, there are still some occasional hiccups. Until the markets reach maturity, we can offer services to negate any risks that may occur.

We have more conversations with the world’s consumers than anyone else. In fact over the past year we had over 5 million conversations with consumers across Africa amongst 2,000 ethnic groups speaking over 3,000 languages. Our in-market experts will share with you their intimate local knowledge and relationships and will develop precise plans that identify growth opportunities for you across our three sub-regions. To find out how TNS can support you to take the lion’s share of growth opportunities across Africa, please contact: Netherlands Bert.Ipema@tnsglobal.com Africa Karin.Duchenne@tnsglobal.com

Africa’s unique retail environment nuances must be carefully understood. Modern trade in many markets is limited whilst distribution can be slow, complicated, uncompetitive and expensive. Tap into entrepreneurial tendencies by engaging locals to build your brand and distribution. 03 Know your competition Be prepared for stiff competition. Brand commitment and loyalty is very strong making market entry tough. Local manufacturers are very price competitive, agile and easily able to mimic the offers of favoured large international brands. Your product or service must offer an advantage over the longstanding players. 04 Foster your young Africa’s median age is just 17 and focused on the future; for a life better than their parents. There is very little nostalgia. Traditional western youth themes of music, fun and pleasure will fail as will the European trend towards returning to authenticity. This is too close to their reality; agriculture is hard work and rural areas are poor. Urban, modern and instant success drives Africa’s youth. 05 Cultivate smart relationships Traditional retail shopkeepers are instrumental to brand building as they are perceived as experts by consumers. African shoppers build trusting relationships with traders and whilst informal trade allows illicit and counterfeit brands, those with strong retailer partnerships can overcome this.

06 Make your mark POS material must be highly visual with respect to lower literacy levels. It must be practical and offer utility to traders. Include brand assets that provide assurance and trust, especially in markets plagued by counterfeit goods. The trade environment is highly social, so activations must target traders and market day shoppers. 07 Empower your community Education is the highest ideal for most Africans and considered crucial to a better future. In fact it is often the key to a secure future for an entire family. Social responsibility programs including development and entrepreneurship skills that contribute to the communities they serve will do well to tap into this core need. 08 Respect all sizes Many Africans are not paid a traditional monthly salary but receive erratic income as entrepreneurs or from piecework. They still seek desired brands but need them in affordable sizes and price points. An assortment of pack sizes is essential with options like penny packs key to driving repeat purchase and loyalty. 09 Simplicity is king African consumers have long been neglected. Low literacy and the vast array of ethnicities and languages must be considered when developing above-the-line communications, POS and packaging. Foreign brands that appropriately tailor messaging and activations will be more successful as they are perceived as being higher in quality. Simple, clear and consistent brand messaging resonates.

Brands that have made their mark in Africa have stretched themselves beyond functional messaging by building value through compelling communication of benefits, consistently delivering an emotive connection and making a meaningful impact into people’s lives.

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PART 2: Major Trends

Rise of the African Business Woman Divine Ndhlukula , Founder Securico in Zimbabwe

Securico was the first company in Zimbabwe to achieve the ISO certification. Moreover, you won the prestigious Legatum Africa Award for Entrepreneurship and were named as one of the Most Successful Women in Africa by Forbes Magazine. What is the key to your success? At SECURICO we strive for high employee engagement. Employees are the most valuable dimension of our business. SECURICO has been rated as one of Zimbabwe’s 10 best employers for three years running and we make a concerted effort to improve employee satisfaction and motivation at work. This includes a culture of performance based rewards, healthy work relationships with colleagues and clear communication about the strategy of the company. By making sure employees stand behind the direction the company is going and by creating a pleasant working environment that encourages dedication, our employees are more than willing to make that extra effort. Since our company is 100% owned by local women and, taking the male-dominated nature of the security sector into account, I feel that it is of the utmost importance to get all our employees on board with our policies.

“Over 900 of our 4000 employees are women.” An additional factor that drives our success is the constant improvement of our internal systems. We strive to keep our internal systems efficient and of consistent quality. With this in mind, SECURICO is currently integrating its ISO 9001 Quality Management System with ISO 18001 Occupational Health and Safety and ISO 14001 Environmental Management Standards. This puts us ahead of our competitors in the Zimbabwean market.

INTERVIEW SECURICO is a diversified security solutions provider in Zimbabwe that offers manned guarding services, electronic security systems, cash/asset movement and management, and security audits and advice. The company was founded in 1998 and now employs over 4000 people. SECURICO was the first security organisation to be certified with the ISO 9001 Quality Management System Standard in 2005. SECURICO is 100% owned by local women.

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Dutch Business in Africa

The security sector in Zimbabwe is dominated by males. What made you decide to jump into this industry? Did people easily accept female security guards or was there a lot of prejudice? Not only the security sector, but nearly all industries in Zimbabwe have always been dominated by males. However, I saw that existing companies could not service the security market, as they were lacking in professionalism and quality. That made me decide to take the leap and start SECURICO. In addition, I wanted to give disadvantaged women the opportunity to get employment. Females were not readily accepted by clients and by the male managers that I employed at the time. Even some of the women themselves did not have much confidence in their own abilities. I had to deliberately and consciously train the female employees by taking them through various development programs.

The stigma surrounding female security guards also posed difficulties for obtaining funds from financial institutions, leading us to finance growth by reinvesting the profits in the company. In the end, the result was that I could present very efficient and confident female operatives to the market. The impression they made changed the mindsets of clients, male managers and the market in general. Did you actively recruit female security guards? Are there any competitive advantages to hiring women? Yes, every recruitment intake has to have a minimum number of women. This is still our policy. It was not really difficult to find suitable candidates, as the labour market for formal employment is big and word soon spread that we offered job opportunities for women. In the security business integrity is one of the most important assets an employee can have. The employment of women caused a reduction in losses as, in my experience, they are generally more honest. Now over 900 of our 4000 employees are women and they give us an edge over the competi-

tion. More importantly, they also combat the stereotype that women should stay at home and be a mother. In a nutshell, what advice would you give to ambitious entrepreneurs? Believe in yourself and your abilities to do anything under the sun. Work hard and have discipline. Keep dreaming.

In 2011, Ndhlukula won the Grand Prize at the Africa Awards for Entrepreneurship for SECURICO. Forbes named her one of the Most Successful Women in Africa. For more information, please visit: www.securico.co.zw

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PART 2: Major Trends

The African

Consumer

ARTICLE

The potential of Africa’s consumer markets is massive. Sub-Saharan Africa alone comprised more than 856 million consumers in 2010 and that number is expected to grow to 1.5 billion by 2030. Consumer spending reached nearly 600 billion USD in 2010 and is estimated to reach 1 trillion USD in 2020. Needless to say, identifying the African consumer patterns can mean a world of difference for the success of every company.

eports by KPMG, McKinsey’s Africa Consumer Insights Center and Accenture all identify three main drivers behind the sustained increase of consumer spending in Africa: population growth, economic growth and urbanization. The advantage of population growth is self-evident: a bigger consumer market. Africa has the fastest growth rate of the world, with the population exceeding 1.5 billion in 2030. Moreover, demographic characteristics provide a further boon. The growth of the working-age population will outstrip that of the population as a whole. Africa already has the world’s youngest population, with more than half its inhabitants under the age of 20. This group is more likely to display brand awareness, are more proficient online, and show more willingness to try new things. As they age and accumulate more income, they will determine the face of the consumer market. Africa shows a steady trend towards urbanization, with 40 percent of its population already living in cities. With a higher income per capita and purchasing

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Dutch Business in Africa

power, better infrastructure and more densely populated areas, consumers in urban areas are attractive for companies. Urban consumers attach value to fashion and have a propensity to follow the latest trends. With a high level of internet frequency on personal devices and a desire for a formal shopping environment (malls, retail stores), they do not differ much from other urban consumers worldwide. Finally, sustained economic growth creates a middle class that spends more on consumer products. GDP per capita, both in real terms and adjusted for purchasing power parity (PPP), has seen explosive growth in the previous decade. McKinsey expects more than half of African households to have discretionary income by 2020. As expenditure on food will proportionally decline, people will look to spend their additional money on more quality goods.

Nigeria is but one example of a promising market Nigeria is but one example of a promising market. It has a growing population of more than 160 million inhabitants, a solid growth rate in urban areas and shows some of the strongest economic growth of the entire continent. In Nigeria retail is still in the early stages of development. People primarily spend their money on food in neighbourhood shops and on local markets, and in general show loyalty to local products. However, recent developments have created a substantial middle class, one that continues to grow

and is willing to spend on clothing and personal care products. The market share of the six leading retailers in apparel in Nigeria is less than 2 percent, meaning the market is still very much up for grabs. McKinsey’s report indicates that brand loyalty is strong in Sub-Saharan Africa, with people usually sticking to one brand. That is the reason that first movers on the market can seize a deciding advantage on the competition, as they can utilize the belief that brands offer higher quality. With a high rate of penetration by media outlets, like TV and internet, consumers can be easily reached. Another country full of potential is Tanzania, which already had a population of 46.2 million in 2011 and is expected to have the second largest population of Africa by 2050. Though its economic growth is significant, structural impediments mean GDP per capita is low. Tanzanians, like Nigerians, show strong brand loyalty, giving first movers the opportunity to establish a sustainable consumer base. As spending power is more limited than in Nigeria, opportunities mostly lie in products that can be offered more cheaply, like personal care products as toothpaste and washing powder. Another popular industry is beverages. Energy drinks, for instance, can count on steady demand from all income classes. With supermarkets becoming more popular as well, these drinks have a convenient outlet to raise their availability and sales. Another characteristic that influences the behaviour of Tanzanian consumers is the influence of recommendation. This is an aspect that not only benefits first movers, but also indicates

that the marketing international companies deploy, needs to be adapted to the particulars of the country of operations.

The countries and industries mentioned are only a fraction of the huge consumer markets that the African continent has to offer. The countries and industries mentioned are only a fraction of the huge consumer markets that the African continent has to offer. With the aforementioned developments underpinning the further growth of these markets, consumer spending in Africa will be tantalising for any company. As indicated, first movers have a lot of advantages. Fairly high rates of brand awareness and loyalty, as well as fragmented markets, create an opportune environment to establish significant market shares. If companies can take the characteristics of a country into account and create a solid business plan on how to reach their target groups, the sky is seemingly limitless.

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PART 2: Major Trends

The potential of the SILICON SAVANNAH ARTICLE

Its convenience, safety and speed has enabled M-PESA to be rolled out in other countries (including Tanzania, Afghanistan and India) and has even provided a further impulse for startups that build on this foundation. The proliferation of start-ups in Kenya can be attributed to the conducive environment. According to the World Bank research, the Kenyan *iHub serves as a model for other tech hubs on the continent and it has made such an impression on the Kenyan government, that it will now establish tech hubs in all its counties. Though mobile technology fuels the majority of start-ups,

other initiatives have benefited from *iHub as well. JuaKali is an online database for skilled manual labourers. They can make their own online profile and receive recommendations by registered users, so that they become more visible for potential employers. This conducive environment for innovation creates opportunities for Dutch businesses as well. Royal Philips has recently established the Philips Africa Innovation Hub in Nairobi. This Hub will focus on application-focused scientific and user studies to address key challenges, like improving access to lighting and affordable healthcare,

as well as developing innovations to meet the aspirational needs of the rising middle class in Africa. The establishment of the Philips African Innovation Hub is a testament to the progress Africa has made in the field of innovation and the possibilities this creates for local and international businesses.

By NABC

esearchers from the World Bank, Since home-grown technology holds instance, has invented a handheld in collaboration with the Bota lot of potential for young African medical computer tablet (Cardiopad), swana Innovation Hub, have talent has recently been demonthat can assist in diagnosing people recently endeavoured to map the strated by a feature on the website with heart disease. Evans Wadongo tech hubs in Africa. They found that of Ventures Africa, on 10 inventors from Kenya has invented a solar lanmore than half of the countries on under the age of 30. The list shows tern (MwangaBora), for 50% consistthe continent have at least ing of recycled material. These one hub, with the total be- Silicon Valley is without a doubt the most inventions did not necessarily ing around 90. South Africa originate in one of the tech hubs famous tech hub in the world. It is a con- that cover Africa. Instead they, has the most (17), but countries like Ghana (9), Ken- centration of a large number of high-tech just like the tech hubs, indicate ya (8), Nigeria (7), Tanza- companies and home to cutting edge tech- the renewed emphasis on the nia (6) and Senegal (6) are nological companies like Apple and Goog- innovative capacity inherent in not far behind. The nature le. Located in California, one of the biggest the African economies. The tech of these tech hubs varies hubs are a way of mobilising this widely. Examples given by states in the United States, it is a testament capacity, bringing talent togeththe World Bank researchers to the innovative nature of the biggest er and amplifying their innovainclude the Smart Xchange economy in the world. Technological inno- tive capabilities. in South Africa, a tech hub vation is usually not one of the first things that wants to be a growing The home country of Mr. Wadonthat come to mind when thinking about Af- go, Kenya, is one of the African space for ICT business, and the Hive CoLab in Ugan- rica. However, the Silicon Savannah might frontrunners in knowledge and da, which simply provides in the near future give Silicon Valley a run innovation. Often it serves as working spaces for entre- for its money. an example for other countries, preneurs to exchange ideas. blazing the trail for others to follow. It is not surprising then An interesting development is that people ranging from 16 to 28 from that one of the most successful utiAfrican governments seem to have all over the continent (Kenya, Molisations of the potential of mobile taken notice. Technological innovarocco, South Africa, Congo, Malawi, phones, the flagship for technologition is one of the drivers of economic among others) that have invented cal innovation in Africa, originated in development and holds potential for products that are not only catered to Kenya. M-PESA allows anyone with a job creation for young African talent. the needs of Africa, but can be relcell phone to make payments and Governments therefore increasingly evant in other parts of the world as transfer cash electronically. look to invest directly in tech hubs. well. Arthur Zang from Cameroon, for

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Dutch Business in Africa

Innovation that starts with you At Philips, we want you to be healthy, live well, and enjoy life. We’re inspired by you… by understanding your needs and desires. We’re here to deliver innovation that matters to you, to your businesses, to your hospitals and to your families. How we improve people’s lives around the world every day? Check our website www.philips.com

Philips_AD_Africa_V4b.indd 1

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13/10/2014 11:06

PART 2: Major Trends

African public sector interested in Dutch expertise ARTICLE

by NABC

African heads of state, prime ministers and ministers not only visit the Netherlands to meet their Dutch counterparts in parliament, but also increasingly combine these meetings with visits to innovative Dutch enterprises, so African delegations can witness Dutch expertise with their own eyes. Economic prosperity and political stability dominate current discourse on business opportunities in Africa. African government officials come to the Netherlands to convey this message to foreign traders and investors directly: African markets have unlimited business and investment opportunities in many different sectors. For example, during the Sierra Leone Business Dinner in The Hague in April 2014, the President of the Republic of Sierra Leone, Ernest Bai Koroma, depicted Sierra Leone as the country which, “over a decade ago was called a failed state, but which is now a hailed state attracting hundreds of millions of dollars of foreign investment.” Hence, “there is no better time for seizing these opportunities than now,” according to Koroma.

PART 3

AGRICULTURE

There has been a significant rise in African governmental delegations that explicitly insist on meeting Dutch companies. Since Dutch enterprises are global frontrunners in essential industries such as agriculture, infrastructure, port development, energy and water, incoming delegations are eager to meet these innovative companies. During their visits they embrace any new investor, no matter the scope of the investment. In addition to the Sierra Leonean visit, NABC also welcomed Matata Ponyo, prime minister of the Democratic Republic of Congo in 2014. Jan-Willem Scheijgrond, Global Head of Government Affairs B2G of Philips, believes that: “the visit of Matata Ponyo and his delegation was great and has opened new doors for Philips, as the government has a very ambitious healthcare programme that offers great opportunities.” The visit also enabled Alterra of Wageningen University to establish close ties for the development of twenty agroparks across Congo. Besides Dutch multinationals, small and medium enterprises have a huge role to play as well. Small dairy and horticulture businesses, for example, possess the knowledge and technology their African counterparts are lacking. The visit to a small family-owned company, Tomato World, was exemplary, as the Congolese delegation was impressed by the integrated climate and energy systems and the usage of environmental friendly bugs instead of pesticides to protect cultivation.

For more information or enquiries, please contact Maryn Kleingeld via maryn.kleingeld@nabc.nl

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Dutch Business in Africa

After many years of one-sided investment from the Netherlands in Africa, it seems that the economic development Africa has enjoyed has finally given its businesses the opportunity to operate on an equal footing. They are ready to grab the opportunities available in the Netherlands, as a potential export market and as a gateway to Europe. NABC is proud that it has contributed to establishing an environment that connects African delegations with Dutch businesses.

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PART 3: Agriculture

“Let’s convert Africa to organic production!” ARTICLE

By EOSTA

ver the last few years, organic food has developed from a niche-market product to being widely available, as an increasing focus on a healthy lifestyle has increased consumer demand for healthy, organic and fairly traded food. The view that sustainable production is key for a greener economy, improved human well-being, as well as the reduction of environmental risks and ecological scarcities has gained momentum all over the world. Acknowledging this demand for sustainably produced food, the Dutch fruit & vegetable distributor Eosta has introduced the ‘Trace and Tell’ system ‘Nature & More’, which offers organic produce from all over the world.

With its Nature & More system, Eosta introduces consumers to the farmers that have grown the products they are buying and gives them a peak into the life, motivations and working methods of the farmers. It is an unique system that gives a human touch to an industry that traditionally consists of large-scale anonymous producers. Every Nature & More product leaving the Eosta packaging and distribution centre in Waddinxveen is marked with a sticker with a three-digit grower code. When this code is inserted on the website, the consumer can trace the mango or avocado he bought all the way back to the farm where it was grown.

Eosta is an international distributor of fresh organic fruits, vegetables and juices that works with over a thousand growers on six continents. All their products are organic and often fair-trade certified, GMO-free, pesticide free and free from artificial fertilizers. Organic vegetables and fruits are sourced from growers on six continents. Eosta has been active in Africa since its establishment almost 25 years ago. Starting in Egypt and Morocco - and soon after that South-Africa - Eosta now considers West Africa and East Africa very promising regions for future business development. In Africa many of the small-holders are organic, often by default. Especially Ghana is considered to be of enormous potential. Eosta expects to source 5% of their products from Ghana by 2016, up from less than 1% now.

On the site, the farmer tells about his methods on different ecological principles: the Sustainability flower.

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Dutch Business in Africa

Africa’s potential According to Mr. Henk Zoutewelle, Product Manager for Eosta, the African continent is considered to be of high sourcing potential for organic fruit and vegetables. Usage of artificial pesticides and fertilizers and high-tech input supplies like genetically altered seeds is rather limited, mostly due to financial limitations rather than considerations on sustainability. As average income is rising, many African farmers currently stand at a crossroads, enabling them to choose which path to travel: organic production which earns a premium but can have lower production-rates in the short term or ‘normal’ production, which ensures larger production in the short term but has negative environmental consequences and does not pay a premium. By assisting farmers to start up or switch to organic production, long-term production capacity can be ensured. This not only brings environmental advantages, organic production can also be a commercial success-formula. By creating a platform for organic farmers, Eosta enables its growers to cash in the additional value organic products have in the food-market. At the same time Eosta integrates a system of sustainable production. Companion-cropping, for example, ensures sufficient food supply to the local market as well as premium earnings for local farmers. Sustainable production and good soil management can furthermore prevent exhaustion of the land and enables constant production over a longer period of time than many high-intensity agricultural practices would.

As such, one can hardly disagree with Eosta’s belief that converting Africa to organic production could be a useful tool in ensuring Africa’s capacity to feed the world of tomorrow. Its Nature & More system highlights this potential. The unique ‘Trace and Tell’ lays the focus on the sustainable efforts of African farmers, while at the same time demonstrating the commercial potential for Eosta itself, as increasing social and health awareness fuels a need for consumers to know where their products come from. With Nature & More Eosta bridges the gap between producers and consumers.

Mr. Volkert Engelsman, Managing Director of Eosta, emphasizes that the continuous growth of the world population and the consequences of non-sustainable agricultural production put a high pressure on the environment’s production capacity. “If we want to ensure sufficient food production for the world population, it is important to understand that 80% of produce is coming from smallholders. With a long-term perspective in mind, fruit and vegetables should be produced within a stable agro-ecological system which preserves the environment’s capacity to maintain – and even increase - agricultural production.”

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PART 3: Agriculture

Kas-be-kas enkulal begru yhedal (Step by step, an egg starts walking)

ARTICLE The age-old discussion about whether the egg or the chicken came first is a moot point for the poultry industry. Both eggs and chickens offer many opportunities and are in great demand worldwide. The Netherlands has always been one of the frontrunners in the poultry industry. At the start of 2012 NABC initiated the Holland-Africa Poultry Partners (HAPP), as part of the 2g@there programme of RVO Netherlands. The goals of this group of companies and knowledge institutes are: the development of the poultry sector in Africa; a strong positioning of the Dutch industry; and knowledge dissemination.

the automatic equipment, including a solar energy system for the layer house. The centre will cover both the production of eggs (layer chickens) and chicken meat (broiler chickens). It will be officially opened in the first week of March 2015 by the HAPP, their Ethiopian partners and the Netherlands Embassy in Addis Ababa. Another positive development is that the Ethiopian Poultry Producers Association (EPPA) has now become fully operational through advisory support by the HAPP and financial support by Agriterra and the Agri-Business Support Facility.

INTERVIEW

The HAPP focuses on Ethiopia, one of the premier upcoming markets in Africa. Ethiopia is potentially one of the biggest markets for poultry products in the world, but currently the poultry sector is dealing with value chain inefficiencies and relatively high prices for poultry products. Furthermore, proper practical courses on commercial poultry farming are hardly present in Ethiopiaâ&#x20AC;&#x2122;s educational system and technologies for more efficient operations are not available to farmers. Therefore, the establishment of a practical National Poultry Training Centre, with Dutch equipment, has been one of the most important goals since the start of the HAPP.

The Netherlands has always been one of the frontrunners in the poultry industry. The extensive knowledge, experience and technology of the HAPP-partners will make this Training Centre a reality. In the coming years, hundreds of Ethiopian poultry farmers, animal husbandry students and other important stakeholders in the sector can be trained in practical poultry farm management. This will fill a gap and is an important step towards a bigger and cheaper supply of protein-rich products, like eggs and chicken meat. The centre will be located at the EIAR (Ethiopian Institute of Agricultural Research) in Bishoftu. The Ethiopian Ministry of Agriculture is financing the construction of the two farm houses, while the HAPP is supplying and installing

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Dutch Business in Africa

AVOCADOS from Kenya

Beth Mwangi CEO, Ideal Matunda

EPPA has hired a professional general manager and is forming its strategic plan for the coming years, including targeted training sessions for new and established Ethiopian poultry farmers. This means that the sector now has a representative body for interaction with the government and other important stakeholders and that cooperation in the private poultry sector is stimulated. The EPPA will be responsible for translating the needs of those in the field for implementation in the comprehensive training programs of the centre.

If you would like to meet future incoming Ethiopian poultry delegations, host a company visit or if you would like to hear more about upcoming poultry related trade missions and trade fairs, please visit the HAPP website: www.hollandafricapoultrypartners.nl or contact Hilde Duns at hilde.duns@nabc.nl or the local representative in Addis Ababa, Auke Boere, at auke.boere@nabc.nl

You manage the agribusiness company Ideal Matunda. What products and services do you offer? We produce fresh avocados and crude avocado oil for the Kenyan market and for export. We also have fresh passion fruits, mangoes and French beans, among other vegetables. We have focused on avocado production due to the high potential demand and the reliable supply of high quality fruit. Meeting the international requirements is an expensive undertaking, since Global GAP certification for each product is required. For a SME like Ideal Matunda Ltd, it is prudent to focus on one crop at a time to ensure the needs of customers are exceeded in order to build customer loyalty. That is why we have focused on the avocado as a pilot project, before scaling up with additional products and services. How did it all start and what inspired you to set up your business? Business operations started in 2007. I was inspired to set up the business after managing a project aimed at improving the livelihoods of farmers by improving the quality and quantity of their produce to meet international standards. I was impressed by their hard work to meet the set standards. Unfortunately there was no ready market, leading to losses when quality produce was not sold at equitable prices. Having grown up on a small farm in Central Kenya, I empathized with the farmers and was keen to work with them. As a trained economist, I quickly

saw that access to reliable and profitable markets would provide them with a good opportunity. How does your business help to improve the lives and livelihoods of smallholder farmers? We sign supply contracts with our producer groups, indicating the minimum guaranteed prices at the start of each season. This motivates them to invest in the adoption of good agronomic practices to increase the quality and quantity of production. Access to a reliable and profitable market provides a steady and growing household income. The signed supply contracts facilitate access to farm inputs and loans from commercial financial service providers, like commercial banks, microfinance institutions and Savings and Credit Associations. This enables rural households to meet their everyday needs, like medical expenses, educational needs and other investments. What are your plans for the future? We are currently relying on leased facilities, including packing and cooling facilities, which can be restraining. In the medium term, we intend to invest in our own packhouse and packing line, which enables us to scale up our operations. Scaling up will include: introducing new product lines and value addition by drying fruits and vegetables to reduce the risk of perishing. For our expansion we intend to attract a strategic investor.

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PART 3: Agriculture

ARTICLE

How did you experience doing business with the Dutch? Were there cultural differences/barriers? Is there a particular interesting encounter with the Dutch that has stayed in your mind? We have had good experiences doing business with the Dutch. Dutch companies buy fresh fruit from us for distribution in their local markets. The Dutch warmly embrace people, a characteristic shared by all Kenyan cultures, which makes it easier to do business with them. For effective trading, they share information on market requirements and price trends, which we can pass on to our suppliers. Apart from language, the only significant difference is the size of what is defined as small-scale farming. Compared to the Dutch, what is practiced in Kenya can be more aptly described as micro. Personally I had a particularly interesting encounter with the Dutch under the Green Solutions programme. We visited a tomato farmer and I was highly impressed by the level of technology employed at the different stages of production, harvesting and post-harvest handling. Finally, since you are an “insider” to agribusiness in Kenya, what advice would you give to Dutch companies who are thinking about expanding to Kenya/Africa? My advice to Dutch companies is twofold:

experience required to overcome these barriers and fully benefit from the existing potential. Partnering with SMEs in Kenya / Africa will be mutually beneficial, as it will enable these enterprises to adopt appropriate technology, scale up and reap the economies of scale associated with large scale enterprises, while Dutch businesses can immediately take advantage of local knowledge and networks.

There is a lot of scope to invest in Africa at the moment, since the potential of agriculture is not yet fully exploited. The key barriers are access to capital, technology, skills and experience. Dutch companies have the resources and

For more information, please visit: www.idealmatunda.com

On a Thursday afternoon in September 2013, near Eldoret, Kenya, a group of representatives of Dutch dairy companies and knowledge institutes steps out the car onto a large dairy farm and is welcomed by the farmer Mr. Maktoo and his Friesian dairy cows. Mr. Maktoo proudly shows us around his farm and within minutes the group is discussing the challenges he is facing and possible solutions to his problems; better feed, different breed and milk cooling training of his farm manager. This is a typical example of how the Dutch Dairy Development Partners (DDDP) – a cooperation between Dutch and African dairy companies, NGOs and knowledge institutes - work: making Dutch dairy knowledge and expertise available for the African dairy market. The DDDP started in 2011 in Kenya and Uganda. Both the Kenyan and Ugandan dairy markets have been growing rapidly over the past few years. Both countries had an average economic growth of 4 to 5 percent per annum in the last eight years and in Kenya the dairy sub-sector produced approximately 5 billion litres of milk in 2012. The dairy sector contributes an estimated 8 percent to GDP in Kenya and it provides employment to 700,000 households, mainly in the rural areas. Although the majority of Kenyan and Ugandan dairy farmers are small-holders and subsistence farmers, there is a growing group of middle and large farmers. The upscaling of farms means there is more opportunity for Dutch dairy companies to find suitable trading partners.

In the past 3 years the DDDP has visited many farmers such as Mr. Maktoo, who is now part of the practical dairy training program and on his way to buy milk cooling tanks. After two years of activities in Kenya and Uganda, the companies of the DDDP have formed joint ventures, found local distributors and set up local offices in Kenya. New training activities have been set up and more than 60 Kenyan and Ugandan dairy farmers have visited the Netherlands. Besides Kenya and Uganda, where we will intensify our cooperation in the next few years, we are exploring new markets such as Ethiopia, Rwanda, Algeria and Tanzania. All as part of the objective to support the African dairy sector and to position the Dutch dairy sector in doing business in Africa.

Do you want to meet farmers like Mr. Maktoo? Are you interested to explore dairy markets, broaden your network and learn from experiences of other Dutch dairy companies and organisations in Africa? Join the Dutch Dairy Development Partners. Contact Lars Kramer at +31 (0)70 304 3618

Together with our partners, we actively want to contribute to the world’s food supply and stimulate vegetable consumption by laying the foundations for healthy and appealing vegetables.

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Dutch Business in Africa

Sharing a healthy future

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PART 3: Agriculture

Vegetable Sector in Ghana ARTICLE

verage economic growth in Sub-Saharan Africa continues to be high and - according to recent World Bank statistics - is predicted to rise even more from 4.7 % in 2013 to 5.2 % in 2014. Ghana is no exception to this trend. Despite problems with slumping growth in the mining and oil industries, high inflation and a weak currency, the economy is nevertheless expected to grow 4.5 % in 2014.

These deficiencies lower output and lead to a situation in which demand is not sufficiently met by supply. As such, Ghana remains a major net importer of agricultural food products, with imports of approximately USD 1 billion. Imports for onions alone amount to USD 120 million in just the Accra and Kumasi market, illustrating the large discrepancy between domestic vegetable production and actual demand.

As a result of the constant economic growth, Ghana has reached the status of a middle-income country. With the emergence of a large middle class an increasing number of consumers is demanding a higher quantity and quality of fresh produce. As a consequence, the domestic vegetable-market alone is growing at more than 10 % per year. For local consumption, the most important vegetables are tomatoes, peppers (both sweet and hot) and onions. Meanwhile, Ghana’s vegetable sector also exhibits a high potential for exports. The potential value for the export of vegetables is estimated at USD 50 million. However, current export of vegetables stands at only USD 8 million as producers fail to comply with international food safety regulations.

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Dutch Business in Africa

The Centre for Development Innovation of Wageningen UR cooperates with NABC and International Fertilizer Development Center (IFDC) in order to increase the competitiveness of Ghana’s vegetable sector through the GhanaVeg Programme. Initiated by the Embassy of the Kingdom of the Netherlands, the programme intends to improve the business climate and to further professionalise the value chain for vegetable production and consumption in Africa. An important part of the programme is to link local vegetable producers and other value chain operators to the Dutch private sector. Furthermore, GhanaVeg organises regular Business Platforms with presentations on business opportunities and horticultural innovations. In addition, GhanaVeg can provide co-financing to innovative business ideas and R&D proposals. In 2014, GhanaVeg funding has been awarded to multiple parties, including vegetable-wholesaler Eden Tree which will be assisting and coordinating a cluster of 120 farmers in order to achieve certified produce for domestic market outlets. Calls for proposals regularly open and include calls for the seed industry and protected horticulture, as well as general proposals aimed at vegetable chain integration

While traditionally, fruits like pineapples, bananas and mangoes were the main horticultural export crop, chillies and Asian vegetables are gaining in popularity. Another reason why Ghana does not live up to its potential, is that vegetable production chains still show ample room for improvement. At present, they are characterised by a low availability and knowledge of agro-inputs, limited agronomic skills and practices, poor food safety in both the domestic and export market, poor post-harvest management, and weak linkages between producers and buyers.

GhanaVeg Programme

This discrepancy however, opens up business opportunities for Dutch companies active in vegetable production, processing, plant reproduction, cold-chain technology, agro-inputs and agro-consultancy. Likewise, there are abundant opportunities for Dutch wholesalers looking to import food products from Ghana.

Check out the GhanaVeg website for more information!

In the week of 16-20 June an agricultural business delegation from the Netherlands - including seed-company East West Seeds, organic trader Eosta and development organisation SNV- visited Ghana. The GhanaVeg mission-programme included visits to Eden Tree (vegetable-processing for high-end supermarkets), Blue Skies (fruit processing for a.o. Albert Heijn) and VegPro (large-scale vegetable-outgrower) as well as a matchmaking event with around 25 Ghanaian agricultural companies. Mission leader Jan Arie Nugteren from East West Seeds stated that although he has 30 years of experience with agribusiness in Ghana, this GhanaVeg mission has provided him ‘with a new and inspiring perspective on the possibilities of Ghana’s vegetable sector’.

For more information on the GhanaVeg programme, the upcoming trade mission to Ghana or the Dutch Vegetable Pavilion, please contact Marlou Rijk (Project Manager Horticulture) at marlou.rijk@nabc.nl or +31 (0)70 304 3618.

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PART 3: Agriculture

However, despite the recent growth and economic development Ethiopia remains a low income country, with 29% of the population living below the poverty line. The previous paragraphs notwithstanding, Ethiopia is often

“The Ethiopian Soy Trade mission I attended presented useful information and provided ample opportunities for practice.” - Engidu Legesse of Guts Agro Industry PLC “Next steps would be sharing the achievements of the trade mission group to our platform meetings, strengthening the network with companies we met during our visit in the Netherlands and following up with advisory service on the lessons learned.” - Dr. Zerihun Desalegn of ABSF

The ABSF offers several opportunities for Dutch companies to get in touch with the Ethiopian agricultural sector, for example via matchmaking sessions during incoming trade missions or while joining a trade mission to Ethiopia. NABC has and will organise a number of these missions, putting its decades of experience in connecting Dutch and African businesses at the disposal of the ABSF.

g ra d i n g - pac k i n g - p ro c e s s i n g An overview of upcoming events can be found at the ABSF website: www.foodsecurityethiopia.nl

The current government strategy strives for agricultural transformation through increased efficiency and more value-added production. Accompanied by an increase in public investment, it has proven successful. Over the past few years Ethiopia has achieved high economic growth (GDP annual growth rate of 10.9%, according to the World Bank) and it is expected that especially agribusiness will provide interesting national and international business opportunities. The most important agribusiness sectors in Ethiopia are horticulture, dairy, seeds and sesame, with other promising sectors being poultry, potatoes, spices and aquaculture.

Close Relationship Ethiopia and the Netherlands maintain a close relationship, demonstrated by the financial and technical support by the Dutch Embassy for the ABSF. This close relationship is strengthened by the strong complementarity between Dutch agribusinesses and their Ethiopian counterparts. To accommodate further and deeper collaboration, the ABSF facilitates Dutch agricultural companies in setting up new business, joint ventures or expanding existing business in Ethiopia. This includes providing the necessary information on topics such as tax and revenues, investment licenses, land lease and logistics. ABSF also organizes subsector (poultry, dairy, soy and spices) platform meetings to connect both Dutch and Ethiopian chain actors and chain enablers, in order to help develop these sectors.

The goal of the trade mission was to introduce Ethiopian stakeholders to the Dutch soy sector and it served as a first step towards further cooperation between Dutch and Ethiopian businesses active in this industry. Participants included soy producers and processors for food and feed. Their expectations included seeing state-of-the-art technologies, expanding their network, exchanging knowledge and getting advice on business management. To this end, the delegation visited companies like SGS Nederland, Tradin Organic, ABZ and De Kruijf. The Ministry of Economic Affairs, Solidaridad, GMP+, DIBcoop and AAA gave presentations during the trade mission on import and export regulations, sustainable soy production and quality standards. The mission proved very successful and new linkages through several Dutch-African agri-platforms were established.

ETHIOPIA

equated with food insecurity, as market inefficiencies often cause discrepancies between supply and (national) demand. In order to correct these inefficiencies and contribute to increasing food security, the Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) and the Embassy of the Kingdom of the Netherlands have established the Agribusiness Support Facility (ABSF). The main objectives of the ABSF include attracting foreign direct investment in the agribusiness sector, increasing the number of domestic companies and providing hands-on business support services.

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Agri Business Support Facility

Ethiopia, located in the Horn of Africa, is one of the most populous landlocked countries in the world with 92 million inhabitants. Its economy is characterised by an agricultural orientation, with approximately 80% of Ethiopians working in agribusiness and related industries and 46% of the national GDP stemming from the agricultural sector. It is no wonder that this sector is the main driver of the Ethiopian economy. The agricultural industry can not only take advantage of an enormous domestic market, its sheer size can offer competitive advantages in exporting agricultural products.

Soy trade mission to the Netherlands: 26 until 31 January 2014

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PART 3: Agriculture

INTERVIEW Willem van Noort, Lithos Spices

From Sweet to

HOT SPICE

Can you give us some insights in the world market on spices? Spices have always been considered of significant value and have played an important role in global trade, stretching back thousands of years. For Dutch readers, spices probably immediately call up associations with the 17th century, when Dutch ships sailed all over the world carrying valuable nutmeg and pepper. Indeed the quest for these spices fuelled a great many of human kind greatest developments. Black and white pepper are still the king of exported spices, taking up roughly half of the total globally exported volume of about 700.000 tons per year. Ginger and chillies/paprika are the next biggest exported spices. The major spice exporters are from the Far East: countries like Indonesia, China, Vietnam and in particular India. Local use in China, Indonesia and India is very large and increasing. World production today easily reaches 6.000.000 tons per year, of which indeed the majority is “captive use”.

Nigeria, in West Africa, has developed this industry successfully and now meets EU & USA requirements for exporting ginger. Today, 18% of the world chilli production and 12% of the world ginger production come from African countries. Of course, with spices being a niche market in certain parts of Africa, production might be fleeting in some cases. We have seen, for example, that due to the political unrest in Zimbabwe, the paprika exports moved away to Peru. The local markets are not comparable to those in Indonesia and India and neither is the size of the production, but Africa has a history and thus an existing infrastructure of spice production. There is a lot of potential there for further growth, thereby filling the ever growing gap between an increased world demand and reduced export volumes (due to economic growth and rising captive use) in exporting countries from the Far East. You focus primarily on Ethiopia. Why? Comparable to India, Ethiopia has a long tradition of spicy food, especially hot chilli mixtures (“berbere”), which are used in almost every meal. Ginger and turmeric are also widely cultivated. The Ethiopian climate is suitable to grow a broad range of spices, even including pepper (piper nigrum). While chillies are mainly consumed on the domestic market, ginger has developed into an export cash crop. However, the export value of Ethiopian spice is still limited to less than 2% of its agri-exports, while coffee, pulses and oilseeds account for 80% of the US$ 1 billion in foreign exchange every year. Of the 15.000 tons of spices exported today, 95% goes to neighbouring countries. The reason Ethiopian export is primarily regional, is that spices like ginger and turmeric, though excellent in terms of taste, colour and essential oil content, generally do not meet international quality standards. Better post-harvest treatment and an efficient, short supply chain, can ensure that EU quality levels for hygiene, quality minima

and packaging are met. The quality of Ethiopian spices and the enormous growth potential due to its current low base level, means that by instituting a solid post-harvest treatment, Lithos Spices can take advantage of this opportunity. Our Corporate Social Responsibility programme takes EU regulations into account, creates an atmosphere of responsible business and teaches local farmers important business practices. How does the future look like? In 2015, we hope to extend our export portfolio with black pepper, which on small scale is already being intercropped with coffee. In years to follow, we hope to develop dried sweet paprika, a product which is in high demand by (Spanish) paprika processors. Present paprika producers, like Peru, currently experience a drop in exporting volumes. With demand in Europe still increasing, European customers therefore turn their eyes to East-Africa, where climate conditions are favourable for this crop. In this respect, Tanzania is a good example. It started paprika production around the turn of the millennium and in 2006 it already produced 500 tons a year. The East-African climate allows for large scale production and paprika will be a valuable addition to our assortment.

Last November, Willem van Noort was the mission leader of the spices, herbs and aromatics trade mission to Ethiopia organised by NABC on behalf of the Agri Business Support Facility and the Addis Ababa Chamber of Commerce and Sectoral Associations.

For more information, please visit: www.lithos-spices.nl

Lithos Spices is working in Africa? Is that not a very small market for spices? Africa has climates and soil conditions that are very suitable for the cultivation of spices. Countries like Tanzania and Madagascar in East Africa export a substantial amount of spices and have done so for many centuries. Zanzibar, for example, has traditionally been a big producer of cloves, which inspired its nickname as the ‘Spice Island’.

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PART 3: Agriculture

INTERVIEW

Can you tell us a bit more about the current political and economic climate in Ethiopia? Ethiopia is a country where the government plays an important role in the economy, and with very good results as we look at the impressive economic growth figures of the last decade, in combination with very good achievements in social indicators. The Ethiopian government is investing huge amounts in improving infrastructure and energy (e.g. road construction, the new railway to Djibouti, the GERD dam, etc.) which is directly benefiting the private sector.

“I also very much like the general mentality here, one of ‘getting things done’. “

Interview with Lidi Remmelzwaal, Ambassador to Ethiopia After holding positions in several African countries, you have been appointed as the Dutch ambassador to Ethiopia in 2013. It seems you and Africa form a very good match. What has been your impression of Ethiopia? It is true that I have quite some experience in African countries (Mozambique, Ghana, Zambia, Togo and Ivory Coast), but that is an advantage – and even a prerequisite- for this position in Addis Ababa. Especially because being Ambassador to Ethiopia means that you also become the Netherlands Permanent Representative to the African Union, which is based in Addis Ababa. Ethiopia is a very fascinating country and so are the Ethiopian people. But on top of what the country has to offer (very unique nature, scenery, culture, etc.), I also very much like the general mentality here, one of ‘getting things done’. Every country on this huge continent is unique and very different, but this certainly applies to Ethiopia. What do you hope to achieve in Ethiopia? What difference do you want to make? Ethiopia is still a poor country and development cooperation is needed in the upcoming years. What I would like to achieve is further progress in the development process and increasing economic opportunities in an improved business environment, based on our Aid&Trade agenda. This is a process that we see already happening. Especially in horticulture (flowers and fruits/vegetables) opportunities for investment are expanding. The Ethiopian Government seems to have a preference for Dutch companies to invest and expand in these sectors and the results have been very good. Related agro-logistical needs create opportunities for Dutch business as well.

Next to the aforementioned horticulture, the intention to diversify the economy creates good investment opportunities in the manufacturing- and services sector. A stable environment (economical and political) is also important to mention, and something that cannot be taken for granted in the Horn of Africa. The government takes efforts to improve the business climate, buoyed by abundant land, a dedicated workforce, low-wages and a very large market. However, a lack of credit facilities, financial restrictions, heavy bureaucracy and complex customs/tax regulations still pose challenges. The heavy involvement of the government makes the facilitating role by our Embassy for Dutch companies often crucial. What does Ethiopia do to attract FDI? Are there any special incentives in place? What business support instruments are available for Dutch businesses interested in Ethiopia? As mentioned earlier the role of the government in the economy is very important; investment in certain sectors (manufacturing, services) is encouraged in order to diversify the economy. Incentives provided are different per sector and for the different regions of the country. They might consist of tax holidays and exemptions from custom duties for capital goods/construction materials, longlease arrangements and cheap land, water- and electricity infrastructure etc. Besides Ethiopia, Djibouti is also in the portfolio of EKN Addis Ababa. You have joined NABC on a trade mission to Djibouti. What was your experience? How do you view the opportunities for Dutch companies in Djibouti? I was very actively involved in the first trade mission (May 2014) to Djibouti, that NABC organised together with the Embassy and our Honorary Consulate in Djibouti. The focus of the mission was on port/logistics and the mission was certainly a success, which was confirmed by the positive feedback of the companies that participated. However, it was a first mission and individual follow-up is certainly needed. The potential of agro-logistics as a promising sector in Ethiopia is very much related to developments and opportunities in Djibouti, the infrastructure of the Djibouti ports and the finalisation of the railway-connections (Addis Djibouti to be completed in 2015; Mekelle – Djibouti in 2016).

What advice would you give to Dutch companies/people interested in going to Ethiopia? What you need is a large dose of passion and patience. Ethiopia is a country of many and good opportunities, but it is certainly not easy (as illustrated by the description of the business climate). Investors coming to Ethiopia need to be well prepared (e.g. not all sectors are open for foreign investors) and need to have a long term perspective. Ethiopia’s economy mainly revolves around the agricultural sector. What major developments could you observe in this sector in the last years? (E.g. the Agricultural Transformation Agency (ATA) recently set up a hotline for small-holder farmers). Agriculture is still the major component and driver of the economy, but its share is slowly decreasing, whereas other sectors, like industry/manufacturing and services,

are increasing. This trend will continue in the coming years. A major challenge is to achieve a huge increase of food production for the local market/population; for this a transformation of the agricultural sector is required. This is where ATA comes in as the driver of this transformation process, together with other partners, like the Ministry of Agriculture and several donors, including the Netherlands. ATA’s programmes concentrate on increasing production of different basic crops (teff, maize, barley, etc.), improving farming systems and also specific projects such as research, access to finance and ‘scaling up ICT-based information systems’. The Netherlands Embassy is partnering with ATA in several of these programmes/studies. Increased agricultural production can already be observed for several products, like teff, malt, barley and oilseeds, and hopefully the next harvest will show further improvements. For more information, please visit: ethiopia.nlembassy.org

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04-08-14 15:56

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PART 3: Agriculture

De Heus Animal Nutrition

INTERVIEW

De Heus Animal Nutrition is a leading producer and exporter of complete ranges of feed, concentrates and premixes for all animal sections. Production takes place both in the Netherlands and abroad. On the African continent De Heus has production locations in Egypt, Ethiopia and South Africa and exports under the name of De Heus Koudijs Animal to many other African countries. Its parent company Royal De Heus is a global, independent, family-run producer of all kinds of animal nutritional products. Its roots lie in the Netherlands.

PART 4

INFRASTRUCTURE

Jan Kampschoer, Project Manager How and when did you get started in Ethiopia? As a global player we are always looking for markets where we can be of added value to the local agricultural sector. At the time Ethiopia was such a market. We were informed that the Ethiopian company Alema was looking for a partner to start a local feed production. Since Ethiopia is a very large and promising market, we decided this was a great opportunity. The first activities started 8 years ago and operations are now conducted by the joint-venture Alema-Koudijs. De Heus uses Koudijs as the brand name on the African continent. What has been your impression of Ethiopia? Ethiopia’s history as the only African country that has not been colonised, has made the Ethiopians a very proud people. They show a lot of enthusiasm, strength, willingness to move forward and will always keep their heads high. A perfect demonstration of this occurred when we encountered a farmer who was struggling to keep his business going. He appeared to have too many cows for the feed he could afford. At first glance the solution seemed quite simple: sell some of the cows to feed the remaining ones. However, this was not an option for him: he could never imagine owning fewer cows than his neighbour next door. Have you noticed any differences in the day to day running of the joint-venture? Ethiopians are very humble by nature. They have the utmost respect for higher ranking persons. The deference given to superiors can sometimes create inhibitions for the lower ranking employees. We try to stimulate people to talk about their ideas. To this end we decided to have separate Skype conferences each month. One conference is with management and discusses strategic issues, while the other conference is with the operators and focuses on operational issues. We apply this concept in multiple countries and have found that, besides verbal communication usually giving more information than communication via email, conducting separate conferences really helps us to anticipate on issues that might arise and get the best out of our employees. How many of the ingredients needed for production do you import? The composition of feed depends on the country where it is produced and sold. De Heus Koudijs does not offer a universal product, but a whole range of different types

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Dutch Business in Africa

of animal feed, adapted to local circumstances. In our production process we always try to use local ingredients that are easily available and keep imports to a minimum. This allows us to offer the feed at a competitive price. In Ethiopia our usage of local resources is upwards of 98%. This gives us flexibility in case of fluctuations on both the demand and the supply side. Alema-Koudijs is not only involved in the production but also in the distribution of animal feed. Weak infrastructure is a recurring issue. How did you deal with it? In Ethiopia we are operating in a region with a radius of about 200 km. We never really know how long transportation takes, so we always include a time buffer in our planning. Since you cannot simply tell an animal: ‘Today we will skip the feeding because we ran out of stock’, logistics is of the utmost importance to us. We make sure that we import the ingredients for our local production at least half a year in advance to avoid out of stock situations. And how is the investment climate? A large population, many local resources, tax holidays and other incentives implemented to attract foreign investment mean the investment climate in Ethiopia is good. At the same time Ethiopia faces a shortage of hard currency and is constantly looking for new sources of revenue. The government in Ethiopia tries to adjust measures to find the right balance for investors and Ethiopia as a country. A consequence is that the government can unexpectedly introduce measures that a company has to react on. In other words, the overall investment climate is promising, but entrepreneurs need to take a degree of volatility into account. What can you say about the future of the poultry sector in Ethiopia? The poultry sector in Ethiopia is still in the early stages of development, but shows solid potential. Agriculture is the mainstay of the economy and demand is growing rapidly in the second most populous country in Sub-Saharan Africa. There are many potential areas of growth in every part of the value chain, from breeding the parent stock through broiler production to retailing. Local knowledge still needs developing in areas such as business development and poultry keeping practices, but there is definitely a wide range of business opportunities in this industry and the future is promising!

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PART 4: Infrastructure

ARTICLE By Charlotte M.L. Rosalie Consultant at EMSA Emerging Markets Africa

Africa to Become the World’s Next Factory?

INTERVIEW H.E Mrs. Rose Makena Muchiri, Ambassador of the Republic of Kenya

Characterised by accelerating regulatory reforms, plenty of available cheap, young labour and land, and a newly found, self-assertive attitude, Africa is gearing up to transform itself into an economic powerhouse. As Africa’s manufactured output roughly doubled over the last 10 years and talk of rising wealth and accompanying labour costs in Asia builds up, the question arises whether Africa will become the next global manufacturing hub. demand in Africa draws production facilities to the continent. Combined, the domestic markets in Africa only trail those in China and India. Private consumption is buoyed by an emerging middle class and strong urbanisation.

In recent years, manufacturing was responsible for a steady 10 to 14 per cent of Africa’s GDP.

anufacturing is often seen as essential for any country to attain a high standard of living. Hitching the wagon to a services-only economy is not a very effective approach for fighting poverty in the long term. At first sight, this seems to be bad news for Africa, as the service sector in Africa’s 10 largest economies makes up 40 percent of GDP. Africa’s manufacturing sector is confronted by challenges as corruption, red tape and a lack of infrastructure. The latter is partly a consequence of the boom in commodity prices, as governments have neglected industrial needs for roads and electricity. Low productivity has been another issue that has plagued Africa for a long time. However, recent trends have made manufacturing in Africa increasingly attractive for entrepreneurs and investors. First, African regimes have made serious efforts to improve their business climate and to cut red tape. Coupled with increased investment in infrastructure, this has reduced the cost of doing business. Second, rising consumer

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Dutch Business in Africa

Third, demographic development means Africa has a growing and young labour force. The World Bank believes that upward wage pressure in East Asia (most notably China), combined with other factors, presents an opportunity for Africa to attract light manufacturing. If Africa’s governments implement supportive policies, companies will look to relocate there, bringing investment and jobs. Companies like Primark, H&M and General Electric have already shifted production to the African continent. In recent years, manufacturing was responsible for a steady 10 to 14 per cent of Africa’s GDP. This means it has kept pace with the rest of the economy of the fastest-growing continent in the world. Although Africa’s manufacturing output takes a small share of 1.5 percent in global manufacturing, this is still up from 1 percent back in 2000. The most appropriate comparison might be India. India has a comparable sizeable services sector (53% of GDP) and services have long been the backbone and the catalyst of its economy. This has allowed it to build a manufacturing sector from a low base. Becoming the next global manufacturing hub might be a step too far for the countries of Africa, but with the described positive trends in place, Africa can build a competitive manufacturing sector with enormous potential for both the host country and international companies.

”We welcome Dutch investors and partners to take advantage of the favourable conditions in Kenya.”

What has been your personal impression of the Netherlands? How do you experience the Dutch business culture? Since arriving in the Netherlands, I have had a very good impression of this beautiful country and its people. With Kenya’s foreign policy shifting to a focus on economic diplomacy, it is an opportune time for me to be in a country where our economic and trade relations have been steadily rising. I am pleased that the Dutch people are eager to do business with Kenya and this enthusiasm is shared by the Kenyan people. The trade missions in both directions are a testament to this sentiment. I appreciate that the Dutch business culture is very open, which makes discussions with business people very practical. It is also admirable that Dutch business goes hand in hand with social responsibility. Kenya has recently rebased its GDP for the sixth time and has now become Africa’s ninth largest economy. Which sectors were the main drivers behind the economic growth? We are quite proud that Kenya has recently been classified as a middle-income country , after our Gross National Income per capita of $1,160 surpassed the World Bank threshold. This milestone means the Kenyan government will have an easier time accessing commercial loans, as Kenya’s debt ratios will be lowered by the higher GDP figure. The high performing sectors that have been instrumental in driving the economy include agriculture, manufacturing, telecommunication, infrastructure, construction and real estate. We enjoyed a stable macroeconomic environment the past year, as well as low and stable inflation, supported by an improved supply of basic foods, lower international oil prices and lower electricity costs. In 2008 the Kenyan government launched the development blueprint Kenya Vision 2030. Can you tell us more about Vision 2030? To ensure the Vision 2030 is achieved, action has been categorised into three key pillars: Economic; Social; and Political. The Economic pillar aims to achieve an average economic growth rate of 10% per annum through 2030. The Social pillar seeks to engender just, cohesive and equitable social development in a clean and secure environment, while the Political pillar aims to realise an issue-based, people-centred, result-oriented and accountable democratic system.

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PART 4: Infrastructure

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“Kenya is indeed an ICT hub, boasting a large number of highly educated and innovative talents. “ Intra-regional trade was identified as a key strategy to increase social and economic Development. How do you see the work being developed by the East African Communities? Long standing trade routes exist within the region, thus enhancing intra-regional trade. The member states have been implementing various initiatives, such as strengthening of public institutions and private sector organisations, so as to increase trade in the region. In addition, projects such as the Lamu Port South-Sudan Ethiopian Corridor, which is a multi-sectoral trade network, will increase and simplify intra-regional trade. Airport expansion and re-modernisation across the country will achieve the same. Progress intra-regional trade is also enhanced by the various protocols ratified by the member states, such as the Customs Union Protocol and the Common Market Protocol. Kenya is an ICT Hub, Nairobi being the epicentre of an increased number of Telecom companies and Technology Start-ups. Which policies were implemented by the government to successfully boost the sector? How can Dutch companies help? Kenya is indeed an ICT hub, boasting a large number of highly educated and innovative talents. This has been further facilitated by having a stable pro-investment

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Dutch Business in Africa

government, as well as the instituting of business friendly regulatory reforms. This sector holds great potential and as such we welcome like-minded Dutch companies to consider spreading their coverage to Kenya. We are glad to already have a key partner from the Netherlands, Philips, which recently opened their research and innovation hub in Nairobi. What advice would you give to companies interested in expanding to Kenya? We welcome Dutch investors and partners to take advantage of the favourable conditions in Kenya, such as a solid infrastructure, ideal climate, and a deep pool of educated and skilled manpower. In addition, Kenya’s fully liberalised economy has no restrictions on domestic and foreign borrowing by residents and non-residents. Kenya’s strategic location allows investors to easily access the countries in the region. Dutch companies may want to consider the flagship projects identified under the Vision 2030, which include agriculture, trade, tourism, health, education and housing, amongst others. The government is encouraging public private partnerships for undertaking these projects and as such we welcome the international friends of Kenya.

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ARTICLE

RE-THINKING AFRICAN URBANISM

t is often assumed that African cities follow a path towards urbanisation that more or less follows a model established in the West, with the Industrial Revolution fuelling migration from the countryside to the cities and demographic expansion. But urbanisation in Africa is not just a matter of delayed history. Apart from all the cultural differences in Africa’s diverse societies, the 19th and 20th century conditions that shaped the form and functions of cities in the world’s industrialised nations are no longer the same in today’s world. Global climate and environmental change, as well as increasing awareness of water, food or energy insecurities, for instance, now make clear the dire need for new visions on what good urban management for the 21st century entails. Following the oppression of the colonial period, in which urbanisation was designed to glorify colonial authority and keep the local population in check, independence for African countries brought a complex mix of factors that affected how cities grew. Primary among them were a lack of expertise in many key areas and a thirst among the ruling class for the trappings of status, comfort and wealth so long denied. The result were cities that were poorly planned and barely maintained and an infrastructure that could not absorb the pressure of the massive population growth and urban migration. Along with wide-spread poverty, these factors continue to pose an overarching challenge and a major environmental threat for Africa, now and in the decades to come. The Kenyan capital, Nairobi, for instance, is home to Kibera, estimated by some to be Africa’s largest informal settlement. One small statistic gives an idea: for a population variously estimated between 350,000 and 1 million, there are approximately 600 toilets and only 115 water points. For comparison, Kenya’s Kwale County had 1,007 water points in 2013, with a population of approximately 650,000. Effectively tackling the problems of Kibera, with a view to creating a more liveable city environment for Nairobi as a whole, requires a complete re-thinking of urban development planning. At the same time, it can offer real opportunities to enterprises and investors with vision and the drive to make a difference. Dutch organisations and companies are helping in the process, bringing their expertise and ‘polder model’ of integrated involvement. The NGO CORDAID, for instance, through its programme URBAN MATTERS, is taking a multi-stakeholder approach to support micro-, small and medium-sized local enterprises in Kibera and a similar slum in the western city of Kisumu. In Kisumu CORDAID identified two main themes: realisation of affordable housing and improvement of sanitation. With a focus on the latter, CORDAID is looking to use its Smart Solution WASH, whereby eco-toilets are installed, human waste is collected and sold to recyclers that turn it into biogas, energy or fertilizer. DASUDA, The Dutch Alliance for Sustainable Development in Africa, is currently working with the Nairobi City Planning Department to draw up a socially inclusive and commercially viable redevelopment plan for Kaloleni Housing Estate in the Eastlands area of Nairobi.

By Stephen Lewis Architect | Urban Planner | DASUDA Partner & Liaison Kenya

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Urban development is a complex matrix of interlocking areas. Furthermore, the number of urban centres in other parts of Kenya is growing. The Kenyan government has recognised that economic development and planning for sustainable urban development must go together. It is actively working to improve the investment climate and to devolve responsibility for integrated planning to local (county) governments so that, in the future, urban growth will be equitable and sustainable. Dutch planners, entrepreneurs, NGOs and investors should seize this opportunity.

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PART 4: Infrastructure

ARTICLE The Dutch maritime sector has partnered up, together with African governments and companies, with the aim to achieve the sustainable and longterm development of Africa’s main ports. The significant economic development of Africa creates numerous challenges for its maritime infrastructure and logistics, such as capacity issues, access routes, and administrative processes. At the same time, ports and infrastructure are instrumental for economic development. The needs to expand the infrastructure of ports and hinterland connections, to develop human capital, to improve operational practices, and to increase logistical capacity, are of great importance to sustain the rapid growth of African economies. This requires an integral approach of the different aspects of port development, including port management, development and infrastructure, transport and logistics, and human capital development, linked to related sectors in the hinterland, coast and urban development. Social and natural capital, a long term approach and human capital development are key aspects, as is working together and sharing knowledge, amongst the public and private sector and amongst countries. With such an approach, Africa’s ports will grow even further, in an integral and sustainable manner.

Investing in Africa’s future APM Terminals is investing in the future of Africa.

This approach is promoted by the Port Development Partnership Africa-Netherlands (PDP), which NABC effectively coordinates since 2013. The PDP is a collaboration of 18 Dutch companies, knowledge institutes and the Dutch Embassy in Accra, which strives to create mutually beneficial relationships with African partners. The experience of the Dutch maritime sector in opening up connections to their hinterlands and their expertise in arranging operational processes, have led to highly developed ports and trade corridors and is now put to use in Africa.

We have invested USD 1 billion in African port infrastructure during the past five years and plan to invest USD 2-3 billion more in the coming years.

The Dutch maritime sector aims to maintain and strengthen its partnership with its African partners to achieve the sustainable and long-term development of Africa’s main ports.

As a leading global port operator, based in The Hague, Netherlands, we invest, design, build and operate ports and inland terminals. Working closely with governments, local communities and business leaders, we develop the trade gateways that open new markets and make transportation cost-effective.

Human capital development in Ghana The PDP promotes knowledge transfer as it enlarges and embeds human capital, resulting in more efficient, safer, cost effective and sustainable port and terminal operations. In this light it organized, in collaboration with the Ghana Port and Harbours Authority (GPHA), a unique seminar on Sustainable Port Development in Ghana, in June 2014. During this seminar a Memorandum of Understanding was signed between GPHA and STC B.V., in the presence of the Dutch Minister for Foreign Trade and Development Cooperation, Ms. Lilianne Ploumen, for the establishment of a Port Training Institute in Tema.

For more information, please contact Boukje van Turenhout at +31 (0)70 3043618.

In Africa, we operate ten ports in eight countries. To keep pace with Africa’s growing population we are planning new ports in Badagry, Nigeria and Abidjan, Côte d’Ivoire as well as the expansion of existing terminals including Tema, Ghana. www.apmterminals.com

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Dutch Business in Africa

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PART 4: Infrastructure

INTERVIEW

What to do when you receive 60 identical applications?

Jan van Vulpen, General Manager, Remco Ruimtebouw BV

For more information, please visit: www.remco.nl

Remco Ruimtebouw specialises in designing, engineering, building and delivering steel industrial buildings for a wide range of industries. The company has been active since 1972 and expanded to the African continent in 2010, through Remco Afrique. What makes Africa especially appealing to a construction company? The African construction industry is booming. At the same time, international investors and local elite companies are increasingly demanding high quality and safety standards - standards that local companies are not yet able to meet. The scaffolding, for example, is traditionally made of bamboo. In contrast to its metallic equivalent, it is highly inflammable and usually not properly fixed to the ground. We only use metallic scaffolding and although local construction workers have high climbing skills, we insist on safety nets, helmets and protection jackets in order to effectively prevent fatal accidents.

the job openings we were suddenly faced with 60 almost identical applications, all with the same certificate from the same school and similar grades. Clearly, a coordinated action by a clever guy with a printer who supplied the locals with the necessary documents. So what were we to do? In the end, the solution was quite simple. We bought some wooden planks, screwdrivers and screws and announced that the first 30 candidates able to properly fix 20 screws into the wood, would be invited for an interview. Only 25 succeeded, knew in which direction to turn the screwdriver and presented the required output within reasonable time. Problem solved!

â&#x20AC;&#x153;The African construction industry is booming.â&#x20AC;?

What have you learned from this experience? Once our workers have gained the necessary skills, we aim to employ them for other projects as well and keep in contact. In addition, we make use of educated intermediators that are not only familiar with the local culture and languages, but also with Dutch standards.

Many European companies in Africa are struggling to find competent, skilled workers. What has been your experience? Our buildings are pre-engineered and pre-designed in the Netherlands, so the more complex work happens in Europe. Erecting the pre-manufactured buildings is not exactly rocket science. However, for one of our projects we were looking for local fitters to assist our Dutch supervisors in erecting the steel structure. After publishing

What advice would you give to people who are thinking about investing in Africa? Be prepared for blood, sweat and tears. Returns can be very rewarding but developments tend to have their own pace and local people have their own habits and standards that are not always aligned with ours. Make sure you enter the market with a large dose of humour and patience in order to overcome the many obstacles that you will meet on your road to success.

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There is a lot more to doing business in fast-growing markets than meets the eye.

Local content is now an important element in doing business in Africa. Can you tell a bit more about your business approach in terms of local content? Our approach is that during the upstart phase, foreign experts come into these places to upgrade the local workforce. The effective transfer of knowledge hinges on a productive balance between foreign experts and local leadership. Typically, 80-99% of the employees are local. Safety is the key focus area. We often take over existing facilities, including existing practices and habits, and safety-wise they are typically not up to our standards. Ports can be a hazardous environment without appropriate regulations. One typical example of lacking safety standards, is that there is no institutionalised system for admittance to the facility. So, one of the first things we establish, is who is permitted to access the port.

Most of the ports you operate are located in the west of Africa. Just a few are located in the east. What is the reason for that? First of all, governments in West Africa are ahead of the curve in terms of commercialising ports. In many countries in West Africa, there was a transition when governments found that ports were better handled by commercial parties. By contrast, in East Africa there have been only a few select places where that transition has taken place.

INTERVIEW

Though the coastline and geography are roughly the same size, the size of the market in terms of volumes, containers, et cetera is much bigger in West Africa. Consequently, there are fewer large ports in East Africa. There are simply fewer private parties involved in running ports. Secondly, the market in West Africa is much bigger than in East Africa.

Peder Sondergaard Head Africa-Middle East Region

APM Terminals operates a Global Terminal Network which includes over 23,000 employees in 68 countries with interests in 69 Ports and Terminal facilities and over 170 Inland Services facilities. In Africa, operations include a large and diverse portfolio of 9 container ports in 8 different countries with several port and terminal facilities currently undergoing expansion. For more information, please visit: http://apmterminals.com/

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Dutch Business in Africa

Can you tell me briefly what APM Terminals is about? Our ambition is to become the leading port operator in the world. APM Terminals is part of a larger company: Maersk Group. We have been operating as an independent company since 2001. In 2004 we decided to move our company and the headquarters from Denmark to The Hague, the Netherlands.

Africa is growing. Can you describe the effect of the â&#x20AC;&#x2DC;rising continentâ&#x20AC;&#x2122; on your work, the ports? Strong economic growth means African countries have benefited from privatising their ports. These companies have increased the capacity of the ports dramatically over the last 10 years. Yet much of the infrastructure for transportation was built back in the 1960s, making it quite outdated. Ports are typically located in the middle of big, usually congested, cities.

Today we are present in all the main markets, including Europe, the Americas, Asia and of course Africa. Our growth strategy is primarily focused on fast-growing, less mature, markets. Africa is a quintessential example. We became active there in 2001, building on the decades-long presence of Maersk Group. As such we feel very welcomed and familiar in Africa.

We are currently looking into how we can optimise these existing ports. However, there is a limit to what we can do and at some point governments will have to take the decision to relocate. That is not where Africa is today, but it is where we are heading. In the future we will see that new ports will be built away from capital cities, with new infrastructure for bigger ships.

What are the developments taking place in Africa? We see three main developments. One trend is the upsizing of ships, mainly in West Africa. The economies of scale and the growing market create the possibility and opportunity to fill these bigger ships, which results in a decrease in shipping costs per unit. The need to service these bigger ships fuels the drive for relocation and upscaling of ports. Countries with new ports that can handle the bigger ships are probably well positioned to gain advantages in the coverage of hinterland and potential transshipment. In cooperation with the Nigerian government, APM Terminals and its consortium partners are currently developing plans for a Greenfield port in Badagry, Nigeria. This mega-project meets the needs that are created by this trend, can accommodate a large range of products and aims to service the high-growth market that is West Africa. Secondly, we see a number of countries in Africa starting to increase their export, with international and local companies setting up the aggregation or assembly of manufactured goods and then distributing it to neighbouring countries. Today, the dominant part of African trade is still import, largely driven by consumption as well as project investment (from windows and doors to more advanced products), while export tends to focus on commodities. The shift towards exporting manufactured goods is still relatively small but, particularly in Nigeria, we see it growing. I think we will see that trend develop further. Thirdly, Nigeria is also at the forefront in the use of online tools. Customers can use a track and trace system for their cargo. They can receive and pay their invoices electronically. That is a first in sub-Saharan Africa. 70% of our import customers are using these tools. This highlights the need to focus on and try to improve the entire logistical pipeline. There is a lot more to delivering goods from point A to point B than just the port.

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PART 4: Infrastructure

INTERVIEW

Paul Kaalen, Director PK Trucks

The African Dream can come true!

PKTrucksHolland is a global supplier of brand new heavy duty trucks for the worldwide construction industry. On an area of 25.000 m2 they have a permanent stock of more than 600 trucks - these include but are not limited to concrete mixer trucks, tipper trucks, concrete pumps, tractor heads, chassis cabins, trailers, 4x4’s and other equipment. What is unique about PK Trucks? We are the only company in the world that has a permanent stock of over 600 new trucks, 4x4’s and trailers readily available for immediate delivery. Our company is active all over the world and there is not a single country in Africa that we do not do business with. Being strategically located in Moerdijk - which lies in close proximity to the harbours in Rotterdam and Antwerp - enables us to deliver trucks to their final destination in Africa within 10 - 14 days. Moreover, we can offer the full range of trucks needed for the construction world, with any requested superstructure.

“He requested several trucks, but left us with nothing more than his hotmail address for the invoice.” What are the differences between the European and the African market? Due to new emission guidelines introduced by the European Union, all trucks within the EU are now required to be equipped with so-called Euro-6 engines. These engines are more sensitive to fuel quality and have a more complex electronic system, meaning that they are not suitable for use on the African continent. Therefore, PK Trucks only stocks ‘tropicalised’ trucks that fulfil certain export specifications - meaning in our case that they are equipped with Euro-2/Euro-3 engines. These customised trucks are ordered on special request at factories of various well-known European brands such as Mercedes-Benz, Iveco, MAN etc. Based on our experience, these trucks are fully suitable to operate under the rough conditions in Africa.

Professionals in Africa

What has been your experience with doing business with Africans? So far our experience has been very positive. We learned to adapt to the more informal African way of doing business. One Friday night, for example, whilst enjoying our after work drinks, a new customer came by. He requested several trucks, but left us with nothing more than his hotmail address for the invoice - no business card,no company name, no background information. We were not quite sure what to make of it. But there was no reason for concern. One week later we received the payment and our client turned out to be the owner of one of the largest construction companies in Africa. On another occasion we received an email requesting 200 new trucks - a third of our stock! - for a huge infrastructure project. Sometimes the African dream can come true.

What are your expectations for the African market in the coming years? Africa is already an enormous market and we expect it to grow even more. Whereas Europe was suffering from the economic crisis of 2008 resulting in a sharp decline in demand, the African market remained largely unaffected and we experienced no drop in sales. Instead, the continent was booming as before. Another trend we observed is that from 2005 onwards new trucks have been increasingly preferred over second hand cars. This is among other things due to higher safety standards. All in all, we are confident that Africa will remain our biggest and most stable trading partner in the coming years.

Steder Group FZCO LIU 2 – 14, B.P. 1889 | Djibouti Free zone | Route de Venise Tel.: +253 21 3522421 | Fax: +253 21 343489 | E-mail: djibouti@stedergroup.nl

For more information, please visit: www.pktrucks.com

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Head office: Steder Group B.V. Dienstenstraat 15 | 3161 GN Rhoon | The Netherlands Tel.: +31 10 503 3307 | Fax: +31 10 5011079 | E-mail: forwarding@stedergroup.nl NABC

PART 4: Infrastructure

INTERVIEW

BIG

Machinery in Africa Henny van den Biggelaar, CEO BIG Machinery

PART 5

ENERGY

What does Big Machinery do? We started nearly 30 years ago in the port of Rotterdam in the transport and handling business. We started out as a rental service for heavy equipment. Nowadays we rent and sell. We employ around 35 people, of which around 6 are mainly active in Africa. The economic development in Africa has created a lot of opportunities. Where in Africa is Big Machinery active? We currently have branches in Guinea and Burundi and a joint-venture in Cameroon, with one in Mozambique on the way. Northern Mozambique is really booming because of gas explorations. The infrastructure there still needs a lot of work, creating a need for our equipment. Parties primarily want to rent, not buy, so we are looking to set up a rental business in a joint-venture with local partners. Depending on developments we might also open an office in Zambia. Could you explain how the rental business works? Our goal is always to sell. However, rental is a profitable option when it is for a longer period of time. This gives us the opportunity to offer a standard package, which includes service, repairs and workshops. Another important factor is that we train our own operators and provide them to the client. By assigning personal responsibility to equipment, we create continuity, appropriate use and we have less accidents. Even more important, we give local people the opportunity to earn a steady wage and contribute to the needed development of vocational training. What are your unique selling points in comparison with the competition? We do what others promise. We have a 24 hours a day emergency line, so we can always assist our clients. We also invest in distinguishing capabilities. A few months ago we have added floating cranes to our assortment. Our cranes can be put in the water and stay there, greatly simplifying the work. Since we are the only company that can provide this service, the accompanying positive exposure has caused a substantial increase in the sales of our regular assortment. Can you give us a little insight in your Africa strategy, how does it differ from the European context? Doing business in Africa is not that much different from business in Europe: personal relations are key. However, generally speaking these relations are more intense in Africa than in Europe. You strive to have frequent contact, both in person and by phone. An example of a run of the mill interaction: you reach an agreement with your African counterpart and after 2-3 days you call him and talk to

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him about unrelated things: how is your wife, has your daughter graduated yet? You do not mention the deal the two of you made. This will repeat itself a few times and slowly but surely you start to build the trust that is necessary for your business. You indicated that Big Machinery is working on opening branches in Mozambique and other countries. Is your strategy aimed at opening local branches? Eventually it is. However, this really depends on our ability to find reliable local partners. You have to find a partner that is willing to co-invest. Our partner in Mozambique has 800 employees and more than a 100 trucks. You can rest assured that they know the ropes of doing business. We complement each other and together we can start building, as our goal is to be in it for the long haul. For more information, please visit: www.bigmachinery.nl

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PART 5: Energy

integrated gas projects, which will be vital to meeting Nigeria’s electricity supply challenges in the years ahead.

ARTICLE

Youth and innovation

Why local content, job creation and youth entrepreneurship are viewed as core business activities by the oil and gas giant ---------

BY Mutiu Sunmonu, Chairman of the Shell Companies in Nigeria

Exploration and Production of the Shell workforce on board of the offshore floating platform Bonga © Shell

Company (SNEPCo) was formed in 1993 to develop Nigeria’s oil and gas resources in the Bonga field, 120km offshore in the Gulf of Guinea. This was a new frontier for the country’s energy industry and there was virtually no local skills base in place.

For us, local content starts with our own workforce. Our two largest companies in Nigeria together employ over 4,000 people, 95% of whom are Nigerian (including the majority of senior executives). We are a Nigerian organisation run primarily by Nigerian people and this is reflected throughout our supply chain. Shell Companies in Nigeria awarded more than 90% of their contracts to Nigerian companies in 2013. Of course, local content is not a discretionary field of activity. Legislation sets challenging targets and there is a strong social performance imperative. Our license to operate depends heavily on our ability to bring jobs, contracts and other tangible benefits to the communities in which we operate.

New frontiers

The development of Nigeria’s offshore oil and gas industry over the last two decades stands as a shining example of what can be achieved through long-term partnerships between international companies and national resource holders. The Shell Nigeria Exploration and Production

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Our burgeoning youth are the country’s most important resource but also the most powerful incentive for Nigeria to make the most of its energy potential. We have a strong mutual stake in making the most of these opportunities together in the years ahead.

Over 50 years the programme has offered education to more than 14,000 Nigerians. LiveWIRE, our flagship youth enterprise development programme, has provided access to training, business development services and start-up capital to more than 5,000 young entrepreneurs in the Niger Delta since its launch in 2003. Again, we do not see investment in youth as an optional extra. With a population of over 158 million Nigeria is already the largest country in Africa and the world’s seventh most populous.

hell is one of the oldest energy companies in Nigeria and has played a pioneering role in the country’s oil and gas industry throughout its history. Nurturing local skills, talent and contracting capacity has been a mainstay of our business for many years.

As in other technical industries in which skills and capacity take time to mature we occasionally face tensions between regulation, community expectations and business reality. However, we see the development of local content as first and foremost a business strategy and a source of competitive advantage. We best serve all our stakeholders when we turn resources into jobs and opportunities as well as revenues.

Our industry depends on continual innovation. For this reason Shell has a long history of supporting education in Nigeria. We award more than 2,000 scholarship grants every year and invest in the wider development of scientific disciplines and research through the endowment of professorial chairs and sponsorship of academic centres of excellence in fields such as geosciences, petroleum engineering and environmental management.

The future trajectory is sharply upwards. According to UN projections we could have the world’s fourth largest population by 2030 and potentially surpass the United States by 2050.

SNEPCo began producing at Bonga in 2005, increasing Nigeria’s oil capacity by 10%. Local companies played a key role at every stage of the project’s development, with some of the key structures and components built and assembled in Nigeria. The project helped create the first generation of Nigerian oil and gas engineers with deep water experience and by 2013 some 90% of core offshore staff were Nigerian. Bonga has also stimulated the growth of a range of support industries such as maritime services, materials manufacturing and maintenance, floating hotels and helicopters. Today, Nigeria boasts a world-class offshore oil and gas industry. A similar impact has been evident onshore with the Gbaran Ubie integrated oil and gas project, through which Shell is developing several fields originally discovered in the 1970s but never fully utilised because they contained mainly gas. More than 140 Nigerian companies have provided services including construction, pipeline design and manufacture, vessel fabrication and logistics. Shell has also facilitated community-driven projects to provide drinking water, construct schools and health centres and connect several communities to the electricity grid for the first time. Gbaran Ubie has stimulated economic growth and helped raise living standards locally. It has also created a legacy of skills and capacity in complex

Offshore floating platform Bonga © Shell

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PART 5: Energy

Honeywell Group Teddy Ngu Group Head Corporate Development & Investments INTERVIEW Can you tell us a bit more about the conglomerate Honeywell Group? How did it all start and what sectors are you involved in? The Honeywell Group was founded by our Chairman – Mr. Oba Otudeko, CFR – over 40 years ago. The Group has been doing business successfully and is recognised as one of Nigeria’s leading indigenous conglomerates, engaged in key sectors of the Nigerian economy, namely: foods & agro allied, energy, infrastructure, real estate and the services sector. We also have equity investments in other sectors of Nigeria’s economy, including banking, logistics and telecommunications. What fundamental issues is the Nigerian energy sector currently facing? A number of the issues the Nigerian energy sector is currently facing have their roots in the pre-privatisation period. Between the years 1990 and 1998, for instance, there was hardly any investment in the power sector, while the economy continued to grow at a steady rate expected of any developing country. This probably set the power sector back about 20 years. Although Nigeria has the 10th largest reserves in the world, gas supply is one of the greatest challenges facing existing and greenfield power plants under development. This is the result of a combination of factors, such as the poor payment history of legacy power plants. This discouraged prospective investors in gas-to-power projects who, instead, focused on the much more profitable oil exploration. The lack of investment outside of associated gas-to-power plants

has led to disruptions in the gas supply during turbulent periods. Do you think the privatisation of the energy sector will help to improve the situation and provide a stable, reliable energy supply? Yes, it will. However, this will not happen overnight or without the support of the Nigerian government. A proactive and market-centric regulatory regime is needed to ensure compliance and delivery of the targets promised by the investors who acquired the power assets. How does Hudson Power Ltd. contribute to securing Nigeria’s energy supply? We heard that you are planning to generate 1000 MW of power by 2018. The Honeywell Group currently owns and operates a 15 MW gas-fired power plant in Apapa and is developing the 500 MW Hudson Independent Power Plant in Ogun State, Southwest Nigeria. In 2013, the Group signed a Memorandum of Understanding with General Electric for the development of the first phase – 150 MW in open cycle configuration – of the 500 MW plant in Ogun State. We are developing a 5 MW solar pilot project, which will leverage on the infrastructure of the IPP site in Ogun State. The Group is also developing the 80 MW Sagamu IPP, a captive plant for the factories in development in the same location. The foregoing forms part of Honeywell Group’s strategic plans to generate 1000 MW of power through a mixed portfolio of captive, embedded and ongrid power generation projects by 2020.

To this end, we will work with the various levels of government and other stakeholders in playing our role in the collective objective to light up Nigeria.

have a long history of successfully implementing large infrastructure projects; their experience in these sectors will be more than welcomed in Nigeria.

Dr. Ngu, you are a frequent speaker at conferences on Business in Africa. Is there a common misconception that foreigners have about Nigeria/Africa? I think the misconception is really centred on the perception of risk. Doing business is essentially about managing your risks to ensure the best returns, regardless of where you operate. Some entrepreneurs are sceptical about investing in Africa, because they perceive the risks to be higher than elsewhere. However, they forget that even if the risks are higher, the returns expected and obtained are in line with risks managed. Those that have been bold enough to venture here are happy they did and are not complaining. A good number of the brave companies in Nigeria/Africa are from the Netherlands, like Heineken, Unilever, Shell, Philips etc.

What has been your experience with Dutch businessmen and women? The Dutch businessmen and women I have encountered have always come across as focused and unassuming. They are keen and adaptable, always striving to understand all the circumstances of the market before they dive into a deal. They are methodical but not pedantic. As such, they make for pleasant business partners.

What advice would you give to companies who are interested in investing into Nigeria’s energy sector? Where do you see opportunities for Dutch companies? Dutch companies should come with patience and a long term vision. Energy projects - be it in power, oil or gas have a long gestation period. But once set up, yields are constant, especially as Nigeria is still facing a large energy deficit. Besides the energy sector there are plenty of opportunities in the infrastructure sector as well. The Dutch

Honeywell Group is one of Nigeria’s leading indigenous conglomerates and active in all of Nigeria’s key sectors, namely agribusiness, the energy sector (oil, gas and power), infrastructure, services, and real estate. Moreover, through portfolio investment, the group is also a significant capital provider to other sectors of Nigeria’s economy, including banking, telecommunications, dairy foods and logistics. With offices in Nigeria and the United Kingdom, Honeywell Group employs more than ten thousand people.

The leading provider of integrated marine services with a strong track record in Africa

SMITLAMNALCO.COM 2014028.indd 1

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7-11-2014 10:32:30

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PART 5: Energy

ARTICLE The East African region has become a hotspot for oil and gas exploration after discoveries in Tanzania and Mozambique. The interest in the Tanzanian upstream gas sector has developed significantly, following the discovery of gas reservoirs spread across the Rovuma and Mafia basins. The potential of the gas deposits is estimated at 1 trillion cubic metres (Tcm) of recoverable gas resources. For comparison, the Netherlands has a potential reserve of 2.8 Tcm. The economic implications for Tanzania are considered to be significant. The same scenario is applicable to Mozambique, a country with comparable findings and currently in the process of commercialising its reserves. A number of factors will play a role in determining how fast the potential will be converted in concrete benefits for the region. First, significant pressure will be put on infrastructural development and reliable electricity provision. Second, educational reforms are needed to supply the necessary skilled workers. Third, legislation packages will need to be put in place to provide an adequate institutional framework, both to ensure an efficient allocation of government revenues as well as to institute the relationship between companies involved and the government. Dutch companies active in the energy industry are world-renowned for their expertise and experience in the development of maritime construction, drilling technology, energy infrastructure, port development and land reclamation and they can assist East African countries in successfully facing the aforementioned challenges. The Dutch Roundtable Oil & Gas East Africa embodies this expertise in all phases of the energy value chain. The approach of The Roundtable is characterised by striving for long-term strategic partnerships and economic cooperation with public and private stakeholders. At present knowledge transfer, required to secure the right capacity building, is taking centre stage. The Master Classes, Winter School and seminars organised in Mozambique and Tanzania in 2013 and 2014 have contributed to acquaint government officials, local and international oil companies and universities with the science and technology that drive operations for each company of The Roundtable. The interactive nature of these events stimulated participants to focus on the challenges and possible solutions on items such as local content, vocational training and health, safety and environment. The gas findings in Mozambique and Tanzania offer these countries a big opportunity for strong economic development in the future. The focus of The Roundtable on lasting strategic relationships, its awareness of regional context, as well as its full coverage of the energy value chain, suit the long-term nature of the energy industry. Knowledge transfer and capacity building will ensure lasting benefits for these countries. The Dutch Roundtable Oil & Gas East Africa is uniquely equipped and committed to bring East Africa’s potential to full fruition.

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Bringing East Africa’s potential to full fruition

ARTICLE

Africa: new oil frontier By Dominik Kopinski Vice-president of the board Polish Centre for African Studies (PCSA)

frica is on the move, and so is the flow of oil unearthed on the continent. In recent years, the region has become a hot spot on the global map of oil discoveries, with dozens of investors rushing to tap into the crude wealth which is now estimated at 130 billion barrels.

For more information please contact Leonie Botter at leonie.botter@nabc.nl

of countries: “old-school countries”, where the production has been going on for decades (Angola, Cameroon, Côte d’Ivoire, Congo-Brazzaville, Equatorial Guinea, Gabon, Nigeria, Sudan and South Sudan), “rookies”, which are relatively new to the oil industry, but have some, yet limited experience (Chad, Ghana and Mauritania), and “greenhorns”, where oil development is in nascent – planned or exploratory – phases and/or has so far failed to build the critical mass needed to become a full-scale oil-producer (Democratic Republic of Congo, Benin, Ethiopia, Kenya, Liberia, Madagascar, Malawi, Namibia, Niger, Senegal, Sierra Leone and Uganda).

This is still not very much compared to the Middle East, but the recent frenzy clearly shows that Africa has certain virtues that investors worldwide cannot resist. The region is called an oil frontier for a reason, and - like a classic frontier – it remains relatively unexplored and unexploited, with opportunities abounding. The oil industry believes that at least another 100 billion barrels The Central & Eastern Europe Development Instiare only waiting to be discovered; to some experts tute (CEED), founded by Dr. Jan Kulczyk in 2010, is a this is only a conservative think-tank whose aim is to promote the achieveestimate. ments and economic potential of the CEE countries.

Another key development pertains to the composition of the oil companies tapping into the Africa’s oil potential. In historical terms it was oil supermajors, such as Shell Its ambition is to support business initiatives, as In recent years, lior ExxonMobil, which set well as debates on indispensable reforms in the the rules of the game and cence-awarding rounds have been announced region, including measures to boost sustainable regarded the region as more frequently, with growth and innovative capacities. their own exclusive playmore acreage to take than ground. Today the majors anywhere in the world. In are stepping back – both fact, oil has been flowing in Africa for decades, but recent from upstream and downstream – and numerous “indeevents have shifted the petroleum sector’s development pendents” such as Tullow Oil and Anadarko have joined trajectory in many ways. Whereas West African oil used the race, with plenty of projects to go around. Also, into be the region’s hallmark, now the tables have turned, digenous host National Oil Companies (NOCs) are lining and with recent oil discoveries in Uganda and Kenya, an up to secure a larger share of the pie, and some, such oil bonanza is increasingly felt in the East as well. Due to as Angolan Sonangol, have become true heavy-weights this and other developments (see below), the oil sector in too. There is also an increasing number of small compaAfrica has become more diversified than ever before. nies that focus on so-called “wildcat drillings” (hence the name wildcats) — exploration of new areas with no provTo appreciate its complexity, it is more instructive to en history of oil exploitation. The latter expect to make think of Africa not as a region but three separate groups profits on unexpected discoveries.

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PART 5: Energy

Keep the holiday lights on In the last decade alone, energy consumption has increased 23 percent1. Contributing to this increase, is the demand from developing nations, such as Africa, where improved infrastructure and access to energy sources is further feeding that demand. In such areas however, often an unstable grid, remoteness and increasing fossil fuel prices can make it difficult to maintain a stable and regular power supply. With that in mind, solutions from companies such as Victron Energy, who hold a lengthy track record in independent and cost efficient energy solutions, becomes a necessity.

Energy. Anytime. Anywhere. Old School Countries Rookies Greenhorns

Figure 1. based on: New oil frontiers: investors’ guide to the oil sector in Sub-Saharan

barrel in 2012 and 109 USD in 2013. This, combined with the The industry itself has become increasingly more diverse increasingly high state of the art technologies at hand, in terms of nationality. This should be framed within the such as drill ships, bottom feeders, supercomputers and context of the major shift taking place in the global econ3D or even 4D seismic research, has been constantly pushomy, namely growing power and international expansion ing frontiers further in the industry and opened up new of China and India. Other BRICS countries’ companies have been trying to get a piece of the action in the African oil possibilities of oil exploration and extraction. bonanza too. Sometimes, they are making inroads into Sub-Saharan Africa, with its vast resources, has been a the region in ways which make some Western compatraining ground for many new technological ventures. nies’ efforts look rather pale. On the contrary, Western Even recent decline of oil oil companies are stepping back and selling some of The PCSA is the first independent, non-govern- prices are unlikely to retheir assets. This trend can mental organisation in Poland and Central Europe verse this trend in the long be observed in Niger Del- devoted exclusively to the study of contemporary run. ta, where Shell and ChevAfrica. The main goal of the Centre is to carry out To conclude, Africa is beron are inviting bids for their onshore licences. The rigorous academic research and produce relevant yond any doubt the new majors are also gradual- policy analyses with regards to Africa, mostly in oil frontier. It bears cerly abandoning the down- the fields of Economics, International Relations tain resemblances to the 19th-century gold rush. It is stream market, with Chevand Political Science. the least explored and exron, BP, and Shell selling ploited region in the world. substantial parts of their Most countries of the SSA have joined the race, but in distribution and marketing network to local companies. many of them actual oil production still remains a remote Things have changed dramatically on a technological front, prospect. Notably, its importance for the global oil market will further increase due to the growing demand for oil as well. Whereas onshore and shallow water production in Asia and unstable political situation in the Middle East were dominant modes of extraction in the past, now the and North Africa. industry has been constantly pushing frontiers further, with offshore deep and ultra-deep water, tarsands and heavy oil. The Brent crude spot price averaged 112 USD per

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Dutch Business in Africa

Alternative energy supply In the case of a company offering holiday lodges for example, the need for a robust and reliable primary supply, plus backup power for critical equipment, becomes essential. In the event of a grid failure it is obviously important to be operational again as soon as possible. Guests will require the use of basic amenities such as a fridge and lighting. Staff will still need to be able prepare meals and do all the other essential background tasks. Without the use of electricity this is impossible. In such a situation then, a smooth, unnoticeable transition from grid to backup is a fundamental requirement of any alternative energy supply. Backup solutions Diesel backup generators alone, whilst a solution, are not ideal though. Fuel can be costly and in case of a luxurious resort, noise and pollution will be unacceptable. In African countries the solar energy harvest is large and stable, which makes the sun a perfect energy source. The energy produced during the day can either be used directly, or stored in batteries for later use. Keeping solar energy stored in batteries also requires that energy to be harvested from the solar array. To do this solar charge controllers are used, such as the ultra-fast BlueSolar MPPTs from Victron Energy.

Even further system redundancy, efficiency and reliability can be achieved with the Victron MultiPlus. This is a powerful true sine wave inverter, including a sophisticated battery charger, plus a high-speed AC transfer switch, in a single compact enclosure. In the event of a grid or generator failure, the inverter within the MultiPlus is automatically activated and takes over the supply to the connected loads from the stored battery energy. This happens so fast (less than 20 milliseconds) that computers and other electronic equipment will continue to operate without disruption. And where generator or grid power is limited, the unique PowerAssist(r) technology makes it possible to boost the power, by adding extra energy from the batteries. Whatever your situation might be, Victron Energy makes sure you always have energy at your disposal. 1 Report International Energy Agency – Worldwide Trends in Energy Use and Efficiency

E: sales@victronenergy.com I: www.victronenergy.com NABC

PART 5: Energy

Building solid

RELATIONSHIPS

INTERVIEW Aart van der Wal Regional Managing Director Africa Smit Lamnalco What does Smit Lamnalco do? With a fleet of around 200 vessels we provide tugboat and offshore support services to oil and gas terminals and assist incoming and departing vessels in ports. We also provide accompanying services like pilotage, diving support and environmental protection services. With over 2,500 staff we operate in around 30 countries worldwide, and focus on the core regions Africa, the Middle East and Australasia. Are there any important developments in the sector for Africa? Localisation in Africa is of increasing importance. We appreciate the value for all stakeholders involved, and we have been promoting localisation ever since we started in Africa more than 40 years ago. There are legal requirements to have local involvement, such as a quota for crew composition and local ownership of the company. It can be a challenge, but we understand and appreciate the reasoning behind it. We are dedicated to providing our services tailored to the operational needs of global customers in local markets.

“The recent graduation of four Liberian crewmembers was a proud moment.” Another important development is the discovery of new offshore gas deposits in Mozambique, Tanzania and Kenya, which presents opportunities for our sector. In West Africa, which has a long history of oil production, new oil fields and gas deposits have been discovered as well. On top of that, there are ongoing developments in the

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Dutch Business in Africa

For more information. please visit: www.smitlamnalco.com

mining industry in Liberia, Sierra Leone, Guinea and Ivory Coast. What is your local content policy? Our clients in Africa demand local crew and we fully support that. It is important to demonstrate commitment to the local community, to show that we are creating jobs and contributing to the country. A big success story regarding local content is AfrikDelta Marine Limited (ADML), which is 100% Nigerian owned. Smit Lamnalco has been in operation in Nigeria since 1991 and has been contracted to supply technical and vessel management services to ADML.

“Working in remote and challenging locations is our strength” is your slogan. Can you please elaborate on that? First, there is the operational challenge. Working in remote areas makes it difficult to get people, support and supplies on-site. One current example is Ebola. There are evident risks, but with careful management we are succeeding in continuing operations in a secure way. This is an essential component of our services, we make sure our clients can count on us, even in trying times.

Secondly, there are challenges in the business environment, like anywhere in the world. Smit Lamnalco has been working in Africa for decades. We have learnt how to do business there and we appreciate the cultural differences of each country. We always enjoy opportunities to build on our relationships. The Football World Cup, for instance, was a perfect occasion. Friendly banter with our Ghanaian partner during the games proved that football is a universal language!

Marine ingenuity

We always look for the perfect balance between cost, local commitment and experience. A nice aspect about hiring and training local people is that they are committed to your organisation. Another good example is one of our Gabonese colleagues: he started out as a sailor, came up through the ranks and is now our General Manager in Liberia. Is it difficult to find people with the right qualifications? It depends per country. Ghana is the biggest seafaring nation in Africa and you can find very capable and educated seamen there. However, in certain countries you have to start from scratch as there is no marine heritage. In Liberia, for instance, we decided to develop an extensive training programme. Unfortunately, due to the civil war, the maritime industry had been pretty much decimated. The Liberian government was looking for international partners with maritime expertise, which could assist it in rebuilding the sector and help ensure a sustainable future. Smit Lamnalco has worked very closely with the Liberian Maritime Authority to develop training programmes for local people. The recent graduation of four Liberian crewmembers was a proud moment.

Dredging In just two words, marine ingenuity, we express that we are passionate

Offshore Wind Projects

Offshore Oil & Gas

dredging and marine contractors with a worldwide innovative approach to meet your challenges. Our people - who manage a versatile fleet - specialise in dredging, marine engineering and offshore projects (oil, gas and wind).

www.vanoord.com Dredging and Marine Contractors

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PART 5: Energy

PART 6

ARTICLE

FINANCE

The Great Leapfrog: Africa is Doing it Again! Africa’s Renewable Energy Supply

frica is again leapfrogging Western development. Just as mobile phones and mobile banking made the telephone grid and online banking obsolete technologies, off-grid energy solutions appear to do the same to the electricity grid. The advantages of off-grid solutions like solar light are plentiful. First, they save any family a significant amount of money, as it is a cheap, one-time purchase. Second, any household can effortlessly connect solar power and in case of increase in usage easily expand capacity. Finally, solar and other renewable energy technologies do not need the hugely expensive power infrastructure required to generate electricity by traditional power sources. The world’s energy supply shows a discernible trend, as the usage of cleaner renewable energy alternatives is gaining ground relative to traditional energy sources based on fossil fuels. Few realise that Africa is one of the most important frontiers for clean energy investment and off-grid solutions. Most countries in Africa have yet to develop a reliable electrical infrastructure. Attributable to multiple factors, like inadequate funding and prior misguided energy policies, this means supply is often not up to par with demand, constraining economic development. However, this lack of infrastructure might be a blessing in disguise, as the benefits of off-grid solutions make renewable energy a popular item on the agenda of many African countries trying to tackle these issues. Energy generated by sun, wind, and biogas is increasingly utilised by consumers and companies in Africa’s rural and urban areas. With investments ramping up, renewable sources already provide quite a few Africans with energy

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Dutch Business in Africa

and will do so on a larger scale in the nearby future. Climatescope 2014 shows that a number of African countries are already uniquely positioned to take full advantage of the global turn towards renewable energy. Out of 55 emerging markets worldwide, Rwanda has the 2nd best enabling framework, while it ranks 6th for low-carbon business & clean energy value chains, with Kenya coming in 7th. South-Africa meanwhile has the 2nd highest level of clean energy investment & climate financing and comes in 3rd overall.

Few realise that Africa is one of the most important frontiers for clean energy investment and off-grid solutions. The comparatively lower ranking of Sub-Saharan countries can, for the biggest part, be explained by a poor level of technology application and insufficient energy infrastructural development to cater to the sustainable use of resources. However, as indicated before, this supposedly negative situation presents opportunities for those that see the possibilities. Investment in ‘distributed energy resource systems’ and other off-grid solutions to the energy distribution process are ingenious solutions with a lot of potential, both for investors and for the economic development of Africa. For more information, please contact Heleen Keijer at Heleen.keijer@nabc.nl

Trade work on the floor of the Ghana Stock Exchange Accra, Ghana © Jonathan Ernst / World Bank

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PART 6: Finance

That can be debated, albeit without any prospect of final settlement. It is important to keep in mind that GDP is always an approximation.

ARTICLE

Rebasing African GDP

More reliable economic data would create confidence and could attract more foreign investment.

How much do we actually know about economic growth in Sub-Saharan Africa?

Any GDP estimate depends on a range of assumptions and data points that can all be contested. Data for economic governance has been neglected for too long, and as the information is updated, there is bound to be a few surprises. It remains to be seen which countries will follow suit - Kenya and Tanzania are just two examples of African countries who are currently reevaluating their GDP.

--------BY Morten Jerven

n the last few years the world economy witnessed a series of surprises when GDP in several African countries seemingly doubled overnight. On November 5, 2010, Ghana Statistical Services announced new and revised GDP estimates. The size of the economy was adjusted upward by over 60 percent, suggesting that in previous GDP estimates, economic activities worth about USD 13 billion had been missed. In the same vein, on April 7, 2014, the Nigerian Bureau of Statistics declared that their GDP estimates were also being revised upward by USD 510 billion - an 89 percent increase.

able; such as data from a household, agricultural or industrial survey. The information from these survey instruments is added to other administrative data. The total is then weighted by sectors, thereafter other indicators and proxies are used to calculate or guess new annual estimates. The usual method is to then make additional assumptions such as for example that food production grows in line with rural population growth, that the informal and unrecorded urban sectors grow in line with the recorded service sectors, and that construction grows in line with cement imports etc. Finally, a new GDP estimate is created. So all in all, the estimates are made using a bit of

The credibility of official statistics would definitely benefit from a transparent and open process as the supply of data from African economies on the rise, is meeting the demand of an increasing number of observers that are suddenly paying attention. More reliable economic data would create confidence and could attract more foreign investment. But for the time being we know less about income and economic growth in Sub-Saharan Africa than we would like to think.

Morten Jerven is Associate Professor at the Simon Fraser University, School for International Studies, in Canada. His book “Poor Numbers: How we are misled by African development statistics and what to do about” has been published by Cornell University Press in 2013.

Nigerian GDP increased by about 250 billion USD from about 260 billion to 510 billion USD. The increase from the revision is about the size of 58 times the size of Malawi’s total GDP. In the Nigerian case, such a massive revision could potentially even prompt a reshuffling of seats at the G20. These well-publicized statistical events have led to an increase in the attention being paid to the quality of macroeconomic statistics in African countries. The concurrent very large and seemingly abrupt changes in GDP have led to a reconsideration of the quality of the data used to evaluate basic trends in growth and poverty in LICs. The World’s Bank chief economist for Africa even speaks of “Africa’s Statistical Tragedy”. GDP is calculated as a sum of the ‘value added’ of the production of goods and services. The truth is that all GDP measures are merely approximations, since in most African economies the statistical offices simply do not have all the information needed, and lack the resources to generate a new aggregate each year. What is usually done is that a ‘benchmark year’ is picked, that is, the statistical office chooses a year when it has more information on the economy than normally avail-

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Dutch Business in Africa

qualified guesswork and brave assumptions. In this way GDP measures are inaccurate. You can compare it to a bathroom scale. No bathroom scale tells you the correct total weight, they all differ by a few grams, or even by several kilos. This does not matter as long as you are only interested in whether you are gaining or losing weight. The problem appears when you want to compare your own weight to your neighbour’s. When the benchmark year is out of date, the GDP series is becoming increasingly inaccurate. The IMF statistical division therefore recommends to update the base year every five years. Yet, in Nigeria the base year had not been updated since 1990 so that when it was finally updated GDP almost doubled. The same happened in Ghana when they changed from a 1993 to a 2006 benchmark year. The real startling fact about the rebasing is perhaps that it there is nothing wrong about Nigeria’s GDP doubling from one day to another. Is the new number too high or too low?

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PART 6: Finance

ARTICLE

Dutch Good Growth Fund DGGF

Through the Dutch Good Growth Fund (DGGF), the Dutch Ministry of Foreign Affairs supports small to medium Dutch businesses as well as entrepreneurs in emerging market countries by facilitating financing for investment and exports. Increased exports and investment are recognised as potentially having a strong impact on development. The DGGF is operational since 1 July 2014 and open for applications. Below you will find a summary of what the DGGF can do for your business.

For any additional information, please go to: www.rvo.nl/dggf

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Dutch Business in Africa

Businesses focusing on emerging markets still often encounter trouble in securing the necessary financing. The Dutch Ministry of Foreign Affairs recognises that such a lack of financing may and does often result in missed opportunities for growth, both from the perspective of the entrepreneurs and the perspective of the countries concerned. In order to bridge this financing gap, the Dutch Good Growth Fund has been established. The DGGF provides a supplementary source of financing for business endeavours focusing on 66 designated countries. The DGGF is open to both SMEs from the Netherlands and SMEs from the 66 countries listed. To determine whether a company can be defined as an SME, the standard EU definition is used: an SME has less than 250 employees, an annual turnover less than EUR 50 million or an annual balance sheet total less than EUR 43 million. Activities that are eligible for application should focus on creating new local jobs, increasing the local production capacity and promoting knowledge transfer.

Algeria, Angola, Benin, Burkina Faso, Burundi, Cape Verde, Congo Dem. Republic, Djibouti, Egypt, Eritrea, Ethiopia, Gambia, Ghana, Kenya, Libya, Madagascar, Malawi, Mali, Morocco, Mozambique, Niger, Nigeria, Rwanda, São Tomé and Príncipe, Senegal, Sierra Leone, Somalia, South-Africa, South-Sudan, Tanzania, Tunisia, Uganda, Zambia, Zimbabwe African countries DGGF

The function of funding by the DGGF is therefore twofold: providing SMEs with the financing required and being an economic driver in the 66 countries. One of the key characteristics of the DGGF is that the budget has a revolving nature, which means that DGGF financing needs to be repaid. DGGF finances through loans and equity investments, instead of grants. As such the DGGF is meant as a complement to private investments. The DGGF consists of three different tracks.

Track 1: Investments by Dutch SMEs in emerging markets and developing countries

Track 2: Finance for local SMEs in emerging markets and developing countries

Track 3: Export credit insurance and finance for development-relevant export from Dutch SMEs to emerging markets and developing countries

The Netherlands Enterprise Agency (RVO in Dutch) executes this tranche of the Fund, with a total budget of EUR 175 million. Projects that are unable to obtain regular financing, for example through banks, can apply for financing up to EUR 10 million. Only companies that can be defined as an SME are eligible for application under this track. Additional requirements are that the company is based and has significant operations in the Netherlands and that the company operations follow the code of Corporate Social Responsibility (CSR).

A consortium of Triple Jump and PricewaterhouseCoopers (PwC) carries out track 2. The goal of track 2 is to service the ‘missing middle’ of businesses located in the 66 target countries. The missing middle are businesses that have outgrown the ‘micro financing’ bracket, but are unable to obtain financing on the capital markets. The track specifically aims at young and female entrepreneurs and entrepreneurs active in fragile states that have significant impediments in attracting capital. Investments by the DGGF in a single project can range from USD 10,000 to USD 5 million. Track 2 has a budget of EUR 175 million as well.

Atradius Dutch State Business executes the third track. Its budget for 2014 was EUR 33,3 million and it is set to grow to a minimum of EUR 175 million by 2017. Atradius offers Dutch SMEs and their banks insurance coverage for the payment risks associated with the export and possible financing of capital goods and construction works. It also covers working capital provided by banks to exporters for export transactions to DGGF countries. In addition, Atradius covers guarantees (for example for advance payment) against the risk of unfair calling and offers counter guarantees to the bank that covers fair and unfair calling. Through insurance coverage, banks can increase the capacity of the exporter’s credit lines. This structure allows the exporter to get paid on delivery, while the buyer can get longer payment terms, matching his cash flow. The upper limit on any of these transactions is EUR 15 million. In addition, Atradius can offer EUR 2 million supplier’s credit, allowing buyers from the target countries to finance their purchases.

Besides these three company requirements, the project for which financing is needed also needs to meet certain criteria: the investment needs to be in one of the 66 target countries, the investment will result in additional employment opportunities, knowledge exchange (skills, technology, innovation) and/or improve local production. An important factor is that the financing through the DGGF is meant as a supplement to private investments, in the form of guarantees and direct co-financing with a repayment obligation (such as loans and equity investments). The remaining requirements are of an ethical nature: the project may not be used to lower profit or tax payments in the country affected and may not be used to artificially lower taxable profit in the source country. When a company believes it meets all requirements and wishes to apply for financing, it can fill out a Quick scan online at the RVO website. One of RVO’s advisors will then contact the applicant to conduct a Quick scan by phone. The next step is a Deep scan, during which the company is asked to provide additional information on the project. When all criteria are sufficiently met, an independent advisory committee will carry out the final assessment of the application. The entire process will take about four months.

While financing in track 1 is paid directly to applicants, track 2 flows through Intermediary Funds (IF). The DGGF invests in existing or new funds focusing on the country of choice, which in turn supply local SMEs with customised financing. In 4 to 5 years the DGGF will build a diversified portfolio of such ‘funds in funds’ investments, during which the fund will gradually grow to its full size of EUR 175 million. Of importance is that track 2 will provide flexible capital and a long-term financial commitment with no fixed exit period. Local funds that are interested to become an intermediary fund can visit www.rvo.nl/DGGF.

Under the DGGF, Atradius offers all its regular services to eligible companies. Besides the standard requirements in terms of contribution to local employment, knowledge exchange and/or production, applicants need to be exporters of capital goods. A specific portion of the fund is available for companies that exceed the SME designation, provided they can show that Dutch SMEs contribute to the transaction as well. The process of applying closely resembles that of track 1. If a company wishes to apply, a Quick scan needs to be filled out on the website of Atradius. Upon qualification, the next step is filling out an application form, on basis of which follow-up discussions with Atradius will take place. Atradius will subsequently analyse the transaction and the risks involved and present the final analysis to a credit committee, consisting of Atradius and the Ministry of Foreign Affairs.

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PART 6: Finance

NABC Member Report

SUPERRETURN Africa 2014, Cape Town

By Dieter Poortman founder of Longonot Finance

From 2 till 4 December 2014, close to 600 investors and investment professionals gathered in Cape Town for the SuperReturn 2014 Africa conference. A 3-day conference with a participants’ list that reads as ‘Who is Who in investing in Africa’. Many ‘usual suspects’, but increasingly new people and institutions: the diversification of the geographical origination of the participants reflects the maturing of the African investment industry. Intro to investors’ classes A quick introduction to the world of Private Equity (or “PE”). Often, a (arbitrary) distinction is made between 3 classes of investors, Venture Capitalists (VC), Angel Investors, and PE investors. All provide companies with the capital that they would not otherwise be able to get from other sources, such as internal capital generation (net profit) or from banks. Generally, VC and Angel Investors are interested in investing in accelerators and incubators (start-ups), while PEs focus most on more established companies, who want to expand their business or where one of the shareholders wants to exit its investment. PE in Africa The conference brought together investors from Europe, Asia, USA and the Middle East. In addition, a growing club of ‘local investors’ from Nigeria, South Africa, Morocco, Kenya amongst others, are entering and give the industry local flavour. In mature markets, institutional investors dominate PE funding (public and private pension funds, foundations, endowments). In Africa, Development Finance Institutions (such as the World Bank’s Private Sector branch IFC, and Dutch FMO) still play a major role. By assuming a pro-active role as early investors, Development Finance Institutions can demonstrate that good financial returns can be achieved by investing in Africa Equity funds. Commercial investors are expected to follow. The Flying Dutchman: what’s in it for you? For NABC members, considering to invest or expand their business in Africa, there are at least two interesting reasons to establish contacts with PE Investors. Firstly, PE Investors can be a reliable source of local information: they usually have a local network of investment officers on the ground who know and understand local practices. Secondly, Funds can be your local partner by co-investing alongside you in an Africa business. PE funds are often looking actively for (international) technical partners who can bring in capital and, equally importantly, technical skills and experience to accelerate growth of local companies. Within the growing crowd of African investors, a few Dutch players shine brightly. They range from recent investing/crowd-funding platforms such as VC4Africa, to a

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Dutch Business in Africa

PART 7

SOCIAL ENTREPRENEURS

long-established PE investor such as FMO, the Dutch Development Bank. Take-aways from the conference The participants at the SuperReturn conference, acting as a ‘barometer’ for the African investment climate, are still positive about the prospects of investing in Africa. Yet, some words of warning were voiced, as some economic signs may be turning from green to orange. In the past five years, emerging markets have enjoyed the flows of liquidity created by the US Federal Reserve’s policies of easy money. It was felt that valuations have gone up, and acquisitions have become ‘expensive’. History learns us that these new investors may get out at the moment that interest rates increase again in the United States. And that is exactly what is expected to happen, after the Fed’s recent announcements that it will draw quantitative easing to an end. This may constitute a risk for African countries who have used the proceeds of their Eurobonds (debt bonds denominated in currency other than their local currency, usually in USD) to finance their budget deficits, without implementation of structural reforms (diversification, increasing tax base, etc.).

“For NABC members, there are at least two interesting reasons to establish contacts with PE Investors.” An interesting perspective was offered on the final day of the conference. John Coates, a research fellow from Cambridge, who traded for Goldman Sachs, offered a refreshing perspective on risk-taking behaviour. Unlike what we often think about risk (i.e. taking risk is a cognitive activity, supported by thorough analysis, etc.), he claims that much of the risk-taking is actually biologically driven. In a nutshell: the more continuous stress that we are exposed to, the more risk-averse we tend to become. Food for thought for all of us (aspiring) Dutch Africa entrepreneurs. © Pal Teravagimov / shutterstock

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PART 7: Social Entrepreneurs

INTERVIEW

Koneksie

A Passion for Africa, Entrepreneurship and Motorcycles Huib van de Grijspaarde, CEO

For more information, please visit: www.koneksie.com

The African motorcycle transport industry is one of the fastest growing motorcycle markets in the world. In the last three years the Kenyan motorcycle taxi industry has grown on average by 41% per year and currently transports on average 5.4 million people per day. KONEKSIE is tapping into that growth market with the first motorcycle ever designed for transportation.

What is the motorcycle transport industry all about? Can you give us some background information? In the early 1990s young people in Busia, a town in Kenya that shares a border with Uganda, used bicycles to smuggle goods across the border. Since then, the use of bicycles - and later on, motorcycles - for the transportation of people and goods, has spread and became commonplace in many African countries. Originally used to cross the no man’s land around the border, these motorcycles - or boda bodas as they are called in Swahili - nowadays not only provide affordable and fast transportation in rural areas but are also great for beating traffic jams in the cities. What was your inspiration to start Koneksie? When I watched a BBC documentary about motorcycles in Mali, I was immediately hooked. As a development economist, I strongly believe in creating opportunities and enabling people to help themselves. Boda bodas offer employment and mobility for people at the bottom of the social pyramid and thereby provide them with easy means to sustain themselves. As well as your office in Amsterdam, you also have one in Nairobi. Why did you decide to venture to Kenya? The Kenyan market has had time to mature without being completely saturated. At the moment it is dominated by cheap Chinese and Indian motorcycles which have an average lifespan of only 1-2 years before they break down.

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Dutch Business in Africa

You not only plan to sell motorcycles but offer a well-rounded package of microcredits, road safety training and maintenance assistance. Why? During our research in Kenya we realised that the vast majority of boda boda riders do not own their motorbikes but rent them for a regular daily fee. Most of them have no prospect of ever becoming owners themselves. Since they are paying the same fee every day, regardless of the condition of the motorbike, they have no incentive to do the necessary maintenance work and - if at all - go for the cheapest fix. This of course dramatically shortens the overall lifespan of the motorbike. We therefore decided

to offer financial schemes that enable them to purchase their own bike and start their own business. And what are your next steps? We are currently in the process of finalising the design of our motorbike and will start selling from April next year. In order to create as much value as possible, the bikes will be completely assembled in Nairobi by local workers. All in all, we aim to sell 10,000 units per year. As soon as we have set this base, we can start to expand and look into countries such as Uganda, Rwanda and Tanzania.

However, many operators are no longer satisfied with these low-quality bikes and look for better options. This is the niche that Koneksie strives to fill. Yet, the biggest motivator for the move to Kenya was the people themselves. Their pro-activeness and “go get ‘em” mentality seriously impressed me.

“I strongly believe in creating opportunities and enabling people to help themselves.” What did the design process look like? We wanted to create a motorbike that would be perfectly adapted to local circumstances. We therefore conducted extensive local research and talked to more than 160 operators, mechanics and passengers. For us it was essential to integrate their needs and wishes. We learned, for example, that women account for roughly 60% of all passengers. They often face cultural constraints when wearing traditional clothing or feel uneasy clinging on to a stranger. We therefore added extra bars to our design in order to make them feel safer and more comfortable.

NABC

PART 7: Social Entrepreneurs

AFRICApitalism E

ARTICLE By NABC

Africapitalism is a concept formulated by the Nigerian billionaire and CEO of Heirs Holdings, Tony Elumelu. In ‘Africapitalism, The Path to Economic Prosperity and Social Wealth’ it is defined as follows: the private sector’s commitment to Africa’s development through long-term investment in strategic sectors of the economy that create economic prosperity and social wealth.

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very entrepreneur or company that has been or is active in Africa knows two things: firstly, that business opportunities are seemingly endless; and secondly, that Africa still deals with a lot of economic and societal issues. For a long time these two points have been assigned to different realms. Traditionally, solving of economic and societal issues has been ascribed to governments and charitable organisations. Foreign aid has been poured into sectors like healthcare, education and agriculture in order to assist African governments in their attempts to improve the living conditions of the African people. The introduction of the concept of Africapitalism has focused attention on the positive impact the private sector can have on economic prosperity and societal development. No longer are pursuing economic opportunities and contributing to the improvement of societal problems seen as mutually exclusive. They can be mutually reinforcing. As the creator of the term Africapitalism, Tony Elumelu advocates that businesses should not invest in Africa based on the kindness of their hearts. Instead, Africa offers business opportunities that provide solid returns and contribute to social objectives. The theoretical core behind this dynamic is Michael Porter’s (a professor at Harvard Business School) ‘shared value’: a management strategy for companies to create measurable business value by addressing social issues that fit with their business strategy. Mr. Elumelu implemented this concept in his own business endeavours. In 1997 he and a group of entrepreneurs acquired Crystal Bank and rebranded it as Standard Trust Bank (STB). The goal was to democratise the banking sector in Nigeria since less than 10 percent of the population had a bank account at that time. This investment could at the same time contribute to a social objective (Mr Elumelu gives the example of people taking care of their finances in the comfort of their own home) and presented an economic opportunity on a wide-open market. The achieved suc-

Dutch Business in Africa

cess of STB in both areas speaks to the legitimacy of the ‘shared value’ concept. However, the knife cuts both ways: causing societal harm can create costs for business. For instance, extracting resources for export has fuelled growth in Africa, but without concerted efforts it usually hardly contributes to the wealth for local communities. This can lead to disgruntlement among the local population, for instance in the Niger Delta, which in turn can threaten the sustainability of business operations. Africapitalism is based on three tenets. Firstly, wealth creation. Instead of simply extracting value from African countries, enterprises should focus on creating wealth, for instance by creating jobs and value-adding operations. Secondly, funding entrepreneurship. Monetary assets that are put to use by NGOs, philanthropists and governments should be shifted to projects in the private sector. According to Mr. Elumelu, the track record of private sector development in furthering economic and social prosperity trumps development assistance, justifying bigger investment in entrepreneurship. Thirdly, transparent competitive markets. Governments should not take the reins of the economy, but focus on creating a supportive environment for private enterprises to flourish. The successful implementation of these three tenets will give the private sector in Africa the chance to succeed in capturing both the benefits of the plethora of economic opportunities and to make significant contributions to the overall development of the continent. The demographic trends, economic growth, and continuing reforms, among other factors, make Africa one of the most attractive destinations for investment. Africapitalism shines a light on how enterprises can capitalise on these opportunities to create sustainable business that can generate healthy returns for many years to come and have a positive impact on the livelihoods of the African people.

MAKING THE DIFFERENCE SGS is the world’s leading inspection, verification, testing and certification company. We are recognized as the global benchmark for quality and integrity. With more than 80.000 employees, we operate a network of more than 1.650 offices and laboratories around the world. Whether you are exporting for the first time or are an experienced international company, SGS can provide complete solutions to meet your requirements. We assist companies to achieve compliance of their exports to applicable standards and regulations of many countries in Africa, Asia and the Middle East. We also carry out pre-shipment inspections that support efficient customs clearance. To learn more about our services, contact us:

SGS NEDERLAND B.V. Governments & Institutions Services Malledijk 18 3208 LA Spijkenisse t +31 (0)181 69 3971 e nl.gis@sgs.com www.sgs.nl/en/Public-Sector

NABC

PART 7: Social Entrepreneurs

INTERVIEW

Sander Smits van Oyen Managing Director, SOVEC In a nutshell, what does SOVEC do? SOVEC is a private equity fund that invests in small- and medium-sized enterprises (SMEs). We are currently active in Ghana with 11 investments for a total amount of 8 million USD. We provide long term capital for the ‘missing middle’. In the modern-day financial system a bank is more inclined to lend a billion dollars to a multinational than lending 500,000 dollars to a small company operating with less stability. We fill the void that banks have left open by providing small, short term loans to small companies.

ration are much lower than local banking equivalents. In the end our (long term) package could potentially be more expensive than traditional financing, but it is a more appropriate structure to build a business. And if this leads to a substantial profit for the entrepreneur, we also share in that. Where does the money you invest come from? Our current fund consists of private investors, mostly from the Netherlands. These are private investors who like the idea of investing money, getting a good return and doing something positive with their money as well. The minimum investment in the fund was USD 50,000. We are preparing the set-up of a second fund, where institutions will provide approximately half of the capital and the minimum investment will be raised to USD 250,000. The positive return of our investments is not only a financial one, but also comes in the form of social impact as SMEs play an important, if not a crucial role in developing economies. They provide jobs, pay tax, innovate and create a middle class. As we focus on “Essential Services” (education, housing, health), our specific social impact is children receiving quality-education, families living in decent houses and patients being treated properly by motivated doctors in our hospitals.

INVESTING IN THE

In Ghana we work together with Oasis Capital, a fund manager providing financing to SMEs. We are a cornerstone investor in their fund and we invest in local companies together. Oasis provides us with the expertise and presence necessary to successfully conduct business in the local environment. In return, besides our invested capital, we add value by providing our knowledge on running a Venture Capital fund, on realising and managing investments in companies and we share our international contacts.

MISSING MIDDLE

What is the advantage of long term capital for SMEs? If you take out a loan in local currency from a bank, you would typically pay 36% interest in Ghana and you would need to return the money in probably 6, maybe 12 months. We provide an overall tailor-made financing package appropriate to the expected cash flows of the entrepreneur’s company. This can include equity and debt. Equity provides stability and long term commitment, but also implies that shareholders dilute. Our dollar loan would carry around 10% interest, with 1 or 2 years holiday (no interest, no redemption) while repayment needs to be done in 4 to 5 years. It might turn out that our loan is just as expensive as the bank loan over time, but it gives the entrepreneur more room and tools to build his business as interest payments in the early years of the loan’s du-

NABC

Dutch Business in Africa

What criteria does a company have to fulfil to be suitable for an investment? First of all, our investment range is between USD 100,000 to USD 2,000,000. So, we invest in rather small companies. Our current portfolio only consists of early stage companies that had difficulty attracting investment capital. Secondly, the sector has to be within our focus areas: education, health, housing, clean energy or financial services. Once these factors are met, management is the most important criteria: what are the people in the business like? What is their mindset? How do they manage their business? Are they entrepreneurial? And how do they see our role? Are they open to partnership? The concept of sharing ownership in a business is something that is relatively new in Africa. Interestingly, that used to be similar in the Netherlands when I worked in the VC business (1980s), but you see a completely different mentality now. Do you provide any additional services, on top of the investment? Entrepreneurs in Africa are typically young and have little experience. That has to do with their age and the stage that their economy is in. It is pretty new to grow businesses with a long term view. So availability of long term capital is one omission and experience is another. What we are trying to do is link our entrepreneurs in the portfolio companies with entrepreneurs in the Netherlands who have relevant experience and can coach them. Sometimes with technical knowledge, sometimes strategically and sometimes with managing networks. We call it the Entrepreneurs for Entrepreneurs model (E-for-E). We see that the entrepreneurs in Ghana can really benefit from this. What are the future plans for SOVEC? The first fund (SOVEC 1) is fully invested (USD 8 million). We are now setting up a second fund for USD 60 million.

Social Venture Capital (SOVEC) is an investment fund set up by Dutch entrepreneurs to invest in small and medium-sized enterprises (SMEs) in Africa. For more information, please visit: www.sovec.nl

We will continue to work in Ghana with our partner Oasis. We will also expand our activities to Kenya and Zimbabwe with our local partners there. These countries play important regional roles, are reasonably stable and there is huge demand for SME financing. They are perfect launching pads for further expansion. Furthermore, we have positive experience with the partnership E-for-E model and we would like to roll this out further. We are continuing to focus on our chosen sectors including investments in clean energy, as we are all passionate believers in this. One example of an investment we made was to a very ambitious Ghanaian, Patrick Acheampong, the director of Rising Sun Montessori Schools. When we met him, we noticed that he had the ambition to grow his school into multiple branches. He did not just want to keep the school like it was, but really make changes and grow a chain of schools. That is an entrepreneurial mindset we like. We now have 3 schools with close to 1,500 children and are hoping to reach 5,000. Mr. Acheampong is an example of an ambitious entrepreneur, capable of finding and growing new school branches.

How are the investments selected? We always work with a local investment partner. We partner up and invest together. This means our local partner has his/her own responsibility for fund management and investing. What is important for us is that our partners are entrepreneurial and independent. Our method of operation is that the local partners are in the lead. That is important for us, because we believe we will never really and fully understand what is happening on the ground. If you would ask someone from Zimbabwe to come to Rotterdam to close a tremendous deal, buy the best house, or realise the best transaction they would most probably fail.

NABC

PART 7: Social Entrepreneurs

ARTICLE By Olivia M.C. Smulders

DUTCH ENTREPRENEURSHIP WITHOUT BORDERS

PART 8

MEMBER INDEX

he African markets are still young and local labour costs are low. This creates interesting opportunities for Dutch entrepreneurs doing business in or with upcoming markets. At the same time doing so helps the development of the local economy and helps increase employment. Social entrepreneurship is a fast growing trend, with more entrepreneurs seeing the importance of sustainability and social responsibility. Simultaneously, more impact funds become available. These are investment funds that not only seek a profit, but also want to achieve a positive impact on society. One of the misconceptions about social entrepreneurship is that it is viewed more like charity than actual business. However, social entrepreneurs are, just like ‘regular’ entrepreneurs, in need of a healthy business model. This means they need to turn a profit in order to maintain and expand operations. Start-ups need to survive and grow without the need for subsidy. In essence this means they have to provide a product people want to buy. The main difference is that social entrepreneurship provides a service or product that aims to benefit society. Promoting social entrepreneurship and showing that it can be financially viable has something of a domino-effect, as it will convince larger corporations to invest in similar endeavours. In 2014 the Dutch business plan competition Ondernemen Zonder Grenzen (Entrepreneurship Without Borders) was organised for the fifth time. With this competition we help participants with these themes. According to Ms. Rootmensen (projectleader at NCDO), the competition stimulates international trade and inspires Dutch entrepreneurs to identify business opportunities in emerging markets such as in Africa. During the competition’s existence, scepticism has been replaced by enthusiasm among Dutch entrepreneurs.

Success Stories One of the finalists this year was Afriek, a producer of colourful blazers for men. Combining Dutch design with authentic African print fabrics and the craftsmanship of Rwandan tailors, they merge the best of both worlds in their products. “Nowadays, most stories behind what you wear are better left untold. In contrast, we are very proud to reveal our story. Afriek makes you aware of what you wear and where it came from, a lost value in our Western fashion culture,” according to founder Sivan Breemhaar. In previous years, other participants captured the essence of social entrepreneurship. Rik Stamhuis of Jiro-Ve, for example, realised investment for his plan to provide at least 30,000 households in Madagascar with affordable and safe lighting. Ms. Rootmensen: “It is great to see ideas turn into great companies with a social impact like that!”

NABC

Dutch Business in Africa

NABC

PART 8: Member Index

NABC Activities 2014 January

February

Ethiopia outgoing trade mission

March

New Year’s Reception, Heineken Experience

March 2014

■ New Year’s Reception,

■ Kenya & Ethiopia - outgoing

■ Ethiopia - incoming trade mission

February 2014 ■ Equatorial Guinea & CongoBrazzaville - outgoing trade mission

■ Africa Business Club, at Fast

Forward Freight at Schiphol Airport ‘Cargo & Logistics’

■ Ethiopia - outgoing dairy trade mission

NABC

Dutch Business in Africa

April

May

trade mission

■ Aqua Vakbeurs ■ Africa Business Club, with Voerman International

■ Algeria - SIIE Pollutec fair

■ Africa Business Club, at the

Wereldmuseum Rotterdam, with International SOS

■ Seminar ‘Marketing Strategies in Africa’

■ Training/Seminar ‘African Business Culture’

■ Ethiopia Meeting

April 2014

May 2014

■ Sierra Leone Presidential Dinner

■ Djibouti - outgoing trade

■ Cameroon Business Meeting ■ Uganda - incoming trade mission

June

Djibouti, outgoing trade mission

Africa Business Club, Fast Forward Freight

January 2014 Heineken Experience

Sierra Leone, Presidential Dinner

mission

■ Africa Business Club, at KPMG in Amsterdam; ‘The Rising Middle Class’

Africa Works! 2014

July

August

Kenya & Ethiopia incoming trade mission

Cameroon outgoing trade mission

September

October

DRC, Prime-Minister Incoming Delegation

Legenda

■ Events ■ Trade Missions ■ Africa Business Club ■ Conference/Fair

November

December

Ambassadors’ Dinner, Rabobank, Utrecht

June 2014

September 2014

November 2014

■ Commodity Networking Meeting

■ Meet & Greet with Tanzania’s

■ Nigeria - outgoing poultry

■ Madagascar - outgoing trade mission

■ Roundtable Renewable energy ■ Ghana - outgoing trade mission ■ Mali - NL Business Forum ■ Seminar “Dutch Good Growth Fund”

Construction Delegation

■ Ebola Webinar ■ Seminar ‘Doing Business in Africa’

■ Ghana - incoming WASH trade mission

October 2014

trade mission

■ Lecture Nigerian Minister Akinwumi Adesina

■ Ethiopia - outgoing spices, herbs, aromatics trade mission

■ Ghana - outgoing GhanaVeg trade mission

■ Annual BBQ “Chili con Carne”

■ Africa Works! 2014

December 2014

August 2014

■ Incoming Official Presidential

■ African Ambassadors’ Dinner

■ Kenya & Ethiopia - dairy & poultry incoming trade mission

DRC Delegation and Meeting

■ Mauritania - outgoing trade mission

at Rabobank in Utrecht

■ Cameroon - outgoing trade mission

NABC

PART 8: Member Index

NABC Members Agriculture AgroFair Benelux B.V. www.agrofair.nl Bejo Zaden www.bejo.nl Champrix www.champrix.nl Cool Support www.coolsup.nl Dutch Flower Group www.dfg.nl East-West International B.V. www.eastwestseed.com Eosta Organic Fruit & Vegetables www.natureandmore.com Fancom B.V. www.fancom.com

Janssen Hatchery Service B.V. Koudijs Animal Nutrition www.koudijsfeed.com Multi-Trex Integrated Food Plc www.multi-trexplc.com Linguisine www.linguisine.eu Mush Comb www.mushroommachinery.com Natural Habitats www.natural-habitats.com NNZ B.V. www.nnz.nl Omega Food www.omegafood.nl

Farmco B.V. www.schaapagroholland.com

PAS Reform Hatchery Technologies www.pasreform.com

Ferm o Feed www.fermofeed.com

Plumex B.V. www.plumex.com

Florensis B.V. www.florensis.com

Pluriton www.pluriton.com

Hameco Agro International www.hameco-agro.com

Primstar www.primstar.com

Hatchcon B.V. www.hatchcon.nl

Rijk Zwaan Export B.V. www.rijkzwaan.com

Hoogendoorn Growth Management www.hoogendoorn.nl

The Friesian Agro Consultancy www.thefriesian.nl

Hotraco Group www.hotraco.com

Tradin Organic Agriculture B.V. www.tradinorganic.com

IGO Holding Incluvest B.V. www.incluvest.com

Institut de S茅lection Animale B.V. (ISA Hendrix-Genetics) www.isapoultry.com

NABC

Dutch Business in Africa

Transnational Agri Projects B.V. www.transnationalagri.nl

Base of the Pyramid Innovation Center www.bopinc.org BG Trading Company www.bgtradingcompany.com BoP Innovation Center www.bopinc.org Trouw Nutrition (Sloten B.V.) www.trouwnutrition.com Van Hijfte B.V. www.vanhijfte.com VDL Agrotech www.vdlagrotech.nl Vencomatic Group www.vencomatic.com Verbeek Hatchery Holland www.verbeek.nl Vreugdenhil Dairy Foods www.vreugdenhil.nl Westhoeve Potatoes www.westhoevepotatoes.nl

BRILL www.brill.com CIBT Visas www.cibtvisas.nl Clifford Chance LLP www.cliffordchance.com

Miranda, Correia, Amendoeira & Associados www.mirandalawfirm.com

DLA Piper www.dlapiper.com Energy Works www.energyworks.co.mz Firebrand Wireless www.firebrandwireless.com GreenDream Company B.V. www.greendreamcompany.com ICS (Investing in Children and their Societies) www.ics.nl Kamer van Koophandel www.kvk.nl/kantoren/kantoor-rotterdam

Control Union www.controlunion.com

Kind Prevision

Cordaid www.cordaidurbanmatters.com

Larive International www.larive.com

Creata Media www.creatamedia.nl

Lineco B.V. www.lineco.nl

DIPcoop www.dibcoop.nl

Logistiek Hotspot Rivierenland www.logistic-hotspot.nl

MVO Nederland www.mvonederland.nl Steward Redqueen www.stewardredqueen.com TGS Business & Development Initiatives www.tgrantservices.com Triangular Group www.triangular-group.com Velocity Africa Holding www.velocitycapital.nl World Box www.worldbox.net Wtrade International www.wtrade-international.com

Zeelandia International www.zeelandia-international.com

Business Services

RELIABLE STEEL & BRIDGE BUILDERS SINCE 1878 EXTENSIVE EXPERIENCE IN AFRICA

SPECIALIST IN ORIGINAL AND OEM PARTS FOR TRUCKS, TRAILERS AND 4WD

Africa Business Communities www.africabusinesscommunities.com

Africa Interactive www.africa-interactive.com Africawebshop.com www.africawebshop.com Agri-ProFocus www.agri-profocus.nl Agriment International www.agriment.com

DAF - SCANIA - VOLVO - TOYOTA - MITSUBISHI - NISSAN - BPW SAF HOLLAND - KNORR-BREMSE - WABCO - CATERPILLAR ENGINE PARTS (MAHLE - FEDERAL MOGUL - CLEVITE) VALEO

Aliance Plus www.allianceplus.nl

Dijkstaal Internationaal B.V. Phone: +31 (0)10-5993399 Dijkstaal International B.V. Phone: + 31 (0)10 - 599 33 99 Zwarte ZeeZee 1515 E-mail: info@dijkstaal.com Zwarte E-mail: info@dijkstaal.com NL -NL3144 DEDE MAASSLUIS Website: www.dijkstaal.com - 3144 MAASSLUIS Website: www.dijkstaal.com

Marconi Netherlands Visiting address: Heilaar-Noordweg 1, 4814 RR Breda Postbox address: Postbus 3415, 4800 DK Breda Tel: +31(0)76-800 96 56 contact@marconitrading.eu

NABC

Marconi Poland Ul. Katowicka 121/123, 95-030 Rzg贸w k/Lodzi Tel: +48(0)22 458 95 80 info@marconitrading.eu

www.marconitrading.eu

PART 8: Member Index

Construction & Engineering Adcim B.V. www.www.adcim.nl Alimak Hek B.V. www.alimakhek.com Ballast Nedam International Projects B.V. www.ballast-nedam.nl

Van Wijhe Verf B.V. www.vanwijheverf.com

Carnegie Consult B.V. www.carnegieconsult.nl

Consultancy

EMSA Emerging Markets Africa www.emsa-africa.com

Advance Consulting www.advanceconsulting.com

Environmental Resource Management (ERM) www.erm.com

African Wise www.africanwise.com Agatrade www.agatrade.nl

BAM International www.interbeton.nl

Ayani www.ayani.nl

Bein Group B.V. www.beingroup.net

Basilea Business www.basileiabusiness.com

Blok Kats van Veen architects www.bkvv.nl

Berenschot www.berenschot.nl

Bridge International www.bridgebv-international.com

Bruinzeel www.raadgevendbureau bruinzeel.nl

BĂśhler Welding Group www.groupe-bohler-soudage.fr Castra B.V. CityfĂśrster Architecture & Urbanism www.cityfoerster.net Constar Betonwaren www.constarbeton.nl

EY www.ey.com Green Investment Services www.greeninvests.com Lafase Partners www.lafasepartners.com Masterkey Consulting www.masterkeyconsulting.nl Micro Macro Consultants B.V. www.micromacroconsultants.com Mott MacDonald B.V. www.euroconsult.mottmac.nl

C.A.B. van der Vinne www.cabvandervinne.com

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â&#x20AC;&#x153;Shipping should be straightforward and personal againâ&#x20AC;?

Dieseko www.diesekogroup.com Dijkstaal www.dijkstaal.com Klop Verhuur www.klop.com Kobelco Cranes Europe ltd. www.kobelco-cranes.com Kroftman Trading B.V. www.kroftman.com Lievense www.lievense.com

Oskam V/F www.oskam-vf.com

Breadbox Shipping Lines B.V. Schiedam, Rotterdam The Netherlands Phone +31 10 4776473

Remco Ruimtebouw B.V. www.remco.nl

www.breadbox-shipping.com

Breadbox_125x81_portrait.indd 1

NABC

Dutch Business in Africa

20-08-14 08:16

NABC

PART 8: Member Index

ProAfrica Ltd. www.proafricamw.com

Stichting Sideon www.sideon.org

De Lage Landen International B.V. www.delagelanden.com

SGS Nederland B.V. www.sgs.com

Foundation Rural Energy Services (FRES) www.fres.nl

Deutsche Bank AG www.deutschebank.nl

Synergie www.synergie-coop.nl Vergeer Resultants www.vergeer-resultants.com V HI-P www.v-hi-p.com Wissing B.V. www.wissing.nl

Electonics & ICT Aatelco www.aatelco.nl Agile Development B.V. www.agile-dev.com Castor Networks www.castornetworks.com Globecomm Europe www.globecomm.com IICD www.iicd.org ISAH International B.V. www.isah.com PortingXS B.V. www.portingxs.nl Ricoh International www.ricoh-international.com TTC Mobile www.ttcmobile.com Venema Advies Group www.venema-advies.com.ng

Energy Ansaldo Thomassen www.ansaldothomassen.nl Bredenoord www.bredenoord.com

NABC

Dutch Business in Africa

Libitco B.V. www.libitco.nl NOTS Support B.V. www.nots.nl Philips Lighting B.V. www.asimpleswitch.com Solited International Trading B.V. www.solited.com Texel4Trading www.texel4trading.nl The Wind Factory www.thewindfactory.com VAW Marketing www.vawmarketing.com Victron Energy B.V. www.victronenergy.com WakaWaka B.V. www.waka-waka.com Wärtsilä Nederland B.V. www.wartsila.com

Financial Services & Insurance Achmea www.achmea.nl AON Risk Solutions www.aon.com Atradius www.atradiusdutchstatebusiness.nl Axuda Insurance B.V. www.axudainsurance.com Common Fund for Commodities www.common-fund.org De Brauw Blackstone Westbroek N.V.

www.debrauw.com

FMO www.fmo.nl Goodwell Investments B.V. www.goodwell.nl ING Bank www.ingadvisory.com KPMG www.kpmg.nl Longonot Finance www.longonotfinance.com Meijburg & Co www.meijburg.nl PriceWaterhouseCoopers (PWC) www.pwc.nl Rabobank Nederland www.rabobank.nl SOVEC Management B.V. www.sovec.nl TCX Fund www.tcxfund.com Triodos Bank www.triodos.nl Veris Investment B.V. www.verisinvestments.com

Equipment Suppliers Akzo Nobel Car Refinishes B.V. www.akzonobel.com Big Machinery www.bigmachinery.nl Driessen Vreeland B.V. www.swamp-equipment.com Iskall Service B.V. www.iskall.nl Ligro Trading B.V. www.ligrotrading.com Orac Piling Ltd. Tolsma B.V. www.tolsma.com Transmotors B.V. www.transmotors.nl Van Leeuwen Test Systems www.vltest.com Volle Vaart Export B.V. www.vvexport.nl

Food & Beverages AHECO www.aheco.nl Bavaria www.bavaria.com Farm Frites www.farmfrites.com Friesland Campina www.frieslandcampina.com GenTrade International B.V. www.gentrade-international.com Heineken International www.heinekeninternational.com IBG B.V. www.ibgholland.com Interfood B.V. www.interfood.com

Jan Schoemaker B.V. www.janschoemaker.com

Moba B.V. www.moba.nl

Janus Services B.V. www.janus-services.com

MPS Red Meat Slaughtering B.V. www.mps-group.nl

Sasma B.V. www.sasmabv.com

N-A MTP www.namtp.nl

Special Fruit N.V. www.specialfruit.be

Omnivent Techniek B.V. www.omnivent.nl

Teeuwissen Holding B.V. www.teeuwissen.nl

Prima Equipment B.V. www.primaequipment.eu

Vrumona B.V. www.vrumona.nl

Rademaker www.rademaker.com

Wegdam Meatlink www.wegdamml.com

Riverland Equipment B.V. www.riverlandequipment.com

Worldwide Food Export www.worldwidefoodexport.com

Saint-Gobain Abrasives B.V. www.saint-gobain-abrasives.com

Machinery, Production & Metalwork

Schots Machinery www.schotsusedmachinery.com

Aa-Dee Industry & Maintenance www.aa-dee.com Cimcool Industrial Products B.V. www.cimcool.net CWT Commodities www.cwtcommodities.com Delta Machinery www.deltamachinery.nl Dijkma B.V. www.dijkmabv.com GEA Refrigeration Netherlands N.V. www.grenco.nl Hilco Welding www.hilco-welding.com Machines Forestières www.machinesforestieres.com Marel Stork Poultry Processing B.V. www.marel.com/poultry Meyn Food Processing Technology B.V. www.meyn.nl

SNA Europe (International) www.snaeurope.com Van Beest www.vanbeest.nl Van Helvert Metalen www.helvertmetals.com Vermeer www.vermeer.com

Marine & Off-Shore APM Terminals www.apmterminals.com Baggerbedrijf de Boer www.dutchdredging.nl Damen Shipyards www.damen.nl DEEP B.V. www.deepbv.nl Dockwise Shipping B.V. www.dockwise.com Dredging and Contracting Rotterdam B.V. www.jandenul.com

NABC

PART 8: Member Index

DNV GL www.dnvgl.com Global Salvage Consultancy www.salvageconsultancy.com Heerema Marine Contractors (HMC) www.heerema.com IHC Merwede Holding B.V. www.ihcmerwede.com Intermarine www.intermarineusa.com Jumbo www.jumbomaritime.nl

One of Europeâ&#x20AC;&#x2122;s largest dealers in New and Used heavy transport equipment

TRUCKS & TRAILERS

Koninklijke Boskalis Westminster B.V. www.boskalis.com Kriesels Scheepsmakelaar B.V. www.rksbv.nl Mampaey Offshore Industries B.V. www.mampaey.com Martrade B.V. www.martrade.nl Port of Amsterdam www.portofamsterdam.nl Royal Haskoning DHV www.royalhaskoningdhv.com

YOUR FUEL DISTRIBUTION SOLUTION ANYWHERE, ANYTIME.

Berkelseweg 15 2718 PR Zoetermeer The Netherlands T +31 (0)79 - 361 10 40 E info@crm.nl

www.crm.nl 96

NABC

Dutch Business in Africa

CRM Trucks and Trailers is a highly specified supplier of SELF-SUPPORTED storage and transport tanks of steel. Our gas-station units are mainly used for the storage of fuel and lubricants as well as a fuel supply (diesel, biodiesel, petrol, kerosene, Ethanol, Bioethanol and vegetable oils) for trucks, cars, construction machines, mining machines, diesel locomotives, airplanes, boats and yachts.

www.mobilefuelstation.nl

Smit Lamnalco www.smitlamnalco.com SMT Shipping B.V. www.smtshipping.com

Medical & Research & Pharmaceutical Education AMREF Flying Doctors www.amref.nl

ISRIC - World Soil Information www.isric.org

CEPD NV www.cepd.nl

SpringFactor www.springfactor.org

Hospitainer www.hospitainer.com

TNO www.tno.nl

i+solutions www.iplussolutions.org

Wageningen University and Research (Alterra, WU) www.wageningenur.nl

International SOS www.internationalsos.com

Security

Odelft Benelux www.delftdi.com

CIS Commodity Inspection Service www.cis-inspections.com

Omron Healthcare Europe B.V. www.omron.nl

Expat Preventive www.expatpreventive.com

PharmAccess International www.pharmaccess.org

Farmingtons Automotive GmbH www.farmingtons-armouring.com

Tanita Europe B.V. www.tanita.eu

K10 Workingdogs www.k10workingdogs.com

The Medical Export Group www.meg.nl

SecureOne International B.V. www.uviscan.com

Oil & Gas

Shore & Offshore Security B.V. www.shore-offshoresecurity.com

Fugro Engineers B.V. www.fugro.nl Global Pacific & Partners www.petro21.com

Supermaritime International B.V. www.supermaritime.com

Onstream International B.V. www.onstreamgroup.com

Tideway B.V. www.tideway.nl

SBM Offshore www.sbmoffshore.com

Van Oord Dredging and Marine Contractors B.V. www.vanoord.com

Shell International www.shell.com

Veka Shipbuilding B.V. www.veka-group.nl Westmark www.ptrap.com

Vigilance B.C. www.vigilance.nl

Textiles & Design Ten Cate Protect B.V. www.tencateprotectivefabrics.com Vlisco B.V. www.vlisco.com

Solvochem Holland B.V. www.solvochem.com Topec B.V. www.topec.nl Vopak Emea B.V. www.vopak.com

NABC

PART 8: Member Index

Training & Recruitment

Transport & Logistics

Human Resources Boosters www.hrboosters.com

J.P. Beemsterboer Food Traders www.beemsterboer.nl

ITIM International www.itim.org

Breadbox Shipping Lines B.V. www.breadbox-shipping.com

KIT Intercultural Professionals www.kit.nl

Language Institute Regina Coeli www.reginacoeli.nl MDF Training & Consultancy www.mdf.nl Sweerts HRM Consulting www.sweerts.nl Time to Grow www.timetogrow.nl Werk in Afrika www.werkinafrika.nl

Broekman Shipping Division B.V. www.broekman-group.com C. Steinweg Handelsveem B.V. www.steinweg.com Commodities Supplier Im-export www.cs-is.eu

Fast Forward Freight B.V. www.fastforwardfreight.com

Red Transport & Logistics B.V. www.redtransportlogistics.com

PK Trucks www.pktrucks.com

Koneksie www.koneksie.com

RMR Shipping B.V. www.rmrshipping.com

Ruttchen Trucks B.V. www.ruttchentrucks.nl

Koninklijke Luchtvaart Maatschappij N.V. (KLM) www.klm.com

RT Holland B.V. www.rtholland.nl

Van Vliet Trucks Holland B.V. www.vanvliet.com

Safmarine Container Lines www.safmarine.com

Water

SDV BollorĂŠ Nederland B.V. www.sdv.com

Aqua for All www.aquaforall.nl

Seko Logistics B.V. www.sekologistics.com

Blue Pump www.fairwater.org

Steder Group B.V. www.stedergroup.com

Deltares www.deltares.nl

Turkish Airlines www.turkishairlines.com

Eijkelkamp Agrisearch www.eijkelkamp.com

Van den Bosch www.vandenbosch.com

Hatenboer - Water www.hatenboer-water.com

Van Duuren Districenters www.vanduuren.nl

Holland Mineral Water Machinery B.V. www.holland-water.nl

Lift Freight Services B.V. www.liftfreight.com Mainfreight B.V. www.mainfreight.com Mammoet Europe B.V. www.mammoet.com

DC Helleman www.helleman.nl

NewPort Tank Containers Europe B.V. www.newporttank.com

DHL Global Forwarding www.dhl.com

Portside/Ports Marine ltd www.portside.ch

Direct Maintenance B.V. www.directaviation.aero

VATlogistics www.vatlogistics.nl Voerman International www.voerman.com

Trucks & Cars Crm Trucks en Trailers www.crm.nl DAF Truck N.V. www.daf.com Intermotive B.V. www.intermotive.nl Intertruck Group www.intertruck.nl

Spar International www.spar-international.com

IRC www.ircwash.org Landustrie Sneek B.V. www.landustrie.nl Pentair X-Flow www.x-flow.com

Wholesale & Retail AOP Services www.aopservices.com Brabantia Export www.brabantia.com CandlEind

Kleyn Trucks B.V. www.kleyn.com Marconi Trading B.V. www.marconitrading.eu MD Trucks B.V. www.md-trucks.nl

NABC

Dutch Business in Africa

Hollandia International B.V. www.hollindia.nl Makavelli B.V. www.huysermoller.nl Nestinox B.V. www.nestinox.com

NABC

PART 8: Member Index

Abu Sinn Trading Company Ltd.

DevelopingAfrica.net www.developingafrica.net

Mediplan Healthcare Limited www.mediplanhealthcare.com

Helios Investment Partners www.heliosinvestment.com

Millchem Africa www.millchemafrica.com

Help Cameroon Foundation www.helpcameroon.org

Morgan Engineering Services Ltd.

Adaliwè SARL Africa Legal Network www.africalegalnetwork.com

MEMBERS AFRICA NETWORK

African World Heritage Fund www.awhf.net AfriWise Consult Ltd. www.afriwise.com AJ Import & Export Expert Group Inc. www.ajenterpriselr.com Alevina Partners www.alevinapartners.com Ardenil Projects & Investments Ltd. www.ardenilprojects.com Bablink Resources www.bablinkresources.com

Paprikana Agro Solutions Plc. Holland Car Plc. www.holland-car.com Honeywell Group Limited www.honeywellgroup.com

Tenti Greens Ltd.

Hurricane Trading www.cloggieman.com

Three Marks Oil&Gas Nig. Ltd. Tiger Shipping www.tigershipping.com

George Muchura Consultancy

Trefoil Shield Mauritanie Sarl.

Ideal Matunda www.idealmatunda.com

Wimpy Bite Confectionaries Ltd.

Ikern & Associates Ltd. www.ikernassociates.com

Baggio Visual Concept Nigeria Ltd. BNM Freight Forwarders www.bnmfreight.com

Rawole International Ltd.

Index Consulting www.indexconsulting.biz

Yellow Star Food Processors Your Choice Agro Processors Ltd. Zwinkels Tours Cameroon www.zwinkelstourscameroon.com

Integrated Dairies Ltd. Briepower Renewable Energies Chareese Technologies

J Care Global Marketing Nigeria Ltd.

Chief Motoma and Sons Enterprise

JMW Projects for Development

Chinguitel www.chinguitel.mr

Kamaal Group www.kamaalgroup.com

Codchem (Pvt) Ltd. www.codchem.co.zw

Leroay Group Lesilro International Ltd.

Dee-Glorious Global Multiservices Enterprises www.gloriousglobalservices.gnbo. com.ng

100

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Dutch Business in Africa

MAK’ Import Transport McDan Shipping Co. Ltd. www.mcdanshipping.com

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PART 8: Member Index

101

Schiemerik 1 5334 NL Velddriel The Netherlands T: +31 (0)418 674 545 F: +31 (0)418 633 108 info@bigmachinery.nl

YOUR PARTNER IN HEAVY EQUIPMENT

Advertisement Index Brand Position APM Terminals Page 52 ASC Page 93 Big Machinery Inside back cover Breadbox Shipping Lines Page 92 CRM Trucks & Trailers Page 96 DevelopingAfrica.net Page 75, 98 Dijkstaal Page 91 Heineken Back cover KIT Page 93 Koudijs Animal Nutrition Page 43 KPMG Page 6 Marconi Trading Page 91 MOBA Page 39 Philips Page 27 PK Trucks Holland Page 55 PortingXS Inside front cover Remco Afrique Page 49 Rijk Zwaan Page 34 SGS Page 83 Smit Lamnalco Page 65 Steder Group Page 59 TNS NIPO Page 21 Van Oord Page 71 Victron Energy Page 69 Zeelandia Page 31

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WWW.BIGMACHINERY.NL NABC

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103

I am Théthé Nzoka Rice Farmer Kingabwa DRC

We have learnt that Africa can help us. GROWING TOGETHER.

EINEKEN has had a close relationship with Africa for more than one hundred years. In this time, we’ve learnt the importance of partnering for growth. To this end, we are committed to sourcing 60% of our agricultural raw materials from farmers in Africa by 2020. Today, collaborative projects are flourishing in Nigeria, Sierra-Leone, Egypt, Rwanda, Burundi, Ethiopia, South Africa and the Democratic Republic of Congo (DRC). We launched our rice project in the DRC in 2009, together with the Dutch Government and NGO Partner Eucord. An extensive programme has been put in place to train smallholder rice farmers and tens of thousands of them have been reaping the benefits. From 2009 to 2012, HEINEKEN 104

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Dutch Business in Africa

has redirected 26 million Euros to the local economy. During this time, both total rice production and yield per farmer increased by 62%. And in Kinshasa alone, the average income per farmer increased by 323%. HEINEKEN has also been reaping the benefits. This successful collaboration between community and our company has helped create a sustainable source of raw materials, a shorter supply chain, a reduction in transport and importation costs and a lower carbon footprint. We truly are growing together.

Many people still believe that Africa needs help. We have learnt that Africa can help us.