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1563-4108

AFRICABIZ ONLINE SYNOPSIS RSS FEED
Trading And Investing In Africa

ISSUE 89 - VOL 1
SEPTEMBER 15 - OCTOBER 14, 2006

Dr. Bienvenu-Magloire Quenum
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Welcome to AFRICABIZ, Please scrolldown to see more

Welcome to Africabiz Online Synopsis RSS Feed edition. Previous issue available atthis link


Click here for PART I
Click here for PART III

TO MANAGE A PROJECT AND NOT JUST TO SUPERVISE. - PART II: THE ESSENTIALS TO MAKING A DEVELOPING PROJECT A SUCCESS STORY

In the previous delivery (click on above links for more) it had been asserted that if the concept, the basic idea of a project is biased from the start, flawed by misleading assumptions and doctrines, the wall of disaster is just half way down.

In said delivery several definitions of a project had been outlined - with the following proposed by the author of this article: "A project is the conceptualization of an idea, translated into a set of actions, with guidelines for a successful implementation. It is a scheme, a plan, a strategy to reverse a trend; to improve a situation - politically, socially and economically."

The issue had also short-listed some outstanding projects that had changed the destiny of the humanity. These projects were successful undertakings because from the start the seeds of success were sown by the sponsors and experts in charge of the concept, the design, and planning.

Arising failures had also been reported and a particular current one that is the American led invasion of Iraq. The invasion / project ended in quagmire for the invading forces because the conceptualization and planning were based on pre and post invasion false assumptions.

That particular failure reveals the following paradox: The management skills of the project's manager is not the prerequisite for the potential success of a project.

Indeed, whatever maybe the outstanding managing-skills of the person in charge of implementing a project, and the abundance of financing means made available, he would not succeed driving the scheme to a successful final stage if the project is badly conceived and bundled, non realistically planned from the start. (Click here to review a case study). That person cannot accomplish miracles.

WHAT A DEVELOPING PROJECT THAT HAD THE POTENTIAL TO BE A SUCCESSFUL UNDERTAKING LOOKS LIKE?

Starting from the beginning of the independence's era in the 1960's, African countries launched developing projects. However, as we all know, the outcome is negative as no African country had today succeeded in improving African citizens' living conditions. In the contrary, poverty had globally increased year after year and African countries are non-existent entities in the international trading system. They account for only two percent of the international trading.

That state of affairs is the proof that the developing projects implemented by African countries since 50 years running lack the potential to be successful undertakings as here previously exposed

Indeed, as already stated, there is no doubt that the future success of a project is "genetically" present from the start. It is sown into the initial scheme and strategy. Good planning yes. But one based on sound assumptions and real facts.

Referring to the definition here outlined, one may be inclined to think that a Project is an "entity" independent from its sociological and cultural environment. That is not true. A project cannot be designed as an independent entity. It belongs to the sociological, cultural, political and economic environment - and, particularly, its objective(s) should address the needs of the majority of the population. That is, in the case of African countries, developing projects should primarily be carried out to improving the living conditions of rural folks, which account for up to eighty percent of the populations. That way the whole nation would benefit to marching toward better development and prosperity. If that is not the case, the undertaking would end in fiasco - as experienced since 50 years by African nations as here explained

That precondition exposed, the other items of the definition - (1) conceptualization of the project; (2) set of actions; (3) guidelines to implementation and (4) final objective fall neatly in place if they are presented and explained to the beneficiaries in plain and comprehensive language, to gain their adhesion and dedication. Such a strategy would make each citizen a project-manager (at his level), and the whole community a global manager as well.

The preliminaries exposed in above paragraphs show that, from the start, a developing project should be designed taking into account the beneficiaries' needs. That would require brainstorming sessions during which participants from all lines of businesses, government representatives and beneficiaries delegates meet to discus the basic orientation(s). After the primary brainstorming session(s), policymakers would be better equipped to design the final strategy, elaborating set of actions and guidelines that should be efficiently promoted to obtain the adhesion of the beneficiaries. More brainstorming sessions may be necessary to achieve that.

THE ESSENTIALS TO IMPLEMENTING SUCCESSFUL DEVELOPING PROJECTS

Since 50 years, sub-Saharan African countries' ministries in charge of economic planning used to draft "global" developing schemes - with a listing of projects backed by investments' briefs. Then they summon Round Tables of investors attended by representatives of bilateral and international aid agencies - particularly the IMF and the World Bank. Very few private and corporate international investors show up to the Round Tables.

Considering that the economy in SSA countries is non-performing (to say the least), one can assert that the above outlined approach to promoting developing schemes is not adequate as it yielded no positive result for 50 years running.

Therefore, the need for another approach is obvious; and considering Asian Tigers' success stories, the process below outlined seems more appropriate:

" To consider business opportunities one by one

" To draft comprehensive feasibility reports and business plans

" To organize Brainstorming sessions to mobilize and "implicate" the populations of the regions where projects would be located

" To motivate and convince local, regional and national business people to take a stake in the venture

" To search for equity contribution - if necessary - from other African countries and international investors - institutional and private business people

" Finally, to scout for technical and marketing partners

To carry out a winning strategy - as above outlined - a supervising national body would be necessary. Let us name it: The National Advisory Council for Investment Planning - NACIP. Government and national Private business' representatives shall team together within NACIP to work for the execution and follow up of the developing Scheme. NACIP' statutory members would be:

1. Representatives of entrepreneurs and professionals - Chambers of Commerce, Agriculture and Industry. Etc.

2. Government's representatives: Ministries of Planning and Economy; Finance and Budget; Agriculture and Rural Affairs; Industry and Trade; Foreign Affairs and International Cooperation: Legal and Judicial matters.

NACIP would have statutory meeting-date:

" To evaluate business opportunities

" To follow-up projects' execution

" To advise for redirection of planned investments

" To suggest changes to the national economic development scheme - in relation to technology's evolution, new business opportunities, national, regional and international political and economic events. Etc.

The New Partnership for Africa's Development - Nepad - has been conceived to "quicken" the developing of the continent.

But, it does not have the essentials to success as above described. Further it has many other flaws that Africabiz exposed in several deliveries[34, 39, 50, 75]. Therefore, as conceived, Nepad would not improve the economic situation of African countries - for decades to come. If ever!

Next delivery: Managing People. That Is The key To Success

"CONTRIBUTOR'S GUIDELINES" are available here. We invite you to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles related to "How Africa Could Bridge The Developing Gap".

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for subscribing to Africabiz. See you here on October 15, 2006.


Dr. B.M. Quenum
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Business Opportunities

BIOMASS ENERGY - PART I: - INTRODUCTION TO BIOMASS ENERGY APPLIED TO AFRICAN COUNTRIES

The several business opportunities / projects outlined on the top of the following URL page need energy - from gas, wood, or electricity - to be implemented. Without the availability of cheap and sustainable energy, projects cannot be successfully carried out.

Electricity is the most used energy, which could be generated from several systems such as, atomic reactors, hydro-power (dam), oil, coal or gas powered electricity generators. Oil could be vegetable oil or fossil oil (petroleum). The same for gas.

Nowadays, fossil gas and oil and hydropower are the most used on grand scale to generating electricity. Some Western European countries, the United States of America, Japan and China had established atomic reactors to generating electricity. However, the construction costs of atomic reactors and hydropower dams require substantial financial means far beyond the capability of most African countries. And the procurement costs of fossil oil or gas are prohibitive for African countries deprived of oil fields.

- RENEWABLE ENERGY HAS A HUGE POTENTIAL TO DEVELOPING AFRICAN COUNTRIES

Renewable energy is "reconstituted" year after year, while natural resources such as oil and coal are finite and nonrenewable. Renewable energy encompasses production of ethanol, biogas, biodiesel, biomass power and industrial process energy. And the utilization of sunshine and wind's power to producing electricity.

Clicking on above listed green links, and reading the briefs, one notices that renewable energy opens door to a vast arrays of economic activities that could indeed strengthen rural economies and therefore the global developing of African nations.

Unfortunately, currently, not a single African country had devised a strategy to use renewable energy on grand scale as an alternative to fossil, hydropower from big dams and coal generated energy.

If the choice of fossil-powered energy could be considered a "natural" one for countries endowed with mineral fossil resources (coal and oil), it is simply an aberration for countries that have no fossil natural resources - but do have access to plenty of sunshine, wind and vegetable to tap into.

Currently, most of the time, in African countries, industrial concerns are located in the vicinity of big cities leaving the countryside bared of industrial plants to transform crops and livestock into valued added products because it is too costly to establish thousand kilometers of landlines to distribute electricity (produced from "classic" sources such as oil, hydropower and atomic reactors and coal) to rural areas.

In the contrary, the use of renewable energy would bring on-the-spot energy to African countryside and facilitate the installation of industrial concerns to transforming crops and livestock to added valued products. That strategic choice would help increase rural folks revenues and the global wealth of African nations.

Indeed, based on the vast arrays of opportunities described in briefs related to the green links above outlined, one can assert that the use of renewable energy is the obvious answer to supplying energy to rural areas and quickly bridge the developing gap. Subsequently, it would help stooping rural exodus, decrease nations' imports on oil, avoid use of highly toxic fuel additives, reduce air and water pollution, and reduce greenhouse gas emissions.

More on the matter
MORE ON BIOMASS ENERGY
1- Energy from Biomass: A Review of Combustion and Gasification Technologies
by Peter Quaak, Harrie Knoef, and Hubert E. Stassen
2- Biomass for Renewable Energy, Fuels, and Chemicals
by Donald L. Klass
3- 21st Century Complete Guide to Biofuels and Bioenergy
by U.S. Government Department of Energy Alternative Fuel Research (CD-ROM - Sep 28, 2003)
4- Industrial Uses of Biomass Energy
by Frank Rosillo-Calle, Sergio V. Bajay, and Harry Rothman
5-
Biomass for Energy, Industry and Environment
by G. Grassi
6- Energy from the Biomass
(Proceedings of the International Conference on Biomass Hel in Venice, Italy, 25-29 March 1985) by W. Palz (Library Binding - Dec 1990)

7- Biomass energy
A monograph (Texas Engineering Experiment Station monograph series)
8- Biomass energy projects, planning and management:
Pergamon policy studies on energy
9- Biomass Energy - Data, Analysis and Trends (Proceedings)
by Iea
10- A European network to coordinate information exchange between national biomass energy programmes on agricultural and forestry biomass
Phase 1, final report : December 1995
11- Biomass: Energy from Plants And Animals (Fueling the Future)
by Amanda De La Garza
12- Sustainable Use of Forest Biomass for Energy
A Synthesis With Focus on the Baltic And Nordic Region (Managing Forest Ecosystems)
by Dominik Roser, Antti Asikainen, Karsten Raulund-rasmussen, and Inge Stupak



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More on the matter


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