Businessafrica.net Newsletter ISSN 1563-4108
Dr. QUENUM & ASSOCIATES
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AFRICABIZ VOL 1 - ISSUE: 63
JULY 15 - AUGUST 14, 2004
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
editor@africabiz.org
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A WORD FROM THE EDITOR


Dear visitor and international investor,


We warmly welcome you, if this is your first visit to Africabiz Online - The ultimate newsletter on trading and investing in 49 sub-Saharan African countries. If you are a regular and faithful reader, welcome back.

- HELP US KEEP FREE ACCESS TO AFRICABIZ ONLINE

Since May 1999, Africabiz Online's editorial staff endeavors providing you with high quality content in business opportunities and computer management and productivity. All this done without compulsory registration or any payment to access our websites. Yet, we do have recurrent operating expenses. Nevertheless, we decide to keep - for the time - free access to all pages of Africabiz and compensate with Advertisement.

To help us keep free access, please do click on our advertisers' banners, button and links when reading valuable content on Africabiz Online pages.

You will help us earn some bucks to pay for server side's expenses. You may help yourself too visiting the websites links to banners, buttons and links. Who knows. The net is full of astounding surprises and opportunities for the one who is curious. You could certainly use an extra $300 to $1,000 a month? Sure you could. You certainly also want to know how to to secure your dream home or first investment in real estate. Right?

- SHOULD AFRICAN COUNTRIES REFUSE TO PAY BACK DEBTS?


The debt load supported by sub-Saharan African countries is, since three decades, one of the most debated and hot item on the agenda of international meetings of head of states, non-governmental organizations and conferences about developing. In spite of several initiatives, particularly the Highly Indebted Poor Countries (HIPC) resolution taken in 1996 by the IMF and the World Bank, the problem is still unresolved eight years latter in 2004. African countries are still paying back more money to international creditors and having less financial resources to plan for the developing. Indeed:

- Between 1990 and 1993 the government of Zambia spent $37 million on primary school education. Over the same period, it spent $1.3 billion on debt repayments. Repayments to the IMF alone were equivalent to ten times government spending on primary education.

- External debt per capita for sub-Saharan Africa (not including South Africa) is $365, while GNP per capita is just $308.

- The external debt for the region (again excluding South Africa), at some $203 billion in 1996, represents 313% of the annual value of its exports.

- Debt servicing for sub-Saharan Africa amounts to about 20% of its annual export income -- that is, everything the region earns from those goods it is able to sell for hard currency (dollars, marks, yen, etc.). Source: 50 Years is enough

Thus, many opinion-leaders are voicing for the cancellation of the debt. Some are increasingly impatient the leaders of the G-7 / G-8 are not tackling the problem to finding a solution to alleviate the burden from African countries shoulders.

Pr. Jeffrey Sachs, director of the Earth Institute at Columbia University and United Nations Secretary General' special adviser on global anti-poverty targets declared, on July 4, 2004, at the Hunger Conference at Addis Ababa, Ethiopia: "The time has come to end this charade. The debts are unaffordable If they won't cancel the debts I would suggest obstruction; you do it yourselves."

This is the first time a prominent figure advised for such a radical action. Till now only non governmental organizations were voicing such move. Some of them speaking of Odious Debt.

Could African countries afford following that advise? Would they be better off taking such a radical move? Could the brutal cancellation of debts boost the economic development of African countries to creating riches for all and alleviating rampant poverty? Click here to read about: Debt Payment Reorientation as Equity Shares in Developing Projects.

- Contributor's Guidelines are here to review. Your contribution on "How African countries / entrepreneurs could bridge the developing gap" is welcome.

Many thanks for dropping by and see you here on August 15, 2004.


Dr. B.M. Quenum

Editor of AFRICABIZ
Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA

- Several business opportunities - component parts of the Integrated Developing Scheme described in Africans, Stop Being Poor! are listed in following table.

a- SHEA BUTTER ( 5, 6, 7, 11, 12, 13)
b- BLUE GOLD ( 14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN ( 20, 21, 22 and here)
d- KENAF ( 23, 24)
e- VEGETABLE OIL ( 25, 26, 27, 28)
f- CEREALS ( 30, 31, 32, 33)
g- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
h- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
i- ROOTS & TUBERS 54, 55, 56, 57, 58, 59, 60, 61, 62)

- TROPICAL ROOTS AND TUBERS: (VII) - D- INVESTMENT AND OPERATING BRIEFS ABOUT A MEDIUM-SCALE GARI PROCESSING PLANT

Cassava, potato, and sweet potato rank among the top 10 food crops produced in developing countries. Sub-Saharan Africa - SSA - is expected to experience the fastest growth in food demand for all roots and tubers, largely driven by rapid population's growth. SSA share in the total demand for developing countries will be 53 percent, with cassava accounting for two-thirds of the increase.

Here are listed four processed cassava's products
, which highlight the fact that cassava could be an important components - an Economic Catalyst - to the Integrated Economic Development Scheme. Briefs on the preparation of fresh cassava prior to the production of chips and pellets are reported here. Operating conditions to producing cassava ships on a small-scale basis are posted here.

The following link dealt with Investment briefs to producing cassava floor with small-scale industrial units. Each unit can create 60 jobs or 60,000 jobs if 1,000 units are installed. That is a lot for rural areas in a developing country.

Starting from Issue 60, four deliveries (A -
Introduction B- Market C - Plantation's creation and D - Medium-scale industrial production unit) deal with the production of a granulated cassava flour that is a popular food in Africa: GARI

Basic data to creating and running a cassava plantation to supply fresh cassava to the medium-scale gari processing plant are here reported

- C- PROCESSING PLANT OPERATING CONDITIONS

CHARACTERISTICS OF CASSAVA VARIETIES

1Cassava varieties TMS
81/00110
TMS
84537
TMS
82/00058
TMS
90257
2Ecological adaptation WideWideWideWide
3Gari yield (%)24282223
4

Fresh Cassava's Yields - metric tons per hectare

28

35

39

43

21Cost of production per metric ton (ready for processing) 10987

For detailed information about the production cost per kilogram and per hectare click here

The medium-scale processing plant is tailored to transform 10,000 metric tons of fresh cassava per year - at full capacity and at following operating conditions: a) One shift, 8 hours; b) 22 days per month and c) Processing of 38 metric tons of fresh cassava per day using cassava variety TMS 81/ 00110 (see table above) that produces 28 metric tons of fresh cassava per hectare (in optimal cultivation conditions).

PERSONNEL
- One Manager
- One Accountant
- One Production / Technical manager
- Two mechanics
- Two lorries drivers
- 100 people for peeling
- 10 handling persons
- 5 Persons in charge of processing
- 5 Persons in charge of packaging.
PROCESSING CHARACTERISTICS
- Hand peeling.
- Two light handling equipment
- Modular equipment working in continuous process from pressing of grated cassava roots to the sifting and packing of the final product.
- Water consumption 19 cubic meters per day. Necessity to install a purification system to reuse water.
- Autonomous power generation system (9 KVA) powered by bio-gas generated by a wastes' digester device that uses peeling wastes.
- Drying process using bottled butane gas to avoid environmental forest degradation resulting from the use of wood. (Average consumption of butane gas equal to 80 gr. to obtaining 1 kg of Gari)
- Packaging system for 20, 20 kg and 50 kg bags

- C - INVESTMENT ESTIMATE TO PRODUCING ONE METRIC TON OF GARI

Staffing and main characteristic of the processing plant are reported in Table above are used to estimate operating costs to producing one metric ton of Gari - reported in Table below. Electrical consumption is around 1,400 kWh per day. You may, using these briefs information, calculate salaries and ancillaries operating costs in your country. Dr. Quenum & Associates are available for detailed Business Plan in accordance with tentative terms of reference here outlined in another Business opportunity example.

Items
Amount
(US$ x 1,000)
INVESTMENT

1- Processing Equipment: Know How acquisition - Equipment purchase and setup - Blank Startup Assistance (for three months) - Spare Parts - Etc.

420

2- Starting expenses: Feasibility study / Business Plan for the processing plant - startup technical assistance (for six months) Etc. Click here for tentative terms of references covering production and investment planning by Dr. Quenum & Associates.

55

Total investment

475
FULL CAPACITY YEARLY PRODUCTION
Coarse Gari Flour = 38 metric tons of raw material per day x 22 days per month x 12 months x 24 % gari's yield = 2,407 metric tons of gari per year
OPERATING COSTS

Operational Expenses: Raw material cost - production costs: insurance - utilities - staff and hands - management salaries - packaging - external management assistance - amortization - interests on loan. Etc.

409
PRODUCTION COST PER METRIC TON EX-WORKS
409,000/ 2,407170
GENERATED GROSS REVENUES
Considering 5% profit margin over production cost 430

Production cost par metric ton is below US 180 as here reported. It could be significantly lowered by efficient management of the processing or the setup of two production' shifts to increase the output. As per information and data provided in Issue 61, there is the possibility to establish in Africa 8,000 operations similar to the one hereby described to creating around 1,096,000 industrial jobs in rural areas.

MORE ON ROOTS AND TUBERS
1- Roots & Tubers Market in Qatar
2- Roots & Tubers Market in Europe
3- Food Security: In Sub-Saharan Africa
In Latin America and the Caribbean
4- Roots and Tubers: A Vegetable Cookbook
by Kyle D. Fulwiler
5-
Tuber Crops
by N. M. Nayar

6- Roots, Tubers, Plantains and Bananas in Animal Feeding
Proceedings of the Fao Expert Consultation Held in Ciat, Cali, Colombia 21-25 January 1991
7- Pest Management for Tropical Roots & Tubers Workshop on the Global Status of and Prospects
8- The Tropical Tuber Crops
Yam, Cassava, Sweet Potato, and Cocoyams by I. Chukuma Onwueme

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