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AFRICABIZ VOL 2 - ISSUE: 122
April 15 - July 14, 2011
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
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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.

- THE END OF THE ROAD FOR GBAGBO IN IVORY COAST

Four months and a half after the second leg of the presidential ballot (November 28, 2010), and the proclamation of the election of Dramane Alassane Ouattara as Ivory Coast president by the Independent Electoral Commission (December 3, 2010,) Gbagbo's regime finally collapsed on April 11, 2011, amid heavy fighting and chaos in Abidjan - Ivory Coast's mega-city of 4Million people.

The circumstances of Gbagbo's downfall are well documented in the international media. Gbagbo and family members - wife, son, daughters, grand-daughters and mother, plus some staunch followers activists were holed up in the official presidential residence's underground facilities, under the protection of a 200-men strong squad of mercenaries and militiamen. The last refuge of the man who adamantly refused to relinquish state power to the winner of the presidential ballot. Click here for more on the matter

On the 10th of April and the morning of the 11th April 2011, Gbagbo's hideout was put under missiles' copters-strikes (in accordance with UN's resolution 1975) by Unicorn - the French keeping forces in Ivory Coast, and Onuci - the international keeping forces assembled by the UN. Strikes that completely destroyed the heavy defense installed inside the residence and turned the compound into shambles.

Around 10:00 AM (GMT) in the morning of April 11, 2011, the Republican Forces of Ivory Coast (FRCI) enter the compound to nab Gbagbo and followers. And at 01:00 PM, the "prisoners" were herded to the Golf Hotel - the elected president's headquarters since the beginning of the post electoral snafu

On the verge to be nabbed, Gbagbo's uttered words were "Don't kill me." Yes. Strange. The man who sent several hundred of followers and opponents to premature and unnecessary death within a short period of four months (end of November 2010 - April 11, 2011, not to forget other several hundreds slaughtered by heavy gun shots during opposition's protests from 2002 to 2010,) do not want to die. He who declared, "I am ready to die for my country as a martyr," finally chose not to die. A psychiatric case for sure but a costly one for Ivory Coast social fabrics and economy.

Now the nightmare is over, and thanks to UN resolution 1975, a Rwanda like bloodbath and tragedy had been avoided in Ivory Coast.

The Unicorn and Onuci interventions have been hailed, approved and applauded by the majority of Ivorians. Some observers, mostly from the comfort of their home abroad condemned Onuci and Unicorn strikes as foreign intervention into a sovereign country internal affairs.

On its part, Africabiz Online fully supports said intervention and deeply think any dispute about foreign interventions - in the particular case of Ivory Coast is irrelevant.

Indeed, the reckless behavior of Gbagbo, who turned down all suggestions to peacefully hand over the state power and "scientifically" staged chaos all over the southern part of the country, asked for foreign intervention - as Africans themselves, their political organizations and several mediations have not succeeded to resolve the political stalemate, to stop the irresistible move of the country towards civil war.

The main important thing is that thanks to the strikes lives have been saved in Ivory Coast, and peace and the harmonious development in surrounding countries preserved. As we know, without peace there can be any economic development stride.

Click here to read about What's Next for Ivory Coast?


- SERVICES AND PRODUCTS FROM Dr. QUENUM & ASSOCIATES / BUSINESSAFRICA (TM)

List of Products and Solutions to trading and investing in and out emerging nations - and particularly in sub-Saharan African nations - is here to review.

We draw your attention to the Jobs & Projects' platform that assists first, project-owners to tender for the best experts to carry out projects at very competitive costs, and, second, job-seekers to publish for free Résumés/CV to attract project-owners attention.

The Free and Pay-Per-Click advertisement platform is also the cheapest way to advertise for your business and drive traffic to your website.

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

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 dropping by and see you here on July 15, 2011

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.


1-SHEA BUTTER (5, 6, 7, 11, 12, 13)
2- BLUE GOLD (14, 15, 16, 17, 18, 19)
3- FREEZE-DRIED PAPAIN (20, 21, 22 and here)
4- KENAF (23, 24)
5- VEGETABLE OIL (25, 26, 27, 28)
6- CEREALS (30, 31, 32, 33)
7- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
8- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
9- ROOTS & TUBERS (54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64)

10- FOWL BREEDING (66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76)
11- FISH FARMING (78, 79, 80, 81, 82, 83, 84, 85, 86, 87)
12- BIOMASS ENERGY (89, 90, 91, 92)
13- SUGAR CANE & PRODUCTS (93, 94, 95, 96, 97, 98, 99/100, 101, 102)
14- LIVESTOCK (103, 104, 105, 106, 107, 108, 109, 110, 111, 112
15- MISCELLANEOUS (113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123

- MISCELLANEOUS SERIES:ECONOMICS OF A MINI-SCALE FACILITY TO PRODUCING CASSAVA STARCH

A previous delivery started this series about starch industry; and the YouTube video at the left side of this paragraph highlights the importance of starch industry.

It shows why it is an absolute necessity for an emerging country, to have starch manufacturing included into its strategic development scheme.

Indeed, Starch is an important raw material for a number of industries including textiles, paper, adhesives, pharmaceuticals and food.

As a country becomes more industrialized, demand for both native and modified starches increases. Currently, in most African countries, this demand is met through imports rather than locally manufactured starch.

This delivery is about the basics economics of a mini-scale operation to producing native-starch from cassava roots. The process to producing cassava starch is well described at this link.

- BASICS ECONOMICS OF A SMALL SCALE PRODUCING UNIT

The basic economics about a small-scale cassava-starch producing unit are based on following equipment below listed:

- Hand peeling output: 25kg of fresh cassava per hour and per person.
- Mechanical - pedal maneuvered - slicer output: 500kg of sliced (chipped / peeled cassava) per hour and per slicer
- Weight loss 25% per kg of fresh root. 1kg of fresh cassava gives 750gr of peeled cassava at 56.25% moisture content. (for more visit this delivery)
- Extractor unit
- Starch sedimentation tank
- Siever and blender
- Starch drying unit (spinner & dryer)
- Starch flour grinding unit (milling and sieving)

Conditions above listed lead to tailoring the small-scale Starch production operation as follows:

- 50 peelers to peel 50 x 25kg = 1,250kg of fresh cassava per hour or 1,250 x 8 = 10,000kg per day/ 10 metric tons per day that yield 7,500kg of peeled cassava (2,500kg of wastes).
- 2 pedal maneuvered slicers that yield each 500kg of Chips per hour. (Maneuvered by 2 workers).
- 6 handlers to feed the peelers and the slicers.
- Fresh cassava per month: (26 days) = 7,500 x 26 = 195 metric tons and yearly production (over 10 months): = 1,950 metric tons.
- Dried Starch production per month: 37 metric tons / that is 444 metric tons year
- Raw material (fresh cassava) purchasing price: US$ 10 per metric ton.
- Waste (peeled cassava skin for animal feed preparation) selling price: US$ 2 metric ton
.
- Size reduction units (siever and blender)
- extractor unit
- Starch sedimentation tank
- Starch drying unit (spinner and dryer)
- And starch/flour grinding units (milling and sieving)
.

Above conditions lead to the following economics about a small-scale operation to producing starch from cassava roots:

Items
Amount US)
INVESTMENT

Raw material preparation working space layout: Peeling, slicing, handling and storage. Etc. 300 sq. meter)

1,500

2- Processing Equipment: 2 pedal maneuvered mechanical slicers, knifes, 40 plastic containers (10 kg content)), drying shelves, 500 m of black plastic sheet, packaging equipment, 100 pairs of iron-braided gloves, plastic working clothes, 10 barrows. And as per two tables above outlined. Etc.

60,500

Total investment

62,000
OPERATING COSTS

Operating Expenses: Raw material purchasing (fresh cassava)- production costs - insurance - utilities - staff and hands / management salaries - amortization - interests on loan. Etc.

92,000
PRODUCTION COST PER METRIC TON OF STARCH
SCROLL DOWN TO SEE REMARK BELOW
444 metric tons of dried Starch = 207
GENERATED REVENUES
Starch : 444 x 280 US$ = 124,320
Wastes = 650 metric tons x 2 US$ (click here for more) 1,300
TOTAL REVENUES 125,620
GROSS PROFIT
GROSS PROFIT 33,620

One can see that the production of Starch from fresh cassava, compares well against the production of dried cassava ship from fresh cassava root. The gross profit level trebles from US$11,212 to US$33,630. A proof that further transformation of raw materials increases added value and profits.

Hence the importance for emerging countries to initiate industrial policies that transform agricultural products into more elaborate consumers' produces - and stop selling bulk agriculture productions on the international market place.

REMARK: The low production cost of one metric ton of Starch - using the small scale facility hereby exposed, that is US$207 allows for a wide profit margin, as the international selling price of Starch currently evolves between US$500-1,000 per metric tons - depending on the initial raw material, corn, potato, or cassava. Click here for more

- A MUST HAVE COMPONENT OF THE GLOBAL DEVELOPING SCHEME

Currently most African countries are net importers of Starch. The national productions, except in Nigeria and South Africa are confidential in the range of up to 500 metric tons a year. Therefore the above exposed production unit would then be adequate to boost starch (and cassava) productions in any single African market.

It is worth noticing, that market opportunity for native cassava starch will exist to some extent in any African country that is becoming more industrialized as Starch is an important raw material for a large string of industries, textiles, paper, adhesives, pharmaceuticals, and food.

Hence the importance of including Starch production as an essential component part of the developing scheme here outlined.

One can foresee the impact that the setup of several production units would have on the developing growth of a country that targets the international market's demand. However, Starch being a very competitive product in term of quality-purity requirements, any attempt to enter the international competition should be carefully planned from raw material quality production to strict control of production cost.

Next delivery, available on July 15, 2011 will discuss about the production of glucose syrup from cassava starch.

MORE ON THE STARCH INDUSTRY
1- A Practical Treatise on the Manufacture of Starch
Glucose, Starch-Sugar, and Dextrine. Illustrated by 58 Engravings (1881)
by Julius Frankel - Paperback (Aug 10, 2009)
2- The Principal Starches Used as Food
by W. Griffiths - Paperback (Oct 21, 2009)
3- The World Market for Residues
Resulting from the Manufacture of Starch
by Icon Group - Paperback (Sep 30, 2008)
4- Chemistry and Technology of Starch
by James N. BeMiller and Roy L. Whistler - Hardcover (Mar 23, 2009)
5-
Starches: Characterization, Properties, and Applications
by Andrea Bertolini - Hardcover (Dec 7. 2009)
6- Industrial uses of Starch and its Derivatives
by R. W. Radley - Hardcover (Spt. 30, 1976)

7- Starch Madness by Richard L. Heinrich - Paperback (Nov. 1998)
8- Handbook of Starch Hydrolysis Products
And Their Derivatives
by S. Z. Dziedzic and M.W. Kearsley - Hardcover (Dec 31, 1995)
9- Starches handbook
by David J., Thomas and Williams A. Atwell - Paperback (Feb 1, 1998)
10- Starch: Basic Science to Technology
Advance in Food and Nutrition Research
by Mirta Noemi Sivak, Jack Preiss, and Steve Taylor - Hardcover (Aug 3, 1998)
11- The 2009-2014 World Outlook
For Modified Corn and Sorghum Starch, and Dextrine
by Icon Group - Paperback (Sep 26, 2008)
12- Starch in Food
Structure, Function and Applications
by Ann-Charlotte Eliasson- Hardcover (Sep 20, 2004)

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