Dutch Expertise to Boost Ethiopian Business

Djibouti (HAN) April 26, 2005 - The current approach to developing such institutions in low-income countries is too dependent on the assumption of the superior knowledge of the donor-government nexus. This leaves no room for the leadership of dynamic individuals that can take charge of an institution and innovate. Any such leadership will be hidebound by externally-imposed plans, bureaucratic regulations and strict reporting requirements. 
The current mechanisms encourage talented professionals to migrate to western institutions. Both donor and government incentive schemes regard domestic talent as inferior to foreign, and award the former lower salaries and prestige. Indeed, the United Nations’ two-tier organizational structures and salary scales in poor countries clearly privilege expatriate knowledge. No surprise that in response to this discrimination, competent professionals in poor countries move abroad or into other activities, or seek to join locally-based international agency staff. As a result, domestic institutions are stripped of talent.

Djibouti (HAN) April 26, 2005 - The Dutch government which still abides by the international agreement which dictates that 0.7% of the Gross National Product must go to development aid is heavily sponsoring PUM. PUM’s country coordinator for Egypt, Eritrea, and Ethiopia Mr. Wim J. Veenendaal conducted a weeklong visit in Febuary to Ethiopia. Capital had the opportunity to meet with him and PUM’s local representative Mr. Ton Haverkort. 

Our reporter Bruck Shewareged talked to both. Excerpts: 

Capital: How does PUM establish contact with the company that needs its services? 

Veenendaal: We do that via our local representatives. The local representative in the Ethiopian case is Ton Haverkort. We choose these people as a center of network in the country they are in. The network should be in the areas of small and medium size enterprises. When I say small, it must not be too small. The company should at least exist for two years and have a minimum of ten employees. If it is smaller, then it is too difficult to make it a success. They have to go through the first lessons of doing business by themselves. It’s only after two years that we have to come in 

Medium size company can go as high as 750 employees. For instance a medium size company in the packaging business can hire large number of people because here, most of the work is done by hands (manpower). But in Holland it’s done by machines. So by definition a medium size company here hires more people than in Holland. 

Roughly 30% of the projects we do can be in what we call the enabling environment. By enabling environment, it could be the Chamber of Commerce, the Manufacturers Association etc... For instance at this moment we are in contact with Ethiopian Manufacturers Association to see whether we could support them, in say, the chemical industry. We are visiting quite a number of companies in the chemical and detergent industry. 

Capital: Will the role of such associations be facilitating your contacts with the local companies or are you giving the service to them? 

Veenendaal: First we give service to the associations. Then we immediately go to the individual companies. The first contact could be established with the association, though not necessarily, and then we can deal with the companies. 

Capital: What are the areas you are lending your expertise in? 

Veenendaal: It’s a very nice question. In fact we discovered yesterday that there is one area that we are not good in. And that’s the marble industry as there is no marble in Holland. Otherwise, we are active in almost all areas of business and industry from vegetable to milk, to wine, to packaging industry etc... It is very simple for us because we have our roots in the Dutch economy. We’ve got strong links with the Dutch Employers Association in which almost all companies are members. They’ve got 90,000 members. So you can imagine the expertise we get from all areas of industry and trade in Holland. 

Capital: In how many countries do you operate? 

Veenendaal: I think it’s more than sixty countries. Nowadays, we put a lot of effort in the former Soviet republics. We are also exerting efforts in those countries that strive to become members of the European Union. I was engaged in Bulgaria myself. We also have missions in 18 countries in Africa Africa, Central America and Eastern Asia. And we have been operating in Ethiopia for a couple of years now. 

Capital: Many people coming from developed nations are not happy with the bureaucracy in developing countries. How do you find it in Ethiopia?

Veenendaal: I may not be the right person to ask. But I must admit that I was surprised at how long it takes for people to go through passport control even though I had a visa. This is not about luggage control. The visa controlling has already been done when it was issued. Why then do you have this huge number of people waiting in a queue? This is not very welcoming. That’s my only encounter with the bureaucracy so far.

I recently heard though of Dutch company trying to establish itself in Ethiopia. The people involved in it said that “Ethiopians are very friendly but it’s taking a lot of time and patience,” which means in fact that only those companies that are determined to do whatever it takes can do it. But if you have competition from other countries, you need to be careful, because you may lose the battle, which is a pity.

I think you got a lot to go for; your ability to speak English is perfect. If you compare that with Eastern Europe, say Bulgaria or Romania, you see that yours is quite well developed. You got immense advantage over some countries in Africa. You have got sort of cultural link and a lot of things in common with Europe. And you are not that far away. You have fantastic climate. Your wages are more competitive. You have to utilize it.

Capital: What’s your observation of the companies here?

Veenendaal: This is my first ever visit to Ethiopia and Ethiopian companies. You had sort of missed the opportunity. People here are talking about exports and you see that the sort of products they produce is unsuitable for export. As I said before you have many advantages, i.e the wages, the not so far distance from European markets and your ability to speak English.

I must say that being able to speak languages is absolutely essential if you want to keep exporting. The Dutch are doing that for the last 500 to 600 years. Again you’ve got all the opportunity and got to be able to use that.

Capital: Did you find companies interested in the export sector during your stay here?

Veenendaal: The companies we’ve visited so far are very positive. We want to stimulate the experts we send here to keep in contact with the companies they work with so that if the need arises, they can come again. We pay the travel expense. The companies will only be required to pay for lodging services and the food. We don’t ask for big hotels like Hilton and Sheraton. We ask for reasonable housing and food provision.

The reason why we ask for that is because we need commitment from the side of the customers (the company). Doing it for free is not the right thing to do.

Capital: The Dutch government is covering PUM’s expenses to a large extent. How much is that?

Veenendaal: The total budget of PUM is about 12 million Euros. Roughly 95% of it is covered by the government annually. We have sent 2,000 missions last year alone of which about 15 to 20 are in Ethiopia. We are planning to do more this year.

Capital: How long does a single mission take?

Veenendaal: The tendency is that the total length of mission is being reduced. The average period we are talking about is 2-3 weeks including travel period. The reason why we don’t take much time is that we don’t actually do the job. We only advise. And the time mentioned above is, I think, enough for the company to absorb the advise and do something with it.

Capital: What is your criteria to accept or reject the application of a company that needs your expertise? For instance, in the case where the number of companies being beyond your capacity?

Veenendaal: Believe it or not, we have not come so far to that level. But if we come to that point then we will choose. The local representative, together with the country representative, will do the selection. The local representative is a key person, as he knows what type of company best fits in the system.

Capital: In Ethiopia can you say that you have successfully transferred knowledge or expertise to some companies? If so, which companies?

Veenendaal: I think we have transferred a fair bit of knowledge already. Has it always been successful? No, I don’t think it’s always been successful. But I think that’s also a question of how you support such programs. It’s important that you get the right people at both ends. You also need people with broad view; that applies for both sides.

Capital: In practical terms, if a company here wants to get your service, how does it work? 

Veenendaal: You first fill out a form. It’s all done by Internet. You can get access to the PUM organization via www.pum.nl. which will automatically be picked up by the local representative. Then it will pass through a certain in-take procedure, which is fairly simple. For example, we first see whether the requirements of the company fit in the rules of PUM. We will see if the company is not too small, whether it has two years of existence, or if it is not owned by a foreign company, in which case we will have to decline. And certainly whether the country coordinator gives the go head.

Capital: How do people get in touch with you if they have no access to internet? 

Veenendaal: If companies have no access to Internet, then it’s difficult to do the job. It is not very often then that the companies do not have access to the Internet. But even then they can find out through the local representative. There is not an absolute need for them to have Internet access but on the other hand, if you, as a company want to develop, I think one of the very first things you need to have nowadays is internet. It’s the cheapest and the best possible way to get your information on the market or competition.

Capital: How simple is the form to fill out? Many companies want the assistance but their problem might be identifying their need. So maybe they need an expert for that?

Veenendaal: That is the problem for us, too. Sometimes people do not know what their problems are. The local representative can help them in identifying that. Once the company is known and the expert identified. We encourage him to contact the company before he leaves Holland. He can contact the company via the internet and help identify what the exact problem is before hand. This will save the time he is compelled to spend in finding the problem out after coming here.

Capital: Don’t you think 2-3 weeks is quite short for doing all the work?

Veenendaal: I get this questions from many corners. That must have to do with the culture. But believe me that 2-3 weeks is enough. We don’t do the job. The job is done by the various companies. We give advice, and if the advice is absorbed and in some cases if the need arises, training can be arranged in Holland. 

Capital: In terms of training in Holland, what does PUM cover? Does it cover the cost of the whole trip and expense of the trainee? Or will it be the same method as to when you send your experts here?

Veenendaal: In fact that varies. For instance at PUM we’ve got internally training budget. Then we do it in cooperation with the company and the local representative, and what should be covered by PUM or the company will be determined. That’s the standard rule. Then you consider your budget and as PUM has a substantial budget, it will cover the expense up to 50 to 75% of the cost.

Capital: Do you follow up the success or failure of companies once you give them your services?

Veenendaal: As PUM, we do not do this per se. As a country coordinator, I do it from to time. We try to visit a few companies, and find out whether what PUM is trying to achieve, and what the expert has done is the right job. We sometimes call the companies and ask if whether they were satisfied with the expert. Fortunately most of the companies are. So this sort of follow up is left to the individual expert, not to PUM. As you can imagine, with 2000 missions each year, it becomes an impossible task.

Capital: How many volunteers does the PUM have? And what is the ratio of men and women? 

Veenendaal: PUM has 3,500 members. I do not exactly know. But I reckon the men to women ratio is 90 to 10 percent. Our members comprise of those who retired, with an average age of 55 years and above. In that profile there are not many women yet. But with the emancipation movement going so far, the number of women is expected to rise. If you were to ask me that question in another ten years, the answer would be completely different.

Capital: You are the local representative and been here for quite some time. Would you tell me your observation or impression?

Ton Haverkort: I have been here for quite a few years I first came here by the end of 1988. There was an interruption to my stay here when I went to Kenya for four years and came back here by the beginning of 2001. I was the director SNV. But I stopped that in July last year. I have been the local representative of the PUM, program since then.

Capital: How many Ethiopian companies have benefited from the services of the PUM last year?

Haverkort: If you look at the past few years, we have ten missions per year in Ethiopia.

Capital: Are the companies all in Addis? And are the numbers ascending or the opposite?

Haverkort: There are a few in Debre Zeit, as well as Bahir Dar. We have assisted companies involved in diary production. In Debre Zeit we have assisted a few farms, with agro-industry as well. The other companies we have been supporting are in Addis Ababa in Tourism and travel, furniture and glass business. But it is not a must that they should be in Addis Ababa. As for their number it’s been quite stable. But as Wim said, what we really want to do is boost it to 25 missions per year. So we want to step up our effort to getting in touch with local companies. 

Capital: How do you intend to go about that?

Haverkort: The media is one way, we are also present with the Netherlands embassy stand at the 9th Addis Ababa Chamber International Trade Fair currently underway. So it is a two-way approach. Companies can look for assistance, and the local representative has the ability to go to the companies and offer the services.

Capital: Have you so far assisted a government company? 

Haverkort: No, but that is not entirely impossible. But the focus of PUM is on the private sector. 

Capital: Most companies, in fact many not be aware of your existence. Do you have plans to reach out to the far corners of the country?

Haverkort: That’s a difficult one. But what we try to do is make ourselves known as wide as possible. It’s difficult for the local representative to go to all regions in the country. The capacity is limited.

Capital: From which sector do you expect more contact in the future?

Haverkort: It could be any. If you look at the sector where we have expertise and the development of the private sector locally, you see textile, leather and agro-industry are coming up very much. We’ve been already talking for years about the need to do something in the tourism sector. Hotel management is also one area. Simple improvements can be made. I would like to point out that the basic problem is that people do not come out and say that they need help. If you have a company hiring 30-40 people, you need a management system.

Capital: Any final comment?

Haverkort: Realize that as an owner of a business that you cannot do it all by yourself. If you want to be successful, get experts, be it local or otherwise. There is competition inside the country and outside. You have to look at being efficient. 

Special interview

This month marks the centenary of Rotary International, an organization of business and professional leaders worldwide, who provide volunteer service in the community, in the work place, hroughout the world. 

Following the establishment of the first Rotary club of Chicago, Illinois, USA on February 23, 1905, some 31,000 clubs in 166 countries have been formed a century later. In Ethiopia, too, there are five Rotary clubs whose members are volunteering to lend a hand to those in need. 

In commemoration of the celebration of Rotary’s centenary, the local Rotary clubs recognize and honor all the members of Rotary clubs and others who devote their time and money to carry out humanitarian works throughout the world. 

This week Capital presents a brief history of Rotary International since its inception 100 years ago on page 19. And our guests for our special interview column are Rabbi Joel Soffin and Dr. Allen Mankin, two Jewish Americans engaged in the voluntary and humanitarian work of supporting children orphaned by HIV/AIDS in Ethiopia. Excerpts:

Reaching out to the most needy

UNICEF’s The State of the World’s Children 2005 reported that over 2 million children under 15 are infected with HIV; and that the number of children orphaned by AIDS in sub-Saharan Africa is expected to exceed 18 million by 2010. In Ethiopia, until 2003 only, 720,000 children have been orphaned by AIDS, and the figures are rising. 

Out of goodwill to contribute their share in the needed humanitarian response to this deadly threat on children, a group of American Jews from New Jersey, United States, decided to come to Ethiopia and help AIDS orphans. They established AHOPE Ethiopia, a humanitarian NGO, which gives specialized care for children orphaned by HIV/AIDS. Getting funding from AHOPE for Children in Washington, USA, and working with local and international volunteers, AHOPE Ethiopia provides food, clothing, medical treatment, sanitation, education, counseling and entertainment for AIDS orphans. 

Our reporter Tedla Yeneakal spoke with Dr. Allen Mankin, a pediatrician, and Rabbi Joel Soffin, leader of a Jewish congregation in New Jersey, about the orphanage and what the future hold for the orphans. Excerpts:

Capital: What are your main humanitarian activities?

Dr. Allen Mankin: We are here as part of a Jewish organization that helps distribute medicines to different parts of the world. In Ethiopia, we work under the name of Shalom Ethiopia. We adopt AIDS orphans and give them the care they need. We have contacts with families in New Jersey who are willing to adopt these destitute children. 
Rabbi Joel Soffin: There are about 500 families in our Jewish congregation in New Jersey. With the help of those families, we have carried out different humanitarian projects around the world. We have been in Ukraine, El Salvador, and Argentina. Now we are trying to help AIDS orphans in Ethiopia. We do this because this is what Jewish people are supposed to do- helping the needy. Reaching out for others is one of the most important values in Jewish tradition. 

Capital: Are you part of AHOPE Ethiopia?

Dr. Mankin: We work with them. We look forward to do good things together. We can run a place like this by ourselves. But we don’t do that because we know that we can work with other organizations that do have the capacity to make a contribution. My partner, Rabbi Soffin, is a dedicated man. He goes around the world looking for things to do. When we met, he proposed to do some philanthropic work in Ethiopia. 

Rabbi Soffin: Our main contact is AHOPE Ethiopia. But we facilitate conditions for families in New Jersey to adopt Ethiopian AIDS orphans. In my first trip, I found two individuals who decided to adopt Ethiopian children and raise them up in the United States. That is very exciting because everyone wants to help and be part of the efforts being made to give hope and longer life to these unfortunate children. 

Capital: What are your future plans for the orphanage? 
Dr. Mankin: I am very impressed by how well this place is run. This is such an excellent program. The children are getting the necessary care and support. Unlike my assumption, the children in the orphanage have access to good nutrition. Concerning medical treatment, the US Center for Disease Control (CDC) and the American government are supplying medicines for victims of AIDS. Though we couldn’t get the antiretroviral drugs and antiparasitic drugs till now, there are improvements. For example, we can get Bactrium, which protects them from Pneumonia. Hopefully, they will also have access to life prolonging drugs one day. 

Rabbi Soffin: We hope to realize the supply of the pediatric, which is the children version of the AIDS treatment. If they get this treatment, they can grow and surely involve in various social activities such as education. 

Capital: What motivated you to come here and do these philanthropic activities?
Dr. Mankin: I am 63 years old and one reaches a point in life when you want to do something good for others. I can do that here. I can give back to people. The situation of the young orphans compelled us to return home to New Jersey and create a support network for them. We take care of 25,000 families. So it is time to give back, and this is how you give back. 

Rabbi Soffin: Ethiopia is the only place in Africa we have been working in. The closest place to Africa in which we were active is Israel. I have been here in November 2003 with other nine people. It was then that we met these children in the orphanage. After that first encounter, we began to look for Jewish-America families that would be willing to support or adopt the orphans. Now these families send money, gifts, and other necessary materials for the orphans. 

Capital: Children orphaned by HIV/AIDS are usually susceptible to opportunistic infections and malnutrition. What do you think should be done to help them live longer lives? 

Rabbi Soffin: Many HIV positive people in the United States prolong their lives because they have access to medicine treatment. We just have to find a way to bring the medicines here so that these children will have a brighter future. If the children get antiretroviral drugs, they will live longer. Not only should the drugs be available, their prices have to be affordable to the local community.

Dr. Mankin: Equally important is the medical knowledge for prescribing the drugs and treating the patients. Taking the drugs inappropriately only makes things worse. But, I don’t see this orphanage as a sad place; I see it as a place of hope. 

Capital: What message do you want to pass at last?
Dr. Mankin: I came through a trip from Israel. I was working in hospitals in Israel. So I would probably get back to Ethiopia about every 18 months, which is as often as I could come. I still work as a medical doctor in New Jersey and it is very hard to come here for more than a week or two since I am not retired yet. But, I promise to do all that I can so as to help these orphans. 

Rabbi Soffin: We have learnt that in helping people we receive more than we give. This gives meaning to our lives. We believe this is why we are here. This is why we were created in the first place. We think people have to share their resources, their knowledge, and their time. We feel blessed to be able to help and to enjoy the smiles of the children. That is the blessing we take back from here.

Rotary International: A brief history

The world’s first service club, the Rotary Club of Chicago, Illinois, USA, was formed on 23 February 1905 by Paul P. Harris, an attorney who wished to recapture in a professional club the same friendly spirit he had felt in the small towns of his youth. The name “Rotary” is derived from the early practice of rotating meetings among members of an association or organization.
In the decade that followed, Rotary’s popularity spread throughout the United States. Clubs were chartered from San Francisco to New York. By 1921, Rotary clubs had been formed on six continents, and the organization adopted the name Rotary International a year later.
As Rotary grew, its mission expanded beyond serving the professional and social interests of club members. Rotarians began pooling their resources and contributing their talents to help serve communities in need. The organization’s dedication to this ideal is best expressed in its principal motto: Service Above Self. Rotary also later embraced a code of ethics, called The 4-Way Test, that has been translated into hundreds of languages.
During and after World War II, Rotarians became increasingly involved in promoting international understanding. In 1945, 49 Rotary members served in 29 delegations to the United Nations Charter Conference. Rotary still actively participates in UN conferences by sending observers to major meetings and promoting the United Nations in Rotary publications. Rotary International’s relationship with the United Nations Educational, Scientific, and Cultural Organization (UNESCO) dates back to a 1943 London Rotary conference that promoted international cultural and educational exchanges. Attended by ministers of education and observers from around the world, and chaired by a past president of RI, the conference was an impetus to the establishment of UNESCO in 1946.
An endowment fund, set up by Rotarians in 1917 “for doing well in the world,” became a not-for-profit corporation known as The Rotary Foundation in 1928. Upon the death of Paul Harris in 1947, an outpouring of Rotarian donations made in his honor, totaling US$2 million, launched the Foundation’s first program — graduate fellowships, now called Ambassadorial Scholarships. Today, contributions to The Rotary Foundation total more than US$80 million annually and support a wide range of humanitarian grants and educational programs that enable Rotarians to bring hope and promote international understanding throughout the world.
In 1985, Rotary made a historic commitment to immunize all of the world’s children against polio. Working in partnership with nongovernmental organizations and national governments thorough its PolioPlus program, Rotary is the largest private-sector contributor to the global polio eradication campaign. Rotarians have mobilized hundreds of thousands of PolioPlus volunteers and have immunized more than one billion children worldwide. By the 2005 target date for certification of a polio-free world, Rotary will have contributed half a billion dollars to the cause.
As it approached the dawn of the 21st century, Rotary worked to meet the changing needs of society, expanding its service effort to address such pressing issues as environmental degradation, illiteracy, world hunger, and children at risk. In 1989, the organization admitted women for the first time and claims more than 145,000 women in its ranks today. Following the collapse of the Berlin Wall and the dissolution of the Soviet Union, Rotary clubs were formed or re-established throughout Central and Eastern Europe. Today, 1.2 million Rotarians belong to some 31,000 Rotary clubs in 166 countries.