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AFRICABIZ VOL 1- ISSUE : 34
FEBRUARY 15 - MARCH 14, 2002
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.

If you are a regular and faithful reader, welcome back.

- NEW PARTNERSHIP FOR AFRICA'S DEVELOPMENT - NEPAD

After quite two years of maturation sponsored by Presidents of South Africa, Algeria Egypt, Nigeria and Senegal, the New Partnership for Africa's Development - Nepad is gaining speed.

Meetings between African government decision makers are regularly held - since the initiative was endorsed by the Organization For African Unity - OAU - summit in Lusaka, Zambia on the 11 July 2001; in order to finalizing and harmonizing the entire African continent position on economic development requirements and strategy in face of the developed world.

On Tuesday 12, 2002 the world most developed industrial countries' body - G8 - representatives met in Cape Town (South Africa) with selected African countries counterparts for a brainstorming session to drafting a detailed plan of action for Nepad.

The G8 Heads of States' summit meeting scheduled to take place at Ottawa (Canada) in June 2002, had on its agenda discussions and resolution on how to back up and support development projects and initiatives linked to the African Recovery program devised by Nepad.

France's Jacques Chirac and UK's Blair are the spearhead advocating leaders for G8' support to Nepad. On February 8, 2002 Jacques Chirac hosted a meeting at Paris with several African heads of States to deliberate and discuss on how to increase the percentage (with regards the national GDP) of the financial supports provided by developed countries to the developing world. On his part Tony Blair toured (February 7-9, 2002) Ghana, Nigeria Senegal and Sierra Leone

Click here for more on the discussions between Blair and Nigeria's Obasanjo (February 7, 2002) on the New Partnership for African Development. And here on a well done brief on Nepad.

- COULD NEPAD INITIATIVE ACTS AS THE MAGIC WAND FOR AFRICAN RECOVERY?

All these meetings, planning and initiatives are very good news for Africa's future.

The Powers of the day are now more and more conscious that a weak and impoverished Africa, plagued with devastating diseases (Malaria, AIDS) is a threat to their own prosperity.

Nepad is therefore an excellent initiative. It had first helps developed countries leaders "seeing the light"; and second it will also oblige African leaders and heads of states who are willing to take advantage from the benefits to apply good governance in their respective countries, avoid conflict-bound political decisions leading to national and regional civil wars. Click here to review Nepad's components which read as follows :


1- Peace, Security, Democracy and Political Governance Initiative.
2-
Economic and Corporate Governance Initiative.
3- Bridging the Infrastructure Gap.
4-
Human Resource Development Initiative
5-
Capital Flows Initiative.
6-
Market Access Initiative.
7-
Environment Initiative

One can see that the recovery policies are neatly outlined as above exposed. However one is entitled to raising few questions:

- Could the Nepad initiative be the driving force to solving the urgent and acute economic development problematic African countries are now confronted with?

- Could the basic concept of Nepad - the development of common and regional infrastructure projects - be sufficient to triggering the sustained economic development process needed by each African country?

- Could Nepad engineer the ultimate economic take off of any African country?

- Could Nepad create sufficient riches for African countries' economies to allowing for the fair distribution of wealth amongst the populations on a sustained and permanent basis?

These are few questions to be adequately and properly addressed by the African supervisors of Nepad in order not to waste time and energy into setting up and building another redundant "development house" in addition to IMF / Word Bank, United Nations Economic Commission For Africa and so on.

Consideration was duly given to the African Renaissance problem in a previous delivery titled: Is Africa Doomed? The African Challenge. Click here to review further consideration on questions above raised.

- DO NOT LET YOUR SYSTEM OPENED TO HACKERS AND VILLAINS

If you haven't done so yet it is high time to take measures to protect your system against tugs and villains mischievous actions. Some people over the World Wild Web relish on creating havoc on other people computers. Their ego is lifted to the highest when they know that they have destroy your hard work. Don't make it easy for them. Take protective measures. Click here to review how to protect your hard work from tugs and vandals.


Contributor's Guidelines are available here. Your contribution / economic articles / technology breakthroughs on "How Africa could bridge the developing gap" are welcome.


Many thanks for dropping by and see you here on March 15, 2002.

Dr. B.M. Quenum
Editor of AFRICABIZ
Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA


- In previous issue we announced the exposition in current delivery of economic indications for a small to medium scale plant to producing Ethanol.

However, we have finally decided not to publish these data as Technology to efficiently producing Ethanol is evolving day-by-day.

- The "old" production methods were based on the technology of 1- using Acid as catalyst to convert ("hydrolyze") cellulose and hemicellulose into simple sugars (hexose and pentose, or "C6 and C5" sugars); 2- fermenting and and distilling the sugars into ethanol. The hydrolysis process uses huge quantities of Sulfuric Acid and high temperature to produce steam. Click here for a sample of said technology.

- The "new" emerging production methods use low temperature and enzymes as catalysts to producing ethanol with better Energy Balance Click here for more on the Energy Balance problem.

Iogen Corporation (Ottawa, Ontario), is preparing final touches on a pilot scale ethanol plant to demonstrate how ethanol can be manufactured from enzymatic process to producing 3,100 gallons (11,73 liters) per day of fuel grade ethanol by the spring of 2002, utilizing approximately 40 tons per day of wheat straw feedstock.

Iogen Corporation forecasts the first use of this type of technology in a large scale commercial plant as early as 2004.


- So we shall wait to proposing the best available ethanol production technology to African industrialists, entrepreneurs and decision makers. In the meantime, African decision makers should be careful not to acquire outdated or obsolete technology. Not to purchase a second hand plant to save pennies!

ADDENDUM MADE On April 4, 2003

The Agricultural Marketing Resource Center (AgMRC) at Iowa State University, developed a Web site with online tools to help farmers and other potential investors evaluate the profitability of an ethanol plant.

The Ethanol Prefeasibility Evaluator lets registered users create different economic assumptions about an ethanol plant, as well as store and modify data for future use.

"Ethanol market conditions, grain supply and prices, transportation choices, environmental issues, energy costs, federal and state incentives and funding alternatives are some of the variables that must be understood and managed before embarking on an ethanol venture," says AgMRC agriculture specialist Ray Hansen. Click here to reach The Ethanol Prefeasibilty Evaluator

- Several business opportunities with high profit making potential which are economic catalysts and components to the Strategy for African Countries - here available - have been introduced to you. They are listed in following table.

a- SHEA BUTTER (Issues 5, 6, 7, 11, 12, 13)
b- BLUE GOLD (Issues 14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN (Issues 20, 21, 22 and here)
d- KENAF (Issues 23, 24)
e- VEGETABLE OIL (Issues 25, 26, 27 and 28)
f- CEREALS (Issues 30, 31, 32, 33)

- TROPICAL FRUITS INDUSTRY AS INCOME BUILDING POWER FOR AN AFRICAN COMMUNITY / PART I : ESSENTIAL OIL AND FRUIT JUICE PRODUCTION

In sub-Saharan African countries, huge quantities of harvested fresh fruits (pineapple, lime, citron, orange and so on are not totally sold out - by producers to consumers. The producers cannot preserve the freshness of the unsold quantities from depreciation for lack of 1- Cold room for conservation-storage and 2- For lack of transformation plants. Most of the time the unsold quantities of fresh fruits rot and are discarded as garbage.

This is really a very sad matter as these fruits could be transformed into higher added valued products (jam, edible and industrial alcohol, essential oils, fruit-juice, candies and appetizers); and provide additional revenues to the countries.

- MEDIUM SCALE PLANT TO PROCESSING CITRUS FRUITS

Main processed raw materials for figures below outlined are citrus fruits (Lime, citron); plant to transform 7,750 metric tons per hour of fresh harvested lemon / citron; two shifts / 8 hours effective working time per shift; 150 working days per year to processing 18,600 metric tons of fresh lemon / citron (harvested in tropical areas from September / October to November / December) to produce following finished products:

- Essential oil (cold pressed) from the fruit's peel.
- Concentrated lime / citron fruit-juice. (325 / 400 GPL)
- Essential oil extracted from the fruit-juice.
- Dried peel of the fruit for pectin / vegetable jelly production.

With few additional equipment to the processing plant above described orange, shaddock / grapefruit and pineapple can also be transformed into concentrated fruit-juices.

Items
Amount (US$ x 1,000)
INVESTMENT

Shelters - Storage Area - Water piping or Well - Scale for lorries. Etc.

210

Electrical wiring - Steam equipment - Compressed Air system - Hydraulic settings - R&D and Control facility. Etc.

150

Main production equipment : Essential oil production line - Fruit Juice production line - Vacuum evaporator - Juice cooler - Essential oil collector - Miscellaneous. 850
Cold room : 400 square meter at minus 25° Celsius and 90 square meter at + 5° Celsius. 550
Fruit's peel drying system 460

Starting expenses

200

Operational funds (3 months)
200
Total investment
2,620
TURNOVER
Essential Oil = 76 metric tons X 16
1,216
Fruit Juice = 1,440 metric tons X 700 1,008
Dried Fruit's peel for pectin = 1,392 metric ton X 300 417
Extracted oil from fruit-juice = 18,6 metric tons X 3,5
65
Total Turnover
2,706
OPERATING COSTS

Total Salaries

150

Other Operating Costs : Administration costs - Raw materials purchasing- Utilities - Gas - Fuel - Maintenance costs - Packaging - Amortization - Freight cost for exportation - Short term financial interests - Miscellaneous
1,260
Total Operating Costs
1,410
GROSS PROFIT

Total Gross Profit

1,296

- FOREIGN EXCHANGE BENEFIT IMPROVEMENT

Cold pressed essential oils are mainly used in the preparation of perfumes, deodorants, hair lotions, perfumed soaps, disinfectants, sun-care lotions, bath-salts, toothpaste, and in some preparation of the pharmaceutical industry.

Oil extracted from the fruit juice is used in the food and confectionery industry as flavor ingredient for liqueurs, aromatic teas, candies and candied fruits; the production of soft drinks. Pectin are used as thickening for jellies and jams.

- This is a real niche opportunity for any African country to improving its foreign exchange balance. It is also a perfect Economic Catalyst

The selling prices of the essential oils, pectin and fruit-juices - as exposed in the Turnover' section of the table above - are far more higher than that of the initial fruits and will contribute tremendously to the growth rate and the global development process of any African country which promotes such industry.

One should bear in mind that above exposed outstanding Gross Profit margin had been achieved with only 150 operational days based on lime / citron as raw materials.

The Gross Profit margin could easily be doubled (with marginal investments into additional equipment) if other fresh fruits (pineapple, mango, orange, guava etc.;) are made available all over the year as raw materials to produce concentrated juice-fruit.

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