Africa Grows

SAEDF’s 2007 investment in Alternative Energy Development Corporation (AEDC) has helped to bring electric power to the more rural and underserved communities of South Africa. SAEDF’s support has been significant. As a result of South Africa being a nation so geographically vast, its population is well spread out—often a substantial obstacle in providing resources to residents. The situation often becomes a choice between the option of extending the power grid (yielding high investments costs for such relatively small loads), the use of small diesel generators which unfortunately have high operational and maintenance costs, solar energy, or fuel cells.

Until, that is, that AEDC stepped up with the aid of SAEDF, offering a solution to the high cost of employing conventional methods of power. They have developed a zinc air fuel cell which is able to provide electric power without using a conventional electric supply, called Mr. Fuel. Through such innovative fuel cell technology, AEDC has brought electricity to areas in South Africa that do not have access to common electricity. The village of Guyuni, for instance, now has power for more than 300 dwellings, as well as improved job creation due to AEDC’s presence.

Through SAEDF’s investment, AEDC is making safe, environmentally-friendly power more readily available. As a direct result, South Africans now have the ability to forge ahead toward enhanced economic possibilities and improved domestic life, and have been recognized by USAID and the Tech Museum Awards as a 2009 Economic Development Award Laureate for its work.

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With the help of SAEDF, greater economic opportunities and local empowerment are flourishing within South Africa. In 2001, SAEDF made an investment into Ahanang Hardware and Construction, a housing construction business located in Pretoria, South Africa. Owned and operated by a black woman, CEO Granny Seape, this unique firm offers opportunities for disadvantaged entrepreneurs in South Africa, as well as women and youth.

Ahanang Hardware and Construction provides housing for low income communities, such as within more marginalized and rural areas of South Africa. It clear through even just their construction practices that Ahanang is a company with its eye on the future of South Africa. They build strategically, doing so in such a manner that allow for possible house extensions by the owners, such as in the instance of a growing family. Through SAEDF’s support, the company’s commitment to the well-being and prosperity of the South African people has become evident, taking on projects that would permit more members of the South African community a chance to enjoy home-ownership and thoughtfully designed neighborhoods, all at an affordable cost.

The confidence and financial strength instilled in Ahanag Hardware and Construction by SAEDF has aided in the active promotion of South Africans, and the ability to thrive in their communities at large.

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SAEDF has helped ABN rise to become a primary African broadcast network, with an estimated 120 million viewers in 23 African countries. TV Africa transmits educational material, centered on topics such as AIDS and HIV, along with entertainment programming.

As a result of SAEDF’s investment in 1999, TV Africa created a dynamic broadcast infrastructure that resulted in the creation of more than 120 jobs directly. Indirectly, TV Africa was instrumental in creating approximately 250 jobs through its 41 broadcast affiliates. TV Africa has also helped strengthen the African TV sector by boosting television advertising revenues. This boost has helped both public and private-sector stations to become more profitable. In 2001, SAEDF showed its commitment to TV Africa by assisting the network in its efforts to arrange $22.5 million in new funding.

Since SAEDF’s initial investment, ABN has developed the African Public Broadcast Foundation. The APBF is a nonprofit organization dedicated to encourage and stimulate change across sub-Saharan Africa through terrestrial free-to-air television and radio broadcasting. The ultimate aim of the APBF is to provide sub-Saharan Africa’s estimated 600 million people with content designed to educate and motivate individuals to work for their own development.

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SAEDF’s investment in medical technology company Autosterile Africa helped to facilitate the production of medical treatment supplies for distribution throughout Africa. As a result of this investment, Autosterile developed a cost-effective, high quality sterilization fluid process.

Autosterile services the inhabitants of South Africa, Zambia, Malawi, Mozambique, Tanzania, Kenya and Uganda with this technology. By investing in scientific research, SAEDF contributed to the development of a major export and also helped create jobs for Africans. SAEDF’s financial assistance also benefited Autosterile’s subsidiary Autoster, which works to deliver HIV and AIDS treatments throughout the continent.  Through SAEDF’s efforts, more than 150 jobs and an advancement in medical technology were developed.

Since SAEDF’s initial investment, Autosterile has been able to expand into additional industries.  The company, which is now owned by CAPS Pharmaceuticals, has been able to diversify and recently began production on four intravenous fluids for medical purposes.

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When SAEDF invested in Gili Greenworld Holdings in 2000, it gave the agribusiness the ability to thrive and grow by establishing a successful business model. Through this opportunity, previously unemployed local citizens are now able to own farm land and contribute to the nation’s harvest. In addition to receiving bonuses, those participating in the system are also paid dividends. Through SAEDF’s investment, Gili Greenworld Holdings, in turn, created wealth through equity.

In total, this SAEDF investment has helped to create 200 jobs forlocals, and created a farming system based on equitable land ownership. According to CEO Gil Arbol, “SAEDF’s patience and understanding of our company has helped us make a complete U-turn and come out of a normally ‘no go’ situation. Today I can honestly say we are on our original track due to SAEDF’s involvement.”

As a result of its success in the agribusiness industry, Gili Greenworld was also able to invest in the Goodhouse Paprika Project. This land reform project resulted in the harvesting of paprika to create a major export for South Africa. The spice is now sold and distributed to Europe, the United States, Mexico, the Far East and the Middle East.

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In 1999, the hospitals in the Western Cape of South Africa were facing severe overcrowding. Eerste River Medical Centre (ERMC), a SAEDF portfolio company, was there to help. With 60 available beds, the medical center helps alleviate overcrowding in the other local hospitals. This venture was designed to suit the medical needs of citizens who, unable to pay high medical fees, otherwise went without care. Located in a working class suburb in the Western Cape of South Africa, the ERMC offers secondary care in general medicine and surgery; obstetrics and gynecology; and pediatrics. In addition, ERMC employed 80 local community members at its peak.

SAEDF’s investment in this hospital resulted in an additional breakthrough – business ownership representative of the larger community’s demographic. Whereas the majority of private hospitals in South Africa are owned and operated by the white population, the ERMC is the first private hospital in this region that is owned by black citizens.

ERMC has successfully repaid its investment from SAEDF and has begun private operations – a clear sign of the project’s success and long-term sustainability. And as a result, the Eerste River Medical Centre was able to begin construction in 2009 on a new wing.

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Ambassador Andrew Young, Chairman of the Southern Africa Enterprise Development Fund, discussed how the SAEDF model could help in rebuilding Haiti. This column originally appeared on January 26, 2010, on The Huffington Post.

The Obama Administration is to be congratulated for immediately committing food, doctors, military assistance and $100 million in aid for the people of Haiti following their devastating earthquake. Our country’s swift response has been essential to saving lives and giving hope to the survivors. In the short term, grants have been the necessary form of assistance. But in the long run, another very useful tool the U.S. should consider is a Haitian Enterprise Fund, similar to the Southern Africa Enterprise Development Fund (SAEDF) or eastern European equivalents that have proven so effective for economic development and sustainable growth in developing countries.

Haiti needs assistance that will produce a sustainable economy, not just a relief economy. This horrible tragedy may present just the opportunity for Americans to put their resources to work in a way that will create long-term economic sustainability in a country bereft of stability.

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