Opportunities for joint venture projects
By Ben Mensah
In the past eight years since the establishment of the Brussels-based Centre for the Development of Industry (CDI) this promotion and development of appropriate technologies and their trans- fer through the Centre has resulted in many projects taking off in many of the developing countries in the African, Caribbean and Pacific (ACP) regions.
In West Africa, for instance, a pilot fuel-gas generator using groundnut husks to supply energy to a tannery in Banjul, Gambia, is the latest of the several EEC sponsored projects this installation is operating even though not at full capacity, due to the low level of energy required by the tannery.
There are other projects in the pipeline for West Africa. In Mali a Belgian group has expressed interest in the production of windmills to produce energy for the Sahel and other CEAO countries. A demon- stration mill is planned with the support of CDI, to be installed in that country, and the results obtained may lead to the production of other windmills by the end of the year.
In West Africa, for instance, a pilot fuel-gas generator using groundnut husks to supply energy to a tannery in Banjul, Gambia, is the latest of the several EEC sponsored projects this installation is operating even though not at full capacity, due to the low level of energy required by the tannery.
The initiation of a project may start with a European company seeking, through the CDI in Brussels, partners in an ACP country. The procedure for contact requires that EEC industrialists who may be interested in an offer should give brief descriptions of their operations to the CDI and pledge their preparedness to provide the kinds of cooperation requested by the ACP sponsors.
Currently on offer from Nigeria in the printing services is a joint venture project for the production of textbooks, maga- zines, exercise books and other paper products. The project will be located in Ibadan and a preliminary study on it needs updating. The project has bright prospects as locally produced products do not at present meet more than sixty per cent of the demand. EEC industrial partners who are interested should apply through the CDI quoting number 660 NIA.1.SER.
Also from Nigeria is a starch and glucose syrup project which requires a joint European partner. The expected capacity of the starch plant is 3000 tonnes a year and glucose syrup 1500 tonnes a year. The local market demand is estimated at 48,000 tonnes of starch and 11,000 tonnes of glucose syrup, thereby making the project a viable one indeed. Here too interested European industrial- ists should quote No. 660 NIA.22.FOO in their applications.
From the EEC countries proposals have also been put forward by firms interested in establishing joint venture operations and ACP entrepreneurs are therefore invited to respond through the CDI quoting respective reference numbers. Such ACP entrepreneurs will be required to show why it would be justifiable to manufacture the products in question in their countries, give market data, indicate which raw materials or components are available locally, etc. They must also describe their present activities plus their industrial and commercial experience, state how much capital they themselves could contribute, the maximum portion of their equity their countries legally allow to an EEC partner, whether they can obtain finance and if so from where, is the project a national priority, outline the incentives their countries offer to foreign investors and state whether they can obtain a local guarantee if they need a foreign loan or supplies credit.
Currently on offer (as per table) are four invitations from France, Italy and West Germany to ACP entrepreneurs.
1 ECU = £0.556008
1 ECU = FF6.8253
1 ECU = DM2.24462
| PRODUCTS | REFERENCE | COUNTRY OF ORIGIN | MINIMUM CAPACITY | MINIMUM INVESTMENT REQUIRED FOR EQUIPMENT | TYPE OF COOPERATION OFFERED |
| Processing of roots and tubers (cassava, yam), production of gari | 85/19 | FRANCE | 650 kg of fresh roots. for the production. of gari or flour. | About Ecus 145 000 | joint venture, training, management |
| Plasticized bituminous rolls for water-proof roofing. | 85/20 | ITALY | 100 000 rolls a year (1 000 000 m²); but the standard plant capacity is 300 000 rolls a year (3 000 000 m²). | Ecus 1 351 000 | joint venture, training, know-how |
| Assemby of microprocessor- controlled telephones | 85/21 | GERMANY | 1 500 units a year. | Second-hand. equipment about Ecus 70 000 | joint venture, marketing. - know-how |
| Wooden products | 85/22 | GERMANY | Flush doors: (24 000 a year). windows: (360 000 units a year). chairs/armchairs: (75 000 a year). | Ecus 325 000 Ecus 305 000 Ecus 245 000 | equipment technical assistance, joint venture |
