Wave Sanitation Services was founded in 2000, offering
waste-water treatment, a toilet rental service and solid waste
management. We at Wave understand that in a cleaner environment,
all industrial sectors can perform efficiently and generate
sustained profits. In a cleaner and safer environment, people - our
most important resource - will spend more time on productive work
and less time sick or seeking medical attention.
The world market for environmental clean-up services reached US$
376 billion in 2002, according to Environmental Business
International.
The market in Africa for environmental services is huge. In our
sector alone, it ranges from waste containerization to
transportation and disposal. Sanitation remains quite undeveloped.
In some African countries, even universities do not have suffi
cient toilet facilities. Many people drink water that is not safe.
In some African states, the little rain that falls is unreliable:
this creates a market for water conservation measures and
technologies, increasing demands for environmental services.
However, despite the need, governments in developing economies are
sometimes unable to aff ord such environmental services.
After 2005 was declared a year of drought in Botswana, Wave
designed, tested and launched a grey water recycling system, for
homes, hotels and hostels within eight months. (Grey water is the
relatively clean waste water from baths, sinks, kitchen appliances,
etc.) We embarked on this project because we felt conserving
limited water resources would be critical.
Local presence
Botswana is a small economy of 1.7 million people; entering
international markets is, therefore, a priority. Recruiting people
from the Southern African Development Community makes it easier for
us to expand into the regional market. But we try not to develop
international networks at the expense of local presence. We believe
that to leapfrog to international markets, we must develop a strong
local base. We have therefore ensured that we build a strong
partnership with local authori- ties and communities as well as the
private sector.
Information management is crucial. We try to act quickly on the
information that is gathered by our branches. We also try to reward
those who convey the information, and try to change bad news into
value for Wave. Our accounts, stock and human resource data are
stored and managed digitally. Th is has helped us to be more
competitive.
Smart partnerships, sleeping with giants
To address the concerns of global competition, we have embarked
on a policy of smart partnerships with a regional company and an
international giant. Th is has helped in building the capacity of
our environmental engineers and gives us access to superior
technologies that we can market in our region.
However, this also poses a "sleeping with a giant" threat. One
needs to be quite skilful to manage such relationships. The small
firm is more dependent on the kindness of the "big brother
company". Small and medium-sized companies need more competent
lawyers to protect themselves but they can be quite expensive,
often unaffordable.
Finance, aid and corruption
Another concern that we have as a small fi rm is access to
reasonably priced finance. It is very difficult to compete with a
global establishment, endowed with many resources and borrowing
money at 3%, while at Wave we are required to pay 18%. We therefore
recommend assistance to poorer economies to improve their lending
environment.
Further, educational institutions need help exposing children
and young people to environmental conservation services, so they
can develop a culture that protects the environment. In most
schools in Africa, simple tools like waste bins are non-existent so
children can't get used to simple environmental practices. It is
common to find an adult throwing waste on the ground next to a
waste bin. It is important to create awareness about the
environment and environmental services, especially as disease may
result from neglected environments.
Corruption remains a clear and present danger. At Wave we have
zero tolerance for corruption because we understand that it is not
only morally wrong, but also poses a serious threat to the
sustainability of business. We are lobbying our governments to
address the problem because it results in unfair competition.
Best practices
Executive Forum participants identified several best practices
for those concerned with exports of environmental services:
- Educate potential buyers.
Environmental service demonstrations and fairs can help firms
introduce themselves to governments, donors and industrial buyers.
Strategy-makers can work with environmental service providers to
target foreign buyers, public sector consumers and business
customers with unique marketing and information materials.
- Explore commercial partnerships.
Environmental service providers should work hard to capture
technologies through joint ventures and association with providers
abroad, which they can adapt to local and regional markets.
- Focus on environmental protection.
Firms can leverage donor interest in protecting the environment
through specific environmental projects.
- Tap into regional market
opportunities. Providers can tap into the high
potential of South-South trade in consulting and operational
environmental services. Publicly sponsored export delegations to
neighbouring countries can help providers to market their products
and educate potential consumers.
Source: Linda Schmid, ITC Trade in Services Officer and
Moderator of the Executive Forum session on environmental
services.
Strategies
ITC's Executive Forum discussions produced several
recommendations for strategy-makers to improve conditions for
environmental service exporters:
- Improve financing. Strengthen the
financial environment to reduce the cost of capital to
environmental service providers to ensure their competitiveness.
Consider export promotion financing, which offers favourable terms
to environmental service exporters.
- Link clean environments to tourism
opportunities. Position services that help clean the
environment as a means to ensure a vibrant tourism market. Dirty
environments can have negative connotations, such as crime, which
detract visitors.
- Take part in standard-setting. Ensure
that least developed and developing country voices are heard in the
creation of environmental service standards that are achievable in
countries with limited resources.
- Engage with lawmakers. Work with
lawmakers to write environmental protection legislation that is
practicable and achievable. Yet laws must be rigorous enough to
strengthen service providers' competitive ability.
- Leverage competitive position. Help
environmental service providers to identify export markets where
they can leverage their competitive position in, for example,
specialization, brand identification, cost position, technological
leadership or quality of service.
- Consider procurement practices.
Assess domestic and foreign procurement practices to ensure
transparency and eliminate donor preferences for their domestic
firms, while in some cases providing safe harbour for fledgling
national firms.
Source: Linda Schmid, ITC Trade in Services Officer and
Moderator of the Executive Forum session on environmental
services.
Seteng Motalaote is the Chief Executive Offi cer of Wave
Sanitation Services. This article is based on Mr Motalaote's
presentation to ITC's 2005 Executive Forum on National Export
Strategies. The full paper can be found at
http://www.intracen.org/execforum/ef2005/montreux/programme.htm