State of Market Opportunities in Africa

Constituency for Africa Science And Technology Forum-US Congress Black Caucus Conference 1995

Washington DC.

Author & Speaker: Peter A. Sam,ASC;BS;MS

Chairman, AERCG

Overview:

This paper examine the opportunities for international environmental technology transfer through consulting in Africa and provides a brief overview of the environmental problems and issues in Africa.

There are many obstacles and hurdles associated with entering and conducting overseas environmental consulting and business but with the shrinking United States domestic environmental market, opportunities in the international market especially Africa will have a higher return than investing in the domestic market which is undergoing fierce competition with an increasing consolidation and mergers and many bankruptcies of small environmental companies. The fact that the United States environmental market is forecast to grow at an average rate of between 4% and 5% is out paced by the average growth in the rest of the world which is forecast to average over 10% (Environmental Business International Inc. 1995), provides a straight forward answer to the maturing African market which provides an overwhelming opportunities in for environmental consulting and business. The environmental markets in Africa is booming with virtually no competition. In this situation, profit margins can be lucrative since pricing competition are absent. African countries are catching-up with the global agenda for change and are on the developing edge of environmental protection, restoration and management. In comparing and contrasting with the United States and some industrialized nations in the west, the African countries are developing the environmental management and building capacities at a steady rate which is leading the development of the environmental markets in the region. In contrast to some of the western industrialized nations where the environmental market have reached its entropy and plateaued. Many environmental sectors and segements in industrialized nations are exhibiting market stagnation whereas the developing countries such as African countries are increasing showing signs of prosperity and increase market size.. The Environmental Business International Inc, reported in 1995 that the global environmental market has reached at comfortable level at $408 billion. The most promising segments of the market are in the pollution control, waste minimization, water quality, sewage disposal/wastewater. The slow areas or segments are hazardous waste management and air quality.

The $408 Billion Global Environmental Market

Africa face immense environmental and natural resource management challenges as the continent faced with economic decline, social deterioration. Rapid population growth, poverty and unsanitary living conditions is causing widespread and growing environmental damage. International Financing and Development Aid institutions have incorporated environmental issues into project designs which provides a conduit for environmental consultants . The nexus between economic development and environmental management has brought about the increase demand for environmental consulting whenever development aid is being considered for virtually any economic development project. The World Bank=s National Environmental Action Plans (NEAPs) provides a step within its integral economic development and environmental programs (Structural Adjustment Program) to require Developing countries especially Africa to develop a NEAP. The NEAP is a process design to define key environmental problems and issues within a country and to prioritize these issues for remediation. The NEAP is a key informational tool on major environmental priorities of a country. The African Development Bank since 1990, have instituted environmental screening and categorization for every project it finances in accordance with the Bank=s Environmental Guidelines. These requirements ensure that projects are environmental sound and does not pose negative impact to the environment and to human health. Most consulting opportunities will generate from EIA=s and EIS as the economic revitalization efforts expands as we enter the year 2000 and beyond. Also, there will be many opportunities for environmental consulting as a result of the World bank=s NEAP in many African countries. There are other programs and activities that provides potential market for environmental consulting such as; the global consensus on Sustainable Development, the Environmental Impact Assessment (EA) requirement by International Donor/Developing Aid Agencies and International Financial Institutions for any capital improvement projects, the Global Environmental Facility (GEF) program and the recent United Nations= 30 billion Special Initiative for Africa. The primary causes of environmental degradation in Africa is shown below which provides a summary of major environmental concerns in African countries. The combination of social and economic decline has placed tremendous pressures on the natural resources and environment leading to massive degradation in all sectors of the environment. Urbanization and poverty is widespread on the continent which in many cases has led to the overcrowding, unsanitary conditions and minimal basic public amenities such as adequate sewage disposal systems, municipal solid waste management systems and shelters. The lack of adequate environmental policies, regulations and standards have also contributed to the indiscrimate disposal of hazardous waste and toxic chemical by industries. Lack of environmental policing and enforcement are also contributing factors to the deteriorating environmental conditions on the continent. The environmental sectors or segments that is making up the lion share of the present environmental market are; the water quality and supply, sewage treatment, municipal solid waste management, waste management equipment, pollution control technology and equipments and finally, institutional environmental capacity building(training, development of expertise, private and public institutional development). The African Development Bank estimates that 73% of the African environmental market at present is within the water quality, supply and the sewage treatment and disposal sector. Whereas approximately, 36 % of the current market is attributed to pollution abatement control technology and equipments.

PRIMARY CAUSES OF ENVIRONMENTAL DEGRADATION IN AFRICA

The global political pressure and insistence for environmental management coupled with the growing global consensus that economic development has to be complemented by sound environmental policies. This presumptive analytical assessment provides in part a major driving forces for future demand for international environmental consulting opportunities as we enter into the 21 century. The reduce global political tension due to the end of the cold war, the global focus in my mind have shifted to economic and environmental markets and social improvement (improve human survival, human resource and human welfare) investment for sustainable development for the coming years. The United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro provided the platform for increased environmental management and socio-economic activities worldwide. In many nations especially in Developing countries where environmental technologies and expertise are lacking, there exist plenty of opportunities for foreign consultants as local and the central governments seek experts to implement environmental projects. Th UNCED Agenda 21 did set-aside allocation of international financing and aid to assist countries in implementing programs for environmental management.

Multilateral lending institutions such as the World Bank, the International Monetary Fund have all instituted environmental screening of any of their developmental projects that they fund, therefore, more and more EIAs, EIS will be required which in turn generates opportunities for international environmental consulting in developing countries.

The prospects for international consulting market opportunities lay within the driving forces of environmental management which were partially discussed in Chapter One and in Chapter 6. This chapter will provide information on potential environmental problems and needs in each continent and in some cases country specific. This will provide the reader with future consulting market opportunities that may arise due to the major environmental problems within that continent or for a particular region.

Consulting Opportunities

Consulting opportunities are created from the in-country priorities and agenda for the environment, natural resource management and the protection of human health. On the other hand opportunities for environmental consulting can be created from the financial and technical support from many outside sources. The focus here will be to provide the reader with a brief general outlook of the environmental issues and priorities of each continent. This would help you get an idea of the prospects for environmental consulting needs in the region of the globe that you are targeting to practice. Furthermore, the reader will be presented with a brief description, functions of major sources where environmental consulting opportunities may arise. These major sources are:

-International Development Assistance Agencies

-Multilateral Agencies and International Financial Institutions

-Foundations And Non-Profit Organizations

-Foreign Governmental Institutions

-Multinational Corporations

International Development Assistance Agencies:

The growing concern about the threat to the global environment has led to the International Development Agencies to focus attention on environmental impacts of development projects that it supports. In addition to its policies on trade, foreign investment and debt, the International Development Assistance community have increased their focus on global environmental concerns. Especially in light of the activities proposed under the UNCED conference in Rio de Janierio and the Agenda 21 held in 1992. Funding for Sustainable Development activities in Developing countries is estimated by the UNCED secretariat to over $600 billion including approximately $125 billion in grants or concessions from the international donor community. In addition to the regular financial assistance appropriations by the Developed countries it is very likely to increase the total available funding for assistance to developing countries. For example Figure 6-2 indicates that the total financial assistance from Developing countries in 1991 alone ($57 billion) is approximately 10 times lower than the amount ($600 billion) estimated by the UNCED to implement the activities under the Agenda 21. The World Bank has also indicated the need of approximately $75 billion annually to implement the high priority items of global environmental and social programs. Many international consulting opportunities will be generated out of this activities. Many international consulting opportunities will be generated out of these activities.

Net Official Development Assistance From Development Assistance Countries In 1991

Multilateral Agencies and International Financial Institutions:

The recent surge within the international community regarding the importance of sustainable development and an holistic approach to development has brought about an increase attention and re-direction of the International Multilateral and Financial Agencies to global environmental issues. This re-direction has created the need by these institutions to provide financial and technical assistance for sound environmental management worldwide. The challenges are extremely tough when one look at the recent uprises in many donor countries regarding shifting foreign assistance to local domestic issues. Although this uprise in major donor nations like the United States is likely to cause decrease in financial assistance to many developing nations, there is the optimism that global environmental issues will continue to be a major global agenda and will increase the demand for environmental consulting and practice in developing countries. Opportunities for environmental consulting continue to exist within the core activities of the international Multilateral Agencies and Financial Institutions.

Foundations And Non-Profit Organizations:

The recent high rate of emergencies such as famine, drought, fires, earthquakes and the deterioration of natural resources have increased the activities of Non-profit organizations and Foundations to seek environmental consultants for preliminary assessments, feasibility studies and remedial design. Traditionally, Foundations provide grants to a number of environmental projects and in many of these cases they seek environmental consultants to review proposal and in some case to perform oversight activities of the project. The fact that many NGOs and Foundation pose weaknesses in technical resource capacity, they relay heavily on consultants for such technical assistance The demand for technical support for NGOs and Foundation will continue to grow and the opportunities still exist for consulting activities within the universe of Foundations and NGOs. The opportunities are growing for environmental consulting activities as NGOs and Foundations continue to play a vital role in development assistance and the Apolitics of development@. In 1989 alone, private voluntary agencies spent nearly $4 billion which represented about five percent of the total Development Assistance funds available globally. This is likely to quadruple by the end of this century as more and more demand for NGOs to participate in the design and supervision of Donor institutions increases. This will generate a ripple effect which will increase the demand for international environmental consulting by the NGOs to carry-on their activities.

Foreign Governmental Institutions:

Government institutions are the entities that develop regulations and standards for the public. They are entrusted to implement these standards and regulations to protect human health and the environment. The government is one of premier source of providing environmental contracts for bid. In Developing countries, governments receive grants to implement environmental projects. These projects are mostly funded by the international donor community, the international financial institutions and the international development agencies. The governments in turn sends out RFPs and bids for these projects. Most of the foreign grants received by governments in the developing countries have what is called ATied Aid@. This means there are provisions by the grantor to have portion of the contract work set aside for consultants for the grantors country. This has always been and will continue to be a promising opportunity for international consulting practice in developing countries.

Global pressures on governments to develop Environmental Action Plan to identify environmental priorities, investments policy and requirement for environmental sustainable development has led to a growing need for consultants by governments. This trend is likely to increase well into the next century.

EBJ=s Top 50 Environmental Markets in the World

Growth in the Global Environmental Market

Lending for Environmental Management

Most of the countries where there is high prospects for environmental consulting are poor, therefore the governments depend on foreign aid and assistance for environmental management and protection. Financing is of key importance for countries to undertake sound environmental management and environmental stewardship. The degree of environmental financing dictates the need for environmental consulting demand because the funds will be available to hire consultants and guarantee payments for services. The international Multilateral Banks and Development Aid Agencies have steadily increased their financing of environmental projects. For example, in 1993 along, the World Bank approved loans and credits for seven projects involving roughly $1.3 billion for pollution control, ten projects totaling $521 million for natural resources management, and six projects involving approximately $173 million for environmental institution capacity building. Nine projects were approved in Asia by the Bank in the tune of $830 million; $681 million for six projects in Latin America and the Caribbean; $428 million for five projects in the Middle East and North Africa and Europe and Central Asia; and $45 million for three projects in Sub-Saharan Africa. These funding level will continue to remain steady well into the next century, therefore, the opportunities and prospects for environmental consulting will continue to grow. Table 6-2 below shows the lending provided by the World Bank between 1989 and 1993 alone. This funding portfolio by the world Bank from all indications will continue to be steady at least to the year 2000 and beyond. In conclusion, it is fair to assume that the steady lending for financing environmental projects will provide a continues but steady demand for international environmental consultants. The opportunities will persist well beyond the year 2000. The next sub-chapter will examine an example of global financing programs which serve the major drive for initiating environmental projects ( the Global Environmental facility). This will provide potential information for future opportunities and prospects for international environmental consultants.

Lending Portfolio For Environmental Management And Pollution Control Approved in FY 1989-1993 By the World Bank

Global Environmental Facility:

Global Environmental Facility (GEF) provides a promising prospect for future environmental consulting opportunities because it offers the funding for environmental projects which in turn provides the in-country governments the means to hire and guarantee payment of services to international environmental consultants. The GE was established in 1990 as a three year pilot project jointly administered by the World Bank, United Nations Development Programme and the United Nations Environmental Programme. The first phase of the program ended in 1993 but disbursement of funds are anticipated to continue well into 1998. Initial committed GEF funds amounted to 1.3 billion. The Global Environmental Trust Fund which is the core fund of the GEF and associated cofinancing funds added an additional $1.1 billion in commitment to GEF by 1993. Overall less than 10 percent of these monies have been spent during this period.. Many countries have received grants under GEF for environmental projects such as for Biodiversity projects. In conclusion, GEF program will continue to provides an excellent opportunities and prospect for future environmental consulting especially in Africa.

As We Approach The Year 2000 And Beyond:

As we venture out to the year 2000 and beyond. The global environmental problems will increase if the global community at large does not take a critical step in managing the natural resources. One of the critical environmental issue is the rate of urbanization which tends to impact the surrounding natural resources due to the human population stress over the natural environment. The rate of urbanization could severally impact the biological, physically, geological and chemical components of the earth and be very costly. The future challenges are positive with the advent of the 1992 United Nations Conference on Environment and Development (UNCED) held in Rio de Janeiro, Brazil. This set an agreement upon which the World leaders agreed to be responsive to the global environmental management, natural resource management and sustainable development. This became the centerpiece of the Global Agenda 21. The process under Agenda 21 has paved the way for the year 2000 and beyond regarding global environmental management such as promoting Conservation and Sustainable Development.

Promising Future:

The Global Agenda 21, an agenda for the next century provides the means of tackling the global environmental problems. It provides the blueprint for future global action in high priority environmental and development areas and legal instruments such as Climate Change, Biodiversity and Desertification. It provides the working framework and provisions such as:

C Providing finance to protect natural habitat and Biodiversity;

C Allocating international aid programs with high returns for poverty alleviation and environmental health, such as providing sanitation and clean water, reducing indoor air pollution, and meeting basic needs;

C Investing in research and extension to reduce soil erosion and degradation and put agricultural practices on a sustainable path;

C Increasing resources to family planning and to primary and secondary education, particularly for girls and women;

C Supporting governments in their attempts to remove distortions and macroeconomic imbalances that damage the environment;

C Providing finance support for the protection of natural habitat and Biodiversity;

C Investments in research and development of non-carbon energy alternatives to respond to global climate change;

C Eradication of protectionist pressures and ensuring that international markets for goods and services, including finance and technology, remains open.

The promising element within the global environmental arena is the evolution of environmental standards. The International Organization for standardization (ISO) has developed a series of international standards which are growing in popularity and becoming a universal standards by businesses, companies and governments worldwide. For example, the ISO 14000 provides basic standards for environmental management systems, environmental auditing, environmental labeling, environmental performance management and product life cycle assessment.

The increased global environmental awareness within grass-roots organizations, within governments and citizens has led to a growing awareness with corporate businesses worldwide especially within the Multi-National Corporations. Corporate CEO and the Stockholders at-large have become more conscious and increased their proactive stance on corporate environmental management.

EMERGING ENVIRONMENTAL FIELDS:

As much as half of the global environmental market will shift to non-regulatory segments rather than from environmental compliance laws and regulations. The following are areas which shows promising growth as we move into the 21 century. These areas mentioned below are expected to absorb at least half of the global environmental market by the year 2000 and beyond.

C Strategic Environmental Management;

C Environmental Responsibility Programs -International Standards Organization (ISO 14000) & Pollution Prevention

C Environmental Technologies: Pollution Prevention Control Equipments

C Environmental Medicine/Plant Pharmaceuticals;

C Ecotourism;

C Occupational Environmentalism:

Strategic environmental Management:

The global concept of Sustainable Development as an holistic approach for the developing countries answers to the environmental, socio-economic problems in addition to the novel shift away from environmental regulations and compliance towards pollution prevention are new concepts of environmental management the is evolving globally. Corporate proactive approach to management of their waste towards a competitive advantage is a growing concept in the industrialized countries such as the United States. The regulated universe are beginning to realize the need to be proactive and innovative to stay competitive as they face mountains of federal, state and local environmental regulations and policies. Corporations find the new approach very realistic due to the dynamics of environmental management and worse of all is the uncertainty of future environmental regulations and standards. This new evolution of environmental management is called:

The Strategic Environmental Management (SEM). SEM can be defined as the process of linking environmental performance to corporate overall economic performance towards a sustainable business practice.

In the past corporation have responded and reacted to environmental regulations and have operated in the compliance orientation mode. The shift towards SEM is a cost effective/cost saving approach to integrating waste management to the overall mission of the corporation. The integration of waste management within a corporation can be viewed as an investment, as it has been the case in many companies in the United States that have developed new corporate environmental policies and shifted to investing in pollution prevention (which entails source reduction, resource recovery , recycling and product substitution) product redesign, product@ environmental friendly@packaging and good environmental housekeeping. SEM is an emerging environmental field and the wave of the future both in industrialized countries and in developing countries. Several initiatives in the United States towards this novel concept which has been coined and phased as ACommon Sense@ approach are currently on the way. Some of these initiatives are:

C Community Partnership Initiative;

C EPA=s Voluntary Compliance Initiatives;

C Voluntary RCRA Corrective Action.

SEM and Sustainable Development principles and theories will be the future tools for an effective corporate environmental management. SEM promotes corporate image as good environmental stewards and it provides a competitive approach to doing business. SEM and Sustainable Development will grow steadily as we approach the year 2000. This segment of the environmental market will have a substantial share of the future market both domestic and in the international by the year 2000.

Environmental Responsibility Programs -International Standards Organization (ISO 14000) & Pollution Prevention

The concept of Environmental Responsibility Programs (ERP) evolved out of the notion that of solving environmental problems before they occur. The Aend-of-pipe@ traditional approach is becoming obsolete and the Acommon sense@ approach as it is called is becoming a new market in which corporations around the world are seeking Agreen business@. The trend in which multi-national companies are moving environmental markets through innovations. Green business generally mean doing business in an environmentally responsible and cost-effective manner. ERP is an emerging market which is already gaining momentum in the US market and in Africa.

ERP is a non-regulatory, proactive and innovative approach in which companies seek restructure, redesign their manufacturing processes, altering products to reduce the amount of pollutants that it generates and to operate in an environmentally safe manner to protect human and the environment. The impetus of ERP is the notion that it cost more to clean-up than to prevent pollution or in other words avoiding the high cost of environmental capital expenditure rather than creating such burdensome cost. The other factor in the ERP promotion falls in the recent consumer pressure on companies to be environmentally responsible on their product packaging and activities which have had a tremendous impact on corporation=s environmental purchasing and marketing decisions. It is becoming evident that consumers are more reluctant to purchase Anon-green@ products, therefore manufactures and corporations around the world are responding to this consumer market orientation and seeking ERP approaches. Corporations now know that to be competitive and remain lucrative in present and in future global market, it is imperative to be environmentally responsible and be portrait as an environmental steward. ERP is emerging as the Acommon sense A approach to doing business as we enter into the year 2000 and beyond. It provides corporations among many other benefits and advantages such as:

C cost effective way of doing business by saving money through the up-front reducing waste treatment, disposal costs, raw material purchases and other environmental compliance cost;

C Eliminating or reducing environmental liabilities

C Providing safer working environment and protect public health and worker health and safety;

C Protecting the environment.

The two major drivers for ERP are:

C ISO 14000

and;

C Pollution Prevention (P2)

ISO 14000: As described under Chapter two-Complex Forms of Registration and Licensing, ISO 14000 is an important element in ERP because it is intended to provide a universal standard for environmental management. The ISO itself provides a series of Environmental Management Systems (EMS) which provides specific approaches to an holistic environment management. ISO 14000 comprises of:

C Life Cycle Analysis

C Environmental labeling and Marking

C Environmental Assessments And Auditing

C Environmental Management Systems

Pollution Prevention: P2 have become the forefront movement of the 1990s global environmental policy or agenda. P2 entails the reduction or elimination of pollutants at the source so that waste is not generated. It contrasts with Aend-of-pipe@, Acollect-and-contain@, or release-and-dilute@ control designed to treat or control releases and waste already generated. P2 as defined by the US Environmental Protection Agency under the Pollution Prevention Act of 1990 as the maximum feasible reduction of all wastes generated at production sites. It involves the judicious use of resources through source reduction, energy efficiency, reuse of input materials during production, and reduced water consumption.

Environmental Medicine:

This market segment has become an increasingly important driving force to forest preservation, conservation and to Biodiversity. Medicinal plants have been the source of cure of many diseases in many communities worldwide where traditional medicine is used by native peoples. Increasing more and more peoples are turning to traditional medicine. Majority of pharmaceutical companies are heavily investing in botanical medicines and as a result are recruiting environmental practitioners to assist in promoting sustainable harvesting of plant species and the natural forest ecology at large. Environmental medicine has increase the extent and demand for international environmental consultants for varied forest and plant pharmacology in Developing countries such as countries with the highest rainforest in the world ranging from West African countries to countries in Central America. The emergence of environmental medicine is relatively still at its infancy and largely unknown but it=s increasingly becoming popular worldwide as pharmaceutical industries and investors seek to discover new plant species with potential medicinal value. Environmental consultants are mostly consulted to conduct feasibility studies and preliminary assessment of impact of research and development activities in these rainforest regions to minimize any impact to Biodiversity and sustainable management of the plant species.

Ecotourism:

This market segment is another area which has been around since the mid-1990s. The field of Ecotourism is going and has a promising opportunities for international environmental consultants in regions of the Caribbeans and the West Indines, South Africa, Zimbabwe and in Western Europe. Ecotourism is growing in popularity within the context of economic growth and development and natural resource sustainabilty. Developing countries will continue to exhibit increase in the ecotourism market as the need to expose visitors to cultural heritage become a gateway for boosting local economy at the same time developing solutions and approaches within the concept of ecotourism for local indigenous peoples to dis-engage in subsistence practices that degrade the environment and lead to loss of Biodiversity and cultural heritage. The growing market alternative solution to economic growth and preservation of unique Biodiversity and wildlife inheritance in developing countries is more and more leading to the growth of ecotourism. This segment will continue to seek and demand experts in environmental economics, environmental impact assessment and environmental design (land use design). Driving forces for these areas of demand will occur within financial institution and lending institutions mainly for capital investment in hotels and from International Developing Assistance/Donor Agencies funding socio-economic and developmental projects. These agencies and institutions demand third party consultants to provide Environmental Impact Assessments. As revenues grow in tourism for the developing countries, it is anticipated that the market for ecotourism will grow and the demand for ecotourism consulting will increase exponentially. Between 1989 and 1990, tourism revenues jumped to 11.6% in South America, 8% in the Caribbean region, 11% in East Asia/Pacific region and 19% in South Africa region. A good example of successfully implemented ecotourism projects are: the Zimbabwe Campfire project and the Phinda Resources Reserve in Natal Province, South Africa to name a few.

Occupational Environmentalism:

This is an area with potential to grow towards the year 2000. The main reason is the notion of workplace safety, the rising consciousness of employees about health effects of the workplace. Long hours spent utilizing the computer and the structure and settings of an office are all investigative areas that call for international environmental consultant to assess the impact of the workplace policies, settings, structure and practices to the universe of the human workforce. Other areas in more prominent in occupational health and safety in the industrial operational sector where international environmental consultants are increasingly in demand to conduct environmental safety assessment and human hazards from the operations at the facilities that generate hazardous waste and handle toxic chemicals. The future for the fields discussed above is promising. It is because of the extent to which public consciousness and involvement in these issues for worksite, forest and plant pharmacology and ecotourism that these new areas of environmental concern will see increase attention and prospects for international environmental consultants.

International Environmental Data And Trends:

The global environment and natural resources is under a unprecedented risk and challenges as we approach the year 2000 and beyond. The rate of urbanization in addition to population explosion and poverty in many cities around the world presents dynamic challenges to the sustainability of our global natural resources. The World population is projected to grow by 3.7 billion between the year 1990 and 2030. The increase in global population and the rate of urbanization which is projected to grow at 170,000 per day is pose a potential threat to natural resources such as wetland, fragile ecological systems (biophysical and chemical components) which comprises of our survival on earth. The threat to public health and the environment is challenging and provides the opportunity for nations to respond to address the negative environmental trends.

There are several data which indicates potential global environmental threat if appropriate actions by the international communities is not pursued. For example, Figure 7-3 provides data on the distribution of global carbon dioxide emissions from fossil fuel consumption and cement manufacturing. The data indicates that Industrialized nations account for the lion share of greenhouse gases and CFCs while this problem of air pollution is being addressed to a large extent in developed nations through environmental regulations, standards and enforcement, the same does not apply to Less developed nations. There are several global and national actions being initiated by individual nations and the United Nations including policy development, development of environmental legislation and standards and global financing for specific environmental problems within regions worldwide especially for the poor (low-income) nations. Substantial global shifts by Industrialized nations to provide funds and assistance to Less developed nations to address air pollution within their respective nation provides a promising opportunities for international environmental practitioners. Below are priority areas and issues that transcends the international environmental concerns:

C At least one-third of the world=s population has minimal or inadequate/unsafe drinking water and sanitation.

C Air pollution such as soot and smoke presents unhealthy and unsafe human health condition to 1.3 billion people.

C Between 300 million to 700 million women and children suffer from various health problems due to indoor air pollution specifically from utilization of firewood and its resultant pollution.

C Massive soil infertility and deforestation due to unsustainable agricultural practices and cutting of trees.

C Increasing amount of municipal solid waste generation in cities worldwide.

C Growing problems of urbanization in developing countries and the associated growing issues of alleviating urban poverty, infrastructure decay and environmental degradation

C Inadequate environmental standards and regulations in developing countries

Estimated Costs And Long-Term Benefits Of Selected Environmental Programs In Developing Countries

Additional Investment in 2000

Billion of As a % of As a % of

Dollars a year GDP in 2000 GDP growth

PROGRAMS 1990-2000 LONG-TERM BENEFIT

------------------- ------------------- ---------------- ---------------- ------------------------------------------

Increased Investment in Water

And Sanitation 10.0 0.2 0.5 Over 2 billion more people provided

W it service. Major labor savings

and health and productivity

Benefits. Child mortality reduced by

More than 3 billion a year.

Controlling particulate matter

(PM) emissions from coal-fired

power stations 2.0 0.04 0.1 PM emissions virtually eliminated.

Large reductions in respiratory

illnesses and acid deposition, and

Improvements in amenity.

Reducing acid deposition from

new coal-fired stations 5.0 0.1 0.25 ----

Changing to unleaded fuels;

controls on the main

pollutants from vehicles 10.0 0.2 0.5 Elimination of pollution from lead

More than 90% reductions in other

Pollutants, with improvements in

health and amenity.

Reducing emissions, effluents,

and wastes from industry 10.0-5.0 0.2-0.3 0.5-0.7 Appreciable reductions in levels

Of ambient pollution, and

improvements in health and amenity

Despite rapid industrial growth,

Low-waste process often a source of

cost savings for industry.

Soil Conservation and

afforestation, including

extension and training 15.0-20.0 0.3-0.4 0.7-1.0 Improvements in yields and

Productivity of agriculture and

and forests, which increase the

economic returns to investments.

Lower pressures on natural forest.

All sustainable forms of cultivation

And pasture.

Additional resources for

agricultural and forestry

research, in relations to

projected levels, and

for resource surveys 5.0 0.1 0.2 ----

Increasing primary and

secondary education

for girls 2.5 0.05 0.1 Primary education for girls extended

to 25 million more girls, and

secondary education to 21 million

more. Discrimination in education

Substantially reduced. ____________________________________________________________________________________________________________

Source: World Development Report, 1992, World Bank.

Note:. GDP of Developing Countries in 1990 was $3.4 million and projected to reach $5.4 trillion by 2000. Projected growth rate of GDP is 4.7% per year.

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Environmental Capacity Building Needs in Developing Countries:

Developing countries are lacking behind in environmental management as compared to Developed countries. The linkages between environment, social, economic development, poverty and environment degradation is prominent in the developing countries. These dynamic issues that confront the Developing countries have had low priority in most of these countries resulting in less capacity and resources to manage the socio-economic and the environment.

The Global conference on Environment and Development held in Rio de Janeiro in 1992, set the agenda for an International consensus to address the issues of poverty and environmental degradation. Agenda 21 provides among other items a commitment by developed countries and the International Donor Communities to assist Developing countries in environmental capacity building.

The International Donor Community such as the World Bank, USAID, UNDP, UNEP are increasing their efforts in providing environmental capacity building in Developing countries. Other International organizations such as the African Capacity Building Foundation and other non-governmental organizations have also increase their activities towards providing environmental capacity building.

Areas and sectors where capacity building are essential in developing countries are:

Technical Aspects:

C Development of solid waste management and hazardous waste experts;

C Provide resources for management and application of disposal, treatment, transport and storage technologies;

C Development of environmental technical training facilitators to train and educate on technical design approaches.

Socio-Economic Aspects:

C Development of capacities to ensure increase budgets and financial resources for governmental agencies involved in fiscal management and infrastructure development;

C Streamline local government and Central government administrative practices and programs to achieve the optimal objectives of the government in service provision;

Environmental Regulation/Enforcement Capacity and Policy:

C Strengthen environmental requirements and regulations;

C Strengthen compliance oversight and enforcement capacity;

C Strengthen environmental planning and management at both the municipal government level and the central government level;

C Strengthen environmental management practices at industries and businesses.

Services Sector Growth:

Services Sector is defined as environmental project related services at any stage of an environmental activity and/or management. These are usually activities that entails activities such as:

C data gathering and fact finding

C preliminary analysis

C preliminary feasibility study and audits

C project design

C evaluation and review.

This sector has had tremendous growth a decade ago in developed countries during the emergence of environmental regulations, policies and standards. The service sector boom in developed countries slowed down in the 1990s when most of the regulated universe and potential environmental clients matured in their knowledge and practices of sound environmental management in accordance with established rules, regulations and the best applicable technologies and equipments.

In the Developing countries such as countries in the pacific rim, parts of Asia such as Indonesia and in Africa, the emergence of environmental management as an integral part of economic and social development has increased the demand in the environmental Service Sector. This trend will continue to grow well beyond the year 2000. The demand for consultants in Developed countries will boom for the coming years.

Management Sector:

Management sector includes on-site environmental management activities such as:

C Process monitoring, recordkeeping and tracking

C Supervision and Control

C Training and facilitation

Management sector demand within developing countries maintains marginal growth due to increases in growth of the regulated environmental universe creation of environmental departments and hiring of corporate environmental managers. The management sector in developed countries may see slight increase in demand but will depend largely on new environmental legislatures, amendment to existing regulations and standards and the globalization of environmental standards. Developing countries provides numerous prospects and opportunities now and beyond the year 2000.

Successful environmental investments includes appropriate environmental technologies to address the various environmental problems. The trend in environmental technologies exports markets have shown a rising competition among developed and Industrialized countries as many Developing countries invest in environmental management and natural resources protection. In addition, the increasing public demand in Developed countries for stringent environmental regulations has led businesses and industries to research and develop new technologies to minimize the cost of maintaining environmental management and abiding by the stringent environmental regulations and standards. The environmental technologies export market is likely to maintain its growth as we approach the year 2000 and exports will increase as developing countries demand for environmental technologies increases with the increase of environmental priority in Developing countries became more prominent as we approach the twenty-first century. This trend will follow an increase demand of environmental consulting and experts from leading industrialize countries with greater share of the global environmental technologies market. The United States leads the world in environmental technologies especially in Agreen technologies@ followed by Germany and Japan (both have a strong standing in the water treatment technologies). The opportunities for United States manufacturers and consulting companies is now due to the fact that US technologies are deemed superior and in high demand than the rest of the competitors in Western Europe. The market demand is driven by in-country governmental environmental policies, global Aout-cry@ from the public for safer global environment, global environmental treatises and agreements and the foremost impetus which is the growing demand for environmental goods and services to meet regulatory standards and to control pollution before it occurs. Demand is stronger in developing countries in Africa and middle income country markets such as Brazil, Thailand, Indonesia and Mexico.

Globalization of the environmental management and the environmental industry is maturing at a faster rate. The opportunities and growth lay in developing countries with middle income. Lower income developing countries will emerge as will approach the year 2000 and beyond. Environmental technology transfer and pollution control technology markets presents the greatest opportunities in developing countries. The promising areas for rapid growth will occur in the following areas:

C Water treatment Equipments, Technology and Chemical

C Sanitation, Sewage Treatment and Water Utilities

C Resource Recovery (such Renewable Energy, Waste-to-Energy technology)

C Air pollution Abatement

C Solid Waste And Hazardous Waste Management ( i.e., Landfill Construction)

C Environmental Policy and Capacity Building

C Environmental Training and Consulting

C Testing And Analytical Services, EIA and Site Remediations

Sustainable Development - Market Opportunities For Africa

Upon request from the State Of Missouri Department Of Economic Development, the African Environmental Research Consulting Group (AERCG) - A IRS 501(c)(3) organization is providing this summary report which provides a general analysis of potential environmental markets in Africa:

Environmental Technologies Export Market: