Economies of an African Scale
Having an academic background of Economics and Finance, my approach to business are often occupied by such concepts as Economies of Scale, vertical integration, efficient equity markets, and other such topics. Coming to Ghana to apply these concepts on small scale projects is about as useful as expecting service from a Delta Airlines staff member (see “Field of Rakes” entry).
The market economy does indeed exist here but it operates on a micro level that requires deep on the ground experience. And even with that experience, trying to attempt business with smaller companies as a foreigner (especially a white foreigner) come with hassles and over-priced commodities. The white skin colour of your correspondent is enough to raise the price of simple food items by 20-50%.
So how can GO possibly attempt to bring its goals of building orphanages, fish farms, and other such institutions to fruition? After all, we are founded in California, far from our ground operations and our volunteers are predominantly of a richer, white background.
The simple answer is the necessary ingredient of any successful business venture proposal: trusted business partners.
Take for example our project with Sovereign Global Mission (SGM). To assist with Eric’s venture to build a remote orphanage/school outside of Accra for slum children, we have raised enough money to purchase and build a septic tank for SGM.
Having navigated the winding roads of the local Ghana economy today, we cannot express enough how instrumental a partner like Eric is in this venture. This morning, we managed to purchase all the necessary materials (sand, iron rods, concrete, loose rocks, pumps) to build a large septic tank for Eric’s school/orphanage. We started our day at 830am this morning and our materials were purchased AND delivered to our site before noon. The concrete was delivered 40 minutes after our purchase. These transactions, all with Eric’s contacts and trusted business partners, are more efficient than a Toyota plant. And in Africa, this level of efficiency is simply unheard of.
The problem, however, comes with the work involved now that the materials are purchased. We have no cement mixer, so we mix the cement with spades and muscle power. The transferring of loose rocks to the septic tank hole is painfully inefficient. The site is a remote escape for the children of the slums, so though the location is idyllic and peaceful, transferring good equipment to this remote region is nearly impossible. Eric’s trusty 1990 Camry lumbers across the dirt roads with pot-holes the size of small swimming pools to get the group of volunteers here. No truck can make this journey with efficiency. Even if it could, Eric does not have the money to pay for such things.
This home is Eric’s dream. It will house 20 orphans, provide schooling for 50 students, and feed 100s of slum children on the weekend. For the lucky 20, it will be an escape from the utter poverty of the Accra slums. For the 50 students, it will be a beacon of education. For the greater Accra community, it will provide at least a few hot meals for children that literally live on fermented rice cakes and wheat pap.
He has been building his dream for 5 years with his bare hands. His progress is slow but his determination never falters. As we shovel rocks into our sole wheel barrow, his pans fill much faster than mine showing the learned skill of construction work. I try to keep up with him but my hands start to bleed from the effort, making my grip on the shovel loose and unsteady. As the blood starts to run down my shovel handle, he starts filling my share of the rocks.
He digs with effort, pride, and determination.
Beads of sweat and progress glisten on his brow.
This is his dream.
He is building it with his bare hands.
And he is getting closer.
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CEMENT is this gray powder you buy in bags and CONCRETE is a mix of cement, water, sand and gravel - so you had CEMENT delivered and you’ve mixed CONCRETE.
Anal Dad (Structural Engineer)