SEKEM Insight 10.11 EN

SEKEM‘s Journal for Culture, Economy, Society and Ecology in Egypt

InsightNr. 110 - October 2011

SEKEM Insight | October 2011 | Page 1

Dear Readers,

it may seem as if the Egyptian rev-olution of past February has not been moving anywhere yet. Mean-while a revolution in its own right and towards a very special goal is happening at SEKEM.

For years, alternative energy sources have been used in produc-tive industrial use on the grounds of the original farm and at many other locations. The associated new technologies in use include the wind turbines on the roofs of the main administration’s office buildings in Cairo and the Schef-fler Mirrors on the farm which are being used in steam generation.

So far, however, all these tech-nologies have been used only on a very small scale nationwide. This is due to the still compara-tively low cost of fossil fuels. Their prices are still disproportionately cheap in comparison to the actual harm to human health and the environment done by fossil fuels.

SEKEM is now doing a great step forward with its Austrian partners. A pilot project co-financed by the country of Austria is to make solar power more attractive in Egypt. Our lead article in this edition explores the issue.

S EKEM has recently begun collab-oration with three Austrian com-

panies (SEKEM Energy, GREENoneTEC

and PINK) to heavily invest in the pro-

motion of the use of solar energy in

Egypt. Firstly, the consortium intends

to install a 70m2 solar thermal energy

demonstration plant in productive use

on the original SEKEM farm. It then

aims to begin training professionals in

the field of solar thermal energy gen-

eration in order to build the human

foundation for a cohort of trained future professionals in the industry.

The oil of the 21st Century

Solar energy represents the oil of the 21st Century, the Austrian pro-ject partners believe. This is particu-larly true for Egypt, a land of the sun. The average solar energy generation capacity here is generally measured at around 2.500kWh/m2 per year. In Austria, in comparison, the sun can

Editorial

Your Team of Editors

Ambitious Goals for Solar Energy in Egypt

The sun will not bill you for its energy. This trivial fact could mean the future for a sun-spoiled country like Egypt. A new Austrian-Egyptian economic partnership has now set out to explore how.

Solar EnergyAmbitious Goals for Egypt

PartnersEthical Development with Triodos Bank

InterviewDr. Ibrahim Abouleish on the Revolution

Find SEKEM also on the Internet at:

SEKEM‘s apprentices working on the first of many boilers for the new alternative energy project.

SEKEM Insight | October 2011 | Page 2

only generate about 1.000 kWh/m2 per year. This way the sun „produces“ the equivalent of around 250l of oil per square meter per year in Egypt.

While Egypt is rich in sun, Austria has the technical know-how. The country is an international solar ther-mal technology leader and is also home to the world‘s largest collector manufacturer.

The sun‘s energy can be harnessed to produce electricity and to heat or cool buildings and facilities. In the new SEKEM project the focus is initially on its capacity for heat generation.

Especially in Egypt, a country with almost 365 sunny days a year, the sun holds a tremendous economic and ecological potential, which until today have been considered far too little. The use of large-scale solar thermal plants for the production of hot water in hotels, apartment buildings and industrial plants could set new inter-national standards in this sector. The rapidly increasing population and the concomitant increases in energy con-sumption mean that Egypt has already begun looking for solutions to a per-sistent and severe energy supply prob-lem. Since the country is also going through a time of fundamental change, the project partners are convinced that now is a good opportunity to set a strong signal for positive and sustain-able development through renewable energy technologies.

Austrian government supports

The project that is co-financed by the “Austrian Development Cooperation” (ADC) agency has the long-term goal of harnessing the power of the Egyptian sun and to exploit it as a potent eco-nomic factor using high quality solar

systems made in the country. The Austrian experts from SEKEM Energy, GREENoneTEC, and PINK bring into the project the know-how of many years of experience in solar technology devel-opment, solar collector production, and the construction of the necessary storage facilities. They also contrib-ute to the partnership their expertise in strategic planning and implemen-tation. The local support of the eco-nomic partnership comes from the Egyptian partners SEKEM, e-Green and EcoEnergy.

Fundamental changes necessary

To succeed in the venture of promot-ing and selling technically advanced solar thermal power plants in Egypt many challenges have to be overcome. To begin with, the technical conditions that apply to the implementation of large-scale technological installations and that are specific to the country have to be analysed and adapted solu-tions be developed. This task is to be performed by the project team.

All solar thermal components cur-rently available on the Egyptian mar-ket are, for instance, poorly adapted to local climatic needs. The extremely fine desert sand, the quality of local waters that differs substantially across

the country, and the high salt content of the air must be considered early in the development process because fac-tors like these quickly cause irrepara-ble damage to components, especially the highly sensitive solar collectors. In addition, there is a lack of trained personnel who could carry out instal-lation and maintenance services. For this reason, the project will also pro-vide training to build the required professional expertise in the new eco-nomic sector.

A pilot plant will first be built using quality Austrian and Egyptian compo-nents on the original SEKEM farm close to Belbeis. It is intended primarily as a training facility for future install-ers, manufacturers, and the appren-tices of SEKEM’s Vocational Training Centre and students of the forthcom-ing Heliopolis University. In addition, it will also be used in the industrial pro-duction of several SEKEM companies, specifically in steam generation. Water is heated to above 70° centigrade and then used to produce steam for vari-ous manufacturing processes on the farm. This reduces the use of diesel fuel and saves on CO2 emissions.

The Austrian-Egyptian economic partnership envisages a long-term cooperation between companies from

Economy

The partnership aims to build a long-term cooperation between Austrian and Egyptian companies and to create stable local value chains.

„

The project team during the inspection and evaluation of solar thermal systems in Egypt.

SEKEM Insight | October 2011 | Page 3

both countries and the creation of locally embedded value chains in the emerging solar thermal energy sector. Therefore, the project team will also have to deal with the devel-opment of quality standards for the future Egyptian solar products. The employees of the SEKEM Development Foundation (SDF), SEKEM’s non-profit arm, as well as employees of selected Egyptian companies will be among the first beneficiaries of the train-ing courses. The collaboration pur-sues the ambitious goal of producing high quality solar thermal systems using Egyptian-made components to the greatest possible extent. Only essential and very complex compo-nents such as collector panels and control systems are to be shipped from Austria. To achieve this goal, the Egyptian manufacturers will have to meet strict quality standards and need to be financially capable to produce solar thermal systems at an affordable and competitive price.

New opportunities for students and trainees at SEKEM

It is for this reason that the train-ees at SEKEM’s vocational training centre in the future will be trained in order to be able to perform necessary self-maintenance on their solar ther-mal installations. This is to provide the apprentices of the VTC with an oppor-tunity to embark on new professional careers and a special technical train-ing challenge that is currently unavail-able anywhere else on the Egyptian educational market. Consequently, the employees of SEKEM Energy are

convinced that education is a cen-tral key to tackling many social, eco-nomic, and other related challenges. Furthermore, a new tertiary educa-tion track will be created in the field of solar energy also at the future Heliopolis University.

Monitoring and maintenance using the latest in technology

The SEKEM-based demonstration plant will feature technologies allow-ing the remote maintenance (telemon-itoring) of facilities and installations from anywhere around the world via the Internet. All key performance indi-cators can be examined remotely at any time of day. In the future, the stu-dents of the Heliopolis University shall be well-equipped to maintain their equipment themselves as well as understand and evaluate all technical figures under real-life conditions.

Through the new project the Euro-Mediterranean project team intends to actively contribute to positive change in Egypt and support Egyptians in their struggle to develop profitable, ecologically sound, and sustainable long-term solutions to their country’s economic and social challenges. The project intends to achieve this through supporting the transition from fossil fuels and nuclear power to clean solar energy. According to the partners, the utilization of the sun’s unlimited resources holds the greatest poten-tial for peaceful social development, greater economic prowess, „green“ jobs, and new perspectives in dealing with man, his environment, and nature in the long-term.

The team of SEKEM Energy will be pleased to answer questions or pro-vide more information on the project at [email protected]

Birgit Birnstingl-Gottinger, Nicole Olsacher (SEKEM Energy GmbH)

Economy

World Economic Forum Names SEKEM “Sustainability Champion”

T he World Economic Forum has chosen SEKEM as one of 16

“Sustainability Champions” in the developing world which are tack-ling environmental and social prob-lems. The initiative was rewarded by the forum for its continuous efforts promote sustainable development in Egypt and worldwide. At the World Economic Forum’s Annual Meeting of the New Champions 2011 in China, 16 companies originating in the emerg-ing markets were presented as ‘Sustainability Champions’, selected by the World Economic Forum and the Boston Consulting Group from an initial pool of more than 1,000 companies.

Since 2003, when SEKEM received the Alternative Nobel Prize, Chairman Dr. Ibrahim Abouleish and Managing Director Helmy Abouleish are fre-quently participating in the World Economic Forum (WEF) as Fellows of the Schwab Foundation to promote social entrepreneurship and sustaina-ble development.

Unsustainable practices and poli-cies in the private and governmental sector are the root causes for poverty and environmental degradation, not only in Egypt but worldwide. SEKEM’s business model counters these issues. “This international recognition under-lines that our business model is a best practice to address poverty, resource scarcity and climate change”, stated Helmy Abouleish.

Within this framework, the WEF and the Boston Consulting Group set out to seek unconventional, practical solutions to the current challenges of growth, aiming to identify and support key business practices, and to relay them to the global community.

Source: SEKEM press release

More information:http://www3.weforum.org/docs/WEF_GGC_SustainabilityChampions_Report_2011.pdf

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More information:http://www.SEKEMenergy.at/!

You can visit SEKEM yourself:www.SEKEM-reisen.de www.aventerra.de

The Scheffler Mirrors currently producing steam on the SEKEM farm.

SEKEM Insight | October 2011 | Page 4

T riodos Bank N.V. is Europe‘s lead-ing sustainable bank. Founded in

1980 in the Netherlands, she now has around 316.000 customers who find confidence in the fact that the bank only finances enterprises, institutions and projects that contribute to the benefit of man, human development, and the environment.

Model for proper development

In the view of the bank, one such enterprise is the SEKEM Initiative. This is because the work of the initiative for better livelihoods, social rejuvena-tion, and holistic human development is founded on three interconnected pillars of sustainability: people, envi-ronment, and the economy. At SEKEM, they are being brought into balance. SEKEM provides not only high quality products based on biodynamic agricul-ture but is so economically successful

that it can actively invest into cultural projects, education, research and public healthcare for beneficiaries in the region. Thus SEKEM is a sustain-able development model of exemplary character, a role model especially for developing and emerging countries.

The Triodos Bank has recognized SEKEM’s special character early on. Both enterprises share their pioneer-ing roles and look back on a long part-nership based on shared values and goals: a pioneering spirit, entrepre-neurial, holistic thinking and activi-ties with the primary aim of improving the quality of life of present and future generations. This explicitly includes the strengthening of “North-South” relations between actors in industri-alised and developing countries or emerging markets. Furthermore, both partners are leading players in the global movement for greater sustaina-ble development.

A fund to support development

Since 2007, the Triodos Bank’s Triodos Ventures Fund began invest-ing in the SEKEM Group of companies and the bank is now represented on the initiative’s board. In the same year Triodos Bank issued a SEKEM bond for private investors in the Netherlands. With both forms of financing the bank could greatly support the fur-ther expansion of SEKEM. Investment in manufacturing equipment, pack-aging machinery, cold storage and warehousing, and new processing techniques were made and new desert grounds could be developed. The part-nership of SEKEM with the bank, which originally began with the financing of exports of the initiative to Europe, strengthens ecological agriculture and social development in Egypt and improves the range of fairly traded organic products in Europe’s markets.

Hans Schut, representative of Triodos Bank on SEKEM’s supervisory board, sees an important future role for the initiative and its social ambi-tions: “The current social change in Egypt is a challenge for SEKEM but also an opportunity. Its very authen-tic philosophy combines the focus on improving the quality of life with long-term competitive economic strength. SEKEM is an example of sustainable enterprise. But it is also a source of inspiration and a role model across borders.” Triodos Bank is very pleased to be able to accompany SEKEM into the future and support its work for a more humane social development.

Stefanie Erhardt

Stefanie Erhardt is in charge of the press and public relations for Triodos Bank Germany.

A Role Model and a Source of Inspiration

It is only through the support of its circle of friends that SEKEM can develop desert soils to produce healthier food. Since the 2007 the Triodos Bank has been a part of it.

Economy

More information:http://www.triodos.de!

Thanks also to the courage of innovative banks, SEKEM can continue to break new ground in agriculture, as seen here on the new farm area on the Sinai peninsula.

SEKEM Insight | October 2011 | Page 5

Funding is available to attend for NGO’s and projects from the North African countries. This is an alcohol-free event. For more information or to register, please contact: Ethan Hirsch-Tauber at: [email protected]

ECOVILLAGE CONFERENCE:

Empowering Communities for Sustainable Development in Northern Africa

Goals of this conference:

To make visible the dynamic and impressive work already

being done to create sustainable community solutions all

over Northern Africa

To connect key actors, change agents, and social innovators

throughout the region

To facilitate exchange of inspiration, information and training

amongst community-based approaches to sustainability

To scale up community-based strategies for climate change

adaptation and stability in the region

To empower civil society initiatives in their contribution to

sustainable development

The conference schedule includes:

A tour of SEKEM and presentation on its history,

operation, and practical solutions (For more information

visit www.sekem.com)

A presentation of the Global Ecovillage Network and the

emerging network in Africa (For more information visit

www.gen-europe.org)

Discussion of community-based strategies for sustainable

development, focusing on best practices, appropriate

technologies, and civil engagement

Open space for dialogue and networking

Opportunities to present your own project

Funding is available for fifty participants from NGO’s and

projects from Northern Africa (Algeria, Egypt, Libya,

Morocco, Sudan and Tunisia).

Twenty more spaces at this conference are available for

paying participants from other countries.

This conference takes place with the financial support of

the German Federal Foreign Office.

This is an alcohol-free event.

If you are interested please contact Kosha Anja Joubert at:

[email protected].

18 - 21 November 2011 at SEKEM, Egypt

Organised by the Global Ecovillage Network and SEKEM

SEKEM Insight | October 2011 | Page 6

Economy

The Business Development of the SEKEM Group of Companies in 3. Quarter 2011

Shares of Sales (local vs. export)

75%

70%

25%

30%

Q2 2010

Q2 2011

Lokal Export

EBITDA (consolidated)

8 Mio. EGP

12 Mio. EGP

Q3 2010

Q3 2011

Sales (consolidated)

45 Mio. EGP

46 Mio. EGP

Q3 2010

Q3 2011

Shares of Sales (by product sector)

17% 17% 15% 51%

Farming Pharma Textiles FMCG

In the 3. quarter of 2011 revenues of the

SEKEM Group of Companies increased by 1

million Egyptian pounds (EGP) from 45 mil-

lion Egyptian pounds to 1 million pounds to

46 million compared to the same period of

2010.

However, this must be seen in context

with the firms’ performance this year which

resulted in an overall loss of -3% by the end

of September.

EBITDA (earnings before interests, taxes,

depreciation and amortization) is made up of

the combined net income before taxes, net

interest income and the depreciation of the

company. Compared to the same period in

2010, the EBITDA of SEKEM group rose to 12

million EGP in the 3. quarter of 2011.

All quarters of the year to date taken

together now register an overall loss in

EBITDA of -3%.

In the diagram on shares of sales (local vs.

export), domestic (Egyptian) and foreign (all

other countries) sections of sales are com-

pared to a total sales volume of 100%.

The shares of sales of all SEKEM Group’s

companies are evaluated across the main

product sectors of farm products, phytop-

harmaceuticals, textiles, and FMCG (food,

manufactured. and consumer goods).

SEKEM Insight | October 2011 | Page 7

How do you personally see the current situation in the Arab world?

Dr. A: We are witnessing a process of transformation, a social trans-formation that is equivalent to the European renaissance. Prepared by a small group of intellectuals and artists, who worked as cata-lysts, paving the road for the future development of human capacities that have long been subjugated: freedom, individuality, the idea of human rights, the dignity of the indi-vidual.

Should we not be careful to not equate such developments with European ideas?

Dr. A: These ideas have their origin in Europe. We definitely need ethi-cal ideals similar to those enshrined in the German constitution, to give just one example. We need the cod-ification of fundamental rights. But

we are speaking about the future development of an open-ended pro-cess that may stretch over many decades.

You do not believe in stable demo-cratic nations in the Arab world in the near term?

Dr A: I am convince that we need to think in the very long term. What we now need are stable social structures that address the safety issue, help in the creation of a dif-ferentiated political landscape, and support people in democratic deci-sion-making. The economy is broke, the tourists are gone - there is a phase of anarchy now in the country that needs to be overcome.

Do you believe in the Egyptian revolu-tion as a role model for the entire Arab world?

Dr A: So far there has been only an uprising, a rebellion. I believe

the revolution it has yet to be. This would require an active, creative grasp of the future, even a spiritual outlook. When its time comes, then Egypt will certainly be a role model. We are more than 80 million people, after all...

What are the hopes and expectations of the people?

Dr A: Their hopes centre around respect for the individual and his opportunities for development. It is not about wealth or power, but very elementary values. It is about what we practice in SEKEM: a human interaction in which the individual feels safe and valued, can shape his own life and that of his family, enjoy health care and benefit from learning opportunities. The idea is to have a perspective, not only to work for a living, but to develop the potentials of ones personality.

What about the risk that this “awaken-ing movement” could be exploited by groups and degenerate into a party-political movement?

Dr A: To become a true revolution, the uprising will have to discover its “inside”, its true human needs. Its actions are still focussing largely on a superficial liberation from the oppression of the old. The next step will have to be a courageous grasp of the freedom to create structures anew: economic, human, social, and ecological structures. For this we will need patience and some hope for the inspiration and the sympathy of the spiritual world witnessing the current events.

Questions posed by Matthias Maurer. The text first appeared in the

magazine „Erziehungskunst“ (10.11).

A Freedom to CreateMatthias Maurer, editor of the German magazine for Waldorf education “erziehungskunst”, spoke with Dr. Ibrahim Abouleish in October on the topic of the revolution in the Arab world.

Culture

Dr. Ibrahim Abouleish speaking on organic agriculture at the BIOAUSTRIA in October 2011.

SEKEM Insight | October 2011 | Page 8

Impressions from SEKEM

L ike every year in November, for many varieties of vegetables the winter season has just started. SEKEM Europe then begins to import those vegetables until the following early summer, which are generally not available in Europe, such as sweet and hot peppers, cucumbers, artichokes, green beans and

sweet potatoes. From April on, SEKEM Europe will add to this portfolio potatoes to replace the diminishing stocks of local storage potatoes. Beginning in May, it will also add onions to the mix.

These products are usually imported by ship from Italy, distributed at the wholesale market in Munich, and delivered from there to health food wholesale partners throughout Germany. From here the products are then shipped to natural food stores and organic supermarkets. The products can be distinguished in stores either by the distinctive green SEKEM boxes with the familiar orange-colored Demeter logo, or the marking

“Demeter / Egypt”.

Impressions

SEKEM Insight | October 2011 | Page 9

“How can biological diversity be incorporated into corporate sustaina-bility processes on a grander scale?” These and other questions were raised by experts and company representa-tives at the second national dialogue forum „Biodiversity in the Enterprise“ on 20 October 2011 in Fulda.

The participants had been invited by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), and the Federal Agency for Nature Conservation (BfN).

The event focussed on the integra-tion of biodiversity into environmental management systems and the poten-tial of marketing to enhance environ-ment-friendly consumerism among an enterprises’ clients. The participants agreed that the prerequisite for cred-ible corporate communication should put an enterprise’s own actual activ-ities and a clear public positioning of the company for biodiversity and envi-ronmental conservation at its centre. In addition, the communication must be easy to understand and be able to transport the emotional significance of the topic in order to allow its mes-sages to actually lead to behavioural change.

Source: BioMarkt.info

increasing. Additionally there are great difficulties to connect motivated unemployed people to existing jobs. The ‘National Employment Pact’ (NEP) is initiated to help answer these chal-lenges. Helmy Abouleish, Managing Director of SEKEM Group, recognizes this: “We are facing a difficult employ-ment situation in Egypt, especially for the young people. SEKEM is doing its share to ease this situation by partic-ipating in the ‘National Employment Pact’ with 200 new jobs”.

A cooperation between Germany and Egypt

With the NEP, the Egyptian German Business Community in Egypt in col-laboration with the AHK, the German Federal Government and GIZ is start-ing an initiative with a pragmatic, direct and high impact on framework conditions to help answer this eco-nomic challenge. The aim is to pro-vide 5000 jobs from companies that show corporate social responsibility by providing employee-friendly work-ing conditions. The NEP is intended not only to be a political gesture but a credible mid- and long-term contribu-tion to foster employment by setting up an ‘Employment Center’. Human Resources experts will be hired to col-lect job offers and orient job seekers to facilitate an effective matchmaking process.

Egyptian and German companies are cooperating and contributing to this cause out of their commitment to Egypt. This initiative serves as a ref-erence model for the setup of simi-lar employment centres throughout Egypt.

Source: SEKEM press release

Forum on „Biodiversity in the Enterprise“

News in Brief

Masthead:The editors of SEKEM Insight wish to thank all contributors to this issue.

Editor:Bijan Kafi

Contact:SEKEM-Insightc/o SEKEM HoldingP.O.Box 2834, El Horreya, Heliopolis, Cairo, Egypt [email protected]

Pictures: Pages 1,2: SEKEM Energy; 3,8,9: SEKEM; 4: Bijan Kafi; 7: BIOAUSTRIA/Jan Gott

No republication without written consent by the publisher.

SEKEM Group continues on its sus-tainable development path by signif-icantly contributing to the ‘National Employment Pact’ (NEP) – an initia-tive of the Egyptian German Business Community in cooperation with the AHK (German-Arab Chamber of Industry and Commerce), the German Federal Government and GIZ (German association on international cooperation).

200 jobs to fight the economic crisis

During an executive business break-fast, Helmy Abouleish, Managing Director of SEKEM Group, pledged to create 200 jobs within the NEP frame-work to fight the current economic crisis and dire employment situation in post-revolutionary Egypt. SEKEM group thereby continues its employ-

ment policy which puts human devel-opment to the front.

SEKEM Group sees human develop-ment at the core to overcome the cur-rent economic crisis. Having a job and having a source of income is essential for living a decent life. SEKEM Group already provides around 2000 jobs and, due to its sustainable approach, was able to keep almost all of them despite the negative economic impact of the Egyptian revolution.

The growing unemployment of youth is the focal point of the chal-lenges faced by the country. 2 million young Egyptians are currently with-out work - and this trend is rapidly

SEKEM Group Contributes to Egyptian ‘National Employment Pact’

More information:http://www.ahkmena.com/nep!