Tuesday, June 9, 2009

An Incredible Opportunity Knocking

How can you leverage big business in the developing world to create opportunities for the urban poor? Read on to find out...

---

About three months ago I sent an introductory email to one of the largest mining companies in the world, for confidentiality's sake let's call them GoldCorp. I didn't really expect much to come of that. A month later I got a call from the procurement manager at GoldCorp asking me to come in and meet with them. Emmanuel and I did a killer presentation to GoldCorp's top engineers, who then took us out to lunch. I was shocked and greatly humbled by how they welcomed us.



Long story short, after a visit to the Magazine and some long nights preparing proposals for them, GoldCorp has awarded us a contract. The truck above is one of about 35 in GoldCorp's fleet. We are manufacturing from scratch two sets of stairways, railings, and walkway platforms. Basically we are building the access system for the driver to make his way from the ground up and into the driver's cabin.

Read about SMIDO's social enterprise model here.
Read about the Suame Magazine context here.

Our vision for SMIDO is quickly becoming reality! This project is the reason I almost went insane, and it's the reason I've been hungrily working 12-15 hour days for 2 weeks without a day off, more pumped each day I wake up. Emma and I are singlehandedly managing a team of 10, a budget of nearly 25,000 USD (yeah, yeah, pretty small), and implementing quality and safety measures that the Magazine has never seen before.

I would lie if I said it were easy. I've had to send plenty of apology emails and phone calls on behalf of SMIDO and for my own mistakes, learned the hard way that taxes have to be paid, learned (and still learning) to manage both money and my patience, and found out that if you sit on a metal floor while welding (and your machine is grounded to the same metal floor) AND you happen to have your hand on the workpiece, you will get zapped good (yes, 4 years of engineering and I didn't realize that).

So why is this project so exciting? Well, the reason GoldCorp came to visit the Magazine a month back was to get an idea of our potential. They had a project up their sleeves for us to retrofit about 30 of their big trucks with similar walkway/railing/stairway assemblies. At close to 30,000 USD a pop including shipping from the US, that's nearly 1m USD. $1,000,000. One Million. Whoa. What? WHAT?!

To GoldCorp that's a $1m purchase order for truck ladders. Business as usual. To the Magazine however, that's $1m of desperately needed development. A $1m direct injection of capital into the Magazine in the form of material procurement, sub-contracting, paid wages, and all of the profit put towards education programs. That's $1m towards developing sustainable livelihoods. $1m towards improving health, nutrition, and sanitation. $1m towards school fees for the families of the artisans. $1m towards building a movement that will raise the Suame Magazine forever out of poverty and prove to the world that business CAN and WILL end poverty! (How many NGO's would kill for $1m of project funding from donors? And how sustainable is that $1m donor relationship in reality? Business 1, Aid 0.)

My heart beats faster just thinking about this. I've come to believe that what poor people need most is a way to make more money. Many development projects treat the poor as if they were incapable of fending for themselves, just sitting around waiting for whites to give them free food and clothes and schools and hospitals and goats. I feel that's one of the greatest barriers to development. It creates dependency and crushes local capacity.

Building sustainable livelihoods, on the other hand, creates opportunity. With increased income comes the food, the health care, the school fees, choice, and most importantly, dignity.

---

This GoldCorp project is about halfway done with delivery of the first half set for Thursday. This is a pretty key milestone. When the GoldCorp execs left my office last month, they weren't too impressed with the Magazine's capacity. They told me how appalled they were at the safety standards, and didn't see how we could make 30 units to be of reliable quality. Emma and I pretty much gave them our word that we could make the impossible happen on time and asked for their confidence in SMIDO and in us. That's what got us this "small" test contract. The future is bright if we can get this right.

---

Thanks for reading, now here's a glimpse into my life...

Our workshop. Working outdoors is beautiful each glorious sunny day. The down side is work grinds to a halt when it starts to rain.


Our masters Bonsu, Owusu, Bombay, and Emma work to align a set of stairs.


An underlying goal of the project is to improve skills of the artisans. Sharing tips, measurement skills, and teaching our staff to read CAD drawings are all important steps in making the Magazine more attractive to the formal sector.


After carefully reviewing the engineering drawings, our master Paha goes to work on finishing a workpiece.


Bombay trying to align some of the supports. Note to self: never buy crap made in China. Ever. Our tri-squares aren't square.


Yours truly enjoying a pineapple break. Another good thing about the Magazine is that ladies walk around all day selling popcorn, pineapple, water, rice, fish, kebabs, spring rolls, cosmetics, clothing, and anything else you could want. Note how grubby I look. I haven't had time to shave in 2 weeks.


Back on the stairway, our master Kosovo installs a support bracket.


This lovely lady mixed all of our paint by hand, but shyness hid the beautiful smile.


Finally, we matched the "Caterpillar Yellow" from the paint charts. Just like at Home Depot.

16 comments:

  1. Great post Florin! Congrats on the contract - wish I had more time during my time in Ghana to see more of the magazine.
    ReplyDelete
  2. So encouraging to see what is happening. Keep up the work in Ghana. You are effecting so many people. This is the way Ghanaians will grow out of poverty.
    ReplyDelete
  3. It's been a long time since I checked your blog and then I just got an email, and WOW, look what you've been up to! It's AWESOME. Great post.
    ReplyDelete
  4. A PICTURE OF YOU!!!! YAYYYY! I miss that smile. You are not looking fat enough though. Eat up.

    This is a massive milestone Flo, and I'm pumped to hear about it. Good luck and keep us posted!

    ZamLove,
    -hb
    ReplyDelete
  5. This was a really great post Flo! I really felt your energy and motivation and I can't wait to hear what happens in the next month or so!

    Lots of love, Liv
    ReplyDelete
  6. Florin this is super exciting!! I can't wait to hear how the rest of the journey goes!!

    (PS I'm from UW chapter - yep word's spreading - this is amazing)
    ReplyDelete
  7. Wow! Thank you all for the love.

    This is only the beginning for SMIDO so keep your fingers crossed that things go well. Based on the amazing work of my partner Emma and all the talented artisans, I have a feeling we might just pull this off. :)

    -F
    ReplyDelete
  8. Update: this morning at work an idiot truck driver backed into our lathe machine, knocking it over and crushing the pipe railing that we have been working two days to align and weld. FML.

    Such is the informal sector.
    ReplyDelete
  9. great story! praying you meet your deadline.
    ReplyDelete
  10. Absolutely amazing, Florin. We are all proud of you, and the fantastic work you are doing.

    - Jen
    ReplyDelete
  11. WOAH Florin! This is amazing!
    I was waiting for a new post on your blog for a while and this one is worth many!
    Can't wait for more updates!

    Love,
    M
    ReplyDelete
  12. never mind, i knew about your blog. is it a secret? it's not on your twitter profile.
    ReplyDelete
  13. SOOOOOOOOOOOO, did you meet the deadline boss?? keep on rockin' it out through all the roadblocks bro!
    ReplyDelete
  14. you have no idea how happy i am for you right now. So so happy things spun around and are looking brighter than ever. Nini, im so amazed by you every day. Thinking of you everyday...

    love lauren
    ReplyDelete
  15. Nice story.Wish you best of luck to meet deadline.
    ReplyDelete