One man’s trash, another man’s treasure

As I walk toward the Dandora dump site, I cannot help but smell the foul smell that fills the atmosphere. Many big vultures fly in the air, seemingly heading the same direction as I was. There are several people walking in a hurry, they seem to be on their way to work. As I come near the dump site, I find many people there; the other people I saw walking in a hurry join them, male and female, ready to work. They are nervous and seem to be waiting for something. Today is when the garbage trucks come to dump its content at this dump site. Dandora is located 8km from Kenya’s capital Nairobi and is the home of the largest dump site in Africa. All the garbage from Nairobi households and industries is dumped here. One may think that this is one of the places to be avoided because of the hazardous objects this environment harbours, but not these people who are entrepreneur in the making. And not all the hazard in Nairobi can stop them. They also know which truck to follow, not just any truck. Trucks from uptown are better; they have all the nice useful things. Trucks from industries have things considered reject but can be resold, they are also cleaner and one does not need to scavenge for a long time.

Where is the gold?
All of a sudden, everyone starts running and you may be forced to think that something is chasing them, only to find that they are chasing a truck. This one is from Kilimani; an uptown estate in Nairobi. They follow the lorry as fast as they can until it stops; from it come many valuables, from plastic and glass bottles, plastic paper bags, clothes and scrap metals, etc. The bottles are taken to recycle companies and sold; the plastic papers have a ready market and go for Kes. 10,  (€0.09) per kilo with the cardboard, manilla and newspapers going for  Kes. 15 (€0.13) and the scrap metal Kes 20 per kilo (€0.18). Some women buy the polythene papers, wash, disinfect and make beautiful bags, these are sold locally and even internationally, the more different the colours the better. The clothes are usually resold or used by the new owner. Most of the entrepreneurs say that they ventured into this line of business so as to save and start other businesses that are respectable and less hazardous. Some say they are in this business to stay and they don’t mind dealing with the dirt even though the environment is not friendly. The businesses is their source of livelihood since they already have a readymarket for their goods. Some of these entrepreneurs later start other business, register with microfinance and hence access funders like MYC4.

It is not easy

This line of business has so many challenges, one has to be really strong mentally and emotionally, and not let the situation affect them. It is usually survival for the fittest with competition between the entrepreneurs themselves; as everyone wants the best of the “package” from the trucks and as much as they can handle so as to get as many kilos to sustain their families. The hazards that come with environment are numerous, from stray dogs and poisonous snakes to dangers that come from industrial and hospital waste, one can never be too careful. To some, this is what they know how to do best while to others its due to desperation in life. Located at the heart of the dump site is a pool table, the entrepreneurs play pool sometimes as they wait for the trucks and some other time to release tension and stress. The pool table enables them relax and enjoy themselves regardless of their life situations, they also reckon that all work and no play…

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In another life I would still be a carpenter

Meet Micheal Wamala, a soft spoken man from Uganda, who feels he is living his dream. Being from a humble background, he hardly sat on a chair while growing up – and the first chair he sat on was made by himself. When Mr Wamala was growing up he had a passion of being a carpenter; he had always felt bad for the fact that they never had any chairs in his homestead. Once he cleared high school, he decided to make a chair and that was the beginning of his life long career of carpentry.

Wamala working at his workshop

Mr Wamala is a client of Gatsby Microfinance Limited. He has successfully completed repaying 3 loans and is in the process of repaying the fourth loan through MYC4. We had a talk with him and could clearly hear is passion for carpentry. When we asked him if he could think of starting another business, he said “if I would be given another life I would still be a carpenter”.

How did you hear about MYC4?

I was a member of Uganda Small Scale Organization back in 2010 where we were introduced to Gatsby by our leaders. Gatsby told us about MYC4 and even took us to classes to understand better how MYC4 worked.

What did you use the loan for? And has the loan helped you grow your business?

The first loan I added to the savings I had and opened my first workshop, hence I stopped being employed and started operating my own business. With the second loan I added my capital and hired two young men to help me in running the business. So far my business has really grown and I have managed to open another workshop and hired four more people.

Have the loans influenced the society around you?

Yes, they have. My friends have been motivated by the good work I do, and they have been asking me how I have managed to make my business grow and still have products of good quality. The loans have also influenced the life of my family. I’m able to support my wife and my three children who are in good private schools and I pay their school fees without any problem.

Have you been able to hire new employees after you received the loans?

Yes, I have been able to hire six young men who help me in running the business. Before I got the loans I was the only one doing everything at the workshop, and I plan hiring more to run the new workshop after repaying this fourth loan.

How do you find our interest rates compared to other MFIs in Uganda?

Having started working with MYC4 through Gatsby for the last four years I have never been interested in knowing how other MFIs charge their loans. So far MYC4’s interest rates work for me, I cannot complain.

Did you find any difficulties in repaying your loans?

In repaying the first two loans I didn’t experience any difficulty in repaying. The third loan gave me some problems, because one of my workshops burnt down hence coming up with the funds to repay the loan was a struggle. I managed to clear it and request for a fourth loan.

What are your future business plans?

My future plan is to build my own building to be able to operate my business in my own building and cut the cost of rent every month to instead put that money into the business.

Would you recommend MYC4 to others?

Wamala outside his workshop

Yes, and in fact I have recommended my two friends and they are both taking their third loan with MYC4.

Do you have additional comments?

I would encourage people to do what they love in their lives because it is always a joy to wake up to do your passion in life. For those who don’t have funds to start a business I would advise them to join a microfinance institution and request for loans.

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What a morning…

Reading the leading Danish business newspaper (Borsen) with a cup of nicely brewed (African) coffee this morning, was a true pleasure!!

I can’t remember when I have read a newspaper that had so much content about Africa… and even brought on page 4 before articles about how banks are going belly-up in Denmark (the latter topic currently has Denmark’s full attention)!

The upper part of page 4 is an ‘analysis’ of how China is paving the road for future growth in Africa written by Nikolaj Gammeltoft, Business Commentator in New York.

The Chinese are building roads, railways, schools and hospitals which is a good attractor for international corporations to enter the African markets, for real. As the author of the article states; when the international companies have made their entrance, the institutional funds will find their way, because the risk and reward will start balancing.

I fully support how Gammeltoft sees the development will take place in stages over the next years. He ends the article stating how private investors will be able to invest in Africa in an accessible way. Hear hear…

The lower part of page 4 is a chronicle that kicks back on a previous chronicle (brought some days ago also in Borsen) where Allan Søgaard Larsen, CEO of Falck articulates his view on aid; “the good-hearted development aid simply makes matters worse” (his view point is very much inspired by Dambisa Moyo’s book: Dead Aid which he refers to a couple of times).

The two authors of today’s chronicle (Poul Due Jensen, Chairman of The Poul Due Jensen Foundation under Grundfos and Henrik Stubkjær, General Secretary of DanChurchAid) do not agree with neither Larsen nor Moyo; “it is simply too controversial and rectangular to solve Africa’s complicated challenges”.

I like the way they kick back in a constructive way and thus do not enter the “the cold-hearted capitalism simply makes matters worse” trench. Jensen and Stubkjær argues that there is a need for both, hey, there should be no news in this part, but reading the cronichle made me think quite a bit more about the handshake that is needed for Africa to develop, than I normally do.

A handshake IS needed and I don’t think I have to argue that I believe business development (micro-, small- and medium sized businesses) is instrumental in this connection?!?!

Regarding aid, Jensen and Stubkjær were capable of providing me with some strong images of why aid is needed. I think it was their way of linking aid to business development that made me ‘catch it’. Below are some of their links:

Schools: so kids obtain basic knowledge that can be build on to create a future workforce

Roads: so raw materials and crops can get to the market and further to factories that are manufactoring goods

National health system: so absence due to sickness is limited (here I encourage you to read my previous post where I introduce a for-profit company that will revolutionize the African health sector via mobile phones)

Investment climate: to ensure a well functioning system where e.g. corruption is limited

Very well done Jensen and Stubkjær! This goes for Borsen as well for bringing the two interesting articles… on page 4!!

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