Download - TBLI CONFERENCE™ NORDIC 2014 - Philanthropy Investing - Rainer von Echlin - Save The Lake

‹#› © 2014 SAVE THE LAKE FOUNDATION

Cleaning up the Lake Victoria with impact investing !

Water Hyacinth Disposal: A Comprehensive Solution

Homa Bay, Kenya, October 2014


The Problem


The Problem in its urgency

▪ Lake Victoria (as also many other tropical lakes) - with an area comparable to Denmark ! - suffers from the excessive growth of non-indigenous plants !

▪ Exponential growth due to lack of natural enemies and perfect growth conditions !▪ Estimates 2012 show that >30% of coastal areas are affected (with 60% growth rate) !▪ Consequences: decrease of water quantity (consequences for River Nile) and quality, rapidly

declining fishery, Malaria, Bilharzia, Elephantiasis, Trachoma (eye disease) Cholera (recent epidemics), Typhoid Fever, increase of harmful species (snakes, crocodiles, insects), drastic reduced navigability, coastal swamp formation, reduced drinking water

▪ Multiple attempts have been started and failed (including large scale supranational- funded mega-projects). All failed due to a mix of corruption, rivalries, lack of planning, monolithic approach, and no involvement of local population


Problem Analysis – Water Hyacinth invasion in Winam Gulf

NASA Picture 2013 NASA Picture 2006

Scale: ______________________________ = 50 km !Max.coverage 2013: about 20 000 ha or 50% of Winam Gulf


Problem Analysis – Water Hyacinth invasion in Winam Gulf


Problem Analysis – Water Hyacinth invasion (general)

Past approaches containing Water Hyacinth invasion

❑ Manual removal ❑ Mechanical removal ❑ Biological removal (weevils) !

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The Solution


Save the Lake Foundation – Methodology for removal & disposal of WH

Description !▪ The Water Hyacinth is removed by special nets both offshore and onshore,

with and without Hippo Grass/Papyrus. ▪ The net is hoisted ashore at a designated landing point with winches. After

allowing the resident fauna to leave the harvested heap, ▪ the material is transported to the composting facility. ▪ The material is introduced to the compost rows together with other

materials at a defined ratio. ▪ The rows are covered with semi-osmotic cover fleece and turned

continuously (aerobic composting). ▪ After 3 weeks, due to the high temperatures inside the rows, all seeds are

destroyed. ▪ The outcome is mulch/raw compost. ▪ This by-product is given to local farmers and/or to qualified local industries

at the defined price of 10 KSh per kg. !!


Removal onshore③

Removal offshore① ②

① ②

MATERIAL

SHORE


Operations !▪Simple equipment (boats, nets, trucks, loaders, tractors, shredders, manual tools, etc.) creates low capital intensity ▪Minimal energy requirements (sun) ▪No environmental side effects (no chemicals, no burning) ▪Modular set up, of independent disposal stations around the lake ▪Scalable without limitation ▪Gradual increase of operating stations as per funding ▪Growth of local entrepreneurs: Sale of output (at nominal prices) to local community creates moderate return to social investors as well as business and benefit for the local communities


Raw material Processing w/ semi-osmotic fleece

„Cooking“ process Result after 1 week

Our trawler for offshore harvest


Result of disposal process !▪ 100 % of seeds destroyed ▪ No Biomass lost ▪ 100 % of aquatic plants disposed ▪ Environmentally friendly ▪ Recyclable material ▪ Serves as commodity for other

usage ▪ Basis for further industries

Disposal = Destruction of biohazardous material

Recycling = Usage of destroyed material

After 4 weeks

✓

By-product can be used as a valuable commodity


!Practical Results !

▪ Permanent and complete removal & disposal of Hyacinth/aquatic plants (not just at shoreline) ▪ Modular approach, scalable identical yet self-contained micro-projects • Low tech (reliability and rapid deployment) • Carbon neutral, environmentally positive ▪ Reduction of hypertrophy ▪ Increased biodiversity ▪ Soil improvement on a large scale ▪ Less epidemic diseases ▪ Clearance of shores, waters and rivers ▪ Re-establishment of navigable waterways ▪ Improved drinking water situation ▪ Promotion of agriculture /food production by providing compost/mulch to local communities ▪ Incentives to new industries to make use of the raw material provided (fertilizer, animal feeds

etc.) ▪ Creating jobs, entrepreneurship and livelihood locally ▪ Labour-intensive, Employment for unskilled labour ▪ Establishment of a mobile, quick-reaction first aid system for casualties and diseases ▪ Establishment of an (airborne) Search and Rescue System for fishermen stuck offshore or

shipwrecked ▪ Creation of environmental awareness • Involvement of Women Groups, Youth Groups, Beach Management Units BMU


Our Organisation


Who we are

▪ Charitable Non-Profit-Organisation registered in Switzerland, Germany, and Kenya

▪ Operational entity: in Kenya (with future offices in Uganda & Tanzania) ▪ NPO allocates donations, investments, grants (D, F, UK, CH, U.S., Mid-East)

to the various project modules managed by the operational subsidiary

▪ Comprehensive solution for aquatic plants (Hyacinth, Hippogras) invasion, control, disposal

▪ by using environmentally sustainable methods ▪ Promotion of income generating activities to local youth and woman groups ▪ Medical health care referring to diseases connected with Lake climate,

pollution and Water Hyacinth Invasion ▪ Rescue Services to fishermen ▪ Investment in and promotion of recycling activities and production of

alternative commodities (encouraging of local entrepreneurship)

Scopes


Governance

▪ Patronage H.R.H. Prince Inigo of Lithuania, Prince of Urach, Count of Württemberg !

▪ Non-Executive Board (Ethics and Strategy): Bishop Martin Kivuva Musonde (Catholic Church of Kenya) Archbishop Walter Obare (Evangelical Lutheran Church in Kenya) Imam Abdullatif A. Sheikh (Coordinator, Kenya Council of Imams and

Ulamaa) !!

▪ Executive Board (Management and Operations): Dr. Rainer von Echlin (Switzerland), Chairman Konrad J. Münch (Kenya), Secretary & CEO Najma Osman (Kenya), COO Samuel Githinji (Kenya), Treasurer (for biographies cf. Appendix) !!!


Branch office

Headquarter

Headquarter Operations

Branch offices planned: Slovakia, UK, F, Norway Tanzania, Uganda, USA

Branch offices: Germany, Kenya

Headquarter: Switzerland

Headquarter Operations: Kenya

OPS

OPSOPS

Introduction – present and future network


Local Communities

SAVE THE LAKE FOUNDATION

International

PPP

SERVICES

!Fundraising, Investments

& Operations

Management

PPP (Public Private Partnership) with Kenya State Maritime and Fisheries Research Institute (KMFRI) leads to ▪ Better Coordination with local governmental entities ▪ Support when dealing with Uganda and Tanzania state organisations ▪ Further ancillary investments in medical, SAR, feeds, fertilizer facilities ▪ Renewed motivation of general public after mediatised failures by other (supranat‘l)

projects

KMFRI

PPP

SERVICES

▪ Scientific guidance & advice ▪ Advice and notice on further

possible environmental issues on the Lake

▪ Support on the ground ▪ Research and development ▪ Assistance to expand activities

GovernmentSAVE THE LAKE FOUNDATION Kenya


Money


!Timeline 2010 started out with our money (3 families pitching in) 2011 test phase 2012 governmental approved as the prioritized solution 2013 Donations by Family Offices in Switzerland and Germany 2014 have been requested to help in Ghana, Ivory Coast, Madagascar, India… Also: cleaning plus removal of non-biodegradables in Nairobi and Haiti !Present and Future ? Retail donations: TV ads begging for money ? ? Grants: are a U.S. profitable industry („Grants writing for Dummies“) (Later) Supranationals : large 500m projects, 3 year planning, sometimes conflicting

set of objectives; we want to keep independence !=> Larger donations from Family Offices, HNWI etc. => Corporate social responsibility !Straight donation: potentially de-motivating locals & government assistance Equity: distortion in favour of investor, can compromise the delicate balance of

stakeholders Bonds: advantages for investor (re-use of funds) and recipients (stability, motivation)


!Overall Structure (“business” model) !

Philanthropic DonorsPhilanthropic Investors Supranational Grants

SERVICES

Project Unit/Site A

Project Unit/Site B

Project Unit/Site C etc.

Return of 5% of sales rel. to investment

Economic Return + Environmental Return (per unit/p.m. + Social Return 5% stable return 60 tons fertiliser for disadvantaged farmers Jobs for 50 families p. unit 2 sqkm lake cleaned p.m. revived fishery improved nutrition

Fish Feed+ Biofertiliser, Sales at cost + 5%

Local Distribution Cooperatives Processing, refining, packaging, distributing

local marketsProfessional Agric. / Aquaculture

harvesting pre-processing machinery composting

SAVE THE LAKE FOUNDATION


!Social Bond Proposition !

▪ “Impact first” but you actually get your money back ▪ Alignment of interest creates effectiveness (“FAO money” is free, hence wasted) ▪ therefore corruption free !

▪ Capital Round 2014 target 25 m EUR ▪ Use: create additional 20 modular units Kenya + Tanzania, create larger composting

unit ▪ Minimum Investment 50 Mio Kenyan Shilling (= about 400kEUR or 550k USD or 350k GBP) ▪ Transfers below should be donations ▪ Denomination : GBP, EUR ▪ Administered in UK law-style in Kenya (collaboration with Speechly Bircham LLP, LDN) ▪ “marketable” in EU through “passporting” from UK !▪ Loan period and interest schedule

5 years 5% p.a. 7 years 6% p.a.

▪ Interest can be retained until maturity – Sharia compliant version ▪ No taxes (on interest or capital) in Kenya, UK treatment depending on current debate in

Lower House, EU treatment country dependent


Thank you


!Contact !

e-mail [email protected] web www.save-the-lake.org Facebook https://www.facebook.com/pages/SAVE-the-LAKE-Foundation/655800007778413

!▪ Save the Lake Foundation Kenya (registered charitable organization) P. O. Box 42493 00100, Nairobi - Kenya office: +254 20 217 02 74 fax: +254 20 217 02 72 !▪ Save the Lake Foundation Switzerland (registered charitable organization) Forchaldstrasse 16, 6318 Walchwil, Switzerland office: + 41 44 586 2029 !▪ Save the Lake Foundation Germany (registered charitable organization) c/o Stb Wuerstl, Heilbronner Str. 43, 70191 Stuttgart, Germany office: + 49 711 252 65 44 11 !!

mailto:[email protected]

http://www.save-the-lake.org/

https://www.facebook.com/pages/SAVE-the-LAKE-Foundation/655800007778413

Download - TBLI CONFERENCE™ NORDIC 2014 - Philanthropy Investing - Rainer von Echlin - Save The Lake

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