Goodbye Rwanda…


Two months have passed and I’m sitting in the lounge at the Hotel Serena drinking a decent cappuccino while Nancy is preparing for New York City by having a two hour spa facial and sports massage. We started the morning with a spectacular Serena breakfast buffet while meeting with the academic director of the OB/GYN program here in Kigali. Nancy then went to the gym and the crystal blue, doubly water-purified pool while I finished packing. We arrive back in New York City noon on Sunday and around 8 o’clock on Monday, Nancy reports back to work. That’s why it seemed appropriate to spend our last day in the five star, number one hotel here in the capital. Yesterday, when we arrived, however, we had a difficult time making it to the hotel, because the Rwandan President, Paul Kagame was here for the “Smart IT “conference; his security platoon had closed all the streets in the area. The contrast to Butare, where we have spent the last 2 months, and  the US is overwhelming. This is Rwanda, where a full-time, 12-hour-a-day housekeeper/cook/ laundress is paid $50 a month (19 cents an hour) by a well-off Rwandan , $100 a month (39 cents) by a generous American, and where a mid-level administrator, working for a government program, makes $700 a month ($3.50 per hour). I was discussing pay scales with a newly arrived US doctor, here for 2 months and being paid by his practice group on the east coast. He thought he shouldn’t pay more than $35 monthly because that’s what the Rwandans paid their help. I pointed out that he was being paid more per hour than he intended to pay all three of his employees in a month.

The point of all this is quite simple, Hotel Serena, at $470 a night with dinner at $75 for 2 (with 2 glasses of wine), with all the services that you would expect from a five-star hotel, is the perfect transition to 20 hours from now when we will be back in Manhattan. This is really quite a hotel, owned by the Kenyans  and part of a chain of 32 high-end hotels and safari camps here in East Africa and in Southern Asia, Our hotel caters to wealthy African businessmen (who pay the special corporate rate) and 30-something adventurers, mostly guys who are stopping here before going to see the gorillas. They have probably seen the Serengeti, they may even have tented in South Africa, but they are easily identifiable. For some reason, they think that wearing printed T-shirts and Bermuda shorts with flip-flops is how to dress for dinner. The wonder is that the safaris they have booked range in price from $6000-$12,000 a person. If I had that kind of money to travel, I think I might don a dinner jacket… oh wait, that was the last century or maybe even the turn of the one before!

So I sit here in the lounge, while Nancy is being pampered, watching the afternoon sky turn gray. When I started writing this, it was so hot and sunny that I chose to sit inside, but now it’s obvious that the torrential rains will begin again, and last till 7 or 8 o’clock… it is rainy season, you know. If asked to summarize Rwanda, I would have to say that it is an impossible situation, waiting for—and strongly believing in—miracles.It is simplistic to say that there are too many people and not enough resources to produce any kind of respectable GNP. Skyscrapers and shopping complexes rise in Kigali, government buildings are everywhere…it looks like a medium-sized American city downtown, but in the immediately surrounding areas, there are mud-brick houses, pit toilets and children carrying yellow jerry cans of water from nearby wells (still, better than the rural areas where wells are few and muddy streams supply the water source). This is a country that has decided that IT is part of the answer, but whose Internet is a 3.5 G or 3.75 G cellular network …a country that is rolling out 4.0LTE, but only in limited areas and at an unimaginably high price for the average citizen ($200 a month), a country that is excited by Korean fiber optics—but whose electric power is unreliable in the big cities and even more limited in most rural areas.  Read the English-language newspapers and follow the reports of the commissions and conferences on medicine and IT and infrastructure development, and you’ll hear all the right things being said. Remember the visits and dreams of Howard Buffett, (Warren’s son), Bill Gates and Bill Clinton were all scaled back because of the realities in Rwanda. Read the shocking story of the entrepreneur who developed the UTC, a shopping complex of 80 businesses, as reported by the PR Newswire: ‎On 13 Jan 2014 UTC ceased to exist as private enterprise. The USD20million shopping mall was henceforth seized by government without compensation and without due legal process. Government’s Commission of the Abandoned Properties took direct control by installing its own managing director. Government justifies this nationalisation without compensation with claims that UTC is ‘an abandoned property’ because the company’s shareholder resides outside Rwanda. But shareholders of most leading companies in Rwanda, including BRALIRWA (Rwanda major brewer and bottler), MTN (largest cellular and internet provider), and Kenya Commercial Bank  live outside Rwanda. The real motivation for illegal seizure of UTC therefore remains mysterious and troubling for a country that has invested heavily in its reputation as serious investment destination.

Rwandan who become your friends will not talk about the problems—there are no problems… we are left to wait to see if the constitution is changed under the new Senate president so that the president is able to run for another term.

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JUST PICTURES… YOU MAKE THE STORY


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WEEKS TWO AND THREE BRING A RACE TO BEAT THE RAINS


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Remember, brick, that thou art dirt, and to dirt thou shalt return.

Rwanda has the most amazing weather: it’s in the high 70’s and low 80’s all year round. We are very near the equator, so the sun has risen by 6am and set by 6pm. There are two rainy seasons—the major one from March to May, and the minor from mid- September to November, and two corresponding dry seasons, major from June to mid- September and minor, from December to February . The farmers count on this and plant accordingly. The problem is… it isn’t true! Whites say knowingly “global warming” but a wise older Rwandan told me “it’s been happening for twenty years… it started with the itsembabwoko n’ itsembatsemba”. Building a house in August and early September seemed like a good idea, at least until this year’s torrential rains in the first week of September. We were fortunate—all our blocks were up and the roof was on before the rains began.  Claude’s neighbor was not so lucky:  he hadn’t started construction in time and the blocks began to disintegrate. It’s not a big worry; they can simply be recycled into new blocks during the next dry season.

Roll your mouse over pictures to see captions, double click to  see slide show.

 

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Meredith and Chris’ roof in Stebbing

Weeks two and three bring amazing results. Just like in the USA, specialized subcontractors are used. The two roofers worked alone, converting $125 worth of trees into the rafters supporting the metal roof. There are three kinds of roofs in village construction:  thatched roofs like Meredith’s home in England, fired clay tiles for the wealthy and metal roofs for everyone else. The metal comes in plain steel, painted steel or painted, stamped steel made to look like exaggerated shingles (my favorite). Thatch was wisely outlawed because of its fire hazard (I’ve yet to see a fire truck). The next step is to cover the blocks with mud stucco, a line of defense against the rains.  For many this is where it ends, a tin roof, mud stucco walls and a dirt floor. Not for Claude’s mother!

A mixture of dirt, sand and cement is used to coat the walls giving a smooth, waterproof  finish that will double the life expectancy of the house, some say up to 50 years. The third week ends with the used windows re-glazed and painted bright green to match the recycled heavy duty front door. Behind the house a 15′ deep pit toilet was dug and a combination (3 separate rooms) toilet, bathroom and kitchen. Water is drawn from the Stream at the bottom of the hill that supplies the rice patties. It is where the neighbors congregate to do their laundry. The  light weight plastic jerrycan makes it possible for the children to fetch the water.

 

 

 

 

 

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HOW TO BUILD HOUSE FOR CLAUDE’S MOTHER IN 3 WEEKS


1-DSCN0275BACKGROUND A year ago, Nancy and I moved into Einstein House in Butare, Rwanda to begin a two month experiment in living and working in Africa. Nancy would be teaching at CHUB (University Teaching Hospital of Butare) and I would be spending the days exploring Butare, getting to know people and customs of  the area. Language would be the first challenge. Kinyarwanda, French, and English are the official languages of Rwanda. Since the 1994 genocide, the complications of relations with the current French government, the return of numerous Tutsi refugees who went to Uganda (English speaking), and also the intervention of the United States, English has been used by more of the population and administration. In 2008 the government changed the medium of education from French to English. (thus spake Wikipedia). In six years, the entire population, including the teachers, had to learn a new language complicated by a limited vocabulary, particularly in any technology ( they use technology, they just don’t know the English words) and their polite and agreeable custom of saying “YES”. The tourist quickly asks a question and hears “YES”; the tourist goes away with the wrong impression and the Rwandan is still trying to understand what they were talking about. All of this is to explain why I go to the trouble to ask repeatedly and then research on the Internet what I say here. I also re-read these posts and add the most current and correct information I have.

THE STORY We met Jean Claude when we first got to Butare.  He was part of our 3 person staff. Geraldine was our housekeeper, cook and laundress, Higiro was our 12 hour night guard, and Claude was our day guard and gatekeeper… literally, because he had the key to the front gate (part of the 6-foot broken glass-studded masonry wall that surrounded the house). To me, he was essential… he was the only one who spoke English. Nancy had no problem, because all three spoke French. We spent the day touring the city and meeting the craftsmen and service providers who helped us keep the house going. I met his mother, their three goats and saw the house in which they lived, 45 minutes away from our house. The neighborhood was not the best, but it was near a Genocide Memorial in the cemetery, where his father was buried twenty years ago. Claude had two dreams, to build a house for himself and his mother, and to start a business of his own. The business revolved around selling food and he was convinced that I could supply him the ideas and recipes for American fast food.

Things did not go well for him after we left. He did not get along well with the doctor who replaced us, and was fired. In Rwanda, it is easy for someone like Claude to get a job… the trick is getting paid in a timely fashion. I learned how to “Western Union” him money, first $150 for more goats (part of the food business) and then$150 to make the bricks for his new house. When we returned to Butare this year, the first person to greet us was Claude, whom I hired for 45,000 Rwandan francs ($64) a month to be my guide and companion. Claude had a better idea… I should help him build the house. Needless to say, each couple of days just one more payment was needed… in the end we have invested $1500. For the cost of 2 nights of dinner and theater in New York we have changed life for Claude and his mother… they are no longer renters, they have a home of their own, on land given by the government.

HOW TO BUILD If you have the good fortune of building on the hillside, the earth you remove to create a flat building site becomes the material for your mud bricks. Amazingly, there are some great videos of this on YouTube. (www.youtube.com/watch?v=Ahx2wp7obv0)

1-DSCN0294One man, with the help of another to fetch water from a nearby stream and a third to dig the soil, can produce 200 bricks a day, a little smaller than our concrete blocks. Grass is added to the mud mixture to hold the bricks together (some groups use straw) and then they are allowed to dry.

Once the site is leveled and the bricks are dried, the construction goes quickly. Claude hired 5 builders and 5 helpers, supervised by his mother.

 

 

 

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Back for a second year


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Elizabeth Wood and Meredith Atkinson-Wood

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The bride and her maids

We are back in Rwanda for a second year, having spent the last two weeks of July in Denmark and England—Denmark, to visit with our daughter Elizabeth, and England, to celebrate the wedding of our daughter Meredith to Christopher Atkinson on Lundy Island, but that’s a story for another blog. We spent the night before going to the island at the delightful country manor that Meredith and Chris found for us, beachboroughcountryhouse.co.uk.   At breakfast were David III, his fiancé Audrey, and their four children; Will and Deb and their two children; Elizabeth and her friend Pat Tomaino and Emily Hacala, Meredith’s lifelong friend, with a chandelier, silver and linens.  It was like a scene from Downton Abbey.

Off, the island, nuptials completed, it was back to New York City on the 26th, unpack, launder, a bit of work, repack and off on our 14 hour flight to Kigali, Rwanda on the 29th. Two days to adjust and do paperwork and then to Butare and our second home “Einstein House” which this time only needed the glass in the front door replaced, one hot water heater and the microwave oven repaired and six new overhead light bulbs. Not bad for a year of waiting for action.  I’ve lived in New York too long not to know that you do it and then deduct it!

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Day 4 of construction on Claude’s house.

Nancy is back at the CHUB hospital and is not the lone expat in GO (gynecologie/obstetrique) this year because she has been joined by a HRH generalist ob/gyn sponsored by Yale whom she really enjoys working with, Catherine Kress, and by a year-long veteran Maternal-fetal medicine specialist, George Gilson, who arrived at the end of last year . I will post some of her letters home to the family, because she tells it best. During the next two months I am going to concentrate on expanding and correcting some of my observations from last year, and add a couple new adventures, like building a house for and with Jean Claude and his mother. Claude was the “day guard” last year at Einstein House and we became good friends. We spend the days touring the Butare and meeting the craftsman who make  furniture and metal objects. He has many friends and was always able to find just the right person to deal with our “house problems”. We continued to email each other and I got involved in financing this house, but more on that later.

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The Story of the Cow and the Baby


Let me first say that all these stories are based on repeating what local residents have told me. I 1-IMG_0232do not speak Kinyarwandan or French and they barely speak English. The added problem is that Rwandans are the most gracious and agreeable people, and would do nothing to upset or contradict me. Think of these stories as the most wonderful fantasies of an old man, documented by photographs.

We have a neighbor who lives at the end of our street in what looks, for all the world, like a deserted, ramshackle building… perhaps a former school or office. It is, in fact, home to her and her extended family. It sits next to what I have called in the past the cow field. It is located behind the municipal building where the drummers for Jesus drum, the dancers rehearse their dances, the preachers preach, and the politicians draw crowds for the elections. What sets this home apart, in the middle of our little downtown, is the fact that they have a cow—a beautiful, healthy brown cow—that seems1-IMG_0204 to be given free rein to wander through the field and the yards outside of our neighbors’ walls (We all live behind six-foot high walls with either embedded broken glass or barbed wire running across the top.  Although most likely constructed to prevent petty thefts, the barriers evoke in us unsettling images of the genocide where 220,000 people died here in Butare 20 years ago).

Two years ago, our neighbor was walking by the hospital in the early morning. She saw a cardboard box alongside the road, and curious, she went over and opened it. Inside was a very healthy newborn baby. Rwandans have great respect for governmental wisdom and authority, so of course she took the baby to the District Office.

The District Office contacted the Sisters of the Mother of Good Council who, besides running one of the best hotels and restaurants in Butare (Centre d’Accueil Mater Boni garden_mbcConsilii), also care for orphans. This is the part of the story that I’m not a hundred percent sure of, but I was told that the nuns said to the woman “if you will raise the child, we will supply the money for her clothes and food”. Then the district stepped in and agreed to give the lady a cow to provide milk for the child. Yesterday, I was introduced to the child by her older brother and sister and was allowed to take pictures of her. I had taken pictures of cow at an earlier time, and I will add to this blog pictures of the District Office and the sisters’ hotel (where my friends from Matar Supermarket sent me for a really wonderful dinner).

1-IMG_0229When my daughter Elizabeth reads this blog, I hope she imagines the wonderful set of drawings that can be added to the story, to make it a perfect children’s book. Who knows?—At 72, I could become an author and book publisher (one of my earliest dreams).

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Metalworking is a talent that has always intrigued me. The ability to take metal in solid or sheet form and, by hammering, forging, heating, cutting, welding and riveting, to create 13-DSC_0015objects both useful and beautiful is something special to watch unfold. I’m reminded of the tours of Rose Ornamental Iron Works in Cleveland where German craftsman carried on the tradition of decorative wrought iron. For a craftsman the most important ingredients are a creative imagination, a developed talent, and a ready supply of raw materials… Imagine Michelangelo with no access to marble.

Rwandan craftsmen are no different. In the Butare there are no distributors of sheet 10-DSC_0012metal or bar stock but new construction in the housing industry supplies metal roofing scraps. The world is awash in 55 gallon drums that have outlived their usefulness. Broken leaf springs from trucks supply

bar stock. So working backward, we now have the ready supply of raw material—now what needed is the talented group of craftsmen. As I explained in an earlier post, all you need in the beginning is one really talented craftsperson, who can train any willing worker in the steps it takes to make the final product. Some workers will master one facet, and be happy doing that the rest of their life. Others will progress through all the steps and eventually be the talented craftsperson who can train new generations. This shop is run by a businessman, who knows his market well. The couple of times that I have visited, it seems that he has three major products. The first is a range of brightly painted metal boxes. They range in size from that of a small carry-on suitcase to a full-size steamer trunk. The most popular colors seem to 09-DSC_0011be red and blue. The second product is a large wok-like cooking vessel forged out of the bottom of those 55 gallon drums. (I include a photograph of myself making one of these woks, proving that anyone can be taught14-DSC_0016 one step in the production line. Note the finished blue boxes in the back-ground.) The third is a welded carrying rack for bicycles. So in this case, the creative imagination comes from the businessman who sees products that are needed, designs them around his limited availability of raw materials, and uses bright colors to distinguish them in the marketplace. This is the beginning of a real industry. What is needed now is national distribution of a product that the shop manufactures.

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A Lazy Saturday Evening …


I have been taking pictures on and off the whole time, but I must admit I am self-conscious about photographing people. It comes from spending too many years with the Amish who do not allow photography. I will walk down the street and say “Boy, I should take a picture of that for so-and-so” but when I come back with the camera, the moment is gone.

So today I will begin my Saturday Evening Posts. Don’t worry, I have five more weeks to include everyone.

THE SATURDAY EVENING POST

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This is for my faithful New York City trainer Moses who spends every Monday and Friday morning with me. I know he was concerned that I would not find a workout facility here in Butare. Well, Moses, here it is! I don’t want you to think that I’ve joined, or even have gone in. I have to tell you that my diet (cereal and fruit for breakfast, little lunch, and fish or chicken plus a vegetable and starch for dinner) plus  walking everywhere has helped me lose 10 pounds.  Nancy has found her match in punning… I hope they are puns.

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Do not despair, son William, there is life after Williamsburg, Brooklyn, New York. After having watched the National Geographic shows on Africa, the thing that was immediately noticeably missing from Rwanda were beasts of burden. I have yet to see a donkey, an oxcart, a team of anything plowing the fields. The fields are plowed with tractors, and the smaller plots by teams of people with hoes. But William, the bicycle is King. The story goes that when the coffee co-ops were started, there immediately arose the problem of how to move the beans from the farmer to the washing stations to the drying and packing facilities. An inventive Belgian came up with the solution:  take old bicycles, extend the frame and build a carrying rack on the back.  You can then load this with up to 200 pounds of stuff, up to 6 feet high. The most impressive loads are plastic crates of 24 soft drink bottles, up to 8 of them. To move the goods, you walk alongside the bicycle, sometimes one person, sometimes two. So Will, instead of NYC bikes.com, it could be Butarebikes and you could send over container loads of old bicycles that you would have modified here, by our very competent Rwandan welding shops.

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Sister Kathy, salvation is possible here in Butare. This is the very impressive Cathedral that was built in the early 1930s to honor Queen Astrid, the 29-year-old Swedish wife of Belgium’s King Leopold III.  She died in an unfortunate car accident when she was 29 years old. It is the largest church in all of Rwanda. The mix of religions here is interesting. The best figures that I could find were from 2001 and do not represent the current state of a shift to evangelical and Adventist churches. The breakdown seems to be Roman Catholics 56%, Protestants 26%, Adventist 12%, and Muslim, growing from 6% and growing. The second Saturday I was here, I followed the crowd to the cathedral where I found the most impressive solemn High Mass in progress. Officiating was the Bishop, I think, and 3 or 4 priests, as well as assorted deacons and acolytes. The 30 person choir was accompanied by European pump organ like the one Andy Froelich had in his basement. In true 21st century style, it was amplified to fill the cathedral. There had to be 1000 people in attendance, and at least 300 listening from outside. I wish I knew what the occasion was on that Saturday morning.

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Small Business Rwanda vs Ohio (USA state)


I had an interesting talk the other day with an European national who has a business here in Rwanda. “The problem with Rwanda” he said, “is that there is no entrepreneur-ship. The drive for personal success that is present in America and Europe just doesn’t exist in Africa”. As I sat in my gated compound, drinking French press coffee, the argument seemed compelling. I was brought back to reality by my daughter, who has spent time in Ghana and Liberia. Her comment was “I heard this argument time and again, everywhere I traveled in Africa, and it’s just not true. If you’re looking for the cause of the conditions your European friend bemoans, look at the lack of capital for entrepreneurs.”

23-DSC_0029This got me thinking. I have spent most of my life as an entrepreneur. I started and ran five different businesses during that time. It began with an art gallery in Washington, DC, when I was 19. Next was a small cabinet shop in Cleveland that sold to the store I was working for (Immerman’s Shelf Shop), and when I was fired from Immerman’s, it became my sole source of income. The cabinet shop grew into a retail store, Design Union, with six different locations over a 45 year span. My pride and joy was Holmes County Chair Company, which started 40 years ago to supply Design Union. It grew into a $7 million business supplying retail stores across the United States,  with never more than 17 employees. Then there was Baker Wood Machinery and Supply, selling to the Amish machinery from Italy and Germany that we converted to hydraulic drive because of their distrust of electricity. I unquestionably ran a series of small entrepreneurial businesses. Each of these startups were personally financed, relying on the generosity of my family and friends, an occasional friendly local banker, and my physician wife. There were bank loans involved, but only when the businesses became successful, and always guaranteed by my personal real estate (read that:  my home). What about the Small Business Administration, you say, didn’t you apply there for a loan? Small business accounts for 60% of the businesses in the United States, but to quote Doug Naidus, CEO of World Business Lenders, from his editorial in Forbes magazine “Small businesses typically look for financing in relatively low amounts – “micro-loans.” They need $100,000 or $50,000 and, sometimes, only $10,000. These loan amounts are too small for most banks to underwrite cost efficiently. Based on the SBA’s own data, the average loan amount of the top 100 SBA lenders in FY 2012 was more than $355,000. The largest SBA lender in 2012 had an average loan size of $390,000. It appears that the agency is primarily financing medium to large companies, not small businesses.” I agree wholeheartedly with Doug’s statements,  particularly his claim that the agency is primarily financing medium to large companies.  To understand why, we need only to understand what the SBA thinks a small business is. Let’s look at Holmes County Chair— at its peak, it employed 17 people. Now, let’s look at the SBA guidelines for small businesses. The first column is the numerical index, the second is the description of what the business makes, the third number, the 500, is the number of employees you can have—and still be considered a small business.

337121    Upholstered Household Furniture Manufacturing                       500

337122   Nonupholstered Wood Household Furniture Manufacturing     500

If Holmes County Chair had 500 employees and continued at the same level of production, we would have had sales of over $203 million a year and still have qualified as a small business! When Stanley Furniture closed its US production facilities, it had 525 employees. Just think, Stanley Furniture, with sales of $98 million a year and gross profits in excess of $30 million could have been financed by bank loans guaranteed by US taxpayers if it had fired 25 people. [But don’t worry, Stanley wouldn’t have qualified for an SBA loan, because they were a public corporation].

So what’s your point, David, and what has this got to do with entrepreneurship in Rwanda? Rwanda has a population of 11.6 million, Butare 89 thousand. Ohio has a population of 11.5 million and Holmes and Coshocton  (the Amish counties) 75 thousand. When I came to Holmes County in 1970, the Amish homes were heated with wood stoves or basement coal furnaces with the heat being distributed by gravity. Cooking was done using wood or coal, pumps were still present in kitchens for water, and some outhouses were still in use. The distance from Holmes County to Cleveland is about the same as the distance from Butare to Kigali and the differences are just as stark. Of the four workshops I used before I opened my factory, only one was full time. Two were farmers and one was involved in the business of distributing wood stoves (financed by his father). The irony is that to the outside world, these people seemed like simple, if hard-working, dairy farmers with no entrepreneurial spirit. The reality was that they had created a myriad of family-based businesses to supply to the needs of their own community.

The more I get to know Butare, the more I see the same thing here. The marketplace is filled with little 400 square-foot shops that sell, in very specialized selections, just about everything that you would need for daily life here. The real wonder is in the craft areas.04-DSC_0006 You will find larger buildings that concentrate on specific skills:  cabinetmakers, tinsmiths, metal workers, plus butchers of cows, goats and chickens. Without question, this community is more than self-sufficient. So what’s the next step? What will it take for this area to reach  the point that it can supply a national or international market?

A Simple plan. Success in business takes capital, know-how, and experience. In the United States, entrepreneurs can gain know-how and experience by joining a franchise (like doctors owning Burger Kings). In the Third World, and I include Holmes County of the early 1970s, there is another model that has worked very well. A trusted outsider comes and opens a business in which he has expertise and the capital to operate successfully. He already has a market for the goods. He employs modern techniques and machinery and he is willing to train young local people. He sets up a network of local suppliers for his materials. So what happens? Let’s start with the local suppliers. As I walk through the craft area of the market, I found one shop that seemed to be planing wood. He gets his materials from local and Congolese sawmills. You could show him that he would add value to his product by not only planing the wood but by gluing it up into panels to be used for tabletops and cabinet components. You know what his product is worth, but you let him develop what he feels is a fair price, based on the volume you’re willing to give him. In the meantime, in your factory, your ten employees are learning  valuable lessons, on how to manufacture a product. You might take some with you on buying and sales trips, where they learn sales and negotiation skills. So you’ve developed a set of suppliers who produce products that make it easier to make finished goods, and you train people in your factory on how to make those finished goods. As your area becomes better known for its high quality, predictability and availability of products, agents will appear, willing to sell these goods into other markets. Now comes the crucial step:  you have employees from the factory who are interested in starting their own businesses, you have suppliers that are willing to sell them the subassemblies that make this possible, you have the know-how and experience, now all you need is capital. Well, Bill Gates, Warren Buffett, Michael Dell, and Ken Langone, no one knows venture-capital better than you guys. Here’s your chance to change the world, and to make money doing it. The one last supply needed is capital. Not big SBA type loans, not grants or charity 05-DSC_0007gifts. We need creative, understandable, business financing. In the big city, we call it factoring, or receivables financing… understandable amounts of working capital that have specific methods of being paid back. As for the capital for buildings and machinery, this could take the form of leases, allowing the entrepreneur to know exactly what he had to make each month to break even. The last step would be the establishment of a local bookkeeping service that would be requirement to those desiring loans. Brilliant hard-working craftsmen can be buried in a myriad of tax regulations,  invoicing and receivable management. So what is the result of this plan in my experience? Holmes County now has over 300 woodworking manufacturers, ranging from father-son operations to 150 employee establishments. It hosts four major furniture shows a year for retailers from across the country. It is, without question, an entrepreneurial success. This could be Rwanda in 10 years.

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Lets Catch Up…


Shamefully, I realize that it’s been almost 2 weeks since my last post. It’s been a combination of things. I began to realize that the language barrier is keeping me from really understanding what’s going on around me. I commented earlier on the Chinese engineers putting in the electrical system, only to find out that the electrical system is being done by the Koreans. The sign that I presumed was referring to the electrical infrastructure was actually about the roads, which the Chinese are doing. And if I understood my Lebanese friend at the Matar Market correctly, the Japanese are doing the water and sewer systems. (And by doing,  I mean they are working on the planning and finance in cooperation with the federal government, while the labor is being done by the Rwandan crews.) The streetlight project, started by the Belgians, continues throughout the city. There is something special about a dirt road leading to the one paved National Road being lighted by the most modern means.  Nancy particularly likes the vaguely Nouveau form of the arabesques at the top of the stanchions.

As a former retailer, I always ask “How’s business?” and got an answer I didn’t expect from my friend at the Matar Market and Cheers Coffee & Fast Food. “Not so good”… and then begin the sad retail story of a money-losing expansion into Kigali (a beautiful store, including a bakery, in the perfect part of town with parking for 10 cars out front) and the continuing urban renewal of Butare/Huye. Matar is a single-story stucco building on the National Road in the center of town. In December, it will be torn down and replaced by a three-story building. Three-story structures seems to be the new trend in inner city building, allowing for three floors of retail. I have to say, that except for the block long strip that Nancy and I call “urban renewal” (you know, where I learned to be a shoemaker) all the storefronts seem to be occupied. I know that we have declared that next to coffee, tourism is the most important source of income, but I’m not sure these three-story modern buildings are what tourists are looking for. Anyway, my friend is moving to back to Lebanon, getting married to his fiancée, and following her to Qatar, where she has a good job. He will be missed by the expats because of his excellent command of French and English. In the 15 years that he is been here, he’s also mastered Kinyarwandan.

My second pressure has been the report that has been due on my Internship. I spent the last year and a half taking a program at New York University towards Certification as Fine Arts Appraiser. Because these are adult education programs, the University is very liberal about when final papers have to be turned in, offering up to a year in most cases. Then I learned, just before leaving for Rwanda, that my tutor was leaving the AAA in September, and returning to her primary passion, Fine Art Photography. Now the pressure was really on. The good news… yesterday I emailed the paper at 9 o’clock our time (3PM in NYC) and she got it, thanks to Rwandan Internet.

So now I have the time to post, and will continue posting more regularly.

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