An idea for a business, (especially for Afghanistan)

[Abdul-Hadi]

Greetings and Peace, all 

The idea is to build propane powered appliances in Afghanistan. Refrigerators would be a good start, but chest freezers, air conditioners, and other appliances could follow.

Why this idea? Electricity is not currently reliable/available in all places in Afghanistan--but propane is abundant and inexpensive. Refrigeration will decrease waste and increase food safety. It will create jobs and allow more business. Building in Afghanistan will create jobs and manufacture affordable appliances close to the customers. Even though it is intended that this business would pay more than the typical wage expected for this type of business in Afghanistan, even doubling the going rate will cost far less to manufacture locally than it would to build and ship from elsewhere.

If memory serves, the going price for a "standard" fridge in Afghanistan is about $360 US. With economies of scale, a dedicated manufacturing plant in Kabul could probably turn out finished products for less than $300 US. There are about 30 million people living in Afghanistan. If just 1% of the population buys a fridge each year, that is 300,000 customers! With a $50 markup per unit, a factory costing 5 million US dollars could return $15 million each year after all costs! Sell more, make more.

In order to combat corruption from interfering with business, I propose a twofold strategy.

1. Sell partnership in the business to officials who might otherwise interfere. If they buy into the business, they won't interfere because it will destroy their earnings--and draw the ire of other (potentially powerful) investors.

2. The business should donate generously through religious institutions. If a politician interferes (and thus disrupts the donations) the religious institutions would create such an outcry that not even the highest politicians in the land could withstand it.

In order for the business to be secure, I propose the following strategy:

1. The business should be located in a more secure area, such as Kabul. This is also necessary for the workforce and for the availability of electricity.

2. The workers will be paid through an Islamic bank--not in cash at the factory. The bank will create many new accounts through the employees, and will likely own part of the factory. The bank will provide interest free loans to qualified customers to buy appliances--the customer pays a little money up front for the appliance (they take the appliance home), and pay a little money each week or month until the appliance is paid for in full. As the business does well, the bank will also do well. Here is an example: the bank owns 1/5 of the business. Many would-be customers can't afford to outright buy a $360 fridge. The bank loans (with no interest!!!) $310 (the buyer paid $50 down) and the buyer pays the bank back $10 a week to buy the fridge. More refrigerators are sold. The bank has not only created a giant customer base, but it has also made a lot of money off of the appliances--not off of servicing loans/interest. It is a win/win situation that doesn't take advantage of anyone. 

3. The business will be owned and operated by Afghans, not foreigners. It would only exacerbate security problems for, say, an American to run the show. Whoever runs it has to live locally anyway.

Problems (technical and otherwise):

1. How much will altitude effect refrigeration? (Research)

2. How to set up the factory to transition to make electrical appliances if ISA the electrical system in Afghanistan improves. (Plan ahead and use experts)

3. How to protect the investors if the government nationalizes the business. (Make the money back fast!)

4. Which products first and how much? Can the factory meet demand? If not, what about competition?

5. How many investors, and for how much?

Benefits of this idea:

1. It creates jobs. Building the factory, supplying the factory (many small businesses would be created), transporting raw and finished goods to and from the factory, manufacturing the appliances, selling the appliances, repairing the appliances, providing fuel for the appliances, as well as the new businesses that the appliances would make available (restaurant, grocer, etc).

2. It produces a needed product.

3. It legitimately accumulates wealth that could be used for other beneficial projects. A plant manufacturing ammonia would be an excellent start (fertilizer for farms, industrial explosive for mining, raw materials for other processes). A business creating fine marble products would be another idea. Afghanistan has some of the world's finest marble--but a lot of it is made into bulk inexpensive products. With investment, statues, fireplace mantles and a plethora of other products could be manufactured and marketed worldwide.

Examples of marble products and retail prices: http://www.italianmarble.com/

4. It helps to stabilize the financial structure in ways other than job creation. As the banks grow in legitimacy, they can help start other businesses.

Other thoughts:

Experts (probably will be non-Afghan) should plan the factory and help it get set up.

There are other neighboring countries that could manufacture--but it would help Afghanistan the most to do it locally.

The supply situation will solve itself. People WILL beat a path to sell materials to the manufacturing plant. If copper coils are used, people will start making copper coils if the factory will buy them.

Land in Afghanistan is very expensive to buy--not very expensive to lease.

Until my family can raise money, I can do nothing except propose an idea, wait patiently, and refine a plan. Then again, I'm not in love with money. If anyone can use this idea--KEEPING WITH THE DEEN, may ALLAH see fit to grant what is best! Use the idea.

Please comment. If you are an Afghan, or from Afghanistan and interested in helping, your comments are especially desired.

May the Lord bless you and keep you.
May the Lord make his face to shine upon you, and be gracious to you.
May the Lord lift up his countenance upon you, and give you peace.



~Abdul-Hadi

[ephraim7]

Very interesting indeed have you seen some innovation taking place in African some of these ideas may help.
http://www.youtube.com/watch?v=zPcq4zBTPj0&feature=player_embedded

http://www.youtube.com/watch?v=K78nWZa4AHw&feature=player_embedded

[Abdul-Hadi]

Greetings and Peace, all 

I've seen the solar ovens; the light was a new one for me.

What Afghanistan really needs is some kudzu!  Seriously though, kudzu would probably do well in many places. Goats eat it, it has useful fibers, you can make jelly from the blossoms (or otherwise eat it)--and it sure does stop erosion! 

http://www.walterreeves.com/how-to-archive/how-to-grow-kudzu/

ALLAH knows best.



~Abdul-Hadi

[ephraim7]

Meet Yacouba Sawadogo

http://www.youtube.com/watch?v=QUAXBgYm1Ko

Yacouba Sawadogo, a peasant farmer from northern Burkina Faso in Africa, has succeeded where international agencies failed. Over the last twenty years he has become a pioneer in the fight against desertification and hunger. Yacouba's struggle is pure, inspiring drama. It is about one man's determined efforts that have the potential to benefit many thousands living in the Sahel region of Africa.

As early as the 1970's, the Sahel became a bleak land as a result of severe drought combined with overgrazing, poor land management, and overpopulation. By the 1980's the region, which once had a population of some 30 million, suffered from severe poverty and starvation. While many abandoned their traditional homelands, Yacouba decided to remain steadfast against the creeping desert.

The Man Who Stopped the Desert tells Yacouba's story, partly though dramatic reconstruction. As a young man, he fought the accepted wisdom of the traditional land chiefs who opposed his farming techniques. But Yacouba remained undaunted. Through the combination of his vast reforestation project and the adaptation of an ancient agricultural "zai" planting technique, his name is now synonymous with reversing the process of desertification and combating food shortages. Yacouba's work over a quarter century has resulted in the successful rehabilitation of farmland, the regrowth of forests, and the return of many to their homeland -- as well as praise from international organizations eager to learn more about his techniques.

[youssef4342]

Very nice ideas!
Praise be to God For Providing us with Thought producing Brains
Renewable energy anyone?
Wind power seems best to me. One interested in solar energy has to consider the prophecy that the earth might be enveloped in smoke (sura 44)

[Abdul-Hadi]

Greetings and Peace, all 

Very nice ideas!
Praise be to God For Providing us with Thought producing Brains
Renewable energy anyone?
Wind power seems best to me. One interested in solar energy has to consider the prophecy that the earth might be enveloped in smoke (sura 44)

Wind or solar might work for Afghanistan, but the oil/gas deposits won't be neglected for sure.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8979038/China-begins-scramble-for-Afghanistans-oil-reserves.html

Renewable energy is a laudable goal, but people can't freeze to death and industry stand still while we wait for all energy to be clean. This was the problem that the former Soviet Union faced with nuclear power. They knew that nuclear power as used wasn't safe, but they also knew that it was the only viable source of electrical power at the time. Without the unsafe power, millions of people would have been harmed for sure.

You know one thing that might really help renewable energy get a toe-hold? High petroleum prices! When gas prices go up and stay up, other energy sources become viable. It wouldn't be popular, but raising national taxes on gasoline makes a lot of sense. It increases government revenue--governments ALWAYS need more money. It stabilizes the price of gasoline--because people will only pay so much! It opens the doorway for serious renewable energy. It encourages efficiency and discourages waste--less fuel will be used because it is more expensive. Less fuel is imported, because less fuel is used. This helps with national debt, and weans importing countries from having to make political concessions to oil producing nations. The environmental impact is positive. Some concessions could be made for certain industries for a while, such as operators of "big rig" trucks--so that hardships won't occur. I know of some countries that raise most of their money off of fuel tax!

An excellent source for hydrocarbons for the world is methane clathrates. There are technical obstacles to overcome to harvest the clathrates, but ISA the obstacles will be overcome. I'm thinking that stabilized hydrogen peroxide is a better alternative to gasoline than hydrogen. <ramble ramble ramble>

I believe that eventually most all electrical power will come from geothermal, but it will require advances in nanotechnology (or other technology) to make it feasible worldwide.

Beg pardon if I went too far off topic. <blush>

The smoke sounds like the aftermath of a major volcanic eruption or meteor impact. 44:15 states that the smoke will be removed and humans will return, so it would seem that the smoke doesn't cause extinction of humans.

ALLAH knows best.



~Abdul-Hadi

[morninglight]

Peace.

As to having government officials take stakes in the business, I would think that that arrangement (with their obvious conflicts of interest) would tend to reinforce or perpetuate the corruption that makes it challenging to do business in some countries.

Considering that apparently popular religious group there and its legacy of oppressing and working so much harm to people, besides its influence from more than a generation of brutal bullying, I think it would be unwise to buy, bargain for, or have the success of any business endeavors dependent upon their support/approval.  Do consider the consequences of that bargain a Saud ancestor made for the support of a religious group.

Unless there is much local region demand, the contemplated marble products business would likely need either a rail system or a canal system to move the goods to a reasonably near waterway navigable to a seaport.

Peace.

[Abdul-Hadi]

Greetings and Peace, all 

@morninglight: You make valid points; do you have any suggestions? Something would have to be done to combat corruption...but what could it be?

Marble would be shipped by truck to Pakistan, and once in Pakistan expedited to a deep water port for  shipping to the international market. Did you note the high retail prices for finished marble products? Afghanistan has fine marble and willing artisans. The shipping costs for Afghan marble products is more than offset by the advantages of plentiful and inexpensive resources used to create the finished goods. If better infrastructure (rails, etc) come to Afghanistan, so much the better!

ALLAH knows best.



~Abdul-Hadi

[morninglight]

Peace.

The marble products on that website are lovely.  An Afghanistan marble goods operation could offer plenty more goods options with non-figural designs, no doubt more appealing to the large market for the simpler and the traditional Islamic tastes.

As for the larger question, what would it take to turn Afghanistan to its best potential, my sense tells me it is one of those circular quandaries.  I believe it would take a long time with a lot of "show and tell," for one thing.  It would take many of their youth having lengthy stays abroad in other Countries -- not necessarily but likely some Western Countries as host Countries -- Countries with government secular and democratic from fundamental egalitarian values; where, for having legal structures to effectively eliminate corruption, there is far less governmental corruption;  where, for having civil rights recognized and protected, all manner of diversity (such as ancestry, faith, gender) makes far less practical difference in life opportunities; having "safety net" and protections for the most disadvantaged and vulnerable in Society; where general basic education is universal and further education is available; where good infrastructure and diverse economy make for reasonable availability of what is needed for "First World" quality of life; etc.  [For anyone looking to make argument here, no, this is not to suggest that any Country or Countries are perfect; some are further along the way to ideal(s) than others.]

The purpose of the long immersion "show and tell" would be for enlightenment, understanding, and influence.  It would take a long time to make practical difference generally.  Eventually, enough of Afghanistan's people inspired with vision of an improved Afghanistan, having experienced a world of difference, knowing firsthand what all difference another (type) Society makes to its members, and understanding how all that difference has come to be achieved elsewhere, could be the proverbial sparks to bring about changes there in the direction of their vision for Afghanistan.  I think it likely that many Countries and NGOs would support such a program, something in the nature of an extended stay exchange student program (without sending their own nationals to Afghanistan in exchange, of course).

Besides all else that is so discouraging about Afghanistan, there is all that presently entrenched suspicion and hostility towards outsiders also figuring into that circular quandary, you know, so that the way things are there keeps things the way they are there.  As for how to start getting through that atmosphere -- I think that universal basic education and good public libraries besides would be the start.  Even that limited, remote means of some enlightenment could get "dreamers" -- "dreamer" students and their parents/guardians too -- to open more minds to acceptance and support of what I generally indicated as immersion "show and tell." 

God knows best.