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For over twenty-five years, the folks here at Cherokee Investment Partners have focused on turning environmental liabilities into assets. Now, we want to make our expertise available to other environmental and clean tech entrepreneurs. That’s why we launched the Cherokee Challenge.

The Challenge is a competition and accelerator designed to identify, fund and develop high impact environmental entrepreneurs. Based in the Research Triangle, we have recruited an outstanding advisory committee to advise, connect and support Challenge ventures.

Up to three environmental ventures will be accepted to participate in the Cherokee Challenge. In addition to access to the advisory committee’s network and mentoring, benefits include:

• $20,000 in seed funding
• free office space for three months in Raleigh, June-September, 2012
• complimentary back office support (incorporation, IRS compliance, accounting)
• opportunities to meet and pitch numerous investors

The application deadline is April 15, so send in your application as soon as possible!

As for Cherokee’s experience, back in the mid-80’s, we bought a brick plant and began using waste biomass to fire the kilns and contaminated soil to make bricks. Our goal was to get our cost of goods sold down to zero, while also remediating contaminated soil and decreasing dependence on fossil fuels.

We never quite achieved cost of goods sold = $0, but we lowered costs enough to turn around a business in distress. In the process, we remediated over 15 million tons of contaminated soil and, by using waste biomass, we offset some 5.7 billion pounds of carbon dioxide over 16 years.

The brick business spurred the soil remediation business, which in turn alerted us to the opportunity to acquire environmentally distressed real estate. Eventually, we raised four private equity funds totaling more than $2B, focused on investing in and remediating brownfields. We’ve since remediated some 550 brownfield properties throughout the US, Canada and Europe. Along the way, we also invested in over 70 startups or venture funds.

And we’re not done yet. We are now investing in utility-scale solar on brownfields, as well as launching another internal startup focused on energy and brownfields.  And, of course, we’re excited about the startups we’ll support through the Cherokee Challenge!

As a disclaimer: I do not currently know for whom I will vote in November and I am not necessarily advocating for Romney. Generally, politics disgust me. I try to stay out of the fray. Sometimes, however, I feel it is important to comment. This is one of those times.

I think there is a fundamental misunderstanding when you begin advocating that efficient capital allocation is a bad thing. Private equity and venture capital investors take enormous risks compared to other capital providers, such as banks. That is why private equity and venture capital investors typically expect higher rates of return — their ‘failure’ rate, or risk level, is comparatively higher.

Thankfully, the United States has a relatively stable government and business climate. We are fortunate that investors continue to believe the United States is a good place to allocate capital, especially growth capital. This allows companies to expand and provide livelihoods for employees and partners.

US tax revenue:               $2.17
Federal budget:                $3.82
New debt:                        $1.65
National debt:                $14.27
Recent budget cut:          $0.038

That’s a beautifully disgusting snapshot of the effect of fiscal irresponsibility over decades. If you want to check those stats, or for more information, visit: http://1.usa.gov/vs6GXl

Now consider how much of a difference that $.038T cut will make. Not much. Especially when you consider the net present value of unfunded future liabilities associated with Medicare: $36.4 trillion, and Social Security: $15.1 trillion. http://1.usa.gov/v34vPY

That’s a total net present value of $51.5 trillion in unfunded future liabilities associated with only social security and medicare, in-case you are counting (presumably everyone except our political leaders). That’s a serious cash flow problem when annual tax revenue is $2.17 trillion.

Paying off these obligations would cost about $440,000 per household. I hope you have an extra $500,000, because Uncle Sam needs it to support his habits.

Recall that GM filed for bankruptcy for similar reasons (i.e., decades of mismanagement which led to assets of $82.2 billion against liabilities of $172 billion which led to chapter 11). http://econ.st/ssWfBK

It may still be possible to turn around USA Inc. http://www.kpcb.com/usainc/ But, fiscal discipline, lean management and unity, all of which seem outside the bounds of polarized US politics, are desperately needed. New Year’s resolution, anyone?

JTV
Raleigh, NC

Good luck!

CHIBUTO, Mozambique – Moringa[1] filled the health fair last Saturday in Chibuto. In addition to the normal booths focused on such things as blood donation, blood pressure reading, and HIV and malaria testing, there was, for the first time, a moringa booth. Workers from a Millennium Village located on the outskirts of Chibuto organized the moringa booth to introduce this highly nutritious plant to their fellow citizens in Chibuto.

Mozambicans strode curiously up to the table to learn how to incorporate moringa into their daily lives. Moringa soup and salad was made on-site, and the Millennium Village[2] workers convinced fellow citizens of the nutritional value of adding moringa to their diet. The Millennium Village workers sold small moringa trees for roughly $1 USD and encouraged community members to buy, plant, and spread the word about moringa. Marketers sold bags of ground moringa leaves, and showed community members how to mix this powder into their tea or almost any meal to increase nutrition. Finally, they demonstrated how the seeds could be used to purify water. Many Chibuto citizens left the health fair with moringa plants, powder, and important new knowledge to increase their health.

In addition to the work the Millennium Village has done in extolling the virtues of moringa, numerous community-based and non-governmental organizations have, over the past two years, began to focus on the health and nutrition benefits of moringa.

Gracey Uffman

Peace Corps Volunteer, Health Sector (2008-2010)
Chibuto, Mozambique
September 21, 2010

[2] Millennium Villages are designed to introduce innovated technologies and techniques to improve community health in rural areas of the developing world, in hopes of achieving the Millennium Development Goals by 2015. For more information on Millennium Villages, please visit: http://www.millenniumvillages.org/aboutmv/index.htm. For more information on the Millennium Development Goals, please visit: http://www.un.org/millenniumgoals/.

Two and a half weeks ago, I was at a wedding rehearsal dinner for my longtime friend, Daniel. I ended-up at a table at which I knew no one. As it happens, it was not long before the lady to my right began to inquire as to how I knew Daniel, my profession, where I lived, and on and on. After telling her that Daniel and I grew up best friends, and just as I mentioned I had recently returned from two years of work in Ethiopia, she blurted something to the effect of, ‘Ethiopia! I thought there was nothing there except starvation.’

She was a nice lady, and I am sure she did not intend to offend. This, unfortunately, has not been the first such comment of this nature since my return. Many people automatically assume the only work I could possibly have been doing in Ethiopia was missionary work or food aid relief. It blows their mind when I tell them that, among other things, I worked with an Ethiopian owned start-up focused on manufacturing appropriate technology, and small-scale renewable energy devices.

Most of this distorted view, I believe, stems from less than thorough journalism, which fails to connect the majority of Westerners with anything other than a superficial knowledge of developing world economies, especially in sub-Saharan Africa. Two recent examples highlight my point – one from the Lens blog of the NY Times, and one from National Geographic.

On the Lens blog of NY Times online I discovered, ‘Unsung Allies Battle Starvation in Africa,’ submitted by Karly Domb Sadof. The cliché title was enough to persuade me to click on the link.

Ms. Sadof used the space to highlight, ‘Frustration,’ a photojournalism piece by Marcus Bleasdale, which documents the work of Médicins Sans Frontièrs and others treating malnutrition in Djibouti. Frustration is part of a larger work by Médicins Sans Frontièrs and VII Photography to bring attention to the 195 million people globally suffering from malnutrition (http://www.starvedforattention.org/about.php).

Certainly, the photos were jarring, intriguing, heart-breaking. There is little doubt Médicins Sans Frontièrs is a highly dedicated, professional organization, which has, for a long time, provided high quality medical care to those in need.

Mr. Bleasdale, the photographer, was quoted, ‘I don’t take pictures because I like pretty pictures. I take pictures because I am concerned about what is happening in the world and I want people to understand it.’

I do not question Mr. Bleasdale’s motives, nor his talent. Neither do I question the work of Médicins Sans Frontièrs. Simply, I would challenge Mr. Bleasdale to likewise consider how he might portray the economic opportunities presenting themselves in sub-Saharan Africa. For people to understand, they need to see the entire picture.

And there is more to the picture. The Wall Street Journal, in Bulls Eye on Africa: Carlyle Chief Sees Upside, reported on July 2, ‘Speaking at a conference on emerging markets in Geneva on Wednesday (June 30), David Rubinstein, co-founder and managing director of Carlyle Group, said Africa stood alone in terms of growth potential.’

This past March, I grabbed a copy of National Geographic in a European airport. Opening the magazine as I settled in for the old trans-Atlantic hop, I delved into, ‘Africa’s Last Frontier,’ written by Neil Shea and photographed by Randy Olson (http://ngm.nationalgeographic.com/2010/03/omo-river/shea-text). Mr. Shea and Mr. Olson sought to highlight the plight of the indigenous tribes of the Omo Valley.

Again there was no lack of quality in the photography – the photographs were stunning, vivid, alluring. They depicted a wild, vast frontier, in which people kept traditional dress and customs, waged war with neighboring tribes, celebrated bravery and victory in battle, and ornamented one another (men and women alike) with scarring marks. The reporting provided snippets of life in the Omo Valley which, even having lived and worked throughout southern Ethiopia (though not explicitly in the Omo Valley – I missed my chance to travel there for well surveying last December), I was not entirely aware of.

Unfortunately, once again, I would imagine far more people read this romantic piece in National Geographic, which reinforced stereotypes of Africa – indigenous people, traditional dress (or lack thereof), constant tribal warfare, persistently surviving on the margin – than saw the slim, dull column in the Wall Street Journal highlighting the perceived opportunities abounding in Africa.

Job creation, business development, and foreign investment are every bit as integral to development as providing food aid relief, health care, and quality education. Aid, as we all know, is not sustainable long-term; at some point the private sector must begin to drive growth. This is slowly, but surely, beginning to happen in sub-Saharan Africa.

Journalists, your work is too important to neglect highlighting economic opportunities alongside challenges to development in sub-Saharan Africa. Help individuals, investors, and businesses to understand and see the entire picture. There is more to it than malnutrition, virgin frontiers and tribal conflicts – there is real, private sector growth taking hold.

JTV
Norwood, NC

SABG, Dorcas, and Practica have developed the Fit for Purpose Energy Box to provide rural health clinics a reliable, renewable, and affordable source of electricity. The Fit for Purpose Energy Box provides sufficient steam for sterilizing medical devices, cooking, and laundry, and sufficient energy for refrigeration and lighting. SABG will manufacture, install and maintain the Fit for Purpose Energy Box.

Currently, Dorcas Aid International is offering to cover the expense of drilling a well and installing a pump if an organization decides to purchase the Fit for Purpose Energy Box for a rural health care unit. The cost for the Fit for Purpose Energy Box for a health care unit, plus installation, will be about $10,000 USD. This $10,000 USD investment includes:

Functional specifications HCU

The product will deliver:

• 3 hours of light per 24 hours for 50% of the bulbs.
• Lights for baby deliveries and other medical work.
• Sufficient electricity for a small TV.
• Sufficient cooling for 110 liters of medicine for 48 hours with no sun.
• Steam (solar thermal energy) for 1 time per day sterilization of a 40-liter autoclave, 10kg food to be cooked, 20 liter pasteurized water for drinking, and 50 liter of 100 degrees C water for laundry.
• Easy to use / operate by medical staff or guards.
• Maintenance and repair warranty including twice a year technical check.

Technical specifications for the HCU

• Solar PV system output 12 V, panel Wp 220, including batteries 2x100Ah.
• If applicable 10 m high windmill generating Ah 0-200 per day.
• Solar dish collector 1.4 m diameter on a frame, automatically adjusted to the sun
• 10 LED lamps 5 Watt (50W traditional) including fitting.
• 10 LED lamps 3.5 Watt for veranda (30W traditional).
• 2 LED lamps 30 Watt (300Watt traditional) for medical work including stands and fittings.
• Electric refrigerator, cool box type 110 litre.
• Small TV.
• Adaptation of electrical installation.
• Connected to adapted autoclave.
• Connected with valves to devices for cooking and laundry.
• Pipes and valves being thermally insulated.
• Cooking device

If you or your organization is interested in providing clean water and electricity to rural health posts and/ or rural health clinic units in Ethiopia, please contact Selam Awassa Business Group at selamabg@ethionet.et. To learn more about Selam Awassa Business Group, please visit www.selamawassa.org.

JTV

[2] UN country profiles, 2006/07 estimate, http://www.unethiopia.org/About_Ethiopia.aspx

[3] Study on the Energy Sector in Ethiopia, September 2008, Embassy of Japan in Ethiopia

As previously mentioned, ‘According to Trees for Life (www.treesforlife.org), gram for gram, dried moringa oleifera leaves contain 10.5X the amount of Vitamin A as carrots, 16.5X the calcium of milk, 15X the potassium of bananas, 8.5X the amount of protein in yogurt, and half as much Vitamin C as an orange.’

Enjoy, and please let me know if you’re interested in purchasing some moringa powder from Ethiopia.

Selam,
JTV
Norwood, NC

I went to the Somali region to scour the landscape for moringa stenopetala trees. Unfortunately, the only place I noticed any moringa stenopetala trees was inside a fenced compound in Filtu. A development worker, who was passing through, told me these trees were planted as forage for the livestock, but I was unable to further verify this claim.

It was encouraging, at least, to see that the trees are capable of growing in the Somali region, which averages about 300mm/ year of rain.  Moringa is a hardy, drought resistant tree, whose leaves are believed to be one of the world’s most nutritious vegetables.

According to Trees for Life (www.treesforlife.org), gram for gram, dried moringa oleifera leaves contain 10.5X the amount of Vitamin A as carrots, 16.5X the calcium of milk, 15X the potassium of bananas, 8.5X the amount of protein in yogurt, and half as much Vitamin C as an orange. Moringa stenopetala, the variety native to southern Ethiopia, has not been as extensively tested as moringa oleifera, but is believed to be quite comparable nutritionally. The leaf powder can be used to boost general nutrition and immune systems, treat malnutrition in infants, and it also increases lactation in nursing mothers.

Furthermore, the leaves and stems provide highly nutritious forage for livestock. When moringa constitutes 45% of forage, studies have shown a 30% increase in weight gain among beef cattle and at least that level of increase in milk production of dairy cattle. [1] [2]

It seems there is potential to experiment with moringa stenopetala seedlings in the Somali region, to be used for both livestock forage and also to treat mal-nutrition during periods of drought or extended dry seasons.

In Konso, a town in the southern part of the Southern Nations, Nationalities, and Peoples Region, the locals intercrop their fields with moringa stenopetala and eat the leaves on a daily basis. The intercropping increases biodiversity, and the flowers on the moringa stenopetala trees also attract colonies of bees. The Konso people also use these fast growing and hardy trees to terrace their hillsides, thus preventing erosion and preserving the fertility of their fields.

If only more regions throughout Ethiopia, and the world for that matter, would adopt the advanced principles utilized by what some nationals consider the ‘primitive’ people of Konso. I would suggest the people of Konso are highly advanced in their knowledge of land management, nutrition, health and sustainability. These same practices can be put forth throughout Ethiopia in elevations below 1800m, and indeed have potential to positively impact the Somali region.

JTV
Awassa, Ethiopia

A few pictures from this trip will be posted shortly to Lamp Post Photos (link at the right).

[2] ‘The Potential of Moringa Oleifera for Agricultural and Industrial Uses’ by Foidl N., Makar H.P.S, and Becker K. Nicarugua, 2005.

Aaron White of Samaritan’s Purse, Steadman Harrison of the Center for Creative Leadership, and I were in Gambella to conduct a Leadership Essentials for Peace training. A number of NGOs, in conjunction with government officials, are working in the Gambella area to diffuse tribal conflicts and provide relief to internally displaced persons. Staff members from ZOA, Samaritan’s Purse, Pact Ethiopia, the UN, and government officials attended. The workshop was designed by the Center for Creative Leadership as part of their Leadership Beyond Boundaries initiative.

On Friday, day two of the workshop, I was responsible for leading a session on the learning curve and what it means to constantly seek, and master, new challenges and skill sets. I used a quote, which I first heard from Ryan McCoy, to get the idea across – ‘There is no growth in the comfort zone and no comfort in the growth zone.’

If you are not familiar with the idea of the learning curve, the following example may help. I’ll certainly not forget it.

After going over the idea of the learning curve, I asked if everyone understood me, and if others had examples to share.  Tesfaye, a Samaritan’s Purse employee, stood up and said he thought he understood. His example (recalled from memory, so not an exact quote) was:

When I was young my parents always told me that I would quit school after the 4^th grade to become a farmer. The fourth grade came and I convinced them to allow me to stay in school. By the end of 8^th grade, however, they had had enough. They said if I was going to stay with them, I was going to farm and not go to school. So, I decided to leave because I wanted to stay in school.

For me, at that time, home and family was my comfort zone. I had to make a decision to separate myself from my comfort zone to obtain an education. I did this because I value education highly. I know I wouldn’t be here today if I had stayed in my comfort zone in the 8^th grade.

Wow. What an example. And what guts that must have taken to make such a drastic decision at a young age. Think of what you were doing in the 8^th grade. I sure was not setting out on my own in order to pursue an education, I was fortunate enough not to have to.

Let’s all take a lesson from Tesfaye and continue to challenge ourselves while seeking and mastering new skills, and frontiers. There’s certainly no comfort in the growth zone, but it’s the only place in which we may ever hope to realize our potential.

JTV
Gambella, Ethiopia

For more information on the Center for Creative Leadership’s Leadership Beyond Boundaries initiative visit: www.leadbeyond.org