The Korean smartphone giant unveiled its plans to launch further into the IoT market at the Las Vegas Consumer Electronics Show 2015 (CES). The company declared that 90 percent of its devices would be connected to the internet by 2017 and that they would all be smart by 2019.
Yoon added that the industry must overcome potential fears concerning the security of smart
Samsung plans to produce an open system that will allow its devices to connect with any software, paving the way for increased automation as devices effectively talk to one another. CEO “We have said that other companies need to follow suite in terms of open systems, if IoT is to move forward. “I’ve heard people say they want to create a single operating system for IoT, but these people only work with their own devices. We can deliver the benefits of IoT only if all sensors can talk to each other”, he said at the show, The Guardian reports. “I’m making a promise that our IoT devices and products will be open. We will ensure that others can easily connect to our devices.”
Yoon added that the industry must overcome potential fears concerning the security of smart, connected systems, and convince consumers of the importance of IoT. As a means of addressing such concerns, users of Samsung’s SmartThings devices will be able to subscribe to a service that promises additional monitoring and security measures.
Prior to the show, Samsung unveiled new products including washing machines and its latest high-definition TVs. The move marks a bid to branch out beyond the smartphones and tablets for which the company is renowned, in order to reverse the decline in profits seen in 2014; Samsung saw a 60 percent year-on-year drop in the third quarter as it felt the effects of rivals such as Chinese company Lenovo.
Yoon was optimistic that open connectivity could hail important change. “We have to make it clear that the IoT can achieve much more”, he said, according to the FT. “It has the potential to transform our economy, our society and how we live our lives.”
Six months since he became Prime Minister of India, Narendra Modi will this week face his sternest test in his efforts to reform the country’s economy. A five-day strike by workers at India’s largest producer of coal, Coal India, will begin today in protest at planned reforms of the industry.
Modi has sought to reinvigorate the industry by encouraging greater competition
Miners are concerned that Modi’s plans to conduct auctions for many of the mining licenses that were cancelled last year are an attempt to privatise an industry and reduce the rights of workers. After 2014’s political scandal – dubbed “Coalgate” – saw many mining licenses issued over the last decade revoked, Modi has sought to reinvigorate the industry by encouraging greater competition.
However, with Coal India being largely state-owned, as well as dominating the industry, many workers fear that new private owners will erode their rights. Trade unions throughout the country have called the strike, calling for an end to the gradual “denationalising” of the coal industry over the last year. It is likely to hit production of almost 1.5 million tonnes a day. It is the largest industrial action in the country in nearly 40 years, and represents a key moment in Modi’s term as Prime Minister.
All India Trade Union Congress General Secretary Gurudas Dasgupta told reporters, “This will probably be the biggest ever strike in the industry; the power sector may be hit by a prolonged strike.” There have even been reports that despite stockpiling of coal in anticipation of industrial action, some power stations may run out before the end of the five-day strike.
Hailed internationally as a reforming, business-friendly choice to rule India after years of corruption and unfulfilled promise, Modi is also a controversial figure at home. However, if he can overcome this first hurdle, it will be a sign that India’s coal industry, among others, is likely to welcome private investment in the future.
In a bid to demonstrate the technology’s importance to both the automobile sector and the Japanese economy as a whole, Toyota has opted to make its patented hydrogen fuel cell technologies free to all. Beginning January 5, the automaker will open up approximately 5,680 fuel cell related patents, and continue with a longstanding company tradition of inviting others in the industry to collaborate in reaching shared goals.
The push for the alternative fuel is closely in keeping with the country’s stated ambitions to pursue hydrogen power in place of nuclear
“At Toyota, we believe that when good ideas are shared, great things can happen”, according to the Senior Vice President of Automotive Operations at Toyota Motor Sales, Bob Carter, in a company statement. “The first generation hydrogen fuel cell vehicles, launched between 2015 and 2020, will be critical, requiring a concerted effort and unconventional collaboration between automakers, government regulators, academia and energy providers. By eliminating traditional corporate boundaries, we can speed the development of new technologies and move into the future of mobility more quickly, effectively and economically.”
The push for the alternative fuel is closely in keeping with the country’s stated ambitions to pursue hydrogen power in place of nuclear. Since the Fukushima disaster and the ensuing shutdown, Japan has been dangerously reliant on energy imports to keep the lights on, and only by building on the country’s inadequate hydrogen-refuelling infrastructure can companies like Toyota make hydrogen a viable alternative.
The much-talked about hydrogen powered Toyota Mirai went on sale in December of last year in Japan and will take to European and American roads later in the year. However, if the car is to echo the success of electric alternatives such as Tesla’s Model S, a greater number of refuelling stations are needed.
It remains to be seen how big a part Toyota will play in Japan’s transition to a “hydrogen society”, though the company can do little more at present in terms of incentivising others in the industry to follow suit. With Honda also working on a hydrogen-powered vehicle already, the move will eradicate the costs associated with fuel cell R&D and bring a greater number of participating companies to the fold.
Green methods of water management and wastewater treatment are vital to solving one of the earth’s biggest environmental issues. The New Economy speaks to Fernando Delgado, CEO of Vert Energy Solutions, about how the wastewater treatment industry is developing.
The New Economy: Well Fernando, let’s start with environmental protection, which is of course central to your business. How has the definition of this changed over the last decade, and what impact has that had on water and the wastewater industry? Fernando Delgado: Globally, we’ve seen kind of a paradox in terms of where the industry needs to go, and where the industry is going, from an innovation standpoint.
On one side, global regulation is getting tougher. Countries and water utilities all over the world expect more in terms of the percentage of sewage that’s being treated. But on the other side, from a technology standpoint, we haven’t seen innovation that will drive the solutions that will get there as fast as we need.
Sludge has become a worldwide problem
The New Economy: Well in terms of wastewater treatment, what are the biggest challenges faced globally? Fernando Delgado: Both public and private utilities, no matter where you go in the world, are facing the challenge of reducing their carbon footprint to begin with. And this has many flavours to it.
On one side, in some countries electrical energy usage is definitely being a challenge. But also their greenhouse gas emissions, along with the sludge production, is definitely making a huge difference in terms of how they approach productivity, and how they see the efficiency of the process.
Sludge has become a worldwide problem, because as you solve the wastewater issues, you create another problem that many countries are struggling with: what do you do with all this solid waste that comes in the form of sludge?
The New Economy: What’s the current cutting-edge in green technology, and how quickly is it developing? Fernando Delgado:The best example we’ve seen out there in terms of disruptive innovation in wastewater solutions comes from an Israeli company called Applied CleanTech. They developed this technology they referred to as ‘sewage mining,’ which is all about finding productive means, and a valuable commodity, in sewage. Which has historically been seen as something that has absolutely no value.
On one hand it reduces sludge production by up to 50 percent by capturing all the suspended solids that are present in municipal wastewater. Now, the good thing about these solids is that not only are they captured and prevented from going into the treatment phase, but these solids are recycled into a valuable commodity that has named Recyllose – from ‘recycled cellulose.’
Recyllose is very useful, as it can be used both as biofuel, but also as a raw material for the production of paper, cardboard, some plastics, and researchers all over the world are finding new applications for Recyllose everywhere.
The New Economy: What’s the operating cost-benefit that sewage mining delivers to the end user? Fernando Delgado: Cost reductions of up to 30 percent; significant difference in terms of the financials, especially with the kind of pressure that they’re seeing worldwide now. Just in Mexico now we have up to 2,600 wastewater treatment plants, of which more than half have been abandoned during the last six years.
This comes primarily from the high operating costs. Driving 30 percent operating cost reduction can pretty much be the difference for these plants between staying open or being closed down after just a few months.
The New Economy: What government initiatives are in place to adopt this technology, and which countries are more receptive to these types of projects? Fernando Delgado: We’ve seen a very good reception all over the world; success stories for sewage mining technology in countries such as Israel and the Netherlands.
In Mexico in particular, I think that we have seen a very good response. Mexico has always been seen as a global example setter when it comes to environmental policy. The National Water Commission in Mexico has put together different types of programmes to fund innovative technologies that will boost efficiency and productivity.
This type of programme actually helped us launch a very successful project in the city of Queretaro, which is the fastest growing city in Mexico.
This project was put together by a private water utility called Operadora Querétaro Moderno (OQM). OQM had the vision to invest in sewage mining technology, even though they were operating a rather new plant which was running pretty efficiently.
Still, they decided to go for that extra nudge, and take it up a level. This has allowed their plant not only to reduce their operating costs – probably at a rate of 25 percent – but also to increase their plant capacity by up to 30 percent.
One of the things that we see as the future of investing in wastewater is that private investors can now walk in
It talks not only about environmental efficiency, but also about financial efficiency. And that’s why I was referring to OQM as a visionaire in terms of implementing the first sewage-mining project in the Americas.
The New Economy: Well finally, in terms of investment, where are the opportunities in the wastewater industry? Fernando Delgado:We’re seeing two driving forces in developed countries and in developing countries.
Developed countries have a pretty big install base, because they’re years ahead in terms of wastewater policy. All these plants in developed countries are looking for solutions that will increase productivity and that will boost efficiency.
Developing countries, on the other hand, are just getting all this awareness of what needs to be done, and probably not following the best practices out there. So, developing countries need to grow this install base, and they need to do it at a very quick pace.
Both of these forces are requiring significant investment. One of the things that we see as the future of investing in wastewater is that private investors can now walk in, both into developed countries and developing countries and their respective projects, and find a good opportunity to invest. Because their return on this investment is guaranteed by the savings that a technology such as sewage mining can drive.
The New Economy: Fernando, thank you. Fernando Delgado: Thank you very much.
It’s the event of the year: from January 21 to 24, over 2,500 of the world’s most influential figures from business, politics, academia and the arts will gather in the mile-high alpine resort of Davos to address the world’s most pressing concerns in a variety of workshops, panels and conferences.
Founded in 1971 by professor and economist Klaus Schwab, the initial concept for the World Economic Forum (WEF) was to bring together global leaders to discuss how the state of the world could be improved upon. In its 44 years, almost everything about the conference has grown (including the controversy surrounding it). Philanthropy has been on the rise for some time now, glamourised by high-profile celebrities’ involvement in charity and humanitarian work. If Oprah Winfrey, Bill Gates et al have taught us anything, it’s that helping others is in, and the list of those looking to get a finger in the WEF pie is ever growing. The total number of attendees, once a humble 444, stood at 2,633 in 2014.
Rejection and isolation
Anti-globalisation protestors continue to crash the party every year, setting up camp in sub-zero temperatures for the duration of the conference. The idea that the problems of 99 percent of the world can be suitably discussed and solved by the wealthiest, most powerful one percent is a widely criticised model. The term ‘Davos Man’, first coined by political scientist Samuel P Huntington, is now a recognised concept synonymous with those in attendance. A member of the global elite with little regard for those he allegedly represents, Davos Man views national governments as “residues from the past whose only useful function is to facilitate the elite’s global operations”. But that criticism is somewhat unfair when one considers the major political and social developments that have emerged from the idyllic resort over the years.
444
Attendees of the WEF in 1971
2,633
Attendees of the WEF in 2014
$71,000
Minimum price of a WEF invitation, 2014
Aside from acting as host to the most important economic, political and social decision-makers in the world, Davos has plenty more to offer its attendees: a world-class winter sports resort and an endless list of private parties organised by major global corporations. These are where the secondary motive for attending Davos can be put into practice: networking. Failing to receive an invitation to one of these events (the Google party is reportedly the most highly coveted) is said to instil a sense of rejection in even the hardiest attendee. In fact, the forum is reminiscent of a high school, down to a colour-coded lanyard system denoting the importance and therefore influence of every guest. Unofficial cliques are established early on, conversations are often halted prematurely when a higher ranked individual enters the room, and the infamous sweeping up-down look is standard Davos protocol.
This year, an invitation carries a minimum $71,000 price tag, but even that won’t deter the “fat cats [from] playing in the snow” (as Bono famously described the event back in 2006). “From a very corporate point of view, we would have at Davos something like 70 executives and C-level players from different companies,” says Mark Spelman, Managing Director of Accenture Strategy. “That’s almost impossible to replicate anywhere else in that period of time. So there’s real value for a corporation like ours to have that number of meetings.”
Reshaping the world
Last year’s theme was ‘reshaping the world: the consequences for society, politics and business’, which founder Schwab claimed “speaks to the need for leaders to fundamentally reassess how the tectonic plates of the world are shifting against each other, so they can predict and respond more effectively to the earthquakes that we know are coming”. Notable attendees included Hassan Rouhani (the first Iranian president at the forum in 10 years), Marissa Mayer and Christine Lagarde, plus regulars David Cameron, Bill Gates and Bono.
There was a heavy focus on health and wellbeing, which is expected to grow with each year, and many mindfulness meditation sessions featured on the programme, including one hosted by actress Goldie Hawn. Last year’s conference, however, was dominated by the technology sector, with many sessions spent discussing whether advances in technology would lead to a loss of jobs. Google’s Chief Executive Eric Schmidt surprised the audience by agreeing that, while technological advancements are a positive development on a larger scale, they will ultimately result in job cuts. Growing tensions between China and Japan were also at the forefront of discussion, with Japanese Prime Minister Shinzo Abe chillingly comparing the relationship between the two to that of Britain and Germany in the lead-up to the First World War.
Davos 2015
This year’s theme (‘the new global context’) aims to “reflect the period of profound political, economic, social and technological change that the world has entered, which has the potential to end the era of economic integration and international partnership that began in 1989”, according to the WEF. Ebola is likely to take centre stage at many sessions, along with the usual: oil, nuclear weapons and climate change. 2014 was plagued by conflict and the global threat this discord poses will be discussed at length, including the growing presence of Iraqi jihadists Islamic State and the Israeli-Palestinian conflict in Gaza. Also likely to be touched upon are Russia and Ukraine, who remain at loggerheads with each other, and Nigerian militant Islamist group Boko Haram.
According to an executive summary posted by the WEF, key areas of focus will be deepening geopolitical fault-lines, the normalisation of monetary policy through the reduction of quantitative easing and a rise in interest rates, and the continuing erosion of trust in public and private sector institutions. Other areas of focus mentioned are “the generational shift from societies sharing common values to those that are primarily interest-driven and the related rise of sectarianism, populism, nationalism and statism”, and the difficulty faced in improving governance of “critical global commons” – natural resources and cyberspace in particular.
Whatever your view on Davos Man, 2,500 of the world’s most powerful people all in one place simply cannot be ignored. The power they pose as a group is unfathomable, and many will eagerly anticipate the ideas, solutions and concepts that will emerge from such an occasion.
It sounds like the subject of a sci-fi blockbuster, or a sceptic’s worst nightmare: communicating a message from one person to another, over 4,000 miles apart, via nothing other than brain signals and a bit of technology. But in September that’s exactly what a group of researchers did. Hailed as “the first human brain-to-brain interface” in the PLOS ONE journal, the words ‘ciao’ and ‘hola’ were successfully transmitted from a wired-up individual in India to the brain of a recipient in France.
Researchers from Harvard and Barcelona-based Starlab used an EEG device to read brain signals in the sender when he imagined moving his feet or hands. The signals were translated into binary code and sent via email to three recipients. Robotised transcranial magnetic stimulation (TMS) then created electrical signals in the brain of each recipient, leading to flashes of light that corresponded to the binary numbers and could be translated back into the words thought up by the sender.
[S]ome sort of new interface that bypasses the need for a keyboard and connects the mind to the computer could well become a reality at some point in the future
Broader thoughts
This isn’t the first time some form of ‘telepathy’ has been accomplished, although it is the first example of actual words being transmitted. In August 2013, University of Washington scientists used TMS to stimulate a recipient’s motor cortex so his hand moved unconsciously, in accordance with brain signals from a sender. Similar communication has been achieved between rats via electrodes. fMRI technology has, in the past, enabled people to guess the shapes and objects pictured or dreamt about by others.
And it’s not just limited to theory: Google has latched onto the mind-reading capacities of EEG, recently announcing a ‘mind control’ attachment that will allow Google Glass users to take a picture simply by focusing on an object. The headband connects to an app that measures electrical signals in the brain and converts them into instructions.
But before everyone gets too excited by the prospect of telepathic communication taking over the world (alongside robots, cyborgs and green aliens), it’s worth taking a quick reality check. To call the India to France message ‘telepathy’ is something of a stretch; as a quick description suggests, it’s a fairly laborious process. Working at a millionth of the average US internet speed it’s also a very slow one: it took 70 minutes for ‘ciao’ and ‘hola’ to reach the receivers, which doesn’t seem particularly conducive to a lively conversation. The method also had an error rate of up to 15 percent.
Guessing the future
Researchers believe the process could be sped up as technology advances, possibly bypassing the need for binary code. Supporters hail the technology as having the potential to help those suffering from locked-in-syndrome, strokes and other debilitating conditions. “Take someone in a coma”, Dr Berg told the Daily Mail. “This could open up the possibility of being able to communicate with them.” He predicts brain-to-brain communication could be put to use within the next 20 years. Giulio Ruffini, co-author of the study, told Agence France-Presse: “We hope that, in the longer term, this could radically change the way we communicate with each other.”
Although it might be an exaggeration to claim we’ll all be reading each other’s minds in a few years’ time, some sort of new interface that bypasses the need for a keyboard and connects the mind to the computer could well become a reality at some point in the future. The 19th century saw the tin can telephone blossom into global telecommunications; the 20th century saw the internet spring up to transform the way we work, communicate and live. What the 21st century holds in store in terms of technology and communication remains to be seen, but it’s certainly worth thinking about.
The combination of demographic growth and urbanisation has given rise to an increase in domestic, agricultural and industrial water consumption. This in turn has resulted in water shortages and a significant volume of wastewater, which threatens rivers, lakes, seawater and aquifers. The treatment of water – above all, of wastewater – has become an urgent and necessary practice worldwide.
In Mexico, only 47.5 percent of collected wastewater is treated. Official data says the country has an infrastructure comprising 2,342 municipal wastewater treatment plants (WWTP, of which about half are abandoned due to unforeseen high operating costs), with an installed capacity of 12.1 million cubic metres per day. The majority of municipalities in Mexico have opted for conventional treatment methods, in particular that of activated sludge.
Wastewater sludge treatment is a global environmental problem because contaminants in water may end up in the sludge. Sewage sludge treatment and disposal can constitute up to 40 percent of total emissions associated with wastewater treatment.
As regulations regarding the quality of treated wastewater effluent have become more demanding, there has been an increase in production of sludge, which is eliminated either via land spreading (directly or after composting) or incineration. This process requires intensive use of energy and therefore generates high electrical costs. Sludge management and disposal can account for up to 50 percent of a plant’s operating costs. This is one of the principal problems Mexico is facing in the treatment of wastewater.
Mexico has also set a target of treating 100 percent of all wastewater by 2030
Mexico has also set a target of treating 100 percent of all wastewater by 2030. The goal implies treating 24.7 million cubic metres per day: 16 million cubic metres per day more than what is treated at the moment. Although there would be obvious benefits from meeting this target, there would also be a significant negative impact from the high energy costs and greenhouse gas emissions. This presents us with the challenge of finding solutions that mitigate the adverse effects upon the environment while also delivering favourable financial returns for companies.
Technologies such as those offered by Vert Energy Solutions, in alliance with its strategic partner Applied CleanTech, allow us to respond to this challenge by reducing the triple cost generated by the treatment of water with the activated sludge system: energy costs, financial costs and environmental costs.
The proposed solution
Vert Energy Solutions, a young Mexican company, was set up with the objective of making the best technologies available in order to deliver sustainable and financially viable water treatment solutions to Mexican companies. Its technologies go beyond creating a positive impact on the environment: they also increase the availability of fresh water, and reduce the investment required to implement, maintain and operate such solutions.
In 2012, Vert Energy Solutions entered into a partnership with Applied CleanTech (ACT), an Israeli company, to introduce ACT’s new sewage mining technology throughout Mexico.
Recognising sewage as a valuable resource, ACT developed a groundbreaking system that extracts bio-solids from wastewater before it becomes sludge. Initial sludge formation is reduced by up to 50 percent before applying any chemical or biological treatment. ACT’s patented sewage recycling system (SRS) technology transforms solids in wastewater into a recycled commodity: Recyllose. Due to its high cellulose content, Recyllose is an efficient biofuel and also a raw material useful for the paper, plastic, construction and energy industries, among others.
By trapping the cellulose component inherent in wastewater and returning it to the industrial cycle as raw material, SRS transforms sewage treatment into sewage mining, and introduces a model for sustainable, efficient and environmentally-friendly wastewater management.
Wastewater leaves the SRS, and goes into the WWTP, containing fewer solids. The main burden of the treatment process is thereby removed and operating expenses are cut by 30 percent. As a result, plant capacity is increased by 30 percent and its life span significantly prolonged. In addition, there is a major decrease in the consumption of electricity, fewer chemicals are needed, and there is 50 percent less sludge to deal with. All this adds up to major savings for the WWTP.
Less sludge means less incineration and wetland pollution, and fewer landfills. With less sludge, the water treatment process consumes less energy and the aeration requirements are also decreased. Since we use less electricity and have less methane-containing sludge, greenhouse gas emissions are reduced and the WWTP becomes eligible for valuable carbon credits.
Launched in 2007, this sewage mining technology has since been successfully deployed across the world, and is currently active in Israel, Scotland, the Netherlands and Mexico.
Success in Querétaro
The first implementation of sewage mining technology in the Americas was the result of a successful collaboration between Vert Energy Solutions and Desarrollos Residenciales Turísticos (DRT) in the city of Querétaro, for which Vert has been awarded the 2014 New Economy Award for Best Recycling and Wastewater Solutions.
Querétaro is a city 200km north of Mexico City, and capital of the state of the same name, with a population of approximately 1.1 million. The Querétaro metropolitan area has seen significant growth, which has positioned it among the most attractive and productive cities in the » country, with a high quality of life and a dynamic economy. Though official figures are not yet available, the city was expected to achieve economic growth of 4.3 percent in 2014, placing it as the city with the highest economic activity in Mexico. Its industrial base and culture are attractive and profitable for productive industries, among them the automotive industry, aeronautics and telecommunications.
The authorities are keen that the state capital should be an intelligent city, boasting technological, economic and social development. However, in recent decades Querétaro has seen complex and growing problems related to the distribution of its water resources, a situation that puts at risk the satisfaction of the present and future necessities of the population, and thus the economic development the city seeks. These problems are clearly related to population growth, which places greater demand on water resources.
The biggest aquifer in the state was over-exploited for years, driving a major project in the early 2000s to build the country’s largest aqueduct. This unprecedented project is aligned with the state government’s comprehensive strategy to ease access to water in the metropolitan area of Querétaro. In combination with this, local authorities eliminated all water-related subsidies: this means the population pays a price that reflects the true cost of water services, raising awareness of water’s value.
Among the changes, one that stands out is the adoption of rational consumption and the reuse of treated water. The projects set up included sustainable residential developments with independent waste treatment plants: once it has been treated, the water is reused for irrigating gardens and green areas, and other activities that do not require the use of drinking water. These initiatives have had good results, such as guaranteeing a constant supply of drinking water in residential zones that had previously had a restricted water supply.
El Pozo
As part of its Banco de Tierra (‘Earth Bank’) programme, DRT carries out the purchase, legalisation and urbanisation of large parcels of land in order to sell lots that offer new and expanded opportunities to property developers.
DRT has a WWTP called El Pozo in the El Marques municipality, which serves 2,500 families, representing around 35,000 inhabitants. Operadora Queretaro Moderno (OQM), a subsidiary of DRT, acts as a private water utility serving a good portion of the population.
The El Pozo WWTP has the capacity to treat 5,200 cubic metres of wastewater every day. In order to optimise and increase the efficiency of the plant, OQM, along with Vert Energy, installed the SRS20K Sewage Recycling System in November 2013; it began operating in January 2014. The SRS creates significant savings in energy consumption and maintenance for OQM, adding up to a 28 percent reduction in total operating costs by the end of 2014.
The use of this sewage mining technology means: 250kg of Recyllose is produced each day; sludge generation is reduced by 50 percent; energy and operating costs are each reduced by 30 percent; plant capacity is increased by 30 percent; and the use of polymers if reduced by 30 to 50 percent. SRS technology will also allow a projected 25-30 percent increase in the capacity of the El Pozo plant, due to the fact that it has reduced the organic load going to the reactors. This will imply savings in additional infrastructure when the plant’s maximum capacity is reached.
Recyllose: a valuable commodity produced by sewage mining and reusable as a raw material or biofuel
The results from the El Pozo plant in Querétaro are encouraging, and show sewage mining is a viable solution to achieving Mexico’s wastewater treatment goals, and is an alternative solution to the growing trend of plant abandonment.
Drawing conclusions
The projected outcomes of implementing sewage mining on a large scale demonstrate its potential, which is supported by the results already obtained at the El Pozo water treatment plant. If this technology got implemented at only 10 percent of the wastewater treatment plants needed to treat 100 percent of Mexico’s sewage by 2030, the benefits would be enormous. Wastewater treatment plants would be cleaner, more efficient and cheaper to operate. Treatment capacity at these plants would increase and a sustainable raw material would be produced at a rate of 1.6 million kilograms per day.
Sewage mining could easily become Mexico’s method of responsibly achieving a very aggressive goal – one the global community has seen as a major example-setting exercise for a developing country. This is the time to invest in game-changing technology that will not only solve our biggest environmental challenges but also do it with a clear philosophy based on return on investment.
According to the recent provisional data released by the Central Bank of the Republic of Turkey, the country attracted approximately $9.3bn of FDI in the first nine months of 2014, an increase of around 10 percent on the same period in 2013. In the meantime, the current account deficit was $30.9bn during January to September, down 37 percent year-on-year.
On a country basis, the Netherlands was the largest investor in Turkey in the first nine months of 2014, followed by the UK, Russia, Azerbaijan and Italy. As regards sectorial breakdown, the most attractive sector in the first nine months of 2014 was manufacturing, with more than $2bn, followed by financial and insurance services, and electricity, gas, steam and air-conditioning supply with more than $1bn each.
It is good news that the manufacturing, finance and energy sectors, which are also among sectors targeted by Turkey’s Investment Support and Promotion Agency (ISPAT), were the most attractive sectors in the first eight months of 2014 in terms of FDI. The rise in investments in these sectors is a good indicator of investors’ confidence in the Turkish economy’s future.
Moreover, according to the Global Manufacturing Competitiveness Index issued by Deloitte, Turkey is now the 20th most competitive manufacturing hub in the world. By 2018, Turkey is expected to rank 16th in the world and second in Europe, right after Germany.
$9.3bn
FDI in Turkey, January to September 2014
5,600
Turkish companies with foreign capital, 1923-2002
40,000
Turkish companies with foreign capital, 2003-13
The vision of the Turkish Government is to make Turkey the manufacturing base of Eurasia in medium and hi-tech industries. To this end, ISPAT’s investment promotion strategy is aiming to attract more technology-intensive investments in order to ensure the transfer of technology to Turkey. The investment incentives offered by the Turkish Government are also in line with these goals.
It must be underlined that ISPAT focuses on Turkey’s manufacturing sector, targeting hi-tech and value-added industries. Particularly, investments for products not yet produced in Turkey are one of the most crucial of ISPAT’s targets: high technology, high value-added, knowledge-based and skills-intensive industries, with the opportunity to provide high-income jobs, are our priorities. As many investment promotion agencies around the world do, we have some targeted sectors – but, above all else, we attach importance to investments that contribute to our country’s sustainable growth.
Structural reforms
Strong economic performance, a young and dynamic population, a strategic location, and an investor-friendly environment have created plenty of investment opportunities in Turkey and made it one of the most attractive destinations for FDI in the world.
Aware of its huge potential, Turkey has implemented a set of structural reforms to enhance the competitiveness of its economy, boost labour market flexibility and eliminate vulnerabilities. Turkey’s action mainly focused on public finance reform, which gave the government the leverage for fiscal adjustment, price stability, banking reform, social security reform and healthcare reform.
The Turkish Government, which considers foreign direct investment to be the main component of the country’s economic development, has significantly improved its investment environment through various reforms and new legislation. In 2003, an FDI law, offering foreign investors legal guarantees by treating them equally with local investors, was enacted.
Thanks to all these developments, FDI (which was about $15bn between 1923 and 2002) increased to $136bn between 2003 and 2013, while the number of companies with foreign capital rose from 5,600 to almost 40,000 during the same period.
Strategic location
Located at the crossroads of Europe, the Caucasus, the Middle East and North Africa, Turkey offers vast opportunities to investors in many sectors. Along with its large and dynamic domestic market, Turkey offers a platform with access to emerging opportunities in other countries, particularly in the surrounding regions. Turkey’s strategic location allows investors to access a potential market of 1.5 billion people, a combined GDP of $25trn and foreign trade of $8trn. Having seized this opportunity, Turkey managed to increase its exports from $36bn to more than $150bn in just 10 years.
Many multinational companies have either established their manufacturing bases in, or moved their regional headquarters to, Turkey, as the country offers a robust platform for economic expansion on a regional scale, enabling them to leverage common qualities and local capabilities in Turkey. For instance, Coca-Cola has already established its regional HQs in Turkey, managing operations in 94 countries. Similarly, GE Healthcare has moved its regional HQs to Istanbul to manage its operations in 80 countries in four regions: Central Asia, the Middle East, Russia and Africa. Microsoft is also managing 80 countries from Turkey.
The Turkish Government strongly supports global companies that want to move their regional HQs to Turkey. With a recent amendment to the FDI legislation, foreign companies can now establish their regional management centres in Turkey under a liaison office structure without paying corporate tax, VAT, personal income or stamp duty.
While ISPAT continues to promote Turkey’s investment opportunities, more will emerge with the realisation of the country’s ambitious targets for 2023, the centennial celebration of the foundation of the Republic of Turkey. The government has set specific targets to achieve by that date, ranging from healthcare to the economy, from defence to education, and from energy to transportation. These targets include becoming one of the top 10 economies in the world, with a GDP of $2trn and export revenues of $500bn.
With its favourable investment environment, Turkey continues to be a safe harbour for international investors in the region, and the rise in greenfield investments is a good indicator of investors’ confidence in the future of the Turkish economy. High value-added, technology-intensive and greenfield projects were on the rise in 2013, and that trend is expected to continue into the future.
People’s desire for individual mobility is cross-cultural and intercontinental. The world market for automobiles was predicted to grow by four percent to just under 76 million units in 2014, the US and China are on a growth track, and figures in Western Europe are beginning to climb again. The long-term prospects look good too. Experts estimate that, by the year 2020, the world market for automobiles will total 90 million vehicles.
What drives this desire for mobility? Mobility is evidently not just a basic human need; it can also be understood as a basic right. A look at the volume of traffic in, and gross domestic product of, Germany since the 1970s shows that, beyond all doubt, there is a close correlation between the mileage driven and economic output. Cars can thus be seen as a sign of prosperity, and a growth factor as well. This connection can be observed in other countries too: in Europe, Asia, and North and South America.
There is a close correlation between the mileage driven and economic output
In recent years, the German automotive industry has consistently expanded its global position. It built 5.65 million new cars in Germany in 2014 – an increase of four percent on 2013. Production in plants located outside Germany is rising too – by five percent to 9.15 million cars. Consequently, some 14.8 million new cars will be rolling off the assembly lines of our manufacturers worldwide. To put it another way, around every fifth car sold worldwide bears a German group badge.
The export strength of Germany’s automotive industry is particularly pronounced. A good three out of four cars built in the country go to international customers. And every second car that we export from Germany is registered as a new vehicle in another EU country. Exports to Asia are continuing to rise too. It is this ‘two-pillar strategy’ that makes us so successful worldwide – strong exports from car-building sites in Germany coupled with expansion of international production in the growth markets.
Market shares are the ‘hard currency’ of this success. The German group brands have a 72 percent share of the car market in Germany, a 50 percent share in Western Europe, and a 46 percent share in the new EU Member States. On the large Chinese market, our share is 23 percent, and we account for around one fifth of the market in the Mercosur region, Mexico and Russia.
Behind this impressive presence on the world markets lies a strict innovations course, which our companies have been steering consistently for many years. The German automotive industry is a strong research performer. In the past year, German manufacturers and suppliers throughout the world spent €27.5bn on research and development, including €18bn in Germany. Our industry thus contributed a third to overall R&D spending in Germany. A major portion of this is channelled into developing alternative drive systems.
Cutting carbon
The success stories of the automotive industry to date, including the reduction of CO2 emissions, have been achieved with classic drive systems – in other words, clean diesel and petrol/gasoline engines. In order to master the challenges of the future, however, alternative drive systems will be indispensable.
The number of megacities is growing faster than the world population. While in the middle of the last century a good 70 percent of mankind still lived in rural areas, by the year 2000 the urban-rural ratio was already evenly balanced. According to UNO forecasts, by the year 2050 the ‘urban component’ will climb to 70 percent.
One answer to this change is electric mobility. Not only does it make us less dependent on mineral oil, it also creates mobility free of local emissions, so that, in a few years’ time, policymakers might be stipulating its use in major cities. Those who fail to keep up will only be able to watch the tail lights of competitors disappearing ahead.
No other automobile topic has dominated public discussion as strongly as electric mobility in recent months. We have reached a new milestone. Electric mobility is fit for the market. This young market is still small, but it is fast picking up speed, as is reflected by the growth rates in key countries.
Germany in the international context
International assessments show that, among the supplier nations, the German automotive industry is at the pole position for electrified vehicles. In no other country in the world do customers have a greater choice of new electrically powered models. German car builders alone have 16 series production models with electric drive on the market. In 2015, they will be joined by a further 13 models. We have not only highly innovative manufacturers, but also a strong supply industry, including Bosch, Continental and ZF Friedrichshafen. The many medium-sized companies, often family-managed, also provide us with a substantial competitive edge.
We are convinced electric mobility will prevail. Electric drives have enormous potential – especially in regions where short distances are travelled – and they can make a major contribution to environmental protection and emissions reduction.
As a new field of technology, electric mobility is particularly hotly contested internationally. Germany is well placed to head the field in electric mobility. However, this does not yet mean Germany is a lead user market in an international comparison; the matching frameworks have yet to be created.
That is why it is a good thing the Minister of Transport wants to introduce the first electric mobility law, which will ensure clear marking of electrified vehicles and launch special rights for electrically powered vehicles (for example, opening up bus lanes or preferential parking spaces). This is a first step; more need to follow. The grid of charging points must also become tighter. Now e-cars are on the road, we need easily accessible and easy-to-use charging stations. A uniform plug for filling up with power has already been developed.
Get connected
The second driver of innovation is networking. Cars and smartphones are already two sides of the same coin as the car becomes a mobile communications platform. This will make a crucial contribution to greater road safety, because the networked car ‘sees’ and ‘hears’ further than the driver ever could: with the help of web-based services, car drivers will be warned of traffic hindrances beyond the next hill. We are thus approaching the vision of accident-free driving, step by step.
There is a strong case for networking where comfort aspects are involved too. With the continuous expansion of already existing assistance systems, we are on the path towards partially or highly automated driving. This means that, on motorways or in stop-and-go traffic, drivers can delegate driving tasks to the vehicle. This relieves them of fatiguing work. When traffic speeds up, they can take over the wheel again.
The road to automated driving is not a revolution, but instead an evolutionary process that improves road safety and supports drivers even more than today. It is not only our car builders and suppliers who are cooperating closely in the field of networked driving: the IT industry is integrated too. Electric mobility and networking will make driving more efficient, climate-friendly and safer. But one thing will remain: the ‘pure fascination of cars’, the joy that is indivisibly linked with driving them.
Eaglestone is very proud to win The New Economy Award for Best Investment Advisory and Private Equity Firm in Sub-Saharan Africa. Pedro Ferreira Neto, our Founder and Group CEO, highlighted that this valuable international recognition is evidence that Eaglestone is turning into reality its vision of becoming a leading independent investment banking and private equity firm in Sub-Saharan Africa, as well as a recognition of its unmatched commercial franchise and execution capabilities in Angola and Mozambique.
Founded in December 2011 by Pedro Neto, a senior investment banker with extensive experience and knowledge of doing business in Africa, Eaglestone has since grown at a fast pace. It now has over 30 senior investment bankers with multidisciplinary skills and experience in Sub-Saharan Africa.
Eaglestone’s business model is built upon in-depth country and sector expertise
Eaglestone’s business model is built upon in-depth country and sector expertise, along with best of breed products, and technical and commercial knowhow. These are skilfully articulated to provide the structuring and execution of transactions across four principal areas. Our advisory division offers structured finance, corporate finance and project investment advice related to projects and business in Sub-Saharan Africa. This benefits local governments and multilateral entities, public and private corporations, financial sponsors and entrepreneurs.
Eaglestone Asset Management handles internationally funded private equity funds dedicated to undertaking development capital investments in the real estate, consumer, industry and infrastructure sectors in the core geographies of Sub-Saharan Africa. It does this through principal investment strategies, club deal investments and/or joint ventures.
We also conduct research on Sub-Saharan Africa, offering macro, industry and corporate research notes. Eaglestone is setting up a brokerage platform in Angola, licensed by local regulator CMC. We are licensed for investment advisory and securities intermediation in the UK and Portugal. Eaglestone also handles wealth investment advice and structuring, as well as tailor-made financial, corporate and real estate investment solutions to family office and high-net-worth clients in Sub-Saharan Africa.
Benefits of the group model
Each of these business activities operates as a separate business unit with its own brand, but all benefit from the operational synergies and management structure leverage provided by the group’s integrated management. These four business activities are offered and delivered by dedicated teams spread across our offices in Luanda, Maputo, Cape Town, Johannesburg, London and Lisbon.
We have over 40 staff composed of both senior and middle managers and technical staff, with: significant work experience across 20 countries spread around five continents, with a particular focus on Sub-Saharan Africa; an extensive track record of deal-making in South Africa and Sub-Saharan Portuguese-speaking countries as well as their neighbouring countries; specialist knowhow in project investment analysis and structuring in Sub-Saharan Africa, particularly in the infrastructure, energy, resources and real estate sectors; expertise in project and structured finance, capital structuring, with over €75bn of debt arranged, structured and/or advised; knowledge of proprietary equity investment, and fundraising experience; diverse experience in arranging and placing debt and equity instruments into the local and international capital markets.
Proven capability
The quality and success of Eaglestone’s business proposition and delivery capacity in Sub-Saharan Africa is evidenced in the diverse range of deals it has executed over the past two years.
Eaglestone has acted as financial advisor: for a 100MW gas fired power plant in Mozambique; to ACED and ENEL on an 88MW wind farm in South Africa; to SolarReserve on a 100MW concentrated solar power plant in South Africa; on the sale of five renewable projects in South Africa; on the sale of equity holdings in oil drilling blocks in São Tomé and Príncipe, and in Angola.
The firm has also been involved in the development of various real estate private equity ventures in Angola and Mozambique. Eaglestone set up, and continues to fund raise for, a private equity fund specialising in general industry and consumer services for the consumer and business sectors (e.g. food and retail companies, manufacturers of goods and industrial products, and technology and IT service providers in Sub-Saharan Africa).
These accomplishments were enhanced by the top quality market intelligence and proprietary research the firm produces on the relevant sub-Saharan markets and sectors. This area of excellence boosts the prestige and knowledge of Eaglestone across the region and internationally. As Pedro Ferreira Neto says: “Despite the youth of Eaglestone’s project, we proudly managed to attain very relevant milestones. These achievements and market recognition provide us with extra motivation and energy to continue working hard to support our clients unlocking Africa’s potential.”
