Why Trade Matters
Trade and the Canadian Economy
Canada and Africa Strengthen Trade Relations
Stories of the Week - November 27, 2002:
"Our mission has demonstrated our commitment to the New Partnership for Africa's Development and to Africa itself," said International Trade Minister Pierre Pettigrew during the trade mission to Africa. "As our trade relations develop, more and more companies will come to realize the exceptional opportunities that can be generated by strengthening our ties with Africa."
Canada's trade mission to Africa yielded immediate results. For example, Export Development Canada and Export Credit Insurance Corporation of South Africa Limited have concluded an agreement to enhance cooperation between Canada and South Africa on funding jointly run projects in third-country markets.
In Nigeria, Minister Pettigrew and International Cooperation Minister Susan Whelan announced the first steps in the creation of a $100-million Africa Investment Fund, which will help stimulate economic development and encourage investment in Africa.
In Senegal, the mission's final destination, a wide range of projects were initiated. Companies in sectors such as education, energy, health, and information and communications technologies, took up Africa's cause by deciding to do business there.
This week, Stories of the Week features Canadian companies that have concluded agreements with companies from South Africa, Nigeria and Senegal.
For more information on the trade mission to Africa, please visit the following Web site: http://www.tcm-mec.gc.ca/africa
Stories of the Week - November 27, 2002
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Taking Language Further
Éditions L'Artichaut Inc., Rimouski, Quebec
Artichoke may seem like an odd name for a company publishing educational manuals and materials. But to Ginette Tremblay, founder of Les Éditions L'Artichaut, the artichoke heart is an everyday reminder that "the French-language student is at the heart of our business, whether that student is in Canada or as far away as Senegal."
Tremblay's company has come a long way from its start-up in 1987 when L'Artichaut manuals first entered Quebec elementary schools. By 1990, articles began to appear in several francophone countries, including Switzerland, France and Belgium, touting the "Artichoke method" of learning. In 1994, cutbacks in Canadian education budgets made exporting not only an attractive idea, but necessary to expand the business. "Then I put my hands on the tool that really opened the door to the world for me—EDC's [Export Development Canada] credit insurance," says Tremblay. "It was exactly what I needed to protect me and also what my bank was looking for. My bank loaned me more money, which gave me more working cash and boosted my confidence as an exporter."
Today, L'Artichaut employs six people, and boasts 75 manuals and interactive tools for all learning levels, while its exports have grown to 75 per cent of total sales. The firm is now well established in all French-speaking European markets and is growing its distribution in Senegal.
In 1999, Les Éditions L'Artichaut began a collaborative project in Senegal to find effective and lasting ways of improving the quality of French language education. Following successful testing of the Référentiel grammatical [grammar reference book], CIDA approved the introduction of the Référentiel in the six target areas with the most disadvantaged populations, in March 2002.
Les Éditions l'Artichaut signed a contract during the 2002 Canada Trade Mission to Africa with Senegal's Ministère de l'Éducation [Ministry of Education] to implement a new method of teaching French in six Senegalese regions that have a high concentration of multi-grade classes. This implementation phase will be complemented by a training program and instructional tools to promote students' active involvement in their learning. The total value of the project is $600,000, all of which is Canadian content.
In 2000, Les Éditions L'Artichaut was nominated for a Canada Export Award, and in 2002 was one of three finalists selected for an excellence in exporting award, in the books category, by SODEC (Société de développement des entreprises culturelles du Québec). On a practical level, exporting success has meant a reduction in per-unit manufacturing costs. But the real pride comes from something less tangible. Says Tremblay, "What better validation of the originality and value of your products than being able to succeed in the highly competitive international publishing world!"
Going Global With a Hand From Trade Commissioners and Missions
EDUCOM TS Inc., Ottawa, Ontario
In March 2000, EDUCOM TS Inc., an Ottawa-based software publisher, released its flagship product, Exchange Archive Solution (EAS). Today, the firm of 35 people does 99 percent of its business outside Canada through five exclusive distributors and an extensive network of resellers. EDUCOM has tripled its sales in each of the past three fiscal years. It was recently recognized as among the world's top three developers of e-mail archive management software.
Much of this skyrocketing success, says EDUCOM Managing Director Debbie Moffat, is due to federal government services such as trade missions and Trade Commissioners.
"Within a few months of releasing EAS, we identified a number of emerging competitors and realized that we needed global exposure if we were going to compete with the big guys," says Moffat. "Sitting in Ottawa, we wondered how we could become international and mitigate risk." As a first step, the firm contacted the Canadian embassies and consulates in five major countries. "It was the best thing we could have done. We provided trade commissioners with a profile of the companies we wanted to work with, our objectives and product description. They then found just the right match with people who not only met our criteria but also bridge the cultural gap between Canada and their own regions."
During the 2002 Canada Trade Mission to South Africa, EDUCOM signed a contract with SOARsoft Africa to represent and distribute EDUCOM's e-mail management products throughout the continent. SOARsoft will provide direct sales and, through the development of a channel represented by resellers, provide all levels of engineering support and training. The value of the agreement is approximately $10 million over two years, all of which is Canadian content.
With the direct help of trade commissioners, EDUCOM has been able to sign distributor agreements in the United Kingdom, Europe, Australia, Southeast Asia, Hong Kong and now South Africa. It is currently working on arrangements for China, Japan, Korea and Latin America. In fact, Moffat is travelling to Beijing right after the trade mission to participate in the annual general meeting of the Canada China Business Council, where she will meet with potential distributors.
The firm's strategic alliance in Hong Kong came about as a result of the 2002 Hong Kong Information Infrastructure Expo and Conference, explains Moffat: "Through the Canadian delegation led by Industry Canada and assistance from the Department of Foreign Affairs and International Trade, we were able to meet with several well-qualified local companies, all vying for the distributorship of EAS." Moffat advises smaller companies to leverage trade missions in order to gain exposure and credibility. "Canada has developed incredible resources for exporters over the years," she says, "and there are many people out there willing and able to help."
EDUCOM products help clients protect corporate intellectual property, enhance user access to information and reduce e-mail server overload. EAS-Wireless, another of its products, is designed to manage the overwhelming quantity of e-mail with which mobile users have to deal.
Affordable Telecommunications Solutions
Iris Technologies Inc., Toronto, Ontario
Iris Technologies Inc. is hoping to bring the latest innovation in global communications to Senegal. Using the information superhighway as its medium, the Toronto-based company supports a low-cost and effective method of international telephone service: Voice over Internet Protocol (VoIP). "In simple terms, this technology allows a user to call another user over the Internet for a fraction of the cost of a normal telephone call," says Samer Bishay, president of the firm. "VoIP is one of the fastest-growing segments of the telecommunications sector." At 27 years of age, Bishay himself is making remarkable headway in the industry.
Since it was granted a carrier licence by the Canadian Radio-television and Telecommunications Commission in 2000, Iris Technologies has built an infrastructure to carry traffic between major Canadian cities by using a 100 percent homogeneous data network. To increase its global reach, the company has developed relationships with affiliates throughout the world. "We have VoIP systems installed in Turkey, Romania, Israel, Egypt, Algeria, France and the Ivory Coast," says Bishay. "As a member of the trade mission delegation, we hope to be able to meet with officials from Sonatel, Senegal's major telecommunications agency, as a first step to doing business there."
Iris Technologies ended up signing a service contract in Senegal during the trade mission with Sonatel to exchange bilateral international telephone traffic, including voice, fax and data. The contract is estimated at $5 million a year, renewable annually, $3.5 million of which is Canadian content.
The company is working hand in hand with Export Development Canada (EDC) to build up its overseas markets. "We collaborate extensively with EDC to insure our worldwide receivables, open performance bonds, and in turn insure these performance bonds," adds Bishay. "They have been a tremendous help in advancing our international business ventures."
With offices in Toronto and Montreal, Iris Technologies also provides Internet Protocol (IP) calling cards and voice virtual private network services.
Helping E-exporters Prospect Global Markets
Prospectus Group Inc., Ottawa, Ontario
Canadian companies are increasingly recognizing that business-to-business (B2B) e-commerce software is emerging as an essential part of the technical tool kit they need to compete in the global marketplace. Yet few small and medium-sized businesses are taking full advantage of what e-commerce has to offer.
"For some years now, we have been working with trade commissioners and a wide array of partners to develop a leading-edge B2B solution," says Marvin Bedward, President and CEO of Prospectus Group, an Ottawa-based provider of e-business solutions. "SourceCAN, Canada's e-marketplace, is the result. Not only is it a competitive tool for Canadian businesses, it is a model for how other countries can encourage their businesses to go on-line."
In looking abroad, Prospectus found that businesspeople in emerging markets faced a further challenge: accessing the technology and connectivity needed to support e-commerce. In response, Prospectus developed a unique integrated package of equipment, software, network management, applications, training and support; this is available on a leased basis for clients anywhere in the world. Called the nTelligence Access Solution, the package was launched in the summer of 2002 and has already proven highly appealing in emerging markets, with sales exceeding $5.25 million within two months. While initial efforts focused on Mexico, Prospectus is currently engaged in negotiations to take the package into other countries in Central and South America, as well as to South Africa under the New Partnership for Africa's Development.
During the 2002 Canada Trade Mission to Africa, Prospectus signed a memorandum of understanding with Tactical Software System to set up a joint venture company, Prospectus South Africa, which will sell the company's technology licences and solutions in the area of on-line trading, e-commerce and knowledge management. The collective investment of this joint venture is $750,000, 50 percent of which is Canadian content. Prospectus also signed a contract with Wand Africa PTY Ltd. to distribute on-line information on business opportunities through the Prospectus subsidiary Hypernet Inc., starting with the banking industry. This agreement is valued at $200,000 over five years, all of which is Canadian content.
"Our goal is to provide entrepreneurs the world over with affordable, easy-to-use and robust tools that will allow them to get on-line and participate in the e-marketplaces that are emerging as the newest channels of international trade," says Bedward.
Municipal Services Management in Lejweleputswa
Informatique D.B.D. Inc., Laval, Quebec
Informatique D.B.D. Inc. is currently working on a complex project for the Municipality of Lejweleputswa in South Africa. This new urban community of 1 million inhabitants was created from the merger of 18 cities within a 150-kilometre radius.
"This is a challenging project," says Henri Guindi, president of the Laval-based company, which specializes in managing information technology projects. "It involves the complete integration of several databases, with the goal of improving the management of municipal services such as tax assessment and collection, billing, and health services." In collaboration with its local partner, MIIB Business Technologies, Informatique D.B.D. conducted a feasibility study on configuring and implementing a wireless network to link 124 municipal buildings, installing 2,000 locally assembled computers and related software, and delivering technical support training for municipal staff.
Several federal government agencies have been actively involved in this venture, adds Guindi. "We have used the services of Export Development Canada, the Canadian Commercial Corporation, CIDA and Canadian Trade Commissioners. The Embassy in Pretoria is providing us with excellent services and we work closely with trade commissioner staff there."
Informatique D.B.D. provides clients with turnkey solutions that encompass needs assessment, system design, solution development, network integration and implementation, financing, end-user training, and support. Its diverse client base includes municipalities, governments, hotels, financial institutions, educational institutions and multinational corporations in countries such as Algeria, Bulgaria, France, Morocco and Tunisia.
Committed to Improving Transportation Infrastructure in Africa
CPCS Transcom Ltd., Ottawa, Ontario
CPCS Transcom Ltd. specializes in the restructuring and privatization of roads, railways and ports, particularly in Africa. Company president Peter Kieran joined the Canada 2002 Trade Mission to Africa to further develop relationships with transportation organizations in Nigeria, Senegal and South Africa. "We are committed to fostering more dynamic infrastructure throughout the continent," says Kieran.
During the mission, CPCS signed a memorandum of understanding in Nigeria with Magnartis Finance and Investment Ltd. to cooperate in the development and execution of projects facilitating private investment in the transport sector. The agreement is valued at $5 million over three years, of which $3 million is Canadian content.
The Ottawa-based firm recently won a high-profile contract in South Africa to develop a strategy for improving the efficiency of the five major ports of Durban, Richard's Bay, East London, Mossel Bay and Cape Town by expanding private-sector participation. This project is financed by Britain's Department for International Development and the U.S. Agency for International Development.
Another action plan was recently developed by CPCS to revitalize the operations and management of Nigeria Railways Corporation through the introduction of a public-private partnership. Further west, the company is providing lead technical and financial advisory services to assist the government of Ghana in the selection of a concessionaire for Ghana Railway Company Limited through an international tender to be issued in 2003. "We are pleased to participate in this important project because it is an integral part of the government's goal of making Ghana a trade and investment gateway into the Western African sub-region," says Kieran.
CPCS is also helping Mali and Senegal reshape the national railway of each country into a commercially viable transnational enterprise. In 1999, the World Bank presented its President's Award for Excellence to the company for its participation in this project.
Made-in-Quebec Houses for Nigeria
Digigraph Systems Inc., Boucherville, Quebec
Whether in Latin America, Africa or certain Asian countries, the demand for low-cost housing is urgent. Responding to this enormous worldwide market, Digigraph Systems Inc. has designed and patented a prefabricated housing system that can be assembled on-site without specialized personnel and then filled with locally produced concrete, allowing projects to be completed at low cost and in record time. Buildings constructed using the Digigraph system are resistant to earthquakes, vandals, termites and corrosion. Using PVC extrusions and concrete, this unique construction system was developed in cooperation with another Boucherville-based company, Soniplastics.
Digigraph Systems currently exports 100 percent of its production, worth about $2.7 million a year. Since 2001, the company has been working on a major housing project in Benin City, Nigeria. Scheduled for completion this winter, the project involves manufacturing 100 houses of 190 square metres each for the local market. Digigraph is currently producing the components for the second phase of 30 housing units, and is also providing the wall and roof components as well as doors and windows. "We joined the 2002 Canada Trade Mission to South Africa, Nigeria and Senegal in order to strengthen our business relationships in these countries," says Bernard McNamara, company president.
During the mission, Digigraph signed a memorandum of understanding in Nigeria with Edo State to begin the next phase of this housing development project. Digigraph, with the financial support of the Canadian International Development Agency, will invest up to $315,000 in a training program designed to provide Nigerian workers with specific construction skills.
In recent years, Digigraph has also carried out projects in the West Indies, the Bahamas, Chile, China, Costa Rica, Ghana, the Philippines and Portugal. In recognition of its international success, the company was nominated for the 2002 Technology Export Award of the Association de la recherche industrielle du Québec.
Biotechnology Fighting AIDS and Cancer
Canadian Breast Cancer Laboratories(Canbreal Therodiagnostics
International Inc.), Ottawa, Ontario
Canbreal Therodiagnostics International Inc. develops treatments and therapies that can cut mortality rates for people all over the world who are suffering from cancer (particularly breast cancer), AIDS and neurodegenerative diseases. That in itself is a challenge. But the CEO of the Ottawa biotech company, Dr. Gabriel Pulido-Cejudo, says that the hardest part of developing markets in other countries is convincing governments to be leaders in public health. That is why he travelled to Africa as a member of the 2002 Canada Trade Mission—his fourth such trip in two years.
During the mission, Canbreal signed a memorandum of understanding with the Institut du cancer de Dakar [Dakar Cancer Institute] to develop a national and international breast cancer early detection program. The agreement is valued at $10 million over five years, $7.5 million of which is Canadian content.
"You won't have public health without government support," says Pulido-Cejudo. "These missions allow us to effectively evaluate the interest of governments in other countries, as part of a high-profile delegation." The Team Canada 2002 Trade Mission to Russia and Germany was particularly successful for Canbreal, which signed three agreements worth $3 million each to develop strategic programs based on its products and technologies. Pulido-Cejudo is currently following up on initiatives undertaken during last June's Canada Trade Mission to Mexico. He also participated in the Team Canada trip to China in 2001; this, he says, "had a dramatic impact in streamlining who we can work with." Canbreal is now strongly interested in establishing a presence in Africa, says Pulido-Cejudo: "We want to introduce our technology in a number of regions, starting in Senegal."
Canbreal was founded in 1998 by Pulido-Cejudo to commercialize a revolutionary low-cost blood test for breast cancer that he developed while at Health Canada. Today, the firm has 20 people on staff and conducts collaborative research with organizations in Mexico, France, Denmark, England, Chile, Italy, Spain and Greece. The aim is to establish and promote applied research programs centred on the development of biotechnology-based products, bio-systems and non-invasive therapies.
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