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HSE, Business Strategy Tool for Developing Markets: A Focus on the West-Africa Sub-Region Presented by: Alabi Olubunmi at the WASHEQ 2013 Conference. Background. West Africa Economic Outlook Has some of the fastest growing economies in the world

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  1. HSE, Business Strategy Tool for Developing Markets: A Focus on the West-Africa Sub-RegionPresented by:AlabiOlubunmiat the WASHEQ 2013 Conference

  2. Background West Africa Economic Outlook • Has some of the fastest growing economies in the world • Estimated growth rate of 6.7% in 2013 and 7.4% by 2014 • It provides a myriad of opportunities for Foreign Direct Investments (FDI’s) • Economic barriers include Infrastructure, insecurity and salient issues like HSE, affecting its competitiveness

  3. Background Contd.... Current Sub-Regional HSE Trend • Lack of regulator framework and legislations • Lack statistics which could form the bedrock for implementing regulatory controls, identify high risk sectors and setting objectives and targets • In Sub-Sahara-Africa, which includes the sub-region, about 54,000 fatalities occur annually with 42 million accidents.

  4. Background Contd.... • Gas flaring and GHG emission are still on the high • Pollution and spills are not accurately prosecuted and accounted for • There are no proper plans for Climate Change Mitigation and Adaptation

  5. Economic Importance of the Sub-Region Natural Resource includes; • Land for subsistence farming and cash crop production including cocoa, rubber and timber • Major player in the Oil and Gas global market with new reserves increasingly discovered • Large deposits of solid minerals like Diamonds in Sierra-Leone, Gold in Mali, Ghana and Guinea

  6. Economic Importance of the Sub-Region contd.... Human Capital Resources • It has a population of over 245 million people • Some of the brightest minds in the continent are from the region • Yet about 40% of the adult workforce is illiterate • And over 80% are exposed to the risk of accident at work

  7. Challenges to HSE in the Sub-Region Proper Regulatory Framework and Compliance • There are no regulatory or compliance mechanism • No regulatory body to supervise and monitor businesses within member states • Lack of records keeping and inability to benchmark data with other regions • Little or no penalty for non-compliance

  8. Challenges to HSE in the Sub-Region contd.... • Education, Training and Awareness • Huge population with high illiteracy rate • Little knowledge of HSE hazards • Cultural belief that accidents are part of normal work life • Short term focus of meeting daily needs which take precedence over safe work environment

  9. Challenges to HSE in the Sub-Region contd.... Leadership and Corporate Commitment • There is little or no meeting point between business and HSE • Businesses align themselves with productivity and profit as HSE is perceived as luxury • HSE is not viewed as strategic enabler to business sustainability

  10. Challenges to HSE in the Sub-Region contd.... Life Cycle Approach to HSE in Business Plans and Processes • Lack of incorporation of HSE into business plans, processes and programmes • HSE should be in all phases of business from conception of an Idea through the design phase to commissioning and decommissioning

  11. Qualitative Analysis of HSE in the Sub-Region • There are no statistical numbers to back quantitative analysis • Best and Brightest hands are more willing to work for HSE compliant companies • Recent surveys reveals some of the best companies to work for are Multi-Nationals and indigenous firms that adopt global best practices • Global Best Practices in this regards, refer to Sustainability

  12. Counting the Cost Loss of Investment Opportunities • Inability to attract investment from Fortune 500 companies • Also agencies like IFC are less willing to borrow businesses in regions with little or no HSE framework or compliance • In Nigeria for instance with the Central Bank’s initiation of the Sustainable Banking Principle, businesses access to funds would become more stringent.

  13. Counting the Cost contd..... Drop in GDP • A decline in investment would surely lower the sub-region’s GDP • Refusal of other markets to take products from the sub-region • Consequent lowered productivity is experienced

  14. Counting the Cost contd..... Inability to Break into New Markets • Loss of new markets as a result of the inability to meet GMP requirements • HSE is a prerequisite in most countries to gain access into their markets

  15. Counting the Cost contd.... Flight of Bright /Talented Minds • Indigenous bright/talented minds are seen to move to regions where HSE is at the cornerstone of business • This would affect human capital mobilization and retention

  16. Looking Forward Regional and State Government’s Commitment • Regulatory framework should be design and implemented • Set-up regulatory bodies • Ensure compliance • Lead by example

  17. Looking Forward contd.... Businesses Adopting Global Best Practices • Adopting HSE practices into the life cycle of its plan, programmes and processes • Use of efficient and cost effective HSE methodologies • Business Case to investors should highlight its HSE objectives and targets

  18. Looking Forward contd.... NGO’s and HSE Consultant Participation • Organisation of Conferences • HSE awareness amongst the public especially through campaigns, media outreach like radio talks • Collaboration of Governments, Businesses, Associations and Consultants to develop sectoral guidance

  19. Benefit of HSE to the Sub-Region Sustain Business Development and Regional Sustained Economic Growth • It would increase sub-regional productivity • Make businesses more sustainable • Help harness sub-regions potential especially in less attractive sectors • Would increase sub-region’s GDP

  20. Benefits of HSE to the Sub-Region Contd.... Retention and Attraction of Best Talents • Would help keep indigenous talents • Foreign Expatriate and West-Africans in Diaspora would be willing to come back to help grow the sub-region

  21. Benefits of HSE to the Sub-Region Contd.... Breaking into New Markets • Businesses in the sub-region would easily break into new markets • The would be a soar in foreign exchange in the region • Foreign businesses would be willing to relocate to the region

  22. Benefits of HSE to the Sub-Region Contd.... Enhancement of its Reputation • It would rank the sub-region highly amongst international bodies like ILO • Win the confidence of varied stakeholder • It would place the region amongst the strongest economic regions in the league of nations

  23. Benefits of HSE to the Sub-Region Contd.... • Other plus include a stronger, healthier, motivated and well enlightened workforce • Also litigation and business closure would be greatly reduced

  24. Conclusion • Looking forward HSE has to be addressed like other business aspects and should be emplaced in the very heart of business plans and processes. • Proactive measures would help safety grow in the sub-region adding value and setting precedents would bring bout the recognition that safety requires in the sub-region

  25. Thank you!!!!

  26. Any Questions?

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