Egypt based SEKEM Group is a unique model of an organization which combines commercial success with social development. This outstanding combination has led to its sustainability and growth over 30 years to be a market leader of organic products and phyto-pharmaceuticals with a growing international presence.
In 2005, SEKEM Group's revenues were estimated at USD 14 million (rising from 37 million Egyptian pounds (USD 2.3 millions) in 2000) all the while delivering quality schooling, healthcare, and vocational training to its 2,000 employees, plus thousands of the local residents. Since its inception, the SEKEM community has flourished alongside the organic plants: first building an adult training center, then a kindergarten and a literacy program with more promising projects to being unfolded for the future.
Background and Vision: A Three- fold Social Project
SEKEM was established by Dr. Ibrahim Abouleish in the northeast desert of Egypt in 1977. Dr. Ibrahim's vision was linking healthy foods to community development in a three-fold social project. In an interview with the CSMonitor magazine, Dr. ABouleish said, ''I had a vision of a three -fold social project that would allow me to contribute to community building , humanity , and healing the earth." In this simple statement, he identified the basics of success underlying this inspirational project.
Dr. Abouleish, a proud Muslim, highlights the consistency of SEKEM's approach with Islam: "All the different aspects of the company, whether cultural or economic, have been developed out of Islam. We believe that it is possible to derive guiding principles for everything from pedagogies, to the arts, to economics from Islam."
In the beginning, the SEKEM project faced some difficulties in trying to convince other people of the consistency of its approach. The concept of environmental care was not appreciated at the time of its inception. Government officials were suspicious of organic cultivation which was unknown to them. Four years later, SEKEM sent the first shipment of medicinal herbs and food ingredients to the USA. In addition, skilled labor was scarce; all training had to be undertaken as in-service training over long periods. Dr. Abouleish, however, introduced a key solution to these obstacles through a 'compressive development project' on a 170-acre land of bare desert 60 kilometers outside Cairo.
SEKEM's Managing Director, his son Helmy Abouleish, shows the same passion for SEKEM's values as his father. Mr. Helmy stressed that, 'We tried to reclaim the desert in an organic way. It took many difficult years to convince other people of the soundness and rightness of our approach. In the global economy, you must be globally competitive, and in the long term it is all about human beings and individual capacity." The training of its employees in social awareness and professional skills "to awaken a person's senses, encourage creativity, and foster a sense of social responsibility and ethical awareness" was a crucial step in creating the company it is today.
Strategy and Structure: Sustainable Development
The two most important objectives of SEKEM Group are curing the environment through the application of biodynamic agricultural methods and manufacturing products that meet customer needs.
SEKEM was the first entity to develop biodynamic farming methods in Egypt. In return, these methods improve the agro-biodiversity situation without producing any unusable wastes. All products from the method can be either sold or re-used in cultivation, thus creating a sustainable process.
SEKEM consists of three entities: The SEKEM Holding Company, comprising of six companies, each responsible for one aspect of SEKEM's business value scheme; the Society for Cultural Development (SCD), SEKEM's arm towards providing comprehensive development of Egyptian society; and the Cooperative of SEKEM Employees (CSE), responsible for Human Resource Development. The SCD includes a hospital, a special education program for disabled children, a vocational training center, and an arts and science academy.
The six divisions of the SEKEM Holding Company are: ATOS - produces and markets phyto-pharmaceuticals and health products; LIBRA - cooperates with farmers to cultivate fresh fruit, vegetables and herbs; HATOR - produces and packs fresh fruit and vegetables from Libra; CONYTEX - manufactures and sells organic textiles to local and export markets; ISIS - produces processed organic foodstuffs; and LOTUS - prepares and pre-processes herbs and spices.
Through cooperation on projects with sister organizations in Germany and the Netherlands, SEKEM has received support from institutions such as the European Commission, Ford Foundation, USAID, and the Acumen Fund. SEKEM is also planning to share its expertise and knowledge with other countries such as India, Palestine, Senegal and Turkey and has partnered with the Fountain Foundation in South Africa for this purpose.
Strategic Partnerships a Key to SEKEM's Success
SEKEM developed local partnerships as a strategic plan to widen its application and methods in Egypt alongside partnering with international entities. In this context, SEKEM's offered its knowledge through the Egyptian Biodynamic Association (EBDA), a Non Governmental Organization (NGO)established in 1990 as a tool to conduct Research & Development into biodynamic agriculture and training framers in its methods. In the same year, SEKEM facilitated the establishment of the Center of Organic Agriculture in Egypt (COAE) as a regulatory and certification body, implementing DEMETER guidelines and the European Regulations for Organic Agriculture. These two collaborations promoted chemical-free farming among numerous villages in Egypt. In cooperation with the Ministry of Agriculture, SEKEM has set up a new system of plant protection for cotton to reduce total pesticide intake to less than 10 percent, which eventually led to a ban on crop dusting throughout Egypt.
Recognition and Achievements: A Success Story
In Recognition of its achievements, SEKEM was awarded the ISO 9001certification in 1997 and was selected "World Wide Project" of the Hannover EXPO 2000.
In 2004, SEKEM was chosen as the Social Entrepreneur of the Year for Egypt by the Schwab Foundation, a sister foundation to the World Economic Forum, following which SEKEM became the first economic institution to receive the Alternative Nobel Prize, also known as the Right Livelihood Award.
In 2004, SEKEM was chosen as the Social Entrepreneur of the Year for Egypt by the Schwab Foundation, a sister foundation to the World Economic Forum, following which SEKEM became the first economic institution to receive the Alternative Nobel Prize, also known as the Right Livelihood Award.
Future Projects
During it's celebration of "30 YEARS OF INNOVATION," SEKEM announced four major projects: the New Compost Production Plant, Fighting Heat Retention, the Comprehensive development project to reduce poverty intensity, and the formal Inauguration of AL-MIZAN Company for the Vaccinated Seedlings.
The AL-MIZAN Company, with initial investments of 12 million Egyptian Pounds (USD 2.2 millions), will produce Vaccinated Vegetable Seedlings and Seedlings used in the agricultural stoves and open fields exclusively, which in turn will lead to improved production. A total of 125 prospective work opportunities will become available as a result of the AL-MIZAN Company signing a Partnership Contract with the Dutch group GRU, which specializes in the production of vaccinated seedlings.
The Comprehensive Development Project will be launched in the Egyptian governorate Sharkeyia, to improve the poverty conditions of the residents. In addition, the LIBRA Company, one of SEKEM's branch companies, will supervise the execution of two projects: the New Compost Production Plant, which produces organic compost out of agricultural waste and the Fighting Heat Retention project, which aims to decrease the effect of the agricultural stove gases.
In conclusion, SEKEM has proved that helping people and making profits are inextricably linked to success in the business world. SEKEM has proved itself to be an impressive business model worthy of replication in the Muslim world, dedicated to reducing poverty and creating better livelihoods for the people .
By Sherin Deghedy
© Dinar Standard 2009
