HSE, Business Strategy Tool for Developing Markets: A Focus on the

West-Africa Sub-RegionPresented by:

Alabi Olubunmi

at the WASHEQ 2013 Conference

BackgroundWest Africa Economic OutlookHas some of the fastest growing economies in

the worldEstimated growth rate of 6.7% in 2013 and

7.4% by 2014It provides a myriad of opportunities for

Foreign Direct Investments (FDI’s)Economic barriers include Infrastructure,

insecurity and salient issues like HSE, affecting its competitiveness

Background Contd....Current Sub-Regional HSE TrendLack of regulator framework and legislationsLack 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.

Background Contd....Gas flaring and GHG emission are still on the

highPollution and spills are not accurately

prosecuted and accounted forThere are no proper plans for Climate

Change Mitigation and Adaptation

Economic Importance of the Sub-RegionNatural 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

Economic Importance of the Sub-Region contd....Human Capital ResourcesIt has a population of over 245 million peopleSome of the brightest minds in the continent

are from the regionYet about 40% of the adult workforce is

illiterate And over 80% are exposed to the risk of

accident at work

Challenges to HSE in the Sub-RegionProper Regulatory Framework and ComplianceThere are no regulatory or compliance

mechanismNo regulatory body to supervise and monitor

businesses within member statesLack of records keeping and inability to

benchmark data with other regionsLittle or no penalty for non-compliance

Challenges to HSE in the Sub-Region contd....Education, Training and AwarenessHuge population with high illiteracy rateLittle knowledge of HSE hazardsCultural belief that accidents are part of

normal work lifeShort term focus of meeting daily needs

which take precedence over safe work environment

Challenges to HSE in the Sub-Region contd....Leadership and Corporate CommitmentThere is little or no meeting point between

business and HSEBusinesses align themselves with productivity

and profit as HSE is perceived as luxuryHSE is not viewed as strategic enabler to

business sustainability

Challenges to HSE in the Sub-Region contd....Life Cycle Approach to HSE in Business Plans

and ProcessesLack of incorporation of HSE into business

plans, processes and programmesHSE should be in all phases of business from

conception of an Idea through the design phase to commissioning and decommissioning

Qualitative Analysis of HSE in the Sub-RegionThere are no statistical numbers to back

quantitative analysisBest and Brightest hands are more willing to

work for HSE compliant companiesRecent 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

Counting the CostLoss of Investment OpportunitiesInability to attract investment from Fortune

500 companiesAlso 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.

Counting the Cost contd.....Drop in GDPA decline in investment would surely lower

the sub-region’s GDPRefusal of other markets to take products

from the sub-regionConsequent lowered productivity is

experienced

Counting the Cost contd.....Inability to Break into New MarketsLoss of new markets as a result of the

inability to meet GMP requirementsHSE is a prerequisite in most countries to

gain access into their markets

Counting the Cost contd....Flight of Bright /Talented MindsIndigenous 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

Looking ForwardRegional and State Government’s CommitmentRegulatory framework should be design and

implementedSet-up regulatory bodiesEnsure complianceLead by example

Looking Forward contd....Businesses Adopting Global Best PracticesAdopting HSE practices into the life cycle of

its plan, programmes and processesUse of efficient and cost effective HSE

methodologies Business Case to investors should highlight

its HSE objectives and targets

Looking Forward contd....NGO’s and HSE Consultant ParticipationOrganisation of ConferencesHSE awareness amongst the public especially

through campaigns, media outreach like radio talks

Collaboration of Governments, Businesses, Associations and Consultants to develop sectoral guidance

Benefit of HSE to the Sub-RegionSustain Business Development and Regional

Sustained Economic GrowthIt would increase sub-regional

productivityMake businesses more sustainableHelp harness sub-regions potential

especially in less attractive sectorsWould increase sub-region’s GDP

Benefits of HSE to the Sub-Region Contd.... Retention and Attraction of Best TalentsWould help keep indigenous talentsForeign Expatriate and West-Africans in

Diaspora would be willing to come back to help grow the sub-region

Benefits of HSE to the Sub-Region Contd....Breaking into New MarketsBusinesses in the sub-region would easily

break into new marketsThe would be a soar in foreign exchange in

the regionForeign businesses would be willing to

relocate to the region

Benefits of HSE to the Sub-Region Contd....Enhancement of its ReputationIt would rank the sub-region highly amongst

international bodies like ILOWin the confidence of varied stakeholderIt would place the region amongst the

strongest economic regions in the league of nations

Benefits of HSE to the Sub-Region Contd....Other plus include a stronger, healthier,

motivated and well enlightened workforceAlso litigation and business closure would be

greatly reduced

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

Thank you!!!!

Any Questions?