Dr. Emmanuel de Merode (36:04)
So we've worked across a whole number of areas and it's quite varied. It's a difficult question to answer in a nutshell because it's complex. But we try and concentrate the effort on two things. One is building up local enterprise small businesses in the community. And there you get a whole range of small businesses. Sometimes they get referred to as barefoot businesses. These are people working often out in the open on the side of the road, doing carpentry or welding mechanics and so on. And they're actually extraordinarily skilled jobs, but they don't have access to investments to be able to grow out their businesses. And so what we did was to work out a scheme where we could use the electricity network, which is this really interesting. You can build this really interesting picture of it, which is that you've got a natural network of rivers and streams flowing through the forest that build up in power as they converge to a point. And then it becomes an economic network that is really the mirror of that natural river network in the forest. And that human network is of course, a physical transmission of electricity down the power lines into the grids, power grids in the cities that we've built out. And you've got these two networks that are the mirrors of each other. And what they do is that they connect the forest's energy to what are now 50,000 homes and businesses in the cities and create a very real, a very financial interdependence between the human economic landscape and the natural ecosystems. And so what that did was that it created a discussion both locally with, on the need to preserve that forest because it stabilizes the water flows. And those stable water flows are what make the generation of electricity possible. And now the livelihoods of over 21,000 families. And those families become the best allies of the park, for obvious reasons. But it also created a whole discussion internationally. And one of those discussions brought us into contact with Muhammad Yunus when he was passing through Nairobi a couple of years ago. And I asked for 10 minutes of his time to discuss the whole issue of how do you bring financial services to people who are completely excluded from the formal banking sector because they're too poor to really be able to get through the doors of a bank? And it was meant to be a 10 minute discussion because he's incredibly busy. And it developed into a four hour discussion about his dream of achieving what he refers to as the three zeros, which are zero unemployment, which is very important to us because unemployment is one of the main drivers of violence. Zero concentration of wealth, which is something that he feels very strongly about. And I think we're all increasingly sympathetic with that point of view. And then the third, which is the zero net emissions. And it was something he said he was really struggling with on how to tie financial services to the poor to the whole issue of zero net emissions. And this model that was developing in Virunga offered an opportunity to really test that. Could you drive financial services, loans systems, small business loan system to the natural ecosystems and create that interdependence where one protects the other and vice versa. And so we developed this idea of trying to test that idea of tying financial systems to the forest, and developed a joint venture with the Grameen bank, of course, the greatest institution there is in terms of microfinance. And so we now have Grameen Barunga, which is a microfinance institution around Virunga national park that's partly owned by the Grameen bank and that uses electricity as the medium for providing loans. So when you buy a kilowatt hour of electricity, you can obtain a loan that is reimbursed with a small premium on that electricity. And what's so interesting about it is that the cost of the kilowatt hour of electricity of clean energy from the park, plus the reimbursement of the loan, amounts to 22 cents for your kilowatt hour of electricity, plus, say, 10 cents for reimbursing your loan. That's 32 cents. The cost of a diesel generator is over 60 cents a kilowatt hour. So it always costs you less to reimburse your loan than not to reimburse your loan, because that would mean going back to a diesel generator, which is more expensive. And so you've overcome one of the great challenges of financial exclusion, which is the inability for somebody living in extreme poverty to provide a guarantee, because being poor, by definition, they have nothing and they can't offer a guarantee on their loan. Now, they don't need to offer guarantee because the model makes it cheaper to pay the loan than not to pay the loan, and that becomes your guarantee. So that was incredibly interesting as a, you know, as a hypothesis. And the second, of course, was that, you know, the best proxy you have, the best correlate of business performance, is energy consumption in these small businesses. And all that data was being collected anyway by the energy company that we developed. And so you could get a due diligence analysis done at no cost for these small businesses, which is, of course, the other cause of financial exclusion is that it's so expensive to do due diligence on a small business that's asking for a very small loan of, say, $200. If your due diligence process costs $1,000, you're not going to do it. The bank, for obvious reasons, can't afford to evaluate these businesses. And so we'd have overcome that problem as well by tying the loan to clean energy from these natural ecosystems. And so that's become, in the last couple of years, a $5 million investment in small business. There's over 1500 small businesses that have received these loans. And that's part of the reason why we've created 21,000 jobs. And so it's really tied into those natural ecosystems and it's, it's performing really well. It's growing quite fast. So that's really exciting. The other aspect, so much to talk about. I'm sorry. No, please. But the other aspect is these industries that we've been able to develop in the value chains that have been coerced by the trafficking system, so the armed groups that control certain commodities and where we've managed to build industries that bypass those illegal networks and provide an alternative. A really important one to us is cocoa. You know, cocoa is obviously the primary ingredient for chocolate, and everyone likes chocolate. It gives you, you know, it gives, it gives you a good, a good feeling, but at the same time it has a very, very sinister pathway to your stomach, which is that in regions like eastern Congo, it's a very, very high value commodity that attracts the armed militias and one in particular, the adf, which is a very violent militia in the north of the park, in the north of the province. So a militia that came from Uganda, it's considered to be a jihadist militia, although it's more complex than that. And one of their main drivers is the illegal exploitation of the cocoa production systems. And what they will typically do is go into communities just before the harvest and kill people so that the communities flee just after the harvest. And then they'll go in with, often with enslaved labor and just recover the whole harvest and traffic it, smuggle it into Uganda and it gets sold on the European market, on the US market, and through what are considered to be respectable brokers as certified, often fair trade and organic cocoa, but Ugandan cocoa. And so it's a terrible situation in which the, you know, the laundering of this, of this Congolese cocoa and its fraudulent certification as Ugandan cocoa conceals the fact that there are terrible crimes committed along that value chain. And the way around that, obviously, is to create a much more resilient, much more robust Congolese value chain. But that needs to be economically viable. And so to achieve that, you need to industrialize. It's the only way of doing it is to really build out the whole cocoa transformation industry in Congo. And so what we've done is that we've worked in those communities and encouraged them to build out their own fermentation centers in the communities that are safe. And so we bring the rangers in also with the army and build out systems where it's the Community that structure their own security and they call the army. When they need the army. It's not the army going in and causing trouble. But when they feel threatened and vulnerable, they have the technology, these simple panic buttons that we've distributed where they're able to call out and support and prevent these massacres from happening. But at the same time, they no longer ferment and dry the cocoa in their fields and they're able to bring it to a safe fermentation center, get a much higher quality of cocoa, and then transfer it safely to a cocoa mass transformation plant. And, and what we now have a chocolate factory. And so we started making chocolate, very high quality chocolate within those communities and then exporting that at much, much higher value, which has made the legal cocoa value chains much more profitable and much more interesting to those communities. And so there's a big cocoa mass transformation plant that's now under construction with the support of the European Union, which the park is building, which will produce 30,000 tons of cocoa mass, which is part processed chocolate, as it were, which the European market really needs. There's a cocoa deficit on the global market. But 30,000 tons of cocoa mass represents 60% of the entire cocoa production of Congo at the moment. So the potential is amazing. But these are, you know, these are profitable businesses. You know, they're not handouts to the Congolese people. These are the Congolese people developing highly profitable businesses that can be invested in on a level playing field. So it's a really gratifying process that's taking place around the park where these illegal trafficking networks, be it illegal charcoal that's being replaced by clean energy or the illegal cocoa smuggled into Uganda, that's being replaced by processed, transformed cocoa on the legal market. And so that's really what it amounts to in terms of the sort of tangible changes that are happening on the ground.