IBRAHIM ABOULEISH
SEKEM / IBRAHIM ABOULEISH (RLA 2003)
Egypt
" ...for a 21st century business model which combines commercial success with social and cultural development. "

Dr. Ibrahim Abouleish was born in Egypt in 1937. In the year 1956, at the age of 19, he began his studies in chemistry, medicine at the University of Graz, Austria, receiving his Ph.D. in Pharmacology in 1969. Thereafter he then engaged in pharmaceutical research, taking on the position as Head of Division for pharmaceutical research until 1977.

In 1975, on a visit to Egypt together with his family, he was overwhelmed by the country's pressing problems in education, overpopulation and pollution. His admiration for his country led him to establish in 1977 a comprehensive development initiative, which he called SEKEM.

The Innovation

SEKEM is establishing the blueprint for the healthy corporation of the 21st century. Taking its name from the hieroglyphic transcription meaning "vitality of the sun", SEKEM was the first entity to develop biodynamic farming methods in Egypt. These methods are based on the premise that organic cultivation improves agro-biodiversity and does not produce any unusable waste. All products of the system can be either sold or re-used in cultivation, thereby creating a sustainable process.

Background

Egypt's problems are interrelated and include overpopulation, environmental degradation, inadequate education and health care. Agriculture involves 40% of the workforce and remains the least developed sector of the economy. Cost of agricultural production has increased while the resource base has shrunk. Today, Egypt has become one of the world's largest importers of food. Because the country's problems are interrelated, SEKEM has built a thriving social and cultural base to address Egypt's crumbling health, educational and cultural preservation capacities.

Strategy

SEKEM is formed by three closely interrelated entities: The SEKEM Holding Company comprising six companies, each responsible for an aspect of SEKEM's business value proposition, the Egyptian Society for Cultural Development (SCD), responsible for all cultural aspects, and the Cooperative of SEKEM Employees (CSE), responsible for human resource development. Working together, they have created a modern corporation based on innovative agricultural products and a responsibility towards society and environmental sustainability.

The six companies of Sekem Holding Company are: ATOS - produces and markets phyto-pharmaceuticals and health products; LIBRA - works 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 - production of processed organic foodstuffs; SEKEM - prepares and pre-processes herbs and spices.

SEKEM has grown exponentially in the last decade to a nationally renowned enterprise and market leader of organic products and phyto-pharmaceuticals. It has established reliable links with European and U.S. customers in the export trade. Moreover, 55% of its sales are domestic - an essential element for SEKEM's long-term sustainability. Its strong commitment to innovative development led to the nation-wide application of biodynamic methods to control pests and improve crop yields. However, SEKEM's most important impact on Egyptian society has generally and most probably been achieved through the Egyptian Biodynamic Association (EBDA), an NGO established in 1990 as a means of conducting R & D into biodynamic agriculture in Egypt and training framers in its methods. In collaboration with the Ministry of Agriculture, SEKEM deployed a new system of plant protection in cotton, which led to a ban of crop dusting throughout Egypt. By 2000, according to UN and FAO reports, pesticide use in Egyptian cotton fields had fallen by over 90%, while prior to the ban 35,000 tons of chemical pesticides were sprayed yearly. Furthermore nearly 80% of Egyptian cotton was being grown organically and average annual yields had increased by nearly 30%.

The SEKEM "mother farm" and processing facilities are located on 300 hectares of land near the town of Belbeis, 60 km from Cairo. After the successful implementation of the biodynamic method in this area, other farmers, stunned by the results, started to cooperate with SEKEM. Today, approximately 800 farmers from Aswan to Alexandria are applying the international guidelines for biodynamic agriculture on 8,000 hectares.

In 1990 SEKEM facilitated the establishment of the Center of Organic Agriculture in Egypt (COAE) as a regulatory and certification body, according and adhering to DEMETER guidelines and the European Regulations for Organic Agriculture.

The SCD is SEKEM's way of reaching out beyond its commercial activity in pursuit of its goal to contribute to "the comprehensive development of Egyptian society". It employs approximately 200 people in four main domains of activity.

A kindergarten, primary and secondary school, and a special needs education program for the children of employees and the neighbouring community.

A work-and-education program for children from poorer families in need of further income, a vocational training center, literacy classes and a training institute for adults.

A Medical Center providing modern medical services and an outreach program, treating 30,000 people yearly from the general vicinity.

An Academy for Applied Arts and Sciences to promote scientific research in the areas of medicine, pharmacy, biodynamic agriculture, sustainable economics and arts.

A number of its social initiatives in the arts and other fields contribute to the development of Egyptians, raising their self-esteem and promoting mutual respect. In addition, increasingly Egypt's younger generation seeks to pursue tertiary education. In response, SEKEM is founding a private University offering undergraduate and graduate degrees in arts, science and technology.

Today, 2,000 people work in SEKEM. Revenues have grown from 37 million Egyptian pounds in 2000 to 100 million in 2003. In 1997, SEKEM was awarded ISO 9001 certification, was selected "World Wide Project" of the Hannover EXPO 2000, and in 2002, it secured a loan from the "Deutsche Investitions - und Entwicklungsgesellschaft" (DEG) and the "International Finance Corporation" (IFC).

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 increasingly seeking to share its experience and acquired knowledge with other countries (including India, Palestine, Senegal and Turkey), and has a partnership for this purpose with the Fountain Foundation in South Africa.

In an article, which appeared in Business Today Egypt, the Sekem Group was described as "an economic powerhouse", but the Group differs from most companies in various aspects:

The training of its employees in social awareness and creative arts, as well as professional skills "to awaken a person's senses, encourage creativity, and foster a sense of social responsibility and ethical awareness." Employees are organized in a 'co-operative of SEKEM employees.

Its management of the value-adding chain from the farmers to the consumers based on partnership and transparency, an approach SEKEM calls the 'economics of love'.

There is also a deep aesthetic commitment. In 2000 the Cairo Times wrote: "Aesthetically speaking, it is almost eerily organized and clean for a farm. The same kind of pastel-colored buildings that comprise the company's administrative center are strewn around the farm, connected to each other by neat paths lined with flowerbeds and trees. Beyond the central square fields of swaying grass and fragrant herbs give the impression that one has reached the gates of paradise."

Dr. Ibrahim Abouleish is clearly an important leadership figure in SEKEM. He was elected as one of the distinguished Social Entrepreneurs by the "Schwab Foundation" to participate within the renowned "World Economic Forum". Increasingly though leadership seems to be passing to the next generation. The Managing Director of the SEKEM Group is his son Helmy Abouleish, born in 1961. Notwithstanding the influence of modern science, Dr. Abouleish, who has always been a Muslim, is at pains to stress the consistency of SEKEM's approach with Islam: "All the different aspects of the company, whether the cultural ones or the economic ones, have been developed out of Islam. We believe that it is possible to derive guiding principles for everything from pedagogics, to the arts, to economics from Islam."

"We draw our source of inspiration from spiritual and natural science, religion and art, adhering to the highest possible quality standards, which conform to the true needs of our consumers. In partnership with our close friends and colleagues in Europe, and our local partners in trade, we strive to market our products, employing what we call the 'economics of love'."
- Ibrahim Abouleish

Contact Details:
SEKEM Initiative
Ibrahim Abouleish
3, Belbeis Desert Road
POB 2834 El Horreya
Cairo
EGYPT
www.sekem.com

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