May 2017

2017

Dr. Harnet Bokrezion

www.africajumpstart.com

Africa Business Intelligence Know The Latest Each Month - Be Ahead Of The Game in 2017

Issue 32

May 2017

This is Africa Business Intelligence ! Hi there, Thanks for downloading Africa Business Intelligence, which I will send you free of charge each month covering the latest market opportunities of the previous month and showing you what they mean for your business. The Internet has now become a reliable source for business and industry news on Africa, but much of it are news reports on large-scale investments or projects making it difficult to apply the information to your own venture. When I started to build my Africa business it was hard to get information that was relevant to start or grow my own business. I decided to fill that gap. As you may have read on my website, my main objective building Africa Business Jumpstart is to assist and guide those who want to start businesses or invest in Africa, and part of that is how to minimize obstacles and identify upward trending opportunities. I want answer your 'how to' - questions. In my view some of the obstacles many of us face doing business in Africa is a lack of perspective, relevant information, guidance, and time! So here you get insights into rare opportunities, neatly packaged! My monthly Africa Business Intelligence will provide you with a compact overview of the latest market developments that happened over the last few weeks in Africa and that are relevant to entrepreneurs and investors. You are then in a position to turn information into knowledge that has significance in your decision making processes. Reading these intelligence summaries on a monthly basis will also enable you to get a better understanding of the dynamics on the ground in a way that is relevant to your own undertakings, so you can make informed decisions faster and more confidently. But be aware it's only ONE of the tools I offer to inform and support you on your journey to success in Africa. Watch out for all the other unique opportunities and guidance I provide, so you can finally make real PROGRESS! Here is Africa Business Intelligence May 2017 issue summarizing key insights of the last month. I hope you will find it useful! Warm regards, Dr. Harnet Get my book: “101 Ways to Make Money in Africa” – the most comprehensive book on African Africa business ideas and concepts that actually work on over 300 pages. More details on www.africa101book.com

May 2017

Cold storage and cold store transports needed across Africa

We can witness repeatedly a call for cold store facilities, such as warehouses and transports to boost quality, exports, and cut down on food wastes in Africa. This includes not only fruits & vegetables, but you can also find an attractive niche in the fishery, meat & dairy sector.

Nigeria: Abeokuta — Following the low production of tilapia fish supply in the country, an aqua firm, Premium Aquaculture has disclosed that it is set to boost tilapia fish production supply with more than 20, 000 MT in next five years.

Speaking at the inaugural harvest of tilapia fish at Oyan Dam in Abeokuta, Ogun State capital, the Farm Manager, Mr. Govin Daraju said the company was incorporated in 2014 to develop tilapia, catfish and shrimp farming projects across Nigeria.

The Minister of State for Agriculture, Senator Heineken Lokpobiri who inaugurated the first harvest of the tilapia fish disclosed that the nation's fish demand stood at 3.1 metric tonnes per annum.

He added that the country is currently hovering around 1.1 metric tonnes per annum, leaving a deficit of 2.1 metric tonnes.

According to him, the federal government resorted to backward integration to encourage local fish farmers, to bridge the gap between demand and supply

The minister added: "When this administration came on board, the supply was around 800, 000 metric tonnes per annum, but due to government policy on fishery by the ministry of agriculture, the country is now doing 1.1 metric tonnes per annum."

Daraju, however, noted that the hatchery facility at Oyan dam has a capacity to produce 12 million fingerlings per annum that can supply half of the country's present tilapia fingerlings requirement.

According to him, the food wastage in the country is very high due to lack of fish processing and storage facilities and it can be curtailed only through cold chain.

He added: "The cold chain facility would help the company to supply all-natural, freshly frozen, premium tilapia to the market."

He, therefore, identified lack of aquaculture inputs in the local market as the company's initial challenges, pointing out that the other major challenge was lack of fast growing tilapia fingerlings and uninterrupted supply of good quality feed to grow fish to marketable size.

Relevance for you business: This is a business model that requires a good amount of initial capital investment before it can reap some fruits, but the demand for cold store facilities will undoubtedly be there for

the long-term and not just around major cities and airports in Africa. To integrate solar power into your venture, may be of benefit and increase sustainability.

May 2017

Manufacture buttons for the clothing and fashion industry!

Africa's fashion and apparel industries are growing at a rapid pace, in particular in markets such as Ethiopia, Kenya, Nigeria, Ghana, and South Africa. But the need is also there in other African markets for example for school or army uniforms.

Horn buttons are made from cow and buffalo hooves and horns. Their market is relatively high since most clothes and some bags need horn buttons as fasteners.

Process Horn button making involves use of plant and machinery such as circular saw, band saw, boring machine, hole drilling machine, circular designing machine, buffing polishing lathes, polishing drums, belt sander, double ended tool grinder, metal turning lathe and filter tools.

Production process involves cutting of horns, boring, hole drilling, designing, buffing, polishing and packing.

Mr Daniel Joloba, the chief executive officer at Big Finance, a firm that does advisory and consultancy for small and medium enterprises, says those with

interest in this business should do market research on the type and size buttons.

"When one gets to know details on what the market wants then it will help them to know the kind of technology needed and how much it can cost them," Mr Joloba says.

He said that this kind of business can be done in the confines of a home, especially for those who start small.

According to Mr Joloba, the simple button making machine can be accessed at just $70 to $100, which is an equivalent of Shs252, 000 to Shs361, 000.

Capacity For those with interest in producing on a large scale, the business can be premised on three hundred and twelve working days and single shift of 8 hours per day.

The unit is designed to have production of 100 kilogrammes of horn buttons per day translating into an annual production of 31,200 Kilogrammes.

In this category revenue potential is estimated at $2,600 (Shs9.3 million) per month. The business can pay back in three years.

Market Possible customers for buttons are people who are involved in the making of school uniforms, other kinds of uniforms such as for the army or factory workers.

Mr Joloba says Uganda has more than seven million school going pupils who on average use about two uniforms each.

"Assuming each school shirt requires six buttons, this makes it 12 buttons for two shirts for each child per year. With the

May 2017

seven million pupils in school a total of 84 million buttons will be required annually," Mr Joloba explains.

It is necessary to brand and package well in order to attract customers.

He adds: "Many times small businesses ignore branding their products yet it can lead them to the next customer."

The market for horn buttons is readily available with designers, dress makers and tailors among other clothes manufacturing industries.

Relevance for your business:

This is yet another business you can start on a shoestring budget if necessary, although growth may be slow due to the low cost per unit for your product, which means you have to hit a certain capacity

to make good profits. But the demand is there and you can also add buttons from various materials such as shell, wood, or fabric. Important is that you choose a particular industry you want to sell to and then meet their demand.

Invest in Plastic Recycling

Plants

The manufacturing of plastic bags could soon be history in Tanzania and other East African countries where a ban is already in discussion. However, the pollution through plastic bags poses a major problem across Africa. Recycling plants are needed!

New plastic bag manufacturing factories in the country will have to install recycling facilities as the government moves to curb environmental

degradation, the National Environment Management Council (NEMC) has announced.

NEMC Coordinator for the Eastern Zone Jaffar Chimgege, speaking here over the weekend, said: "As a country, we face a serious challenge when it comes to littering the environment by plastic materials and solid waste...they both pose serious threat to the environment."

He made the revelation shortly before he welcomed Morogoro Regional Commissioner Stephen Kebwe to officiate at a two-day workshop for environment and health officials on enforcement of the Environment Act.

The officials were drawn from local government authorities in Tanga, Coast and Morogoro regions. Mr Chimgege said various measures, including compelling manufacturers to produce plastic materials of approved specifications, were being undertaken to

May 2017

address the environmental pollution situation.

He cited the recent total ban on production of plastic sachets hitherto used to pack alcoholic drinks, saying new manufacturers of plastic materials will be required to install recycling facilities.

"The aim is to curb environment pollution through reduction of indiscriminately discarded litters of plastic materials on land and water bodies," he stressed.

Speaking at the workshop, NEMC's Chief Environment Officer Glory Kombe, pleaded with members of the public, particularly urban dwellers, to reduce the uses of plastic bags when shopping.

"In rural areas, people re-use one plastic bags for several times, they wash and reuse them...this has checked scattering of plastic materials in villages. We should as well consider other materials like baskets," she advised.

[Source:Allafrica.com]

Relevance for your business:

Being one step ahead of the game when policies are being actively and repeatedly discussed can be a winning strategy. The cut down on plastic waste is a big issue and hence the recycling of plastic may be a profitable and sustainable investment in certain African countries.

Export African avocados to Europe - demand is growing!

The demand for healthy avocados in Europe is growing - make sure you deal with suppliers and exporters in Africa who have the necessary certifications and ideally even the experience with exports.

More than 300 [avocado] farmers receive certification allowing them to build more sustainable relationships with European buyers and generate higher incomes.

More than 300 Kenyan farmers have received GlobalG.A.P. certification - opening the door to the European market - with support from the International Trade Centre (ITC).

The benefits of having GlobalG.A.P. certification include access to new business opportunities, especially in the European market, and the ability to earn higher incomes through price increases for their now-certified products.

May 2017

Promoting good agricultural practices GlobalG.A.P. stands for Global Good Agricultural Practice and is a private standard that sets out requirements for farming processes and food safety. As one of the most prevalent certifications for the European market, GlobalG.A.P. opens doors for Kenyan exporters to build more long-term relationships with European buyers and generate higher incomes.

The first step to achieving certification was the establishment of one-to-one linkages facilitated by the project between the farmers groups and exporters in 2015. The approach included localization and identification of farmers groups, as well as identification of individual farmers and the varieties and quantities of their avocado trees.

Based on that, the farmers' capabilities of meeting the needs of Kenyan exporters in terms of volume and quality were analysed. Contractual agreements were signed and hence fixed prices and terms of delivery for each group were set.

Ensuring long-term success

Throughout 2016, the farmers groups and technical advisers of each exporting company received training on compliance with GlobalG.A.P. audit requirements. This included activities such as the development of individual quality management systems and the implementation of internal audits. These follow-up activities have led to job creation: farmers are now taking on more responsibilities along the avocado value chain. Previously, they worked with middlemen who harvested and collected avocados, leading to unreliable practices and prices.

Now, using this new model supported by the NTF III Kenya Avocado project and the GlobalG.A.P. certification, farmers are earning on average two times more than what they used to earn through middlemen.

Exporters supported the farmers groups by investing in infrastructure, including collection sheds, first aid boxes, offices and hygiene facilities that are required for GlobalG.A.P. certification. They are planning to invest in additional groups in coming years to increase their volume of GlobalG.A.P.-certified avocados and tap into the increasing demand for avocados in the European market.

Source: allafrica

• Relevance to your business

• This is a great agricultural product for export, as demand for avocados continues to grow in

Europe and the West. Ideal for the African Diaspora based in Europe - can be started on a

shoestring budget.

May 2017

Great niche opportunity! - Produce livestock feed with maggot farming

Producing worms may not be for everyone, but it will certainly meet local demand for quality, protein rich feed. Poultry & fish farmers in particular face a huge challenge with accessing quality feed. They often have to import from abroad which rises the cost of their operations. Producing local feed based on maggots can reduce that challenge - and this is why it can be profitable for you.

AFTER visiting his farm recently to find out how potential fly farming producers are trained, The Namibian asked Netcor founder Johan van der Merwe to explain in detail what this type of farming entails, and how beneficial it is to the animal feed industry.

"It is not magic. It is hard work," he says when asked how quickly one can expect a return on investment from the business. "It takes about 41 days from the time of the first production to your first worm harvest."

Van der Merwe has described maggot farming as "the new super animal feed of the moment and the future, which gives a higher protein value than any other source, including bone meal, soya bean meal and fishmeal, with an estimated value of 60,4%".

The maggots will be dried, milled and mixed with natural organic material (such as food waste from supermarkets, etc) for sale on the local and international market as feed for fish, chickens and even pigs, which in turn will end up on the table for human consumption.

He said most of the animal feed Netcor produces is delivered to one of their biggest clients, Osona Eggs. The rest is exported to Zambia and Angola.

Van der Merwe, who started his business in December last year, said fly farming has just got off the ground in Namibia.

He, however, notes that fly farming has been in existence for the past couple of years, with South Africa being the biggest producer in the world.

"Maggot farming in Namibia is an absolute necessity because we import all animal protein feed, which is costly. With maggot protein produced in Namibia, we will save farmers a lot of money on imported feed and bring more affordable food to our consumers. Our climate is ideal for maggot farming throughout the year as it uses very little water, and it clears our environment of flies," Van der Merwe explained.

He said to get started, the maggots are produced in a standard 15x15 metre house, which is filled with growing matter (manure).

Each house can produce more than 30 tonnes of maggots in 30 days, with each tonne sold to Netcor for N$380 on a contract basis of an extendable 10-year term. This means each maggot house can realise a turnover of up to N$13 690 per month, he added.

"The set-up cost of each maggot house is N$62 000, which is an extremely good investment; even more so as breeding

May 2017

stock (flies) are not bought like livestock," he noted.

In a controlled environment, each fly lays over 2 000 eggs every 24 hours, and with each maggot house stocked with one million flies, this translates to 2 billion eggs every 24 hours. When these turn to maggots, they can weigh a minimum of 1,2 tonnes a day, which on a 30-day basis is 36 tonnes of maggot protein. When sold at N$380 per tonne, this is N$13 680 per maggot house per month.

"Maggot protein yields better growth rates, heavier carcasses and better quality meat and egg products than any other animal protein feed, especially when fed to cattle, fish, pigs and poultry, and it will save these farmers up to 32% on feed costs, and fish farmers up to 70%, meaning farmers can pass on the benefit to the consumers buying these meat products," he said.

[Source: Allafrica]

Relevance for you business:

• The demand for livestock feed in Africa is very poorly met across the continent, posing a major challenge for any farmer. This is why the opportunity and potential for maggot-based feed production is so great and will remain profitable for the long-term. It's also a business you can start on a shoestring budget if you have to, but careful management of your operations on the ground not too far from your main market is a must.

Do you have access to cheap or

wasted banana? Produce

banana wine for supermarkets

and tourists

The continent has yet a long way to go in commercializing traditional alcoholic beverages. Banana wine is one you could introduce in almost every country. Supermarkets, restaurants, and hotels can be your clientele.

During the peak season of bananas, many farmers incur losses because they are paid low prices yet there are little known technologies in Uganda to preserve the ripe ones.

Many farmers do not have facilities where they can store their produce as they wait for the prices to rise. However, Eunice Munyarwanda, a banana grower in Rwankenzi village, Kasenda Sub-county in Kabarole District has found a solution.

After suffering losses for a long time, Munyarwanda thought of how to add value to her bananas, not only to minimise losses but to increase her earnings.

"During high supply of bananas, I would be paid Shs8,000 which is little given the high cost of growing bananas," she says.

May 2017

She now owns 20 acres of bananas having started in 2012 with support from Kabarole Research and Resource Centre (KRC), that provided her with training in banana wine making.

Starting out

The 43-year-old says she invested Shs370,000 to start her enterprise. The money was used to buy saucepans, airlocks, bucket, bottles, jerry cans, additives such as wine yeast, citric and honey. With everything set, Munyarwanda utilised a room at her house and set out on her quest to make "Jovence wine". She derived the name from her daughter Novent Maziwa.

"I started this project for my children. When my daughter is done with university, I want her to take over the business and that is why I named the wine after my first born, Munyarwanda shares.

For the start, she made 120 bottles. This fetched her Shs1.2m where she made a profit of Shs800,000.

Realising the potential of her new found business, Munyarwanda persisted.

She says that she supplies her wine to supermarkets within Kabarole, Kasese, Bundibugyo, Kamwenge, Kyenjojo and other urban areas. However, she does direct sales to individuals who go to her home. She sells a big bottle at Shs10,000, that is factory price and a small one at Shs2,000.

However, she says the market is still small because she only sells in Rwenzori region. In a month, she earns about Shs3.6 million from her enterprise, but Munyarwanda makes more money during the festive season.

Ripple effects

Munyarwanda has been able to earn both in selling raw bananas as well as the byproduct without incurring losses and has been able to educate her children and buy prpoerty.

She has been able to run other businesses and make wine in her free time.

To save on on labour costs, she works with her family.

Challenges

However, she meets some hurdles such as preservatives that are bought from Kampala which is expensive and time consuming.

She says obtaining UNBS accreditation is hard because it's a long process and when you are not accredited; your product has limited market.

Munyarwanda says on the whole she is happy that she turned to banana wine because it is more rewarding and has a longer lifespan.

Lessons "I have learnt that with little capital, you can start a project and it grows with time," she says.

The wine project does not need a lot of time, and you can do it in your free time. "I have learnt that when you add value to something like bananas you earn more," Munyarwanda says.

How to make banana wine Step 1: Munyarwanda says it takes one week for bananas to ripen.

Step 2: Peel the ripe bananas and put them in a saucepan, put water and boil until it reaches a boiling point.

Step 3: When it has boiled, remove it from fire and put them in a sack and hang them in a room. Put a bucket down where juice will be collected as it drains.

Step 4: Leave the juice for three days to cool down.

Step 5: Pour it in a tank and then add citric acid and wine yeast. Cover it and put an air lock on top.

May 2017

Step 6: After one month, sieve it and put it in another tank. Sieve it again after two months and again after six months.

Step 7: Thereafter, add honey and serve or bottle. However, Munyarwanda

advises that the best banana wine is that which has stayed for more than a year.

[Source: The Monitor]

Visiting Uganda? - You Can Now Apply & PAY for your visa online!

In a quest to attract more tourists and investors, Uganda has made visa applications more simple and now even added online payment methods!

Kampala — In a bid to boost domestic tourism, payment for Uganda visas is now done online. The new innovation is also projected to attract more foreigners into the country.

According to Mr Jacob Siminyu, the immigration directorate spokesperson, the service that has been tested for two days is promising.

"Seventy seven people have so far used the service to pay for their visas in the last two days since we started using it.

Most of the clients are from United States of America where we have only two centres for visa application and payment," he said.

"Other payments are from United Kingdom, India, Germany New Zealand, Canada, Oman, Spain and Brazil, Netherlands, Pakistan, Australia, Austria among others," he added.

Mr Siminyu told Daily Monitor in a Monday interview that the service will become mandatory to payments for visas online after one week.

"This will ensure that none of our officers touches this money. It is paid to Orient Bank, our agent that later transmits it to the consolidated fund. Uganda recently introduced visa application online but payments were still being done in cash. With this application, many foreigners will be able to apply and pay online, which is more convenient," he said.

During 'tulambule campaign' aimed at promoting local tourism recently, the State Minister for Tourism, Mr Godfrey Kiwanda, told journalists that Uganda annually gets about 1.5 million foreign tourists, which number is expected to grow to 4 million tourists by 2020.

[Source: allafrica.com]

May 2017

Be part of Africa’s renaissance.

Build a grand lifestyle for yourself.

And make a positive impact on the lives of others. Today

Yours, Dr. Harnet

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