Josa Green Fuel Technologies Business Plan

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
1.0
EXECUTIVE SUMMARY
The purpose of this business plan is to raise US$ 60,000 (UGShs 210
million) from a renewable energies funding source. Josa Green
Technologies Ltd is a Ugandan-registered Bio Energy (or renewable energy)
investment companythat specializes in the manufacture of Bio Mass
Briquettes fuel which is also known as white coal (charcoal) in the industry.
The Bio Fuel is produced from agro waste and on burning it does not create
pollution. Josa Green Technologies Ltd seeks to apply the requisitioned
funds to acquire additional machinery and equipment for processing fuel
briquettes and cooking stoves/ovens, erect additional structures on the its
current production site, acquire one transportation truck, and finance
working capital requirements for raw material inventories and operating
costs of the enterprise.
1.1
Business Profile
Biomass, an energy-producing source, is used principally in the form of

firewood and charcoal. It currently provides about 93% of Ugandas
consumed energy. In agricultural-based countries like Uganda however, there
is a vast natural supply of biomass found in the form of agro and forest
residues. Often these residues are simply burned in the fields; this is not only
a waste of an energy source, but it is also a cause for pollution in local
regions. Josas aim is to transform Ugandas agricultural waste into
briquettes. Besides reducing the increased exploitation of Ugandas primary
forests, briquettes also have a low production cost, which means they would
be cheaper than firewood or charcoal. They can be used in already existing
stoves and have a longer burning time because of their density and low
moisture content. As a result, sales of $205,294 or 918 tons are expected
from the first year of operation.
The briquettes will be made out of charcoal-dust and dry agricultural wastes,
sugar cane trash (bagasse), and maize trash from farmers. Simple
technologies will be implemented to make it less expensive to produce
briquettes. Thus, the briquettes will be affordable by the local population.
Today, 31.58 million people in the country still use fire wood and wood
charcoal for their cooking needs, this population is a sizeable market for
charcoal briquettes.
1

1.2
Business Location
The Josa Green Technologies Ltd's bio-fuel briquettes and energy-saving

cook stoves production (industrial) facility is located at Ochieng Zone
opposite Njovu Estate at Nansana town in Wakiso District which is only about
10 kms from Kampala city centre along the Kampala Hoima road. The head
office of Josa Green Technologies Ltd is situated at Namuli Road at Bukoto
behind Kabira Country Club, Namuli Zone found in Nakawa Division in the
eastern suburbs of Kampala city.
1.3
Business Objective
To provide a 5-year operating plan for the briquettes and energy-saving

stoves business focusing on;
Increasing briquettes production (sustaining demand) from current 84
pieces of honey comb briquettes per day each weighing 2.5 kgs
equivalent to 210 kgs.
To diversify briquette shapes to cater for all market segments that is
produce stick briquettes and pillow shaped briquettes.
Increase on production of customized briquette stoves to create bigger
market to briquettes
To guide and lay strategies of for accessing the feedstock for
sustainable briquette production as well as stove making.
To upgrade our production facility and have our products certified by
the Uganda Bureau of Standards (UBOS).
Increasing sales of briquettes of various shapes like honey comb, stick
and pillow shaped by sensitizing users and marketing through
marketing materials & branding.
Develop new products of pillow briquettes, brooding kits and stick
briquettes within the next two years and acquire basic processing
equipment for Josa Green Technologies Ltd for improved quality and
efficiency.
Acquire bigger land and establish commercial production sites (factory)
in Wakiso District that will produce briquettes to serves the crated
market in schools, restaurants and poultry farms.
Look out for regional and local opportunities in the biomass energy
sub-sector.
1.4
The Team
2

The Management team is comprised of Asiimwe Samuel, Ninshaba Jonnah
and Mugisha Brian. The Management team is a highly motivated,
experienced and well-qualified outfit of young goal-driven Ugandans. The
team is strongly positioned to take advantage of this opportunity. Josa
Green Technologies Ltd (Josa) is thus led by a committed management
team of three shareholders, who hold 95% of the shareholding equity and
three (3) board positions. The company (Josa) itself holds a 5% shareholding
equity stake in the company as an individual business entity.
1.5
Funds Required
A total investment of US$ 60,000 is being sought as project recapitalization

finance to be used mostly for capital assets acquisition to scale up and
expand Josa Green Technologies Ltds fuel briquettes and cook stoves
output and sales capacity. The required project funding will be spent as
follows:
US$ 4,150 (UShs 14.5 million) will be spent on construction of

additional building/production structures at Josa Green Technologies
Ltds current production site.
US$ 8,170 (UShs 28.6 million) to be used to purchase and install
new primary and fuel briquette processing machinery and equipment
including an automated piston extruder, roller press, automated double
honeycomb press, an automated mixer and small tools.
US$ 206 (UShs 0.80 million) to be used to acquire a spray gun and
grooving machine that are used in the manufacture of cook stoves.
US$ 11,430 (UShs 40.0 million) to be used to acquire one
transportation truck for transportation of raw materials from the raw
material source areas and movement of manufactured fuel briquettes
to the designated sales outlets in Kampala.
The balance of USD 35,450 (UShs 124 million) to be applied as
working capital consisting of plant machinery and equipment
installation charges, making payments for pre-operational expenses
and contingencies, covering the payroll costs for staff during the first
two months, and defraying the raw material cost of purchasing
biomass, charcoal dust and binders from the various suppliers in
Uganda.
1.6
Production Plan

There will be an initial production of 918 tons of briquettes during the first
year of operation. This will average 2.52 tons of briquettes per day. A
kilogram of briquettes will be sold at 23 cents and generate sales revenue of
US$ 205,294.
Production during the second year of operation will increase by 15% to a
level of 1,055.7 tons of briquettes. In order to meet the increased production
limit that year, working hours will be increased. As the market focus is
extended around Kampala, the company will realize US$ 247,893 of sales
revenue during the second year.
In the third year of operation, the project will produce 1,214 tons of
briquettes a production increase of 30% with sales revenue of US$ 299,330.
In 2016, Josa Green Technologies Ltd intends to expand its business to
incorporate more outlets using existing charcoal vendors and supplying to
the tourism and the hospitality industry. Josa Green Technologies Ltds
target is to sell 1,350 tons of briquettes for 2020.
1.7
The Market
Carbonised briquettes can act as a replacement for charcoal for domestic

and institutional cooking and heating, where they are favoured for their nearsmokeless use. In comparison to charcoal, they generally burn for longer and
have a more consistent heat output, which is preferred by certain market
segments such as restaurants, hospitals and schools. Poultry farming is a
large industry in Uganda and smokeless, longer burning briquettes are also
well suited to heating cages overnight when temperatures are low as a
cheaper alternative to electric heating lamps.
Josa Green Technologies Ltd. will select ten wood charcoal vendors in the
seven (7) large and well-known markets around Kampala. They will be asked
to try the Josas biomass fuel briquettes and energy-efficient stoves. The
selected charcoal vendors will then sell the briquettes to households,
chapatti (pancakes) businesses, restaurants, and hotels.
The market end-users of bio fuel briquettes in Uganda include: households,
chapati businesses, restaurants and hotels, boarding schools, poultry farmers
and hospitals in both urban centres and some of the rural areas. These are
the highest consumers of charcoal. Josa Green Technologies Ltd. also
intends to approach tourist lodges in the national parks because they are
very keen to see an alternative to wood charcoal, especially the JGI (Jane
4

Goodall Institute), Wild Frontiers, Ndali Lodge (Fort Portal), Mihingo Lodge
(Lake Mburo), and those lodges adjacent to Bwindi and Budongo.
1.8
Marketing Strategy
Flyers and posters will be made. They will have printed instructions for
lighting the briquettes and estimating their burning time. The flyers and
posters will be an educational tool, with both financial and environmental
advantage. They will be distributed to the selected vendors, will hand them
out to clients as they buy the briquettes.
Josa Green Technologies Ltd will attend exhibitions like the Energy Week
(organized by the Ministry of Energy and Mineral Development), trade fairs,
and agricultural shows. These appearances will provide both promotional
platforms and communication forums.
As part of the initial training and promotional awareness raising, each vendor
will be given a 10 kgs pack of briquettes and a stove for trial purposes. This
will allow them to demonstrate charcoal briquettes to their wood charcoal
clientele. All feedbacks will be documented.
1.9
Personnel Policy
We intend to compensate our personnel well, so as to retain their invaluable

expertise and to ensure job satisfaction and enrichment through delegation
of authority. We intend to achieve optimal productivity whilst realizing the full
potential of each of our employees through provision of health care,
generous profit sharing, plus a minimum of three weeks vacation. Awards
will be given out to outstanding individuals for hard work and output which
will not only feature as a token of our appreciation to our employees, but also
to instill a sense of fun into the work environment and promote the
maintenance of high standards.
1.10 Financial Performance

The total capital investment cost of the proposed expansion and scaling up
of the Josa Green Technologies Ltd (Josa) bio-fuel briquettes and cook
stoves production enterprise is US$ 71,485. Out of this total capital
investment cost, USD 8,571 (11.99%) is the value of the existing site land;
USD 4,150 (5.81%) will be used to construct additional site building
5

infrastructure; USD 8,400 (11.75%) will be used for the purchase of bio-fuel
briquettes and cook stoves manufacturing plant machinery and equipment;
USD 11,430 (15.99%) will be spent on purchasing a transportation truck for
collecting raw materials and moving products to market; and USD 35,450
(49.59%) will be spent as working capital comprising of plant machinery
installation and commissioning costs, raw material purchase finance (start-up
inventory), as well as contingencies and pre-operational expenses.
The bio-fuel briquettes and cook stoves production enterprise is to be
financed through 83.93% debt and 16.07% equity. The project NPV is
around USD 452,440 at a discount factor of 17%, with an IRR of 182.09%,
payback period of 1.69 years and Break-even capacity utilization of 20.73%.
The legal status of this business is proposed as Limited Liability Company.
The project composite bio-fuel briquettes and cook stoves sales turnover to
increase from USD 546,437 in the first year (Project Year 2) to USD
878,401 in the fourth year (Project Year 5). Out of these amounts, pre-tax
profits (operating profits) increase from USD 132,661 in Project Year 2 to
USD 350,293 in Project Year 5.
Relevant ratios such as the percentage of net profit to total sales, return on
equity and return on total investment show promising returns (Refer to
Schedule 14 on pages 93 94).
Investment cost and income statement projection are used in estimating the
project payback period. The projects will payback fully the initial investment
in 1.69 years (Refer to Schedule 13 on page 92).
Ultimately the attractiveness of our venture lies with the fact that customers
will choose our bio fuel briquettes and energy-saving cook stoves above
those of competitors because of their high quality and price affordability.
Hence Josa's ongoing initiatives will be to drive sales, market share and
productivity so as to provide additional impetus towards attainment of the
corporate goals and objectives.

NOTE: All currency figures in this plan are in US Dollars (USD).
Figure 1: Performance Highlights (PY2 PY5)

Sales
Gross Margin
Net Profit
900,000
800,000
700,000
600,000
500,000
US$
400,000
300,000
200,000
100,000
0
PY 2
PY 3
PY 4
PY 5
1.11 Local Social Impact of the Business Products or Services

1.11.1
Environmental Benefit
In order to make one ton of charcoal, ten tons of wood is burned. This
explains why Ugandas natural forests are being depleted at such a fast rate.
For every one ton of agro-waste, 300 kilograms of briquettes is realized. The
manufacture and use of technology in the briquette industry will reduce
exploitation of the forests for fuel wood.
The tree resources are very crucial for maintaining the environment; they
preserve the environment and endangered species; support both rural and
urban communities; and lower carbon and greenhouse gas emission.
On the flyers and posters, additional information on environmental education
will be conveyed to prospective clients. This will increase awareness of
environmental issues. Half of the flyer and posters will be printed in
indigenous languages like Kiswahili, Luganda.
1.11.2
Socio-Economic Benefit
7

Josa Green Technologies Ltd (Josa) bio fuel briquettes and energy-saving
cook stoves production enterprise will definitely deliver a range of positive
socio-economic impacts to Uganda which can be highlighted as follows:
Job opportunities are created through plant installation, operation
and maintenance.
Fuel security is improved, thus increasing social security and the
welfare of the local community.
The burden of collecting fuel for both women and children in rural
areas of Uganda is reduced.
The health of women and children are improved by replacing
polluting fuels with cleaner fuel for cooking.
Income is generated for the community from the collection and sale
of bio mass raw materials such as bagasse and maize cobs.
The currency of fossil fuels such as kerosene is reduced.
The industry created from the manufacture of briquettes contributes
to the growth of the countrys GDP.
Hard currency is generated from carbon financing e.g. as a Clean
Development Mechanism (CDM) project, it can generate saleable
credits.
1.11.3
Negative Impact
Briquettes will directly replace a percentage of wood and wood charcoal.
While this has good environmental benefits, the decline in demand for wood
and wood charcoal will affect the income of dealers involved in the wood and
charcoal business.
1.12 Keys to Success
Josa Green Technologies Ltd has identified several keys to success that
will be instrumental in creating a sustainable business. If these keys are
followed, the likelihood of success will significantly increase.
1. Offer bio fuel renewable energy solutions that are demanded by
customers.
2. Ensure all of the solutions have economic considerations built into the
respective models.
3. Only provide 100% customer satisfaction. All customers must have
their expectations exceeded.
4. Establish and build relationships and trust with customers to help
shield from future competition.
8

5. Expand rapidly to control the market.
6. Offer reasonable prices.
7. Get investment.
1.13 Mission
To provide unparalleled services to organizations /firms /governments
/individuals with developmental projects that enhances sustainable
environmental conservation and improved livelihood.
1.14 Vision
A successful Company / business with Excellent Customer Service and loyal
Customers following translating into top sales for quality energy saving cook
stoves, charcoal briquettes, biogas digesters, equipment,
agricultural
products, & services in the prosperity of environment management.
2.0
PURPOSE OF THE DOCUMENT
The objective of this Business Plan is primarily to inform the primary project
promoters being Josa Green Technologies Ltd as well as its prospective
renewable energy investment partners about the basic project operation and
business performance indicators that will facilitate the assumption and
implementation of key decisions to finance and roll out bio mass fuel
briquettes manufacturing enterprise based on the huge availability of agrowaste and charcoal dust in Uganda. This Business Plan also forms the basis
of an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development,
start-up, and production, marketing, finance and business management. The
document also provides some sector information and domestic market
scenarios, which have some bearing on the project itself.
The purpose of this document is also to facilitate the main project investors
with information on the aspects and advantages of investing in bio fuel
briquettes processing and domestic marketing by providing them with a
macro and micro perspective of the dynamics of bio-mass based renewable
energies market in Uganda in the hope that the information provided herein
will aid potential investors in crucial investment decisions.
9

This report is based on the information obtained from industry sources as
well as discussions with market place players. In the financial model, since
forecast/projections relate to the future periods, actual results are likely to
differ because of events and circumstances that do not occur as expected.
3.0
INTRODUCTION & BACKGROUND

3.1
Biomass Policy
The most recent government strategy relating to biomass use is reflected in

the Renewable Energy Policy 2007, which is an extension to the wider
Energy Policy for Uganda 2002. On the topic of biomass, the policy focuses
on demand-side management through thedissemination of more energy
efficient technologies (such as improved cook stoves). Wheresupply is
considered, the approach is largely through afforestation and reforestation,
however Ugandas president, Yoweri Museveni, has recently been reported 1
as saying thathe wants the government to intervene by supporting
Kampalas Makerere University to research briquette technology.
1All Africa, Uganda: Museveni Re-Assures Citizens On State of Economy, 22

September 2011
10

With support from the UNDP, the government is also implementing key
interventions incharcoal production2 which includes increasing the charge
that the National Forestry
Authority levies on charcoal burners. This could provide an opportunity for
alternative fuels tocompete further with the cost of charcoal.
Critical assessments of the governments ability to implement a biomass
strategy have beencarried out by the EAC in their Regional Strategy to Scale
up Access to Modern Energy
Services (Uganda Report 2008), in which it praises the Renewable Energy
Policy2007 andthe creation of a division within the Ministry with a specific
mandate to handle householdenergy issues but highlights the following
weaknesses in governance:
A lack of appropriate regulatory framework governing the use of

biomass resources, especially those on private lands.
A lack of strong enough focus on wood fuel resources in the forestry
policy.
A lack of standards and quality assurance leading to production of substandard products, lowering the adoption of new technologies
3.2
The Biomass Economy
The contribution of firewood and charcoal to Ugandas GDP is estimated at

US$ 48 million and US$ 26.8 million respectively (UNDP, 2011). In terms of
employment, biomass production creates nearly 20,000 jobs for Ugandans.
Nonetheless these economic activities are also accumulating significant
costs as a result of environmental degradation. Millions of Ugandan Shillings
are estimated to be lost each year as a result of biodiversity loss and
degradation of soil resources.
Despite the on-going environmental degradation, it is clear that these
industries represent significant economic activity and any future alternative
will have to fill this gap.
3.3
An Approaching Crisis
The level of demand, coupled with unsustainable harvesting and poor

management of forests, means that Uganda risks approaching something of
a biomass crisis. As a result, increased attention has been given to small2Uganda Ministry of Energy and Mineral Development,2008 Annual report
11

scale rural based bio-energy technologies such as improved cook stoves,
gasification, biogas and briquettes. Nevertheless these technologies must
now be propagated on a much larger scale and across the country if the
issue is to be significantly addressed.
3.4
Briquettes and their Potential
Biomass briquettes are a form of solid fuel that can be burned for energy.
They are created by compacting loose biomass residues into solid blocks that
can replace fossil fuels, charcoal and natural firewood for domestic and
institutional cooking and industrial heating processes. Briquettes have the
potential to be a source of renewable energy if they are made from
sustainably harvested biomass or waste agricultural residues.
Crops grown in Uganda such as maize, cereals, roots, cane sugar and coffee
all produce residues that are suitable for briquetting as does dried organic
municipal solid waste (MSW). Data provided by the Ugandan government
(see Table 1) indicates that 1.2 million tonnes of agricultural wastes are
available each year and an additional 1,500 tonnes of MSW are estimated to
be produced in the capital city Kampala daily3.
These two sources combined provide a theoretical limit which indicates that
at most 6% of the countrys total wood consumption and up to 50% of the
charcoal trade could be replaced by briquettes from waste. Nevertheless
practical limitations such as seasonal variations, competing uses and
collection significantly lower the amount of raw material available for
commercial opportunities. Hence, briquettes alone will not have the potential
to fully address the approaching biomass crisis in Uganda, however they will
certainly be part of the solution and there is large scope for growth from an
industry that is starting from a very low base.
Table 1: Annual production of agricultural residues
Agricultural
Annual Production (000s
Residue
tons/year)
Bagasse
590
Rice Husks
25-30
Rice Straw
45-55
Sunflower Hulls
17
Cotton Seed Hulls
50
3Uganda Investment Authority, proposals for the Manufacture and Marketing of Charcoal
Briquettes, 2010
12

Tobacco Dust
2-4
Maize Cobs
234
Coffee Husks
160
Groundnut Shells
63
Source: Uganda Renewable Energy Policy, MEMD, 2007
4.0
PROJECT DESCRIPTION
4.1
Project Brief & Opportunity Rationale

4.1.1 Project Brief

firewood and charcoal. It currently provides about 93% of Ugandas
consumed energy. In agricultural-based countries like Uganda however, there
is a vast natural supply of biomass found in the form of agro and forest
residues. Often these residues are simply burned in the fields; this is not only
a waste of an energy source, but it is also a cause for pollution in local
regions.
13

Josa Green Technologies Ltds aim is to transform Ugandas agricultural
waste into briquettes. Besides reducing the increased exploitation of forests,
briquettes also have a low production cost, which means they would be
cheaper than firewood or charcoal. They can be used in already existing
stoves and have a longer burning time because of their density and low
moisture content. As a result, sales of US$ 205,294 (fuel briquettes alone)
or 918 tons are expected from the first year of operation.
4.1.2 Opportunity Rationale:
Briquette Businesses
Commercial
Case
for
The availability of cheap (and often free) firewood and charcoal has been
part of the reason why such biomass has prevailed as the dominant source
for energy in developing countries. However in recent years Uganda has
faced significant increases in charcoal prices.
Figure 2: Charcoal price per kg (2004-2011)
14

Charcoal - price per kg (2004-2011)
Uganda Shillings
1600
1400
1200
1000
800
600
400
200
0
2004
2005
2006
2007
2008
2009
2010
2011
Year
Charcoal price
estimated cut-off price for briquetting viability
Figure 2: Average market prices for selected goods in Kampala 2004-2011, Uganda
Bureau of Statistics2010 Statistical Abstract.Updated with prices reported for 20092011 in newvision.co.ug
In 2008 the average price of a 40 kg charcoal sack was USh 15,000 (US$6)
and during 2009 it rose to USh 25,000 (US$10), an increase of 66% in just
twelve months. Prices increased substantially again in 2011, with the cost of
a sack in the capital Kampala reaching USh 60,000 (US$24). Meanwhile, 4
pieces of firewood (which is estimated to substitute 3.3 kg of charcoal) were
sold for USh 2,000 (US$0.8). Research by the Uganda LPG
Association4expects USh 80,000 (US$33) of charcoal to last 2 weeks,
whereas USh 80,000 of LPG would last for between 4 to 10 weeks, depending
on the family size and cooking frequency. For the purpose of comparison, the
assumption that briquettes can replace charcoal weight for weight means
that USh 80,000 could last for between 2 and 4 weeks.
These kinds of price trends are beginning to make an economic case for
briquettes which can cost between USh 32,000 (US$13) and USh 40,000
(US$16) for a similar 40 kg sack and often last longer than traditional
charcoal. As of December 2011, a Kenya based briquette company, Chardust
Ltd, estimate a minimum charcoal price of US$ 0.2 (sold by the sack at the
point of delivery to urban wholesalers) as a pre-condition for the financial
viability of a briquette venture in an East African setting.
4ULPGAS, Shortage of LPG (cooking gas) in Uganda, www.uplgas.org, September
2011
15

4.2
Business Model and Value Proposition

firewood and charcoal briquettes. Currently, biomass provides about 93% of
Ugandas consumed energy source. Although Uganda is an agricultural
country with vast amounts of forests and trees, at the present time, the
majority of its agricultural waste is not being fully utilized for the production
of energy.
Figure 3: Energy consumption in Uganda (Pie Chart)
Energy Consumption in Uganda
10%
1%
4%
5%
80%
woodfuel
petroleum
charcoal
crop residues
electricity
Source: Uganda Investment Authority

In agriculture-based countries like Uganda, there is a vast natural supply of
biomass found in the form ofagro and forest residues. Often these residues
are simply burned in the fields. This is not only anunfortunate waste of an
energy source, but it is also a cause for increased pollution in local regions.
Ugandas failure to transform her natural agricultural wastes into charcoal
briquettes has resulted in anincreased exploitation of Ugandas primary
forests. Ugandas failure to plan for ways to sustain its logging industry has
resulted in forests that are currently being depleted with no plans for
replacement.This ravaging of our forests is causing an even greater shortage
of the woody biomass necessary formaking firewood and charcoal. This
16

results in the rural population having to spend increased time andeffort in
collecting biomass for their cooking energy needs.
Josa Green Technologies Ltd. will convert the natural and available agro
waste currently being burned, into auseful fuel that can go a long way in
alleviating Ugandas energy problems and increasing the availability of
sustainable cooking fuel for consumers.
There are currently only a handful of briquette producers in Uganda and
availability of the briquettes is nowhere near mainstream. Part of my
business aim is to get ahead of the market, being one of the firstUganda
briquette produces to sell to a large cross section of the domestic market.
This more also pre-empts a shift towards more sustainable fuels that Uganda,
in the future will be forces to adopt.
4.3
Funds Required
A total investment of US$ 60,000 is being sought as project recapitalization

finance to be used mostly for capital assets acquisition to scale up and
expand Josa Green Technologies Ltds fuel briquettes and cook stoves
output and sales capacity. The required project funding will be spent as
follows:
US$ 4,150 (UShs 14.5 million) will be spent on construction of

additional building/production structures at Josa Green Technologies
Ltds current production site.
US$ 8,170 (UShs 28.6 million) to be used to purchase and install
new primary and fuel briquette processing machinery and equipment
including an automated piston extruder, roller press, automated double
honeycomb press, an automated mixer and small tools.
US$ 206 (UShs 0.80 million) to be used to acquire a spray gun and
grooving machine that are used in the manufacture of cook stoves.
US$ 11,430 (UShs 40.0 million) to be used to acquire one
transportation truck for transportation of raw materials from the raw
material source areas and movement of manufactured fuel briquettes
to the designated sales outlets in Kampala.
The balance of USD 35,450 (UShs 124 million) to be applied as
working capital consisting of plant machinery and equipment
installation charges, making payments for pre-operational expenses
and contingencies, covering the payroll costs for staff during the first
two months, and defraying the raw material cost of purchasing
17

biomass, charcoal dust and binders from the various suppliers in
Uganda.
4.4
Total Project Cost
The total capital investment cost of the proposed expansion and scaling up
of the Josa Green Technologies Ltd fuel briquette manufacturing
enterprises is US$ 71,485. Out of this total capital investment cost, USD
11,485 (16.07%) is the value of the existing company assets (including land,
buildings and civil works, and plant machinery and equipment). Out of the
required loan amount of USD 60,000, a total of USD 8,400 (11.75%) will be
used to purchase additional biomass briquetting and stoves manufacturing
equipment; USD 870 (0.80%) will be applied to acquisition of office
equipment; USD 11,430 (15.99%) will be spent on purchase of one
transportation truck; USD 5,450 (7.62%) will be allotted to cover preoperational expenses, and a further USD 30,000 (41.97%) will be used as a
start-up inventory purchase account.
The project cost breakdown is given in Table 2.
Table 2: Total Initial Project Investment Cost (UShs)
S.
No.
1
2
3
4
5
6
7
Source of Finance
Land
Building & Civil Works
Plant
Mach
&
Equipment
Office Equipment
Motor Vehicles (1 unit)
Pre-Operational
Expenses
Start-up
Account
Inventory
Share
(%)
11.99%
7.40%
14.23%
Josa
Equity
8,571
1,143
1,771
0.80%
15.99%
7.62%
41.97%
TOTAL PROJECT FUNDING
100.00%
%age of Total Project Funding
4.5
Loan
Finance
Total
(USD)
0
4,150
8,400
8,571
5,293
10,171
0
0
0
570
11,430
5,450
570
11,430
5,450
30,000
30,000
11,485
16.07%
60,000
83.93%
71,485
100.00%
Project Financial Performance Parameters
The key project performance parameters for the Josa Green Technologies
Ltd fuel briquette manufacturing enterprise are highlighted in Table 3
below:
18
Table 3: Key Project Performance Parameters (USD)

KPI/Year
Year 2
Year 3
Year 4
Sales
546,437
659,823
796,736
Operating Profit
154,861
231,630
319,799
Tax
132,661
211,230
301,199
Net Profit / [Loss]
92,863
147,861
210,839
Gross Margin
80.59%
80.59%
80.59%
Operating Margin
28.34%
35.10%
40.14%
Net Margin
16.99%
22.41%
26.46%
Return on Investment
129.90%
206.84%
294.94%
Fixed Assets Turnover
16.43
21.19
28.76
Debt Coverage Ratio
4.67
7.69
11.72
Times Interest Earned
Ratio
21.51
42.89
88.83
Year 5
878,401
367,093
350,293
245,205
80.59%
41.79%
27.91%
343.01%
39.45
14.92
Break-even Point (BEP):USD 182,126 at a capacity utilization of 20.73%

Payback Period (Loan):
1.69 Years
NPV at 17%:
USD 452,440
IRR:
182.09%
19
203.94
5.0
COMPANY INFORMATION
5.1
Registered Name
Josa Green Technologies Ltd.

5.2
Commencement of Operations
Josa Green Technologies Ltd (Josa) is an integrated multi-disciplinary

business firm founded in November 2012 and legally-registered in the
Republic of Uganda under registration number 164729. The Company
was incorporated on 27th March 2013 under humble circumstances by its
three (3) extremely passionate and enthusiastic Directors. Though still a
relatively young company, the directors have solid vision and realize their
Company's good product market prospects and opportunity for growth given
implementation of the appropriate strategies, aided by the necessary
finances.
5.3
Company Profile
Though the spearhead project promoters of Josa Green Technologies Ltd

started out from a very low capital base, it has made up for this financial
capital limitation with its huge initiative, passion, enthusiasm and practical
experience in devising and implementing renewable energy technologies,
agro-forestry projects, and involvement commercial tree-planting and
commercial urban agriculture that have all translated into the philosophy
think big start small which later motivated them to have initiative, work
hard, persist & transform Josa Green Technologies Ltd into the thriving
renewable energy enterprise that it is today.
Josa Green Technologies is a young enterprise engaged in
providing a full scale range of environmental and energy solutions,
products and services in the areas of Energy Saving Cook stoves, Fuel
Briquettes, feasibility studies, trainings and consultancies.
20

We are exclusively involved in activities that rotate around environmental
conservation and energy solutions among them being;
Agro-processing of biomass waste into char and then briquettes as a

renewable energy source.
The production of energy saving cook stoves customized for fuel
briquettes.
Briquette & Energy saving stove consultancy and advisory services so
far done locally in Uganda and internationally in Sierra Leone.
We are members of the Living Earth Energy Developers Cooperative, GVEP
International and Uganda National Alliance on Clean Cooking (UNACC) that
are mandated to develop and promote renewable and clean energy
innovations.
5.4
Mission Statement
To provide unparalleled services to organizations /firms /governments

/individuals with developmental projects that enhances sustainable
environmental conservation and improved livelihood.
5.5
Vision Statement
A successful Company / business with Excellent Customer Service and loyal

Customers following translating into top sales for quality energy saving cook
stoves, charcoal briquettes, biogas digesters, equipment,
agricultural
products, & services in the prosperity of environment management.
5.6
Core Values
Quality and Excellence

Josa Green Technologies Ltd strives for quality of her products, and
excellence in service delivery so as to maximize the opportunities to fulfill
her mission.
Stewardship and Accountability
Josa Green Technologies Ltd Board, Management and Staff are
committed to being good stewards of its resources and those of its
bankers, donors, creditors and business partners by exercising thoughtful
and cost-effective (Value for money) use of time, skills and the finances.
Respect
21

Josa Green Technologies Ltd is firmly committed to empowering its
Board, Management and staff to live their lives with dignity and respect.
This respect is also the foundation for relationships with the market and
other stakeholders, such as customers, other business partners, Banks,
Donors and Creditors.
Integrity
Josa Green Technologies Ltd Board, Management, and Staff commit to
integrating what they believe in with what they do. They will do the right
things for the right reasons whether or not anyone will know.
Innovativeness
Josa Green Technologies Ltd believe it applying innovative ideals to
practice to solve energy and environmental challenges
5.7
Strategic Objectives
At Josa we believe that sustainable utilization of natural resources and the

environment must be at the centre of any environmental management
approach and poverty reduction strategy coupled with practical technology
solutions and development process.
Our strategic objectives are therefore to:
Reach out to communities; practically address environmental,
livelihood issues in their local areas, with special emphasis on energy
needs, solid waste management, sanitation, and aesthetic
enhancement of the environment through Briquette making, tree
planting, urban agriculture and beekeeping.
Create linkages to promote sustainable environmental management
and development.
Work with Non-governmental organizations, government, communities
and the private sector to promote environmental education; increasing
awareness, commitment and ability to bring about desired changes in
attitude and practices on environmental, agriculture and energy issues
5.8
Organizational Objectives
To provide a 5-year operating plan for the briquettes and energy-saving

stoves business focusing on;
22
Increasing briquettes production (sustaining demand) from current 84

pieces of honey comb briquettes per day each weighing 2.5 kgs
equivalent to 210 kgs.
To diversify briquette shapes to cater for all market segments that is
produce stick briquettes and pillow shaped briquettes.
Increase on production of customized briquette stoves to create bigger
market to briquettes
To guide and lay strategies of for accessing the feedstock for
sustainable briquette production as well as stove making.
To upgrade our production facility and have our products certified by
the Uganda Bureau of Standards (UBOS).
Increasing sales of briquettes of various shapes like honey comb, stick
and pillow shaped by sensitizing users and marketing through
marketing materials & branding.
Develop new products of pillow briquettes, brooding kits and stick
briquettes within the next two years and acquire basic processing
equipment for Josa Green Technologies Ltd for improved quality and
efficiency.
Acquire bigger land and establish commercial production sites (factory)
in Wakiso District that will produce briquettes to serves the crated
market in schools, restaurants and poultry farms.
Look out for regional and local opportunities in the biomass energy
sub-sector.
5.9
Business Highlights
Generate a strong business cash flow to support cash purchases to

enhance business alliances between Josa Green Technologies Ltd
and suppliers of feed stock (char, biomass waste) for consistent supply
of high quality feed stock and also establishing big markets for all
briquettes produced.
Sensitize stove and briquette users on other products produced like
fixed briquette stoves, brooding kits and other briquette shapes.
Good line of production equipments in good operating conditions to
enhance effectiveness and efficiency in quality production of both
briquettes and stoves.
All our business activities and products should be able to promote Josa
Green Technologies Ltd commonly known as Josa as a household
name or reference for Green Conservation Solutions.
23

5.10 Organizational Philosophy
Our philosophy is a very simple one: Your Green Conservation
Solutions. We make it possible for anyone to love, appreciate &use ecofriendly fuels with easy and ultimate benefit. In Uganda and the world over,
energy is a fundamental aspect for human existence. It is therefore the
principal means for providing access to basic needs such as food, water and
it facilitates various opportunities for the achievement of a decent quality of
life. In Uganda according to the Uganda National Housing census report;
2002 states that 81.8 % of Ugandan households use firewood for cooking
while 15.2 % use charcoal. Biomass thus makes up over 95% of all energy
consumed in Uganda therefore Josa Green Technologies Ltd. is definitely
taking the right direction in contributing positively towards environment
conservation and energy needs to the communities, nation and the world at
large. However, when it comes to briquettes and energy saving stoves its
another way to conserve the environment through conversion and utilization
of biodegradable waste inform of energy. We are trying to change the
attitude and negative perception that lingers in peoples minds to adapt to
the use of briquettes and customized briquette stoves.
5.11 Founders and Management Team
The Management team is comprised of Asiimwe Samuel, Ninshaba Jonnah
and Mugisha Brian. The Management team is highly motivated, experienced
and well qualified. The team is strongly positioned to take advantage of this
opportunity. The team has:
Proven business start-up skills, with bottom line responsibility

Experience in business start up (finance, marketing, operations and
legal aspects)
Personality profiles that reflect the synergies of cohesive group
dynamics
Samuel has significant skills and experience in business management

consulting, renewable energies manufacturing and business management
and stewardship capabilities. Jonnah is good on product development,
financial management and general business administration (manmanagement) responsibilities. Brian is adept at business development and
market networking that he combines well withexcellent public relations skills
and human resource training capabilities.
5.12 Shareholding Structure
24

The current company shareholding structure is as follows:
Table 4: Company Shareholding Structure
Shareholder
1.
2.
3.
4.
Shares held (UGShs)
Asiimwe Samuel
Ninshaba Jonnah
Mugisha Brian
Josa Green Technologies
TOTAL
1,000,000
800,000
100,000
100,000
2,000,000
[%age]
50%
40%
5%
5%
100%
NB: 1 USD = UGShs. 3,500
6.0
PRODUCTS AND SERVICES

6.1
Product Description
The briquettes will be made out of charcoal-dust, dry agricultural wastes,

sugar cane trash, and maize trash from farmers. Trash is defined as fibrous
material left in the field after harvesting.
The trash is burned in a carbonizing unit to form charcoal. The charcoal is
then mixed, molded, and dried. Finally, the charcoal briquettes are packaged
in various quantities suitable for sale to both commercial and domestic
buyers.
General characteristics of the carbonized Briquettes
Moisture Content:7.1% - 7.8%

Volatile Matter: 13.0% - 13.5%
Fixed Carbon:
81.0% - 83.0%
Ash:
3.1% - 3.7%
Heating Matter: 7,100 7,300 kcal/kg
Density:
970 kg/m3
Advantages of the Briquettes:
Briquettes burn without any smoke during ignition and burning.

25
Minimum residual ash is formed (less than 5% of the original weight of

the charcoal).
The concentration of fixed carbons will be about 82%. The calorific
value of charcoal briquettes is 7500 Kcal/KG.
Briquettes contain minimum evaporative substances, thus eliminating
the possibility of odour.
Briquettes burn twice as long as hardwood charcoal due to fewer
cracks and increased strength.
Briquettes do not produce sparks as do the hardwood charcoal.
Briquettes can be made in a uniform size and shape.
Briquettes are dust free.
Josa Green Technologies Ltds charcoal briquettes will be made utilizing

simple technology. This will assure a product that is not only inexpensive and
affordable to its customers, but also of good quality. Customers will want to
tell others about them. Josa Green Technologies Ltd will manufacture
three types of briquettes, namely: honeycomb briquettes, briquette
sticks, and pillow-shaped briquettes.
Besides the production of fuel briquettes, Josa Green Technologies Ltd will
also manufacture efficient fuel-saving cook stoves that can best fit our bio
fuel briquette products. The range of stoves to be manufactured include
moveable household stoves (3 types), as well as institutional moveable and
fixed stoves and customized ovens.
26
6.2
Capacity Building Services
Josa Green Technologies Ltd partners with government and its bodies,
NGOs, CBOs, private sector companies, individual entrepreneurs and any
other interested parties in capacity building to offer the following range of
technical training and advisory services:
Table 5: Josa Products and Services

Products
Product Name
Supply/
Construction
Energy saving stoves

Briquette institutional stove
Household movable stoves
Training
Movable institutional stove
Briquettes
Honey comb briquettes
Stick briquettes
Briquette press & making machines

Honey comb press
Stick press
Charring drum
Auto Grinder
Biogas
Biogas digesters
Urban Agriculture
27

Covers: gardening, manure
making, Mushroom growing
Animal feeds (Poultry, Cattle

and Pigs).
Beekeeping
Apiary setup & management
Wax candles
Bee hives
6.3
Other Services
Plastic waste collection, recycling and best practices of its

management
Establishment of nursery beds for tree planting projects and
commercial tree planting.
Management of trees and bee keeping projects
Business management skills
Environmental Impact Assessment and baseline studies.
Entrepreneurship Training
Management and Organization training.
Josa Green Technologies Ltd has the experience & expertise to effectively
carry out the above tasks in specialized skills training & equipping the
communities in their areas of interest. We also possess strong capabilities to
work with and transform communities and vulnerable groups of women,
children and the disabled people.
6.4
Accomplished Assignments To date
For details on the assignments that have already been handled and
completed by Josa Green Technologies Ltd since 2013 to date, please
refer to Appendix I at the end of this business plan.
28
7.0
MARKET STRUCTURE AND ANALYSIS

7.1
Biomass Use in Uganda

7.1.1 Demand
With only 5% of the rural population having access to electricity, more than
90% of the countrys total energy needs in Uganda come from biomass
sources. Of this, wood accounts for 80%, charcoal 10% and crop residues at
nearly 4%5. The use of dung for fuel is rare, although recent implementation
of a national biogas programme is seeking to utilise it more on a domestic
scale.
For households specifically, the 2009-10 Household Survey conducted by the
Uganda National Bureau of Statistics provides a more detailed analysis,
reporting that 82% of households use firewood for cooking while 15% use
charcoal. Firewood was most commonly used by rural households (86%)
while charcoal is commonly used in urban areas (70%). In Kampala, 76% of
the population use charcoal as their main source of fuel for cooking.
As quantities, the household consumption of firewood and wood for charcoal
was estimated at 22.2 million tonnes in 20066, with small industries
consuming a further 5.5 million tones creating a total annual biomass
demand of 27.7 million tonnes nationwide. Annual biomass consumption per
capita is estimated, for rural and urban areas respectively, at 680 kg and 240
kg of firewood and 4 kg and 120 kg of charcoal.
5Data from the Uganda Ministry of Energy and Mineral Development (MEMD),
Energy balance 2008
6UgandaRenewable Energy Policy, MEMD, 2007
29

Approximately 4 million tonnes of wood (15% of the total) are consumed to
meet the annual demand for charcoal, which in 2010 was estimated by
different sources to be between700,000 and 850,000 tonnes 7. In Kampala
alone charcoal demand was 205,852 tonnes. Used mainly in urban areas,
charcoal use is estimated to increase at 6% per year, which matches the rate
of urbanization.
Methods of charcoal production remain highly wasteful with traditional
methods achieving conversion efficiencies as low as 8-15%. Despite efforts
to improve the efficiencies of traditional biomass energy technologies,
including wood and charcoal stoves, significant results are yet to be seen and
many continue to be inefficient.
7.1.2 Supply
Following a comprehensive study8 into the biomass resource during the
1990s, the total biomass stock (air-dry, above ground) in Uganda in 2002
was estimated to be 468 million tonnes. Of this, approximately 33% was in
protected forest areas leaving the amount available for energy uses around
312 million tonnes. While predicting that Uganda can expect a total annual
growth of 50 million tonnes of biomass per year, the study concludes that
despite a positive growth rate in protected areas, the biomass stock on
private lands(and thus available for wood fuel) will soon face a deficit. Such a
detailed study has not been carried out since; however more recent
estimates support its conclusions. The FAO reported that between 1990 and
2005 Uganda lost 26% of its forests (78% in areas around
Kampala),estimated now to be 24% of total land cover, and the National
Environment Management Authority (NEMA) State of the Environment
Uganda 2008 report predict that this deficit will lead to complete depletion of
the nations forests by 2050. What is clear is that Ugandas heavy
dependence on biomass is severely impacting the destruction of the
countrys forest cover.
While wood from trees constitutes the greatest amount of biomass stock
available in Uganda and consequently the most used form of biomass by
locals, agricultural residues are also utilized. Crops can produce biomass
7Individual studies by the National Forest Authority and UN Department of Social
and Economic Affairs
8Uganda Forest Department, Ministry of Water Lands and Environment, National
Biomass Study, 2002
30

energy from agricultural residue made available from growing, harvesting
and processing food crops such as cereals and roots as well as cash crops
such as tea, cane sugar and coffee. Data provided by the government in the
Uganda Renewable Energy Policy 2007 suggests that 1.2 million tons of
agricultural residues are available each year.
7.2
Briquette Markets
Carbonised briquettes can act as a replacement for charcoal for domestic

and institutional cooking and heating, where they are favoured for their nearsmokeless use. In comparison to charcoal, they generally burn for longer and
have a more consistent heat output, which is preferred by certain market
segments such as restaurants, hospitals and schools. Poultry farming is a
large industry in Uganda and smokeless, longer burning briquettes are also
well suited to heating cages overnight when temperatures are low as a
cheaper alternative to electric heating lamps.
If the price of a briquette is competitive to charcoal, then domestic users
among rural populations as well as the urban and peri-urban poor can adopt
them to replace charcoal for cooking. In terms of burning characteristics,
households and institutions have similar requirements as both require the
fuel for cooking. The size and shape however may be different because
institutions will typically have larger stoves.
Non-carbonised briquettes on the other hand serve as a replacement to
natural firewood and raw biomass fuel. They offer greater energy per unit
weight than wood or raw biomass (see Table 6) but release as much smoke.
Consequently these are more appropriate for industrial processesor
institutions where emissions can be controlled. They can also be offered as a
replacement fuel among rural populations where firewood is still dominant.
Further commercial processes such as crop drying, tea drying, tobacco
curing, ceramics/brick firing can also make use of briquettes.
Table 6: Fuel Comparison: calorific values
Type of Fuel
Energy (Kcal/kg)
LPG
11,100
Natural gas
9,100
Wood charcoal
7,500
Charcoal dust briquette (carbonized)
7,400
Saw dust briquette (non-carbonized)
4,800
Raw wood
4,100
31

7.3
Target Market and Customer Base
Ugandas national development objective is an accelerated, economic

growth through increased productivity and enhanced agricultural and
industrial production which will result in increasing employment
opportunities, an equitable distribution of income, and a reduction of poverty.
The realization of this objective requires, amongst others, that quality energy
services be made available to people in a sustainable, cost-effective, and
affordable manner.
In Uganda, wood charcoal is supplied by charcoal dealers from Nakasongola,
Kayunga, Kamuli, Luweero and Masindi districts to semi-urban and urban
centres of Kampala, Wakiso, Jinja and Mukono districts. The charcoal is sold
through vendors in semi-urban and urban centres who sell the charcoal to
households, restaurant and hotels.
Josa Green Technologies Ltd. will select ten wood charcoal vendors in
Owino (St. Balikuddembe), Nakawa, Banda, Kibuye, Kamwokya, Kalerwe, and
Namasuba; these are all markets around Kampala. They will be asked to try
the Josas biomass fuel briquettes and energy-efficient stoves. The selected
charcoal vendors will then sell the briquettes to households, chapatti
(pancakes) businesses, restaurants, and hotels.
The changeover from wood charcoal to briquettes requires little behavioural
change. This is because there is a direct substitution of wood charcoal to
briquettes which eliminates the need to modify the stoves.
7.4
Market Size and Potential
The market end-users of bio fuel briquettes include: households, chapati

businesses, restaurants and hotels, boarding schools, poultry farmers and
hospitals in both urban centres and some of the rural areas. These are the
highest consumers of charcoal. Josa Green Technologies Ltd. also intends
to approach tourist lodges in the national parks because they are very keen
to see an alternative to wood charcoal, especially the JGI (Jane Goodall
Institute), Wild Frontiers, Ndali Lodge (Fort Portal), Mihingo Lodge (Lake
Mburo), and those lodges adjacent to Bwindi and Budongo.
Future opportunities exist, especially if the Government and local authorities
decide to enforce the restriction on cutting down trees.
Ugandas population is estimated at 34.85 million people and is growing at a
rate of 3.5% per year. Of Uganda's population, 31.58 million people use
32

firewood and charcoal as a fuel for cooking. This is a sizable market for
charcoal briquettes.
Table 7 shows household energy consumption. Electricity was consumed by
a small percentage who uses it for lighting purposes. The majoring of
households used firewood and charcoal for cooking.
Table 7: Household Energy Consumption
HH energy consumption in percentage (%)
Year
2005/06
2009/10
Type
Electricity for lighting
0.20
0.60
Tadooba for lighting
1.20
2.60
Firewood for cooking
77.80
73.00
Charcoal for cooking
18.20
21.50
Kerosene for cooking & lighting
2.50
2.30
Average HH has 4.7 members
Source: Uganda Bureau of Statistics, 2002
According to the 2009/10 Uganda National Household Survey results, the
proportion of people using firewood decreased from 77.8% to 73.0%. During
the same period, the percentage of those using charcoal rose from 18.2% to
21.5%.
Firewood and charcoal consumption in Uganda is shown in Table 2.
Table 8 shows the biomass residential consumption of Uganda. Kampala
district consumed 245,000 tons of charcoal in 2003.
The demand for charcoal is expected to increase because of increasing
population. Wood charcoal production, on the other hand, is slowly
decreasing because trees are being depleted. Therefore, manufactured
briquettes are an alternative to wood charcoal.
Table 8: Consumption of Firewood and Charcoal in Uganda
Residential Biomass Consumption
Source: Consumption factors on Basic Data and Assumptions
Residence
Energy
carrier
Wood
Charcoal
Residues
Rural
Urban
Kampala
1000 t/yr
1000 t/yr
1000 t/yr
13,849
45
1,169
693
223
30
TOTAL
Weight
1000 t/yr
134
245
1
Biomass Consumption in all sectors

33
14,676
513
1,201
TOTAL
Energy
TOE t/yr
5,257,983
367,431
430,171

Sector
Energy
carrier
Residential
Commercial
Industrial
TOTAL
Wood
1000 t/yr
14,676
2,952
2,127
19,755
Wood
TOE t/yr
Charcoal
1000 t/yr
5,257,983
1,057,520
762,076
7,077,579
513
184
0
697
Charcoal
TOE t/yr
367,431
131,714
0
499,145
Residues
TOE t/yr
430,171
0
0
430,171
Source: Uganda Bureau of Statistics, 2003

7.5
Competitor Analysis
My main business competitors in the charcoal business are the charcoal

dealers. These are the individuals who buy the wood charcoal from various
charcoal supply areas. They transport the wood charcoal by trucks to urban
and semi-urban centres. In 2003, over 697,000 tons of charcoal was supplied
across Uganda (See Table 8).
Kampala Jellitone Suppliers Ltd, a local company in Natete, is currently
producing compressed briquettes that are made from coffee husks and sawdust. The company started the production of non-carbonized briquettes in
Uganda, this was initiative by the company. Non-carbonized briquettes burn
slowly and produce smoke which leaves soot of cooking pots while
carbonized briquettes burn slowly without producing smoke.
The company has targeted large institutions like schools and hospitals. The
company sees the demand for briquettes increasing in schools.
ARTI a local NGO is also making carbonized briquettes and promotes them in
villages.
Although wood fuel is the least expensive, its soot blackens the cooking
utensils and the given off smokeis a serious health risk.
Electricity, gas, and kerosene costs are too high to be used daily as a cooking
fuel for the majority of Ugandans. Charcoal offers a high level of convenience
and cleanliness at an affordable price and briquettes made from waste can
be sold at an ever cheaper price than conventional charcoal.
Household energy costs are shown in the table below, two households
incomes were considered, that isthe high income (HI) household and middle
income (MI) household.
Table 9: Different Energy Costs
Household (USD)
34

Item
Electricity
Kerosene
Charcoal
Charcoal
Firewood
Propene gas
Briquettes
Unit
150 kWh
One ltr
Tin (500 gms)
Sack (38 kgs)
Kg
HI
MI
39.63
0.97
15.28
0.11
38.89
Kg
0.31
Source: UBOS, 2005
HI = High Income; MI = Middle Income
39.63
0.97
0.19
0.10
33.33
0.31
One kilogram of wood charcoal was sold at 39 cents, firewood went for 11
cents and briquettes were sold at 31 cents.
7.6
Uganda Market Competitors

7.6.1 Kampala Jellitone Suppliers Ltd
This is a large-scale company established in 1991 to produce uncarbonised

briquettes from sawdust, groundnut shells, maize bran, rice bran, maize
cobs, coffee husks, wheat bran and other types of agricultural waste. So far,
the total investment cost is estimated to exceed USHS 600-million
(US$240,000). The company currently employs approximately 54 workers
and sources raw materials from several districts. Some are situated more
than 300km away from Kampala, where the factory is located. The company
organizes farmers into groups to gather agricultural waste, enabling them to
earn an income from waste that would otherwise have been burnt or thrown
away. The annual production capacity is about 3,500 metric tonnes, which is
still below maximum potential. Its main clients are schools around Kampala
and commercial operations including restaurants and bakeries.
7.6.2 Green Bio Energy
Green Bio Energy produces carbonized briquettes from charcoal dust and
plans to blend charcoal dust with carbonized municipal waste. This plan
involves subcontracting the carbonization of municipal waste to grassroots
entrepreneurs who will be assisted to purchase the carbonization drums. The
company, whose current production capacity stands at one tonne per day,
has clients who are spread across Kampala, Entebbe, Mukono and areas
35

around Wakiso. It packages its briquettes in 1kg packs targeting the lowerincome households, 5.5kg for supermarkets and petrol stations, and 50kg
sacks for institutional customers.
7.6.3 Green Resources (Busoga Forestry Company)
Green Resources (Busoga Forestry Company) started producing charcoal
briquettes in 2012.The company is a leading producer of Eucalyptus spp. for
electricity poles. It uses offcuts and other byproducts to produce the
charcoal, which it pulverizes then uses the charcoal fines as raw materials for
the briquettes. Current installed capacity stands at 500kg of briquettes per
hour. The project was made possible by a 350 000 grant from the Nordic
Development Fund. Cassava is used as a binder for household briquettes,
while molasses is used in briquettes for industrial applications. At the time of
this study, the companys key concern was access to substantial markets.
7.6.4 Swijo Development Services Limited (Living earth
Uganda)
Swijo Development Services Limited is a medium-scale producer of
carbonised briquettes from charcoal dust, municipal waste and agricultural
wastes. Cassava flour is used as a binder. The company started with an initial
investment of USH10 000 000 (US$3 900); it currently produces 75kg of
briquettes per hour. Their main clients are households and institutions. The
companys biggest challenges have been identified as drying the feedstock
and briquettes, access to cheap packaging material and access to finance.
7.6.5 Promoters of Efficient Technologies for Sustainable
Development
This company started in 2004 with an initial capital of USH 1,500,000 (US$
590); it currently employs six staff members. The company uses charcoal
dust and municipal waste as feedstock, and cassava flour as the binder. The
main challenges include the limited access to viable finance to scale up their
activities and very high interest rates from financial institutions. Linking
briquette producers to financial institutions with low interest rates and
development partners, developing dedicated lines of credit for briquette
producers and providing seed capital to upcoming briquette producers were
reported as viable options of addressing this barrier which is common
among briquette producers.
7.6.6 Nakulabye Briquette Making Technology
36

A local entrepreneur, Ms Alice Zalwango, who is a political representative and
nurse in her community established Nakulabye Briquetting technology in
2010.
The business currently employs eight women and seven men and produces
about 200kg of briquettes per day from municipal waste collected from the
nearby Nakulabye market. All the companys operations are manual a
factor that constrains the up scaling of production. Other challenges include
a lack of space to dry the feedstock and the finished products, which hinders
production during the rainy reason. The companys clients are mainly
households, roasting businesses and restaurants.
7.6.7 Kyebando Energy and Environment Project
This is a Kampala-based small-scale briquette production business set up in
2011 to produce briquettes from charcoal dust and municipal waste. The
companys production capacity is 1.8 tonnes per month and is constant
throughout the year; the main clients are households and institutions
(restaurants and schools). The business has been able to get credit services
from financial institutions through FINCA, a village banking micro-finance
institution programme. The challenges that it faces include low briquette
promotional activities and poor marketing (which has greatly affected sales
of the product), low investment returns (which have hindered their expansion
plans), and a lack of advanced machinery (which has resulted in-low quality
briquettes that fetch low prices). Efforts to assist the venture in scaling up
can be channeled towards accessing financial services from financial lending
institutions to enable it to advance its production and marketing processes.
7.7
Competitive Advantage
Briquettes have a high bulk density compared to fire wood and loose
biomass. Because of their density and low moisture content, the briquettes
give a longer burning time which will translate to cost savings for the
customer.
The cost of cooking fuel is one of the most important factors in determining
which fuel to use. In Uganda, people are looking for the cleanest, the most
convenient, and the most affordable cooking fuel. Briquettes have additional
benefits, including reduction on deforestation and carbon emissions.
37

In Uganda, wood charcoal cost prices range from $12.78 to $16.67 per bag of
35kgs. This means that every kg of wood charcoal costs is in range of $0.37
to $0.45.
An average Ugandan household consumes from 42 to 56 kg of wood charcoal
per month, at a cost of about $16.89 to $22.47. By using Josa Green
Technologies Ltd briquettes, a family will spend between $13.02 and
$17.36 on briquettes per month for the same quantity of wood charcoal
used. What does this mean in term of saving? If a household used 42 kg of
briquettes in a month, they will be able to save $3.87.
8.0
THE UGANDA BRIQUETTE INDUSTRY
Briquette producers in Uganda fall into distinct scales of operation

characterized mainly by their type of briquette machine. Examples of these
businesses, their equipment, products and value chain are detailed in Table
10 on the following page.
There are hundreds of micro-scale producers in operation who use primitive
equipment and are largely engaged in income supplementing ventures. Most
are making briquettes by hand in quantities of less than 2 tonnes per year
and for their own consumption as well as to sell in their local neighbourhood.
Many of the more enterprising of these, often with support such as from the
DEEP (Developing Energy Enterprises Programme) programme have
purchased manual machines to enable them to produce up to 20 tonnes per
year.
Motorized machines fabricated by skilled artisans are capable of
manufacturing up to 200 tonnes of briquettes per year. This is a typical entry
point for entrepreneurs to enter the market with powered machinery that
they can purchase locally.
38

While a few businesses of this size operate within the DEEP programme in
Kenya (where further advancements have been made in local machine
fabrication) there are not any DEEP entrepreneurs at this scale yet in
Uganda, however a few other ventures have known to be started over the
last year as the commercial potential for briquettes is starting to be realized.
However, this middle-scale of production appears to face the most
challenges; not having the investment to progress to using imported
equipment and unable to produce enough output to justify some of the key
production and supply chain processes such as transportation, carbonization
and accelerated drying.
To get production to multiple thousands of tonnes per year, imported
machinery is required. This represents a big step up in investment and so far
Kampala Jellitone Suppliers is the only company operating at this level in
Uganda. A few others of this scale are operating around East Africa and
profiles of these businesses are included later in the chapter. These larger
businesses are each operating quite different business models, suggesting
that a one-size-fits-all model is not an option. Varying availability of
feedstocks, differing markets and unique country economic conditions mean
that a company of this size must explore models that will work in its local
context.
An important note is that almost all of the 2,000 tonnes per year businesses in East
Africa have benefited from grant funding to get them started and 3 out of the 4
largest have been set up by foreign participants. They also all entered the market at
this scale of operation.
39

Table 10: Analysis of the Ugandan Briquette Industry
Number
100s
< 10
Currently
Operating in
Uganda
Top DEEP Producers (Uganda) Eco-Fuel Africa (Uganda)
Example
NGO-supported
micro- Green Bio Energy (Uganda)
Businesses
Top DEEP Producers (Kenya)
including those in
other East African
countries
entrepreneurs
< 20
tonnes/year
Equipment
Premises
Feedstock
Supply
1 or 2 manual machines
E.g. lever extruder / manual
screw extruder
Single Drum Kilns
Sun-drying
Often in entrepreneurs house
and garden
Typically charcoal dust, but
also
carbonised
leaves,
banana peels and garden
wastes (this quantity is
easily charred by a drum
kiln)
Collect from local
vendors
Garden wastes
No
shortage
at
quantities
charcoal
required
< 200
tonnes/year
KJS (Uganda)
Chardust (Kenya)
EA
Briquette
(Tanazania)
UIA Tender (Kampala, Uganda)

Company
< 2,000
tonnes/year
Motorised machines that are Motorized machines that are

fabricated locally
imported
E.g. electric screw extruders
E.g. roller press / large
Sun-drying / solar driers
(flywheel) piston
Sun-drying / flash drier
Can do at entrepreneurs Dedicated factory needed
residence or in a large Approx. 2 acres of land
garden
Mainly charcoal dust
Charcoal dust
Some agricultural wastes (but Non-carbonised
agricultural
required quantity is too
waste
much to carbonize without Carbonised agricultural waste
(carbonising and transport
heavy equipment)
become more economical
at this scale
Collect from local charcoal Agricultural waste bought on
vendors
bulk
from
farmers
Agricultural
waste
bought
(contractual arrangements)
from farmers (usually small- Collect most charcoal dust in
holders)
vicinity and further afield
Small
carbonisation
kilns Transport network established
leased to farmers
Not economical to transport
raw materials from afar
40
< 20,000
tonnes/year
Large-scale
industrial
machinery,imported
E.g. 8 t/hr hydraulic pellet
press
Accelerated drying
Large
centralized
factory
based within Kampala city
Dried
organic
solidwaste
municipal
Centralised
collection
throughcity waste collectors
Centralised sorting centres

Distribution
Investment
Required
Sell to neighbours and local

domestic users
< US$ 1,000
Sell in a few fixed market Sell to institutions who are Sell through well-established
outlets
often regular customers
retail outlets in Kampala
Opportunistically at market Domestic
users
through
days
organized retail network
hawking
US$ 5,000 assuming

land is already owned
41
US$ 50,000 - US$

100,000
US$ 2.2 million

In 2010 the Uganda Investment Authority (UIA) put forward investment
proposals for a 70-tonne per day (20,000 tonnes per year) manufacturing
plant for briquettes made from municipal solid waste collected from
households and surrounding markets in Kampala. At the time of writing, the
UIA were unable to comment on the status of this tender, however their
business plan analysis does suggest that there is potential for one industrial
scale briquette plant to operate in Kampala.
The supply and distribution models of businesses operating at each level of
production differ, as do the challenges faced by each. The following case
studies give an insight into some of the people working in these different
sized briquette businesses.
42

9.0
MARKETING AND DISTRIBUTION

9.1
Marketing and Communication
Flyers and posters will be made. They will have printed instructions for
lighting the briquettes and estimating their burning time. The flyers and
posters will be an educational tool, with both financial and environmental
advantage. They will be distributed to the selected vendors, will hand them
out to clients as they buy the briquettes.
Josa Green Technologies Ltd will attend exhibitions like the Energy Week
(organized by the Ministry of Energy and Mineral Development), trade fairs,
and agricultural shows. These appearances will provide both promotional
platforms and communication forums.
9.2
Distribution
The manufactured briquettes will be distributed to the ten selected charcoal

vendors around Kampala in Owino, Nakawa, Banda, Kibuye, Kamwokya,
Kalerwe, Namasuba.
As part of the initial training and promotional awareness raising, each vendor
will be given a 10 kgs pack of briquettes and a stove for trial purposes. This
will allow them to demonstrate charcoal briquettes to their wood charcoal
clientele. All feedbacks will be documented.
9.3
Sales
There will be an initial production of 918 tons of briquettes during the first
year of operation. This will average 2.52 tons of briquettes per day. A
kilogram of briquettes will be sold at 23 cents and generate sales revenue of
US$ 205,294.
Production during the second year of operation will increase by 15% to a
level of 1,055.7 tons of briquettes. In order to meet the increased production
limit that year, working hours will be increased. As the market focus is
extended around Kampala, the company will realize US$ 247,893 of sales
revenue during the second year.
In the third year of operation, the project will produce 1,214 tons of
briquettes a production increase of 30% with sales revenue of US$ 299,330.
43

In 2016, Josa Green Technologies Ltd intends to expand its business to
incorporate more outlets using existing charcoal vendors and supplying to
the tourism and the hospitality industry. Josa Green Technologies Ltds
target is to sell 1,350 tons of briquettes for 2020. This represents 5.51
percent of the entire charcoal consumption of Kampala.
Table 11 shows the briquette sales revenue of the first three years of
operation, as extracted from the budget spreadsheet.
Table 11: Projected Revenues (In USD)
Item Description
Briquettes:
Honey Combs
Briquette Sticks
Pillow-shaped
briquettes
Sub-Total
Stoves:
Moveable Stoves Type 1
Institutional moveable
stoves
Institutional
fixed
stoves
Customized Ovens
Sub-Total
TOTAL SALES
9.4
Year 1
Year 2
Year 3
Year 4
Year 5
46,286
101,408
57,600
55,890
122,450
69,552
67,488
147,859
83,984
74,405
163,014
92,592
82,737
181,268
102,961
205,294
247,893
299,330
330,012
366,965
51,429
41,143
25,714
102,857
62,101
49,680
31,050
124,200
74,986
59,989
37,492
149,971
82,672
66,138
41,335
165,343
91,930
73,543
45,964
183,858
68,571
82,799
99,980
110,228
122,571
51,429
341,143
546,437
62,101
411,930
659,823
74,986
497,406
796,736
82,672
548,390
878,401
91,930
609,796
976,761
Market Penetration Strategy
Josa Green Technologies Ltd will employ a four-pronged market

penetration strategyin accessing and growing the emerging bio fuel
briquettes/pellets market in Uganda. The integral elements of this market
penetration strategy include: product pricing; product distribution; product
promotion; and product innovation.
Product Pricing
Josa Green Technologies Ltd makes use of low-priced raw materials,
ample labour supply and a good measure of innovation, set out to produce
44

fuels that could sell directly into traditional charcoal markets and
compete head-to-head on both price and quality.
Product Distribution
Josa Green Technologies Ltd will mostly target institutional customers
such as poultry farms, chapati businesses, hotels, lodges and restaurants,
boarding schools, hospitals, as well as to charcoal dealers and individuals for
direct sales into the domestic market that collectively represent the largest
market segment of product end-users.
Product Promotion
For introducing the Josa Green Technologies Ltd bio fuel briquette
products on the market, we will market our product(s) through different
mediums (Company Website, Emails and Social Media, Print Media, and
FM Radio and TV etc).
Different types of awareness programs will be used to make people
buy bio fuel briquettes and pellets products.
Product Innovation
Josa Green Technologies Ltd will at a later stage also produce a premium
charcoal briquette made from selected vendors' waste and natural binders.
This lower ash product will be designed for the domestic barbecue market
and will be sold mainly through supermarkets within the city of Kampala.
Josa Green Technologies Ltd will also introduce agglomeration machinery
to its production line for the fabrication of spherical briquettes that will be
aimed at the urban mid-scale market.
45

10.0 PROJECT TECHNICAL ASPECTS
10.1 Project Location & Facilities
The Josa Green Technologies Ltd's bio-fuel briquettes production facility is
located at Nansana town in Wakiso District which is only about 10 kms from
Kampala city centre along the Kampala Hoima road. The actual physical
location of the existing processing plant is at Ochieng Zone, Wamala Road
near Njovu Estate at Nansana. The head office of Josa Green Technologies
Ltd is situated at Namuli Road at Bukoto behind Kabira Country Club, Namuli
Zone found in Nakawa Division in the eastern suburbs of Kampala city.
10.2 Size and Capacity
The planned production monthly and annual output of bio fuel briquettes and
stoves after the installation of additional plant manufacturing capacity on
site is indicated in Table 12 below. Apart from honeycomb briquettes, the
planned production output of all the other bio fuel briquettes and stoves are
indicated in kilograms and units respectively. The production output of
honeycomb briquettes is indicated in terms of sticks with each stick
weighing 2.5 kgs.
Table 12: Planned Monthly and Annual Production Output (Project
Year 1)
Item Description
Units
Monthly
Annual
Production Production
A. BIO FUEL BRIQUETTES
Honey Combs
Briquette Sticks
Briquettes
B. STOVES & OVENS
Institutional Moveable Stoves

Institutional Fixed Stoves
Customized Ovens
Sticks
Kgs
Kgs
9,000
30,000
24,000
108,000
360,000
288,000
Units
Units
Units
Units
Units
Units
300
400
300
50
4
5
3,600
4,800
3,600
600
48
60
10.3 Technical Description of Process

46

Briquette production will take sugar cane trash, bagasse and leaves, maize
waste and charcoal dust: which will be supplied by local farmers, sugarcane
processing factories, and the charcoal dust collectors.
The production processes include:
1. Buy dry agricultural wastes/char or charcoal dust, sugar cane trash,
and maize trash from farmers: Trash is defined as fibrous material left
in the field after harvesting.
2. The trash is burned to form char. For every one ton of dry agricultural
waste, 300 tons of char is realized.
3. Char is molded, dried, and packaged as briquettes in various quantities
suitable for sale to both commercial and domestic buyers.
Carbonizatio
n
Preparation
of feed
stocks
Mixing with a
binder
Compaction/
Briquetting
Drying
Development of briquette include other waste raw material

Possible raw materials include banana peelings, rice stalks, cotton stalks,
mustard stalks, and coffee husks. However, Josa Green Technologies Ltd
still needs to do more research on the blends and ratios of these materials.
Heat recovery is a possibility too but it requires proper engineering
technology.
Table 13: Summary of advantages and disadvantages of briquette

production techniques
TECHNIQUE/TECHNOLOG
Y
ADVANTAGES
47
DISADVANTAGES

MANUAL PRESS
(LOW PRESSURE PRESS)
PISTION PRESS
SCREW PRESS
ROLLER PRESS
low capital costs US$150

locally
fabricated
and
enable
access
to
briquetting technology
especially in rural areas
does
not
require
electricity
high capacity up to 750kg
per hour
can be fabricated by local
mechanical technicians
low capacity costs US$1
350
simple mechanism
can be fabricated by local
mechanical technicians
high production capacity
1,500kilogrammes per
hour
suited for briquetting of
wet powder
low capacity 6kg per hour

briquettes
easily
disintegrate
low maintenance
low-tech requiring little to
no
technicalskills
to
operate
very high capital costs
US$20 000 - 30 000
import required
low capacity 150kg per
hour
high
capital
cost
US$14,000 -19 000
import related
low compaction rate
10.4 Processing Machinery and Equipment

The total cost of the Josa Green Technologies Ltd bio fuel briquetting
machinery and equipment is estimated at USD 10,170 (UGShs
35,600,000) out of which USD 1,770 (UGShs 6,200,000) is the value of
the existing plant machinery and equipment and USD 8,400 (UGShs
29,600,000) will be spent on acquisition of additional fuel briquetting
machinery and equipment. Detailed list of machinery and equipment and
their cost estimates are given in Table 14.
Figure 5: Roller Press
Figure
4:
Industrial
Hammer mill Grinder
Table 14: Estimated Cost of Machinery and Equipment

Item Description
Units
Unit Cost
48
Total Cost

(USD)
(USD)
A. EXISTING PLANT EQUIPMENT
Honeycomb Presses
Grinder
Stick Press
Sub-Total
2
1
1
171.43
428.57
1,000.00
342.86
428.57
1,000.00
1,771.43
1
1
1
1,430.00
2,486.00
2,430.00
1,430.00
2,486.00
2,430.00
1,143.00
681.00
1,143.00
681.00
8,170.00
1
1
143.00
87.00
143.00
87.00
230.00
10,170.00
B. PLANNED PLANT EQUIPMENT

Equipment for Briquettes
Automated Piston Extruder

Roller Press
Automated double honeycomb
press
Automated Mixer
Small Tools
Sub-Total
Equipment for Stoves
Grooving Machine
Pressure Spray Gun
Sub-Total
TOTAL COST
10.5 Buildings and Civil Works
Josa Green Technologies Ltd plans to construct additional building

infrastructure at the existing production site that are estimated to cost USD
4,150 (UGShs 14,500,000) to put up. The buildings that are of immediate
priority are the liner production structure, stores shade structure, and toilets.
The detailed particulars and estimated costing for the proposed building
infrastructure are provided in Table 15 below.
Table 15: Estimated Cost of New Buildings & Civil Works
Item Description
Units
Unit Cost
Total Cost
(USD)
(USD)
Liner production structure
1
2,573
2,573
Stores shade structure
1
860
860
Toilets
1
717
717
TOTAL COST
4,150
10.6 Vehicles
Josa Green Technologies Ltd will require 1 (one) medium-sized
transportation truck for picking up the biomass and charcoal dust raw
49

materials for the processing of bio fuel briquettes from the identified raw
material source centres or production areas and delivering it to the bio fuel
briquetting plant on a routine daily/weekly basis. The cost of this mediumsized truck is estimated at USD 11,430 (UGShs 40,000,000).
10.7 Biomass for Briquettes
10.7.1
Overview
Briquettes can be made out of any biomass material, although the choice of
feedstock can determine its heating potential as a fuel.
The available biomass resource consists primarily of:
Wood
Agricultural Waste (field residues and process residues)
Animal Manure
Municipal Solid Waste (Household and Food Processing Wastes)
While wood from trees constitutes the greatest amount of biomass stock
available in Uganda and consequently the most used form of biomass
(including its use for charcoal), crop residues are also utilized and are
receiving increased attention as awareness of the unsustainability of the
wood and charcoal trades grows. Table 16 highlights the most widely
available residues in Uganda, of which up to 1.2 million tons are estimated to
be available each year.
Animal manure results in a briquette with a low calorific value, and so is
normally used to add bulk to other woody material, however this is rarely
done and the scattering of livestock in rural Uganda makes collection on a
commercial scale difficult. The use of dried organic municipal solid waste
(MSW) offers potential for briquetting purposes and pilot projects have been
carried out in Rwanda, but this resource remains largely untapped in Uganda.
In 2010 the Uganda Investment Authority put forward investment proposals
for a 70-tonne per day manufacturing plant for briquettes made from MSW
collected from households and surrounding markets in Kampala, of which it
estimates 1,500 tonnes are produced daily.
10.7.2
Raw Material Supply Situation
50

The sugarcane trash is so highly lignified and silicified which means that they
cannot be used as fodder. As a result, out growers burn the sugar cane
leaves in the fields. These leaves can be carbonized in a kiln to form char.
The char from maize cob will be bought from farmers and farmer groups; I
will be buying maize waste char because it is not economical to transport
maize cob from farmers who are scatted all over the country. A centralized
carbonized will be provided for farmers to use. Bagasse will be purchased
from The Sugar Corporation of Uganda Ltd and Kakira Sugar Works Ltd; these
companies are located in Jinja. They burnt over 452,000 tons of bagasse in
2004 (Ref. Table 16 below).
Table 16: Biomass Potential
Biomass
Potential
Moisture
(tons)
content
Bagasse
452,200
Maize cob
234,000
(Source: Bingh, 2004)
50
15
Equation 1, below shows bagasse potential

Potential: 452,500
tons of bagasse x
37.5 = 170,000 tons
of charcoal
100
The rate of transformation of bagasse to charcoal is

35 to 40% efficiency. The potential of charcoal
production from bagasse in Uganda is shown in
Equation 1 above.
Assumption for the supply of raw material is 2,624
tons in the first year;
Dry agro-waste
Charcoal dust
2,244 tons
380 tons
According to the UN Statistics Division Energy Statistics Database (2011), the

total production of charcoal in Uganda in 2001 was 956,890 tons, which
means that theoretically, the briquettes from bagasse can replace 17.77% of
the charcoal produced in 2011.
51

Supply agreements will be secured from Jinja based Kakira Sugar Works Ltd
and Sugar Corporation of Uganda Ltd, to supply 28,800 tons of bagasse. This
is 6.37% of the wasted bagasse.
Charcoal dust will be supplied by the charcoal traders. Since charcoal dust is
regarded as a waste, they will be glad to sell from the waste.
In the future, maize cob will be used in order to lower the use of charcoal
dust.
10.8 Sourcing of Raw Materials
10.8.1
Biomass Waste
Materials for briquette making are mainly got from agricultural residues that
include ground nut shell, stems, bean stalk and peels, maize stalk & cobs,
food peels, sugar cane residues and off cuts, grass and sticks, jack fruit
residues, leaves and papers. All these must be in a dry form.
Much of the waste Josa Green Technologies Ltd has been using to make
briquettes has been collected at household level where suppliers of the feed
stock (dry waste) have been collecting biomass waste in various households,
sort, dry and later sell to Josa Green Technologies Ltd for further
processing into char through a process of carbonization (gasification using
down draft process). This however, has proved to be time consuming while
carbonizing and wasteful in form of waste: char conversion ratio where
approximately 30% of waste is converted into char a primary raw material
for briquette making. This is mainly because Josa Green Technologies Ltd
operates with low-output technology equipments to convert waste into char
yet there is an increase in waste generated suitable for briquette making.
This is attributed by increase in human population in Kampala and the
surrounding Wakiso District. Kampala Capital City Authority (KCCA) alone
produces 1,500metric tonnes of waste/day suitable for briquette making
which finds its way to Kitezi landfill.
Biomass waste needed
Using the current equipments we have while carbonizing 60 kgs of biomass
waste gives 14kgs of char. During briquette production this gives 16 kgs of
stick briquettes and when it is honey combs that are produced using the
produced char 6 pieces of honey comb briquettes are produced. Therefore
Josa Green Technologies needs 864 kgs of dry waste that provides 208kg of
char to sustain its daily briquette production of 84 pieces of honey comb.
52

Strategy
Josa Green Technologies Ltd in a period of 2 years should acquire a better
facility with high waste char conversion to carbonize.
Josa Green Technologies Ltd should train suppliers of waste in
carbonization process to provide char rather than waste in its raw form. This
will guarantee steady supply of raw material for sustainable briquette
production rather than Josa Green Technologies Ltd engage in both
production of char and briquette production.
10.8.2
Charcoal Dust
Charcoal dust is loose charcoal obtained either from poor conversion of wood
into charcoal or during transport, handling and storage. Presently traditional
kilns used in charcoaling are about 12% efficient. This has created a huge
opportunity for briquette industry to access raw material for briquette
making. Research also reviled that a significant volume (10-35%) of charcoal
in the form charcoal dust is lost during transportation and improper storage
(Knpfle 2004). The charcoal briquette technology is assumed to offer a
viable and low-cost alternative to charcoal. This also gives Josa Green
Technologies Ltd an age is accessing for charcoal dust as a raw material.
Charcoal dust needed
This type of material is less time consuming and it enables high production
levels since no time is invested to charring process. For Josa Green
Technologies Ltd to produce 84 pieces of honey comb briquettes it requires
202 kgs of charcoal dust daily.
Strategy
Currently Josa Green Technologies Ltd is working with various charcoal
venders in markets of Nakulabye, Mengo, Kamwokya, Old Kampala and
Nansana to access charcoal dust. This is mainly in during rainy seasons when
char from waste is insufficient and difficult to get. This has provided a safe
fallback position for Josa Green Technologies Ltd to sustain briquette
production mainly in wet season. Josa Green Technologies Ltd needs to
create a strong bond with current charcoal venders it works with but more
so, look for other partnerships to guarantee steady supply of the feedstock.
Binder:
In addition to biomass mixing, an appropriate binder is added and mixed with
the biomass thoroughly. This enhances the compactness of the biomass
materials and prevents them from falling apart. Examples of such binders
53

include starch, molasses. These are less costly and can be easily accessed
either from the factories that produce sugar as a bio-waste or through use of
off cuts and residues of food staffs rich in starch.
Filler:
This is another essential ingredient needed in briquette production.
10.9 Environmental Impacts
The environmental impact can be estimated if making the assumption that
briquettes are directly replacing charcoal consumption. As all the briquettes
are currently made out of waste material, the greenhouse gas emission
savings can be thought of in terms of the number of trees left standing as a
result of replacing firewood and charcoal. It is estimated that each tonne of
charcoal requires the felling of 88 medium size trees. Using this figure, the
total amount of deforestation avoided by the production of fluke briquettes
by Josa Green Technologies Ltd can be roughly estimated at 80,784 trees
annually (i.e. 918 metric tonnes x 88 trees).
Other salient environmental impacts of this bio fuel briquetting project are as
follows:
Waste materials are used to produce useable fuel, and the efficient
use of resources is promoted.
Greenhouse gas emissions, particularly methane, produced from the
decay of the organic materials (biomass) used to make the
briquettes, are avoided.
Deforestation is reduced as the fuel briquettes offer a substitute for
fuel wood and charcoal.
Quality of both surface and ground water is improved by reducing
land erosion through decreased deforestation practices.
By replacing polluting fossil fuels, environmental quality is improved
and the impacts of climate change are reduced.
54

11.0 HUMAN RESOURCES AND MANAGEMENT STRUCTURE
The Josa Green Technologies Ltd bio fuel briquetting enterprise/plant will
create job opportunities for 20 persons. Detailed descriptions are found in
the following sub-sections.
11.1 Governance Structure
Josa Green Technologies Ltd has a well-developed governance structure
comprising of Board of Directors.
11.2 Organizational and Manpower Structure
The Company has a sound management structure in place with a welldeveloped organizational set up headed by the Managing Director who
handles day to day activities of the Company and is assisted by heads of
departments and other staff including Artisans. Management is supported by
Associate consultants with different specializations who are engaged from
time to time depending on the nature of projects.
The following are the key responsibilities of each of Josas departmental
heads and other key personnel:
Finance & Administration Manager:
Develop all financial strategies, policies and procedures for the

company.
Set the long term objectives of the department and communicate it to
the subordinates.
Review of payment vouchers, journal entries, credit/debit notes, along
with source documents.
Prepare the periodical financial statements that represent the
organizations financial position, including comprehensive income
statement, balance sheet, cash flow statement, and changes in
shareholders' equity statement.
Monitor the results of periodical cash count as well as the physical
count and ensuring their compliance with the accounting records.
55
Figure 6: Josa Organizational Structure

BOARD OF
DIRECTORS
MANAGING
DIRECTOR
BUSINESS
MANAGER
CONSULTANTS
(2)
PRODUCTION
MANAGER
SALES & MARKETING

MANAGER
BRIQUETTES
&
STOVES ARTISANS (7)
FINANCE
&
ADMINISTRATION
MANAGER
SALES
EXECUTIVES (3)
SUPPORT
STAFF (2)
ACCOUNTANT
(1)
Sales & Marketing Manager:
Set the short- and long-term objectives of the department and

communicate it to the subordinates.
Coordinate with the production department to ensure that bio fuel
briquette supply consignments to customers are dispatched and
delivered on time.
Follow up on marketing campaigns and ensure that they are directed
towards the targeted market.
Monitor and follow up with sales account managers to achieve sales
targets and supervise the sales cycle.
Make thorough assessments of the demand and supply of bio fuel
briquettes on the domestic and regional export market and as well as
the price situations in the world market.
Intensively deal with the processing of local market sales documents
(slaes invoices and vouchers) including transportation to targeted
56

market clients. Process and follow up Local Purchase Orders (LPOs)
with the concerned advising and correspondent banks.
Business Manager:
Assist Josa Green Technologies Ltd in reaching its goals and

objectives related to sales, productivity, profitability and industry
penetration, among other areas;
Analyze data;
Make crucial business decisions;
Hire, train and evaluate company employees;
Ensure that Josa Green Technologies Ltd is on track to meet
financial goals;
Develop and implement Josa in reaching its budgets;
Prepare reports for the Josa Board of Directors, MD, and senior
management;
Ensure that workers have the resources to complete their work;
Assess the performance of Josa against goals and plans;
Perform human resource activities such as performance evaluations,
hiring and discipline;
Motivate workers through incentives and positive feedback;
Assume day-to-day tasks like purchasing, hiring, training, and quality
control.
Production Manager:
Setting the department long and short- and long-term objectives and
communicate them to all subordinates.
Supervise and oversee the production processes, set up the production
schedule for Josas different product lines, and adjust schedules as
needed.
Take responsibility for the processing and packaging of bio fuel
briquettes for sale on the domestic market.
Ensure that the bio fuel briquetting/processing operations are cost
effective and within the assigned budget.
Ensure that bio fuel briquettes and stoves/ovens are manufactured and
packaged on time, and are of good quality that is in compliance with
the minimum renewable energy industry standards
Work closely with Josas other sections heads to implement the Josas
policies and meet the organization objectives.
Supervise and motivate the production department team and ensure
that Health and Safety guidelines are followed.
57
Identify training needs of section employees and make the necessary

recommendations to the upper management.
Sales Executives:
Josa sales executives will sell the company's range of products and services.
Customers include individuals, businesses and government organizations
and sales may be domestic (within Uganda) or regional (at a later stage), or
a combination of both.
As well as approaching potential customers with the aim of winning new

business; the Josa sales executives will work to maintain good relationships
with existing clients, gaining repeat business wherever possible.
Typical activities for the Josa sales executives generally include:
Listening to customer requirements and presenting appropriately to make

a sale;
Maintaining and developing relationships with existing customers in
person and via telephone calls and emails;
Cold calling to arrange meetings with potential customers to prospect for
new business;
Responding to incoming email and phone enquiries;
Acting as a contact between a company and its existing and potential
markets;
Negotiating the terms of an agreement and closing sales;
Gathering market and customer information;
Representing Josa Green Technologies Ltd at trade exhibitions, events
and demonstrations;
Negotiating on price, costs, delivery and specifications with buyers and
managers;
Challenging any objections with a view to getting the customer to buy;
Advising on forthcoming product developments and discussing special
promotions;
58
Creating detailed proposal documents, often as part of a formal bidding

process which is largely dictated by the prospective customer;
Liaising with suppliers to check the progress of existing orders;
Checking the quantities of goods on display and in stock;
Recording sales and order information and sending copies to the sales
office, or entering figures into a computer system;
Reviewing Josa sales performance, aiming to meet or exceed targets;
Gaining a clear understanding of customers' businesses and
requirements;
Making accurate, rapid cost calculations and providing customers with
quotations;
Feeding future buying trends back to employers;
Attending team meetings and sharing best practice with colleagues.
11.3 Personnel & Payroll Plan
We believe this plan meets the commitments of our mission and business
objectives. We intend to grow into a large coffee trading organization, though
in doing so we will ensure that we wish to stay responsive to customers
orders and requests. We want the company to stay lean and flexible so that
we can respond to our markets' needs quickly. As we expand and increase in
size we do expect to increase our personnel.
Josa Green Technologies Ltd (Josa) recognizes that our employees

contribute fundamentally to the Company's long-term prosperity,
acknowledging our obligation to remunerate them competitively. We intend
to compensate our personnel well, so as to retain their invaluable expertise
and to ensure job satisfaction and enrichment through delegation of
authority. Our compensation will include a competitive salary, generous profit
sharing, plus a minimum of three weeks vacation. As time progresses we
intend to enhance our capacity to attract and retain people of quality, inter
alia, through benefits such as housing and family education grants.
The proposed manpower requirement and the estimated annual labour cost
including fringe benefits are given in Table 17.
59

11.4 Training Requirement
The production manager should be given on-the-job training for a period of
one month by experts of the supplier of the machinery and equipment. The
ten (10) briquettes and stoves artisans should also obtain a 15 days onthe
job training on how to operate the equipment and handle the inputs. The
estimated training cost is USD 1,500.
11.5 Feedback & Control
1. Important
notices
and
developments
will
be
continuously
communicated to employees to keep them abreast of developments
and promoting a sense of belonging and oneness in the organization.
2. We will encourage our employees to put forward any suggestions they
might have regarding the improvement of any of the company's
functions-an open door philosophy. Such a culture will enhance
innovativeness and creativity, in turn leading to job satisfaction and
enrichment.
3. We intend to make sure that our employees understand the goals of
the firm, are customer focused, proud of their work and work as a
team. This will encourage employees to become entrepreneurial and
customer responsible, in addition to unifying staff in customer focus
and values.
Table 17: Manpower Requirement and Annual Labour Cost
Position
Nos.
Monthly
Salary
(USD)
Managing Director (MD)
1,500
Total
Monthly
Salary
(USD)
1,500
Business Manager
1,000
1,000
12,000
Production Manager
1,000
1,000
12,000
Sales & Marketing Manager
1,000
1,000
12,000
Finance & Admin. Manager
1,000
1,000
12,000
Consultants
800
1,600
19,200
60
Annual
Salary
(USD)
18,000

Sales Executives
600
1,800
21,600
Accountant
900
900
10,800
Finance Dept. Support Staff
600
1,200
14,400
Plant Artisans
300
2,100
25,200
13,100
157,200
TOTAL
20
Fringe Benefits (40% of the above)
62,880
TOTAL ANNUAL WAGE

BILL
12.0 INVESTMENT
RETURNS
220,080
REQUIREMENTS,
PROJECT
FINANCING
AND
This section evaluates various financial aspects of the project (cost of

project, earnings forecast, rates of return, payback period, cash flow, balance
sheet, etc.). Wherever calculations, workings, etc. are voluminous, a
summarized version is presented in this chapter and detailed calculations are
given in the relevant Schedules of Financial Analysis on pages 73 to 95.
12.1 Capital Cost of Project
Total project cost including working capital is estimated at US$ 71,486.
Schedule 02/1: Initial Project Investment Costs on page 78 provides
the details on project capital investment costs. The major breakdown of the
total initial investment cost is shown in Table 18.
Table 18: Initial Capital Investment Cost of Project (In US$)
Description
Local
Foreign
Currency
Currency
A. EXISTING ASSETS
Land Assets
8,571
0
61
Total
8,571

Buildings
Briquettes Processing Equipment
Sub-Total Existing Assets
B. PLANNED INVESTMENT
Buildings
Equipment for Briquettes
Equipment for Stoves
Vehicle(s)
Office Equipment
Sub-Total Planned
Investment
Fixed Cost
Pre-Operational Expenses
Working
Capital
(Start-up
Inventory)
TOTAL PROJECT COST
1,143
1,771
11,486
0
0
0
1,143
1,771
11,486
4,150
0
0
11,430
570
16,150
0
8,170
230
0
0
8,400
4,150
8,170
230
11,430
570
24,550
27,636
5,450
30,000
8,400
0
0
36,036
5,450
30,000
63,086
8,400
71,486
Funds will be required for purchase and installation biomass fuel briquettes
and stoves manufacturing plant machinery and equipment, finance the
construction of additional building structures, purchase one transportation
truck unit, and cover pre-operational and working capital expenses. The
production process of the biomass fuel briquettes and cook stoves
processing plant is a continuous process and capacity has been calculated
basing on 10 hours per day. It is expected that this biomass fuel briquettes
and cook stoves processing plant will run for 365 days a year and in the
second year capacity utilization will start off 100%, for the reason that the
project has to utilize economies of scale to break even early and effectively
service debt.
Land:
The Josa Green Technologies Ltd's bio-fuel briquettes production facility is
located at Ochieng Zone opposite Njovu Estate at Nansana town in Wakiso
District which is only about 10 kms from Kampala city centre along the
Kampala Hoima road. This plot of land belongs to Josa and measures 7,000
square feet (approx. 650 square metres) in size.
Based on the available information the cost of land in the peri-urban areas
Kampala is assumed at USD 150,000 per acre (including the developmental
cost) basing on the fact that it is near the principal commercial and
economic hub of Uganda and the added fact that in touches on one of the
major trunk roads into and out of Kampala city. Being located only 10 kms
from Kampala along the Kampala Hoima highway (which will soon become
a busy route on account of the upcoming oil industry activities in Bunyoro
62

region), the cost of land in this area is high and for a plot of this size is
estimated at USD 8,571 (approx. UGShs 30 million).
Building & Construction:
Josa Green Technologies Ltd plans to construct additional building
infrastructure at the existing production site that are estimated to cost
approximately USD 4,150 (UGShs 14,500,000) to put up. The buildings
that are of immediate priority are the liner production structure, stores shade
structure, and the toilets.
Machinery and Equipment:
The total cost of the Josa Green Technologies Ltd bio fuel briquetting
machinery and equipment is estimated at USD 10,170 (UGShs
35,600,000) out of which USD 1,770 (UGShs 6,200,000) is the value of
the existing plant machinery and equipment and USD 8,400 (UGShs
29,600,000) will be spent on purchase and installation of additional fuel
briquetting machinery and equipment. The total cost of additional
investment in machinery and equipment also includes the cost of office
equipment valued at USD 570 (UGShs 2,000,000).
Transportation Vehicles:
Josa Green Technologies Ltd will require 1 (one) medium-sized
transportation truck for picking up the biomass and charcoal dust raw
materials for the processing of bio fuel briquettes from the identified raw
material source centres or production areas and delivering it to the bio fuel
briquetting plant on a routine daily/weekly basis. The cost of this mediumsized truck is estimated at USD 11,430 (UGShs 40,000,000).
Working Capital:
Dealing in renewable energy is a business in which cash flow is very high and
companies in the industry tend to generate cash surpluses on a regular
basis, most of the raw material biomass such as bagasse and other
agricultural/forestry waste and charcoal dust is purchased on a 1-week cash
basis and the finished product is sold on cash.. Working capital is mostly
required to pay for the initial purchases of raw material biomass and charcoal
dust from the existing sugar plantations, sawmills, primary agricultural
producers and charcoal dealers throughout Uganda, as well as to pay for
other industrial consumables, packaging material, and finished products
including the packaged fuel briquettes and environmental cook stoves/ovens
and prepared for delivery and distribution through the designated Josa
product distribution and sales network, for marketing and sales promotion,
for sales invoicing and documentation paperwork, for payments of utility
63

bills, salaries & wages, fuel for vehicles and for purchase of industrial and
motor vehicle spares. The start-up working capital requirements have been
estimated at USD 35,450 (UGShs 124 million) for the first two (2) months
of operation and includes pre-operational expenses worth USD 5,450
(UGShs 19 million) and start-up inventory account worth USD 30,000
(UGShs 105 million).
12.2 Financial Plan
The project is proposed to be financed through a combination of company
equity and medium-term institutional financing in the ratio of 84:16
approximately. The financial models show the medium-term loan bearing an
interest rate of 5 percent per annum payable over a period of ten years.
Schedule 02/2: Source and Structure of Project Financing on page 79
hereby refers.
12.3 Profit & Loss Account
A summarized version of the profit & loss account is given in Table 19 below.
Table 19: Summary Profit & Loss Account for First Five Years of the
Project (In USD)
Description
Year 2
Year 3
Year 4
Year 5
Sales
546,437
659,823
796,736
878,401
Less: Cost of Sales
106,058
128,065
154,640
170,490
Gross Profit
440,379
531,758
642,096
707,911
Less: Operating Costs
285,518
300,128
322,297
340,819
Operating Profit
154,861
231,630
319,799
367,093
Less: Interest service
7,200
5,400
3,600
1,800
Less: Loan service
15,000
15,000
15,000
15,000
Provision for Tax
39,798
63,369
90,360
105,088
Net Profit
92,863
147,861
210,839
245,205
Cum. Retained Earnings
92,863
240,724
451,563
696,768
12.4 Rates of Return
On the basis of the earnings forecast and related projections, rates of return
for the project are calculated below:
64

Table 20: Rates of Return (In Percentages)
Description
Year 2
Year 3
Gross Profit to Sales
80.59
80.59
Operating Profit to Sales
28.34
35.10
Net Profit to Sales
16.99
22.41
Net
Profit
to
Total
129.90
206.84
Investment
Year 4
80.59
40.14
26.46
294.94
Year 5
80.59
41.79
27.91
343.01
12.5 Payback Period

Payback period for the project, both in terms of owners equity and total
investment, is calculated below:
Total Capital Investment
Josas Equity
Profits
=
=
US$ 71,485
US$ 11,485
Net Profit + Interest + Depreciation
Table 21: Calculation of Payback Period for Equity and Total

Investment
Year
1
2
3
4
5
Amount paid back from

Profits
0
103,687
156,885
218,063
250,629
Balance of Total
Investment
-71,486
32,201
189,086
407,149
657,778
Payback period for Equity

Payback period for Total Capital Investment
=
=
Balance of Total
Equity
-11,489
92,198
249,083
467,146
717,775
1.69 Years
1.11 Years
12.6 Capital: Output Ratio

Capital output ratios, representing the production potential of the project in
relation to the investment involved in its establishment, are calculated
below:
Table 22: Capital: Output Ratios (In USD)
65

Description
Total Investment
Sales (Output)
Capital: Output Ratio
Year 2
71,485
546,437
1: 7.64
Year 3
Year 4
_
659,823
1: 9.23
Year 5
_
796,736
1: 11.15
_
878,401
1: 12.29
12.7 Cash Flow Statement

The projected cash flow for the first five years of the project is shown
hereunder:
Table 23: Projected Cash Flows (In USD)

1
2
Project Year
Costs (US Dollars)
A. Cash inflow
1. Financial resources Total
2. Sales revenue total
71,486
71,486
_
546,437
_
546,437
659,823
_
659,823
796,736
_
796,736
878,401
_
878,401
-71,486
-643,518
-531,181
-608,887
-649,869
-71,486
_
-189,484
-391,576
-18,759
-428,193
-22,530
-476,937
-16,213
-511,309
_
_
-7,200
-15,000
-5,400
-15,000
-3,600
-15,000
-1,800
-15,000
4. Corporate tax
-39,798
-63,369
-90,360
-105,088
5. Dividends 4% on equity
-460
-460
-460
-460
C. Surplus / deficit
-97,081
128,642
187,849
228,532
D. Cumulative cash bal.
-97,081
31,560
219,409
447,941
B. Cash outflow
1. Total assets schedule
including replacements
2. Operating Costs
3. Debt Service
a) Interest
b) Repayments
66

12.8 Balance Sheet
Projected balance sheet for the first five years of operation is shown below:
Table 24: Projected Balance Sheet (In USD)

CAPITAL EMPLOYED:
YR.1
YR.2
11,489
92,863
104,352
60,000
164,352
YR.3
11,489
240,724
252,213
45,000
297,213
YR.4
11,489
451,563
463,052
30,000
493,052
YR.5
11,489
696,768
708,257
15,000
723,257
5,286
5,022
4,757
4,493
4,229
10,171
570
11,430
9,154
513
9,144
23,833
160,717
32,631
144,451
12,402
-28,767
8,137
456
6,858
20,208
297,960
35,683
159,588
12,973
89,716
7,120
399
4,572
16,584
498,712
39,745
177,157
13,872
267,938
6,103
342
2,286
12,959
732,583
42,609
189,781
14,596
485,596
20,198
12,998
7,200
20,956
15,556
5,400
22,244
18,644
3,600
22,285
20,485
1,800
Share Capital
Retained Earnings
Shareholder's Equity/Deficit
Long-Term Liabilities
EMPLOYMENT OF
CAPITAL:
Plant Buildings
Production Plant Equip.
& Machinery
Office Equipment
Vehicles
LONG-TERM ASSETS:
CURRENT ASSETS:
Accounts Receivable
Stock (Inventory)
Bank Balance and Cash
Other Current Assets
CURRENT
LIABILITIES/DEBT:
Accounts Payable
Current Portion of Long-
67

term Liabilities
NET CURRENT ASSETS:
140,519
164,352
TOTAL CAPITAL
277,004
297,213
476,468
493,052
710,297
723,257
12.9 Break-Even Analysis

The projects commercial break-even level (profitability break-even) in
Project Year 5 is calculated below:
Table 25: Break-Even Analysis in Project Year 5 (In USD)

Items
Variable
Fixed Cost
Total Cost
Cost
Raw materials
170,490
0
170,490
Salaries & wages
196,928
65,643
262,570
Third Party Costs
6,065
2,022
8,087
Repairs & Maintenance
1,942
971
2,914
Storage, Fuel & Marketing
29,848
14,924
44,772
Office Overheads
16,857
5,619
22,476
Other Costs
0
0
0
Depreciation
0
3,624
3,624
Financial Expenses
0
1,800
1,800
TOTAL
422,130
94,602
516,733
Sales Value of Production
Break-even Sales =
Break-even Sales =
US$ 878,401
94,602
1 422,130
878,401
94,602
1 0.481
94,602
0.519
US$ 182,126
Capacity utilization required to Break-even = US$ 182,126 x 100 = 20.73%

US$ 878,401
Margin of Safety = 100% 20.73% = 79.27%
68

12.10
Value Added/Contribution to GDP
Implementation of the project is expected to have a beneficial economic

impact on regional/national economic development. The projects
contribution towards the countrys Gross Domestic Product (GDP) is
estimated below.
Table 26: Value Added/Contribution to GDP (In USD)

Description
Year 2
Year 3
Year 4
Value of Production (Sales)
Less Intermediate Input:
Cost of Sales
Storage, Fuel & Marketing
Office Overheads
Depreciation
Total Intermediate Inputs
Value Added
Value Added as % of output
Value Added per Worker
(US$)
Year 5
546,437
659,823
796,736
878,401
106,058
27,852
13,982
3,624
151,516
394,921
72.27%
128,065
33,631
16,883
3,624
182,203
477,620
72.39%
154,640
40,610
20,387
3,624
219,261
577,475
72.48%
170,490
44,772
22,476
3,624
241,362
637,039
72.52%
19,746
23,881
28,874
31,852
69
13.0 IMPLEMENTATION PLAN

It is expected that it will take approximately 9 months to have this project
put into operation from the day funds for its execution are secured. The
preparatory stage which involves the negotiation and eventual approval for
project funding is assumed to take 3 months from the date of its first
submission to project financiers by the project promoters. The follow-on
project implementation activities are expected to take an additional 6
months to completion which altogether adds up to 9 months. This has been
rounded off to 1 year to account for a three (3) months contingency period to
cover for any unforeseen time and cost overruns in the course of civil
infrastructure development and set up at site and any delays that might
occasioned in procuring, delivering and installing any of the other projects
capital equipment at Josa Green Technologies Ltds existing land facility.
The following Gantt chart presented in Figure 7 highlights the important
project implementation milestones.
70
71

Figure 7: Project Implementation Milestones
Commence Operations
Commissioning of New Fuel
Briquettes Processing Plant
Three
(3)
months
contingency
planning
period
Establish
fuel
briquettes/stoves
market
contacts (4 months)
Recruitment
of
other
Company Staff (2 months)
Hiring Key Executives (2
months)
Arrangements for
raw
material supplies (1)
Industry Plant & Equipment:
Installation
&
Commissioning (1 month)
Fuel Briquetting Plant &
Equipment:
Freight
&
Delivery (2.5 months)
Fuel Briquetting Plant &
Equipment: Identification of
Equipment
Suppliers/Opening of LCs
and Order of Equipment (1
month)
Additional
Site
Development/Infrastructure
& Civil Works (6 months)
Acquisition
of
Seed
Financing (3 months)
Period (Months)
6
72
10
11
12
13
14
15

14.0 PROJECT ECONOMICS
15.0
15.1 Project KPIs
16.0
17.0 The total investment capital required for expanding and scaling up the
proposed Josa Green Technologies Ltd (Josa) bio fuel briquettes
and cook stoves manufacturing plant in Uganda is USD 60,000. With
existing project equity assets valued at USD 11,485, the total value of
the bio fuel briquettes and cook stoves manufacturing project including
scale-up is USD 71,485. The capital cost incurred in acquiring new bio
fuel briquettes and cook stoves manufacturing plant and equipment
and putting up new industrial housing is USD 24,550 and the working
capital plus pre-operating costs and physical contingencies is USD
35,450. The total cost, project returns and financial plan are
summarized in Tables 27-1 to 27-3 below.
18.0
19.0 Table 27-1: Total Project Cost (Planned Investment) - (In USD)
20.0 Account Head
21.0 Total
Cost
(USD)
22.0 Capital Cost
23.0 35,450
24.0 Working Capital + Pre-Operating Expenses
25.0 24,550
26.0 Total Project Cost
27.0 60,000
28.0 Table 27-2: Project Returns (In USD)
29.0 NPV (UShs) @ 17%
30.0 452,440
31.0 FIRR
32.0 182.09%
33.0 Payback Period (Years)
34.0 1.69
35.0 Table 27-3: Financing Structure (In USD)
36.0 Financing
37.0 Ratio
38.0 USD
39.0 Existing Equity Assets
40.0 16.07%
41.0 11,485
42.0 Debt
43.0 83.93%
44.0 60,000
45.0 Total
Project
Financing 46.0 100.00%
47.0 71,485
(Existing + Planned)
48.0
48.1 Jobs Creation
49.0
50.0 The Josa Green Technologies Ltd (Josa) bio fuel briquettes and
cook stoves manufacturing enterprise will create 20 direct employment
opportunities and thousands in indirect jobs through the interlinked
distribution and marketing induced activities.
51.0
52.0 The net employment effect is generally expected to grow in tandem
with the gradual commercial development of the renewable energy
73

enterprise and the consolidation of its business/marketing position
within the local and regional export markets.
53.0 The throughput of the Josa Green Technologies Ltds raw material
purchase and bio fuel briquettes and cook stoves production activity on
the domestic market will definitely induce a positive beneficial growth
impact on other inter-related areas that will lead to the creation of
more jobs for a broad category of both skilled and semi-skilled labour.
54.0
55.0 As a measure of national economic benefit, the calculation below gives
an indication of the investment to jobs created ratio (Over the 5year financial analysis period).
56.0
57.0 Table 28: Investment to Jobs Created Ratio (IJCR)
58.0 Coffee
Processing
Exporting Enterprise
62.0
Josa Green Technologies Ltd
and
59.0 Total
Initial
Invest
ment*
(In
USD)
63.0 71,485
60.0 No.
of
Jobs
Creat
ed
64.0
20
61.0 IJCR
(In
USh
s/job
)
65.0
3,57
4
66.0 * Total investment excluding existing assets

67.0
67.1 Government Revenue
68.0
69.0 The proposed expansion and scaling up of the
Josa Green
Technologies Ltd (Josa) bio fuel briquettes and cook stoves
manufacturing project is vested with a sustainable and financially
sound income-generating base that will yield substantial revenue for
the Government Treasury in the form of Corporate Income Tax (CIT)
and personal income taxes paid out annually. Financial analyses in
Schedules 9 (page 88) and 11 (page 90) show the Corporate Income
Tax (taken at 30% of gross income) building up on incremental trend.
Total CIT payments to the Government exchequer are summarized in
Table 29 and represent the aggregate annual CIT projections from
Project Year 2 to Project Year 5.
70.0
71.0 Table 29: Corporate Income Tax Payments

72.0 Renewable
Enterprise
75.0
Energy
Josa
Green
Technologies Ltd
73.0 Total CIT

Payments for PY 2
PY 5 (In USD)
76.0 298,615
78.0
74
74.0 Average CIT

Payments/Ann
um (In USD)
77.0 74,654

79.0 The project management however generally expects to surpass these
corporate tax revenue projections by exceeding the stated sales
projections and thus make bigger Corporate Income Tax revenue
cheques to Government a feasible and practical reality.
80.0
81.0
82.0
82.1 Socio-Economic Impacts
83.0
84.0 Josa Green Technologies Ltd (Josa) bio fuel briquettes and cook
stoves production enterprise will definitely deliver a range of positive
socio-economic impacts to Uganda which can be highlighted as
follows:
85.0
Job opportunities are created through plant installation, operation
and maintenance.
Fuel security is improved, thus increasing social security and the
welfare of the local community.
The burden of collecting fuel for both women and children in rural
areas of Uganda is reduced.
The health of women and children are improved by replacing
polluting fuels with cleaner fuel for cooking.
Income is generated for the community from the collection and sale
of bio mass raw materials such as bagasse and maize cobs.
The currency of fossil fuels such as kerosene is reduced.
The industry created from the manufacture of briquettes contributes
to the growth of the countrys GDP.
Hard currency is generated from carbon financing e.g. as a Clean
Development Mechanism (CDM) project, it can generate saleable
credits.
86.0
87.0
88.0
89.0
90.0
91.0
92.0
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
75

101.0
102.0
103.0
104.0
105.0
Schedule 01:
Key Assumptions and Project Summary
Results
106.0
107.0
Table 30-1: Project Assumptions
108.0 Period of construction & machinery
109.0 6 Months
delivery
110.0 Total Land Area
111.0 0.16 Acres (650 sq
mtrs)
112.0 Business analysis period
113.0 5 Years
114.0
115.0
Table 30-2: Plant Operating Assumptions
116.0 No. of working days in one year
117.0 365
118.0 No. of working shifts per day
119.0 1
120.0 No. of working hours in one shift
121.0 10
122.0 Annual plant operating expenses growth
123.0 5%
rate
124.0
Depreciation Rates
125.0
126.0 Briquette Processing Plant Buildings
127.0 5%
128.0 Briquette Processing Plant Equipment & 129.0 10%

Machinery
130.0 Office Equipment
132.0 Vehicles
134.0
135.0
136.0
137.0
138.0
139.0
140.0
141.0
142.0
143.0
144.0
145.0
146.0
147.0
148.0
149.0
150.0
151.0
131.0 10%
133.0 20%
76

152.0
153.0
154.0
155.0
156.0
77

157.0
Table 30-3: Production Budget Assumptions (In USD)
158.0 Budget
Item/Year
163.0
159.0 PY 2
164.0 N 165.0 P
o
ri
.
c
e
/
o
U
f
n
it
U
(
n
U
i
S
t
D
s
)
160.0 PY 3
161.0 PY 4
162.0 PY 5
166.0 T 167.0 N 168.0 P

o
o
ri
t
.
c
a
e
l
/
o
U
f
n
(
it
U
U
(
S
n
U
D
i
S
)
t
D
s
)
169.0 T 170.0 N 171.0 P

o
o
ri
t
.
c
a
e
l
/
o
U
f
n
(
it
U
U
(
S
n
U
D
i
S
)
t
D
s
)
172.0 T 173.0 N 174.0 P

o
o
ri
t
.
c
a
e
l
/
o
U
f
n
(
it
U
U
(
S
n
U
D
i
S
)
t
D
s
)
175.0 T
o
t
a
l
(
U
S
D
)
180.0 1 181.0 4 182.0 2.

1
,
9
,
8
2
6
1
4
8
7
193.0 7 194.0 8 195.0 1
,
1
1.
8
7
6
9
7
6
183.0 1 184.0 5 185.0 3.

4
,
0
,
5
6
0
4
6
0
4
196.0 9 197.0 9 198.0 1
,
4
2.
5
0
2
3
5
4
206.0 1 207.0 2 208.0

4
0
,
4
8
0
6
219.0 3 220.0 1 221.0
1
2
209.0 1 210.0 2 211.0

8
3
,
5
0
1
5
222.0 3 223.0 1 224.0
7
2
186.0 1
6
,
9
8
0
199.0 1
1
,
5
1
3
212.0 2
1
,
7
5
3
225.0 4
5
189.0 1
8
,
7
2
0
202.0 1
2
,
6
9
3
215.0 2
3
,
9
8
2
228.0 4
7
176.0 Cost of Sales/Direct Costs

177.0 Char from
agricultural
waste
(tons)
178.0 4 179.0 2.
,
7
1
8
9
0
190.0 Charcoal
dust (tons)
191.0 7
1
1
192.0 1
1.
1
1
203.0 Binder
(tons)
204.0 1
7
8
205.0 8
3.
3
3
216.0 Utilities
217.0 1 218.0 2,
2
5
8
8.
1
6
3,
1
78
9
2.
5
7
3,
7
187.0 5 188.0 3.
,
2
8
2
1
7
200.0 9
8
7
201.0 1
2.
8
6
213.0 2
4
7
214.0 9
7.
2
0
226.0 1 227.0 3,
2
9

9
1
229.0 Packaging
materials
(units)
230.0 8 231.0 0.
9
0
2
4
,
0
5
0
242.0 Transportati
on
243.0 1 244.0 4,
9
3
5
255.0 Sub-Total
256.0
257.0
269.0
270.0
268.0
281.0 Storage, fuel, marketing
,
0
9
2
232.0 3 233.0 1
5
,
,
0
6
2
8
5
2
,
8
5
8
245.0 4 246.0 1
,
9
3
5
258.0 1 259.0
0
6
,
0
5
8
271.0
272.0
2
9
234.0 0.
0
4
247.0 5,
8
2
3
260.0
273.0
,
5
4
4
235.0 4 236.0 1
3
,
,
1
0
4
8
2
6
,
0
0
0
248.0 5 249.0 1
,
8
2
3
261.0 1 262.0
2
8
,
0
6
5
274.0
275.0
7
8
237.0 0.
0
5
250.0 7,
0
2
0
263.0
276.0
,
3
3
4
238.0 5 239.0 1
2
,
,
2
0
5
4
0
1
,
0
0
0
251.0 7 252.0 1
,
0
2
0
264.0 1 265.0
5
4
,
6
4
0
277.0
278.0
6
7
240.0 0.
0
5
253.0 7,
6
8
3
266.0
279.0
282.0 Marketing
costs
283.0 1 284.0 6,
8
5
0
285.0 6 286.0 1 287.0 8,

,
2
8
7
5
1
0
288.0 8 289.0 1 290.0 9,

,
9
2
8
7
8
1
291.0 9 292.0 1
,
9
8
8
295.0 Storage
296.0 1 297.0 4,
1
0
7
298.0 4 299.0 1 300.0 4,

,
9
1
5
0
9
301.0 4 302.0 1 303.0 5,

,
9
9
8
5
8
304.0 5 305.0 1 306.0 6,

,
6
9
0
8
2
79
293.0 1
1,
0
1
1
,
6
0
1
241.0 5
9
,
8
1
1
254.0 7
,
6
8
3
267.0 1
7
0
,
4
9
0
280.0
294.0 1
1
,
0
1
1
307.0 6
,
6
0

7
308.0 Fuel
309.0 3 310.0 2.
,
8
0
9
0
0
311.0 8 312.0 3 313.0 3.

,
,
0
6
4
3
7
5
0
0
321.0 Advertising
&
promotion
322.0 1 323.0 8,
2
2
5
324.0 8 325.0 1 326.0 9,

,
9
2
3
2
2
5
314.0 1 315.0 3 316.0 3.

0
,
1
,
9
9
4
6
6
8
9
327.0 9 328.0 1 329.0 1
,
1,
9
9
3
9
2
3
334.0 Sub-Total
335.0
336.0
347.0
348.0
349.0
337.0 2 338.0
7
,
8
5
2
350.0
351.0
340.0 3 341.0
3
,
6
3
1
353.0
354.0
360.0
361.0
362.0
363.0
364.0
365.0
366.0
367.0
352.0
342.0
355.0
318.0 4 319.0 3.
,
3
1
5
6
6
331.0 1
332.0 1
3,
2
2
2
344.0
345.0
357.0
358.0
320.0 1
3
,
9
3
7
333.0 1
3
,
2
2
2
346.0 4
4
,
7
7
2
359.0
Table 30-3: Production Budget Assumptions (In USD) .. continued
368.0 Budget
Item/Year
373.0 Staff costs
386.0
339.0
317.0 1
2
,
6
4
1
330.0 1
1
,
9
9
3
343.0 4
0
,
6
1
0
356.0
Managers
369.0 PY 2
374.0
387.0
375.0
5 388.0
376.0
1 389.0
8
,
4
8
370.0 PY 3
377.0
9 390.0
2
,
4
0
378.0
5 391.0
379.0
1 392.0
9
,
4
0
80
371.0 PY 4
380.0
9 393.0
7
,
0
2
381.0
5 394.0
382.0
2 395.0
0
,
3
7
372.0 PY 5
383.0
1 396.0
0
1
,
8
384.0
5 397.0
385.0
2 398.0
1
,
3
9
1
0
6
,
9

399.0
Middle
Personnel
400.0
8 401.0
1 402.0
1
,
5
5
0
9 403.0
2
,
4
0
0
8 404.0
1 405.0
2
,
1
2
8
9 406.0
7
,
0
2
0
8 407.0
1 408.0
2
,
7
3
4
412.0
Labour
413.0
7 414.0
5 415.0
,
0
4
0
7 417.0
5 418.0
,
2
9
2
5 421.0
,
5
5
7
Total Number
of Staff
Insurance/Pens
ion
426.0
428.0
2 430.0
0
1 443.0
431.0
2 433.0
0
1 446.0
434.0
439.0
2 427.0
0
1 440.0
3 419.0
7
,
0
4
4
432.0
7 420.0
425.0
3 416.0
5
,
2
8
0
429.0
7
1
1 409.0
0
1
,
8
7
1
3 422.0
8
,
8
9
6
435.0
Training
452.0
1 453.0
5 447.0
,
0
0
0
2 460.0
,
8
0
0
5 448.0
,
0
0
0
2 461.0
,
8
0
0
464.0 Sub-Total
465.0
466.0
477.0
478.0
491.0
504.0
479.0
492.0
1 505.0
2
438.0
451.0
490.0 Office costs

503.0
Rent
5 441.0
,
0
0
0
2 454.0
,
8
0
0
.
0
0
467.0
5 442.0
,
0
0
0
2 455.0
,
8
0
0
2 468.0
2
7
,
8
8
0
480.0
481.0
493.0
494.0
0 506.0 0 507.0
1 456.0
469.0
482.0
495.0
1 508.0
2
5 444.0
,
0
0
0
2 457.0
,
8
0
0
.
0
0
470.0
5 445.0
,
0
0
0
2 458.0
,
8
0
0
2 471.0
3
8
,
8
8
4
483.0
484.0
496.0
497.0
0 509.0 0 510.0
.
81
1 459.0
472.0
485.0
498.0
1 511.0
2
473.0 2
5
0
,
4
3
8
486.0
499.0
0 512.0 0
.
474.0
3
8 410.0
1 411.0
3
,
3
7
1
7 423.0
5 424.0
,
8
3
4
2 436.0
0
1 449.0
437.0
1 462.0
475.0
5 450.0
,
0
0
0
2 463.0
,
8
0
0
6
5
1
0
6
,
9
6
5
4
0
,
8
4
1
5
,
0
0
0
2
,
8
0
0
476.0 2
6
2
,
5
7
0
487.0
488.0
489.0
500.0
501.0
502.0
513.0 1 514.0 0 515.0 0
2

516.0
Telephone
517.0
1 518.0
2
529.0
Stationery
530.0
1 531.0
2
542.0
Electricity
543.0
1 544.0
2
555.0 Sub-Total
556.0
557.0
568.0
569.0
570.0
581.0 Equipment maintenance

costs
592.0
Briquettes
maintenance
593.0
1 594.0
2
605.0
Buildings
maintenance
606.0
1 607.0
2
618.0
Stoves
619.0
1 620.0
2 519.0
7
4
.
1
7
2 532.0
7
4
.
1
7
6 545.0
1
6
.
8
3
558.0
3 520.0
,
2
9
0
1 521.0
2
3 533.0
,
2
9
0
1 534.0
2
7 546.0
,
4
0
2
1 547.0
2
1 559.0
3
,
9
8
2
571.0
572.0
560.0
582.0
1 595.0
6
3
.
8
0
4 608.0
4
.
0
5
1 621.0
0
0
3 522.0
3
1
.
0
6
3 535.0
3
1
.
0
6
7 548.0
4
4
.
8
3
561.0
0
0
3 525.0
9
9
.
7
5
3 538.0
9
9
.
7
5
8 551.0
9
9
.
3
8
564.0
3 523.0
,
9
7
3
1 524.0
2
3 536.0
,
9
7
3
1 537.0
2
8 549.0
,
9
3
8
1 550.0
2
563.0
573.0
1 562.0
6
,
8
8
3
574.0
575.0
576.0
1 552.0 1 553.0 9 554.0 1

0
2
9
1
,
2
,
7
8
9
9
3
9
2 565.0
566.0
567.0 2
0
2
,
,
3
4
8
7
7
6
577.0
578.0
579.0
580.0
583.0
584.0
585.0
586.0
587.0
588.0
589.0
590.0
591.0
1 596.0
,
9
6
6
1 597.0
2
2 599.0
,
0
6
4
1 600.0
2
1 603.0
2
1 610.0
2
5 612.0
5
5
1 613.0
2
5 615.0
8
3
1 616.0
2
2 622.0
1 623.0
2 625.0
1 626.0
1 601.0
8
0
.
5
9
4 614.0
8
.
5
6
2 627.0
2 602.0
,
1
6
7
5 609.0
2
9
1 598.0
7
1
.
9
9
4 611.0
6
.
2
5
2 624.0
2 628.0
1 629.0
1 604.0
8
9
.
6
2
5 617.0
0
.
9
9
2 630.0
82
4 526.0
,
7
9
7
1 527.0
2
4 528.0
4
1
5
,
2
8
9
4 539.0
,
7
9
7
1 540.0
2
4 541.0
4
1
5
,
2
8
9
2
,
2
7
5
6
1
2

maintenance
.
9
2
631.0 Sub-Total
632.0
633.0
644.0
645.0
657.0 Third Party

costs
670.0
Bank charges
& fees
683.0
Legal costs
696.0
Insurance
.
0
1
636.0
646.0
634.0 2 635.0
,
5
1
7
647.0
648.0
658.0
659.0
660.0
671.0
3 672.0
709.0 Sub-Total
1 673.0
,
2
3
4
684.0 1 685.0 2 686.0
,
7
4
0
697.0 1 698.0 1 699.0
,
6
4
5
710.0
711.0
712.0
722.0
723.0
724.0
736.0
749.0
737.0
1 750.0
762.0
1 763.0
735.0 Other costs

748.0
Water
connection
fees
761.0
Electricity
connect fees
.
1
1
639.0
649.0
637.0 2 638.0
,
6
4
3
650.0
651.0
661.0
662.0
663.0
674.0
3 675.0
725.0
726.0
727.0
738.0
2 751.0
,
0
0
0
3 764.0
,
2
739.0
2 752.0
,
0
0
0
3 765.0
,
2
3
,
7
0
2
2
,
7
4
0
1
,
6
4
5
8
,
0
8
7
.
2
2
642.0
652.0
640.0 2 641.0
,
7
7
5
653.0
654.0
655.0
643.0 2
,
9
1
4
656.0
664.0
665.0
666.0
667.0
668.0
669.0
677.0
3 678.0
680.0
3 681.0
728.0
729.0
730.0
731.0
732.0
733.0
734.0
740.0
753.0
741.0
754.0
742.0
755.0
743.0
756.0
744.0
757.0
745.0
758.0
746.0
759.0
747.0
760.0
766.0
767.0
768.0
769.0
770.0
771.0
772.0
773.0
1 676.0
,
2
3
4
687.0 1 688.0 2 689.0
,
7
4
0
700.0 1 701.0 1 702.0
,
6
4
5
713.0
714.0
715.0
83
3
,
7
0
2
2
,
7
4
0
1
,
6
4
5
8
,
0
8
7
1 679.0
,
2
3
4
690.0 1 691.0 2 692.0
,
7
4
0
703.0 1 704.0 1 705.0
,
6
4
5
716.0
717.0
718.0
3
,
7
0
2
2
,
7
4
0
1
,
6
4
5
8
,
0
8
7
1 682.0
,
2
3
4
693.0 1 694.0 2 695.0
,
7
4
0
706.0 1 707.0 1 708.0
,
6
4
5
719.0
720.0
721.0
3
,
7
0
2
2
,
7
4
0
1
,
6
4
5
8
,
0
8
7

0
0
774.0 Sub-Total
775.0
787.0 Total Operating

Costs
776.0
788.0
0
0
777.0 5 778.0
,
2
0
0
789.0 3 790.0
9
1
,
5
7
6
779.0
780.0 0 781.0
782.0
783.0 0 784.0
785.0
786.0 0
791.0
792.0 4 793.0
2
8
,
1
9
4
794.0
795.0 4 796.0
7
6
,
9
3
7
797.0
798.0 5
1
1
,
3
0
9
84

799.0
Table 30-4: Revenue Assumptions
800.0
Units:
801.0
802.0 Honeycomb Briquettes
803.0 Sticks @ 2.5 kgs
804.0 Other Bio Fuel Briquettes
805.0 Kgs
806.0 Stoves/Ovens
807.0 Units
808.0
Production Quantities (PY 2
809.0
only):
810.0
Briquettes:
811.0
812.0
Honey Combs
813.0 9,000 sticks p.a.
814.0
Briquette Sticks
815.0 30,000 kgs p.a.
816.0
Pillow-shaped briquettes
817.0 24,000 kgs p.a.
819.0
818.0 Stoves:
820.0
Moveable stoves 1
821.0 300 units p.a.
822.0
Moveable stoves 2
823.0 400 units p.a.
824.0
Moveable stoves 3
825.0 300 units p.a.
826.0
Institutional moveable stoves
827.0 50 units p.a.
828.0
Institutional fixed stoves
829.0 4 units p.a.
830.0
Customized Ovens
831.0 5 units p.a.
832.0
Annual Production & Sales 833.0
Volume Growth Rate:
834.0
PY 3
835.0 15% p.a.
836.0
PY 4
837.0 15% p.a.
838.0
PY 5
839.0 5% p.a.
840.0
Sales Prices (PY 2 only):
841.0
842.0
Briquettes:
843.0
844.0
Honey Combs
845.0 US$ 0.43/stick
846.0
Briquette Sticks
847.0 US$ 0.28/kg
848.0
Pillow-shaped briquettes
849.0 US$ 0.20/kg
851.0
850.0 Stoves:
852.0
Moveable stoves 1
853.0 US$ 14.29/unit
854.0
Moveable stoves 2
855.0 US$ 8.57/unit
856.0
Moveable stoves 3
857.0 US$ 7.14/unit
858.0
Institutional moveable stoves
859.0 US$ 171.43/unit
860.0
Institutional fixed stoves
861.0 US$ 1428.57/unit
862.0
Customized Ovens
863.0 US$ 857.14/unit
864.0 Unit sales prices growth rates
865.0 5% p.a. /unit
866.0
867.0
868.0
869.0
870.0
871.0
872.0
Table 30-5: Financial Assumptions
873.0 Medium-Term Loan Financing
874.0 83.93%
875.0 Josa Equity
876.0 16.07%
877.0 Interest Rate on medium term debt
878.0 12% p.a.
879.0 Grace Period
880.0 1 Year
85

881.0 Debt payments per year (Loan
882.0 1
Annuities/Year)
883.0 Exchange rate
884.0 US$ 1 = UGX 3,500
885.0 Inflation rate
886.0 5%
887.0
888.0
889.0
890.0
891.0
892.0
893.0
894.0
895.0
896.0
897.0
898.0
899.0
900.0
901.0
902.0
903.0
904.0
905.0
906.0
907.0
908.0
909.0
910.0
911.0
912.0
913.0
914.0
915.0
916.0
917.0
918.0
919.0
920.0
921.0
922.0
923.0
Schedule 02/1: Initial Project Investment Costs (In USD)
924.0
925.0
Description
926.0
C
ost
(USD)
927.0 Land
928.0 8,571
86

929.0 Buildings & Civil Works
931.0 Plant Machinery & Equipment
930.0 5,293
932.0 10,17
1
934.0 570
936.0 11,43
0
938.0
3
6,035
940.0 5,450
942.0 30,00
0
944.0
7
1,485

935.0 Motor Vehicles (1 unit)
937.0
Fixed Cost
939.0 Pre-Operational Expenses

941.0 Start-up Inventory Account
943.0
TOTAL PROJECT COST
945.0
946.0
947.0
948.0
949.0
950.0
951.0
952.0
953.0
954.0
955.0
956.0
957.0
958.0
959.0
960.0
961.0
962.0
963.0
964.0
965.0
966.0
967.0
968.0
969.0
970.0
971.0
972.0
87

973.0
Schedule 02/2: Source and Structure of Project Financing
(In USD)
974.0
975.0 S 976.0 Source
.
Finance
of
N
o
.
981.0 1 982.0 Land
987.0 2 988.0 Building & Civil

Works
993.0 3 994.0 Plant Mach &
Equipment
999.0 4 1000.0
Office
Equipment
1005.0 1006.0
Motor
5
Vehicles (1 unit)
1011.0 1012.0
Pre6
Operational
Expenses
1018.0
Start-up Inventory
1017.0
Account
7
1024.0
TOTAL
PROJECT
1023.0
977.0 Sh
ar
e
(%
)
978.0 Josa
Equi
ty
983.0 11.
99
%
989.0 7.4
0%
995.0 14.
23
%
1001.0
0.80%
1007.0
15.99%
1013.0
7.62%
1019.0
41.97%
1025.0
FUNDING
100.00%
1029.0 1030.0
%age
of
Total
Project Funding
1034.0
1035.0
1036.0
1037.0
1038.0
1039.0
1040.0
1041.0
1042.0
1043.0
1044.0
1045.0
1046.0
1047.0
1048.0
88
979.0 Loan
Fina
nce
980.0 Total
(USD
)
984.0 8,571
985.0 0
986.0 8,571
990.0 1,143
991.0 4,150
992.0 5,293
996.0 1,771
997.0 8,400
998.0 10,17
1
1002.0
1003.0
1004.0
0
1008.0
0
1014.0
0
1020.0
0
1026.0
11,485
1031.0
16.07%
570
570
1009.0
11,430
1015.0
5,450
1010.0
11,430
1016.0
5,450
1021.0
30,000
1027.0
60,000
1032.0
83.93%
1022.0
30,000
1028.0
71,485
1033.0
100.00%

1049.0
1050.0
1051.0
1052.0
1053.0
1054.0
1055.0
1056.0
1057.0
1058.0
1059.0
1060.0
1061.0
1062.0 Schedule 03/1:
Estimation of Briquettes and Cook Stoves
Sales Revenues (PY 2 in USD)
1063.0
Item
Description
1070.0
Briquettes
:
1076.0
Honey
Combs
1082.0
Briquette
Sticks
1088.0
Pillowshaped briquettes
1094.0
Sub-Total
1100.0
Stoves:
1106.0
Moveabl
e stoves 1
1112.0
Moveabl
e stoves 2
1118.0
Moveabl
e stoves 3
1124.0
Institutio
nal
moveable
stoves
1071.0
1072.0
1066.0
Sales
Pri
ce
/U
nit
(U
SD
)
1073.0
1077.0
1078.0
Sticks
1084.0
kgs
1090.0
kgs
1096.0
1079.0
0.43
1085.0
0.28
1091.0
0.20
1097.0
1102.0
1108.0
units
1114.0
units
1120.0
units
1126.0
units
1103.0
1109.0
14.29
1115.0
8.57
1121.0
7.14
1127.0
171.43
1064.0
P
roducti
on/Sale
s
Quantit
y/Month
9
,000
1083.0
3
0,000
1089.0
2
4,000
1095.0
1101.0
1107.0
1113.0
1119.0
1125.0
3
00
4
00
3
00
5
0
1065.0
Units
89
1067.0
Monthly
Sale
s
(USD
)
1068.0
Annual
Sale
s
1069.0
(USD)
1074.0
1075.0
1080.0
3,857
1086.0
8,451
1092.0
4,800
1098.0
17,108
1104.0
1110.0
4,286
1116.0
3,429
1122.0
2,143
1128.0
8,571
1081.0
46,286
1087.0
101,408
1093.0
57,600
1099.0
205,294
1105.0
1111.0
51,429
1117.0
41,143
1123.0
25,714
1129.0
102,857

1130.0
Institutio
nal fixed stoves
1136.0
Customized
Ovens
1142.0
Sub-Total
1148.0
TOTAL
SALES
1131.0
1137.0
1143.0
1149.0
1132.0
units
1138.0
units
1144.0
1133.0
1428.57
1139.0
857.14
1145.0
1150.0
1151.0
1134.0
5,714
1140.0
4,286
1146.0
28,429
1152.0
45,536
1135.0
68,571
1141.0
51,429
1147.0
341,143
1153.0
546,437
1154.0
1155.0
1156.0
1157.0
1158.0
1159.0
1160.0
1161.0
1162.0
1163.0
1164.0
1165.0
1166.0
1167.0
1168.0
1169.0
1170.0
1171.0
1172.0
1173.0
1174.0 Schedule 03/2:
Estimation of Briquettes and Cook Stoves
Sales Revenues (PY 2 PY 5 in USD)
1175.0
Item
Description
1181.0
Briquette
s:
1187.0
Honey
Combs
1193.0
Briquette
Sticks
1199.0
Pillowshaped
briquettes
1205.0
Sub-Total
1211.0
Stoves:
1176.0
Year 1
1182.0
1177.0
Year 2
1183.0
1178.0
Year 3
1184.0
1179.0
Year 4
1185.0
1180.0
Year 5
1186.0
1188.0
46,286
1194.0
101,408
1200.0
57,600
1189.0
55,890
1195.0
122,450
1201.0
69,552
1190.0
67,488
1196.0
147,859
1202.0
83,984
1191.0
74,405
1197.0
163,014
1203.0
92,592
1192.0
82,737
1198.0
181,268
1204.0
102,961
1206.0
205,294
1212.0
1207.0
247,893
1213.0
1208.0
299,330
1214.0
1209.0
330,012
1215.0
1210.0
366,965
1216.0
90

1217.0
Moveable
Stoves Type 1
1223.0
Moveable
Stoves Type 2
1229.0
Moveable
Stoves Type 3
1235.0
Institution
al
moveable
stoves
1241.0
Institution
al fixed stoves
1247.0
Customize
d Ovens
1253.0
Sub-Total
1259.0
TOTAL
SALES
1265.0
1266.0
1267.0
1268.0
1269.0
1270.0
1271.0
1272.0
1273.0
1274.0
1275.0
1276.0
1277.0
1278.0
1279.0
1280.0
1281.0
1282.0
1283.0
1284.0
1285.0
1286.0
1287.0
1288.0
1289.0
1290.0
1291.0
n
1218.0
51,429
1224.0
41,143
1230.0
25,714
1236.0
102,857
1219.0
62,101
1225.0
49,680
1231.0
31,050
1237.0
124,200
1220.0
74,986
1226.0
59,989
1232.0
37,492
1238.0
149,971
1221.0
82,672
1227.0
66,138
1233.0
41,335
1239.0
165,343
1222.0
91,930
1228.0
73,543
1234.0
45,964
1240.0
183,858
1242.0
68,571
1248.0
51,429
1254.0
341,143
1260.0
546,437
1243.0
82,799
1249.0
62,101
1255.0
411,930
1261.0
659,823
1244.0
99,980
1250.0
74,986
1256.0
497,406
1262.0
796,736
1245.0
110,228
1251.0
82,672
1257.0
548,390
1263.0
878,401
1246.0
122,571
1252.0
91,930
1258.0
609,796
1264.0
976,761
Schedule 04: Loan and Interest Service Schedule (In USD)

Sectio
1293.0 LOAN AMOUNT

(USD)
1292.0
1294.0
60,000
1295.0
91
1296.0
Years
1297.0
1298.0

1299.0
Year
1305.0
Loan
Repayment
1311.0
Interes
t
1317.0
Total
Loan
Service
1300.0
1
1306.0
0
1312.0
0
1318.0
1301.0
2
1307.0
15,000
1313.0
7,200
1319.0
22,200
1302.0
3
1308.0
15,000
1314.0
5,400
1320.0
20,400
1303.0
4
1309.0
15,000
1315.0
3,600
1321.0
18,600
1304.0
5
1310.0
15,000
1316.0
1,800
1322.0
16,800
1323.0
1324.0
1325.0
1326.0
1327.0
1328.0
1329.0
1330.0
1331.0
1332.0
1333.0
1334.0
1335.0
1336.0
1337.0
1338.0
1339.0
1340.0
1341.0
1342.0
1343.0
1344.0
1345.0
1346.0
1347.0
1348.0
1349.0
1350.0
1351.0
1352.0
1353.0
1354.0
1355.0
Table 05/1: Calculation of Working Capital: I Minimum
Requirements of Current Assets and Liabilities
92

1356.0
1357.0
1358.0
1359.0
1360.0
1361.0
1362.0
1363.0
1364.0
1365.0
1366.0
(a) Accounts receivable:

30
days
at
production costs minus depreciation and
interest
(b) Inventory:
Cost of Sales:
30 days
Labour Costs:
90 days
Processing Plant Operations: 60 days of cost of
sales + repairs and maintenance + storage,
fuel & marketing
Machinery & vehicle maintenance: 180 days
Work in progress: 9 days of cost of sales +
salaries and wages + repairs and maintenance
+ storage, fuel & marketing
Finished products:
45 days of cost of sales
+ salaries and wages + repairs and
maintenance + storage, fuel & marketing
Cash-in-hand: 15
days,
see
separate
calculations at the bottom of this schedule
(d) Accounts payable: 30 days of cost of sales
+ third party costs + storage, fuel & marketing
+ office overheads.
1367.0
1368.0
N.B.: All the local cost price factors for the bio fuel briquetting
plant costs/inputs, utilities and working capital are indicated US dollars for
the ease of computational and financial analysis.
1369.0
1370.0
1371.0
1372.0
1373.0
1374.0
1375.0
1376.0
1377.0
1378.0
1379.0
1380.0
1381.0
1382.0
1383.0
1384.0
93

1385.0
94

1386.0
Table 05/2: Calculation of Working
Production Cost Estimates (In USD)
1387.0
ACCOUNT
HEAD
1389.0
YEAR
1388.0
Capital:
Annual
FINANCIAL YEAR OF OPERATION
1390.0
1
1391.0
2
1392.0
3
1393.0
4
1394.0
5
1395.0
Operating
Costs (US$)
1401.0
Cost of Sales
1396.0
1397.0
1398.0
1399.0
1400.0
1402.0
1407.0
Salaries &
wages
1413.0
Third Party
Costs
1419.0
Repairs &
Maintenance
1425.0
Storage, Fuel
& Marketing
1431.0
Office
Overheads
1437.0
Other Costs
1408.0
1443.0
Total
Operating Costs
1444.0
1450.0
1404.0
128,065
1410.0
238,884
1416.0
8,087
1422.0
2,643
1428.0
33,631
1434.0
16,883
1440.0
0
1446.0
428,19
3
1452.0
1405.0
154,640
1411.0
250,438
1417.0
8,087
1423.0
2,775
1429.0
40,610
1435.0
20,387
1441.0
0
1447.0
476,93
7
1453.0
1406.0
170,490
1412.0
262,570
1418.0
8,087
1424.0
2,914
1430.0
44,772
1436.0
22,476
1442.0
0
1448.0
511,309
1449.0
1403.0
106,058
1409.0
227,880
1415.0
8,087
1421.0
2,517
1427.0
27,852
1433.0
13,982
1439.0
5,200
1445.0
391,57
6
1451.0
1454.0
1455.0
Financial
Costs (US$)
1461.0
Interest
on
Medium Term Loan
(12% p.a.)
1467.0
Depreciation
1456.0
1457.0
1458.0
1459.0
1460.0
1462.0
1463.0
7,200
1464.0
5,400
1465.0
3,600
1466.0
1,800
1468.0
1473.0
Total
Financial Costs
1479.0
1474.0
1469.0
3,624
1475.0
10,824
1481.0
1470.0
3,624
1476.0
9,024
1482.0
1471.0
3,624
1477.0
7,224
1483.0
1472.0
3,624
1478.0
5,424
1484.0
1485.0
Total
Production Costs
1486.0
1487.0
402,40
0
1488.0
437,21
7
1489.0
484,16
1
1490.0
516,733
1414.0
1420.0
1426.0
1432.0
1438.0
1480.0
1491.0
1492.0
1493.0
1494.0
1495.0
95

1496.0
1497.0
1498.0
1499.0
1500.0
1501.0
1502.0
1503.0
1504.0
1505.0
1506.0
1507.0
1508.0
1509.0
1510.0
Schedule 05/3: Calculation of Working Capital: Working
Capital Requirements (In USD)
1511.0
Item
1512.0
X
1513.0
Y
1515.0
1516.0
1517.0
Co
effi
cie
nt
of
1519.0
1520.0
1521.0
tur
nov
er
Mi
ni
mu
m
da
ys
of
co
ver
ag
e
1514.0
Requirements (USD)
1518.0
Full Capacity
1522.0
2
1523.0
3
1524.0
4
1525.0
5
1526.0
1527.0
1528.0
1529.0
1530.0
1531.0
1532.0
1533.0 I. Current assets

1540.0 A. Accounts
1534.0
1535.0
1536.0
1537.0
1538.0
1539.0
1547.0
1541.0
30
1548.0
1542.0
12
1549.0
1543.0
32,631
1550.0
1544.0
35,683
1551.0
1545.0
39,745
1552.0
1546.0
42,609
1553.0
1554.0 B. Inventory
1555.0
1556.0
1557.0
1558.0
1559.0
1560.0
1561.0 a) Cost of Sales
1562.0
30
1569.0
90
1576.0
60
1583.0
180
1590.0
9
1597.0
1563.0
12
1570.0
4
1577.0
6
1584.0
2
1591.0
40
1598.0
1564.0
8,838
1571.0
56,970
1578.0
22,738
1585.0
1,259
1592.0
9,108
1599.0
1565.0
10,672
1572.0
59,721
1579.0
27,390
1586.0
1,321
1593.0
10,081
1600.0
1566.0
12,887
1573.0
62,610
1580.0
33,004
1587.0
1,387
1594.0
11,212
1601.0
1567.0
14,208
1574.0
65,643
1581.0
36,363
1588.0
1,457
1595.0
12,019
1602.0
receivable
1568.0 b) Salaries & Wages

1575.0 c) Plant Operations
1582.0 d) Maintenance &
Repair
1589.0 e) Work-in-Process
1596.0 f) Finished Products
96

45
1604.0
8
1605.0
45,538
1606.0
50,403
1607.0
56,058
1608.0
60,093
1609.0
1611.0
15
1618.0
1612.0
24
1619.0
1613.0
12,402
1620.0
1614.0
12,973
1621.0
1615.0
13,872
1622.0
1616.0
14,596
1623.0
1624.0
1625.0
1626.0
1627.0
1628.0
1629.0
1630.0
1631.0 D. Current assets

1638.0
1632.0
_
1639.0
1633.0
_
1640.0
1634.0
189,484
1641.0
1635.0
208,243
1642.0
1636.0
230,774
1643.0
1637.0
246,986
1644.0
1645.0 II. Current
1646.0
1647.0
1648.0
1649.0
1650.0
1651.0
1659.0
1653.0
30
1660.0
1654.0
12
1661.0
1655.0
-12,998
1662.0
1656.0
-15,556
1663.0
1657.0
-18,644
1664.0
1658.0
-20,485
1665.0
1666.0 III. Working
1667.0
1668.0
1669.0
1670.0
1671.0
1672.0
Capital
1673.0 A.
Net
1674.0
1675.0
1681.0
1682.0
1688.0
1689.0
1676.0
176,486
1683.0
_
1690.0
1677.0
192,688
1684.0
16,202
1691.0
1678.0
212,130
1685.0
19,442
1692.0
1679.0
226,501
1686.0
14,371
1693.0
1695.0
_
1702.0
1696.0
_
1703.0
1697.0
402,400
1704.0
1698.0
437,217
1705.0
1699.0
484,161
1706.0
1700.0
516,733
1707.0
1709.0
_
1716.0
_
1723.0
_
1730.0
15
1737.0
_
1710.0
_
1717.0
_
1724.0
_
1731.0
24
1738.0
_
1711.0
70,031
1718.0
31,092
1725.0
3,624
1732.0
297,653
1739.0
12,402
1712.0
84,699
1719.0
37,544
1726.0
3,624
1733.0
311,350
1740.0
12,973
1713.0
102,286
1720.0
45,334
1727.0
3,624
1734.0
332,917
1741.0
13,872
1714.0
115,206
1721.0
47,601
1728.0
3,624
1735.0
350,302
1742.0
14,596
1603.0
1610.0 C. Cash-in-hand
1617.0
( from V below)
Liabilities
1652.0 A. Accounts payable
Working
Capital
1680.0 B.
Increase
in
Working Capital
1687.0
1694.0 IV. Total
Production Costs
1701.0
1708.0 Less:
Raw
Materials
1715.0
Utilities
1722.0
Depreciation
1729.0
1736.0 V. Required Cash
Balance
1743.0
1744.0
1745.0
1746.0
97

1747.0
Schedule 06: Fixed Assets and Depreciation Allowances
(In USD)
1748.0
Year
1766.0
1767.0
1750.0
2
1756.0
Dep
1762.0
Allowanc
e
1768.0
1772.0
Plant
Building
1778.0
1773.0
5,286
1779.0
1774.0
264
1780.0
1775.0
264
1781.0
1776.0
264
1782.0
1777.0
264
1783.0
1784.0
Production
Plant and
1790.0
Equipment
1785.0
1786.0
1787.0
1788.0
1789.0
1796.0
1791.0
10,171
1797.0
1792.0
1,017
1798.0
1793.0
1,017
1799.0
1794.0
1,017
1800.0
1795.0
1,017
1801.0
1802.0
Office
Equipment
1808.0
1803.0
570
1809.0
1804.0
1805.0
1806.0
1807.0
1810.0
1811.0
1812.0
1813.0
1814.0
Motor
Vehicles
1820.0
1815.0
11,430
1821.0
1816.0
2,286
1822.0
1817.0
2,286
1823.0
1818.0
2,286
1824.0
1819.0
2,286
1825.0
1826.0
1827.0
27,457
1828.0
3,624
1829.0
3,624
1830.0
3,624
1831.0
3,624
1754.0
1760.0
Asset
TOTALS
1749.0
1
1755.0
Initial
1761.0
Value
1751.0
3
1757.0
Dep
1763.0
Allowanc
e
1769.0
1752.0
4
1758.0
Dep
1764.0
Allowanc
e
1770.0
1753.0
5
1759.0
Dep
1765.0
Allowanc
e
1771.0
57
1832.0
1833.0
1834.0
1835.0
1836.0
1837.0
1838.0
1839.0
1840.0
1841.0
1842.0
1843.0
1844.0
1845.0
98
57
57
57

1846.0
1847.0
1848.0
1849.0
1850.0
1851.0
1852.0
1853.0
1854.0
1855.0
1856.0
1857.0
Schedule 07: Change in Total Investment Costs (In USD)
1858.0
Period
1859.0
1861.0
Year
1862.0
1
1863.0
2
1864.0
3
1865.0
4
1866.0
5
1867.0
Total
1868.0
1869.0
1870.0
1871.0
1872.0
1873.0
1874.0
1875.0 1. Fixed
Investment Costs
1876.0 3
6,
0
3
6
1883.0 3
6,
0
3
6
1890.0 0
1897.0
1904.0 5,
4
5
0
1911.0
1918.0 3
0,
0
0
0
1925.0
1932.0 0
1882.0 a) Initial fixed

investment costs
1889.0 b) Replacement
1896.0
1903.0 2. Pre-operational
expenses
1910.0
1917.0 3. Start-Up
Inventory
1924.0
1931.0 3. Working Capital
increase
1860.0
Co
nst
ruc
tio
n
Full Capacity
1877.0 0
1878.0 0
1879.0 0
1880.0 0
1884.0 0
1885.0 0
1886.0 0
1887.0 0
1891.0 0
1898.0
1905.0 0
1892.0 0
1899.0
1906.0 0
1893.0 0
1900.0
1907.0 0
1894.0 0
1901.0
1908.0 0
1912.0
1919.0 0
1913.0
1920.0 0
1914.0
1921.0 0
1915.0
1922.0 0
1926.0
1933.0 1
7
6,
4
8
1927.0
1934.0 1
6,
2
0
2
1928.0
1935.0 1
9,
4
4
2
1929.0
1936.0 1
4,
3
7
1
99
1881.0 3
6,
0
3
6
1888.0 3
6,
0
3
6
1895.0 0
1902.0
1909.0 5,
4
5
0
1916.0
1923.0 3
0,
0
0
0
1930.0
1937.0 2
2
6,
5
0

6
1938.0
1945.0
Total
Investment
Costs
1939.0
1946.0
71,486
1940.0
1947.0
176,486
1
1941.0
1948.0
16,202
1942.0
1949.0
19,442
1943.0
1950.0
14,371
1944.0
1951.0
297,987
1952.0
1953.0
1954.0
Schedule 08: Change in Total Assets (In USD)
1955.0
Period
1956.0
1958.0
Year
1959.0
1
1960.0
2
1961.0
3
1962.0
4
1963.0
5
1964.0
Total
1965.0
1966.0
1967.0
1968.0
1969.0
1970.0
1971.0
1972.0 1. Fixed
Investment Costs
1973.0 3
6,
0
3
6
1980.0 3
6,
0
3
6
1987.0 0
1994.0
2001.0 5,
4
5
0
2008.0
2015.0 3
0,
0
0
0
2022.0
1979.0 a) Initial fixed

investment costs
1986.0 b) Replacement
1993.0
2000.0 2. Pre-operational
expenses
2007.0
2014.0 3. Start-Up
Inventory
2021.0
2028.0 3. Current Assets
increase
2035.0
2042.0
Total
Investment
Costs
1957.0
Co
nst
ruc
tio
n
Full Capacity
1974.0 0
1975.0 0
1976.0 0
1977.0 0
1981.0 0
1988.0 0
1995.0
1982.0 0
1989.0 0
1996.0
1983.0 0
1990.0 0
1997.0
1984.0 0
1991.0 0
1998.0
2002.0 0
2009.0
2003.0 0
2010.0
2004.0 0
2011.0
2005.0 0
2012.0
2017.0 0
2024.0
2018.0 0
2025.0
2019.0 0
2026.0
2029.0 0
2036.0
2016.0 0
2023.0
2030.0 1
8
9,
4
8
4
2037.0
2031.0 1
8,
7
5
9
2038.0
2032.0 2
2,
5
3
0
2039.0
2033.0 1
6,
2
1
3
2040.0
1978.0 3
6,
0
3
6
1985.0 3
6,
0
3
6
1992.0 0
1999.0
2006.0 5,
4
5
0
2013.0
2020.0 3
0,
0
0
0
2027.0
2034.0 2
4
6,
9
8
6
2041.0
2043.0
71,486
2044.0
189,484
2045.0
18,759
2046.0
22,530
2047.0
16,213
2048.0
318,472
2049.0
100

2050.0
2051.0
2052.0
2053.0
2054.0
2055.0
2056.0
Schedule 9: Projected Cashflow Table (In USD)
2057.0
Period
2058.0
2065.0
Year
2066.0
1
2074.0
2073.0
Costs
(US Dollars)
2081.0
A. Cash
inflow
2089.0 1. Financial
resources total
2097.0 2. Sales revenue

total
Co
nst
ruc
tio
n
2059.0
2067.0
2
2075.0
2060.0
2068.0
3
2076.0
2061.0
2069.0
4
2077.0
2062.0
2070.0
5
2078.0
2063.0
2064.0
2071.0
*Sal val
2079.0
2072.0
Total
2080.0
2087.0
2088.0 2,
9
5
2,
8
8
3
2096.0 7
1,
4
8
6
2104.0 2,
8
8
1,
3
9
7
2112.0
2120.0 2,
2
6
5,
6
4
1
2128.0
2082.0 7
1,
4
8
6
2083.0 5
4
6,
4
3
7
2084.0 6
5
9,
8
2
3
2085.0 7
9
6,
7
3
6
2086.0 8
7
8,
4
0
1
2090.0 7
1,
4
8
6
2098.0 _
2091.0 _
2092.0 _
2093.0 _
2094.0 _
2095.0 _
2099.0 5
4
6,
4
3
7
2100.0 6
5
9,
8
2
3
2101.0 7
9
6,
7
3
6
2102.0 8
7
8,
4
0
1
2103.0 _
2105.0
2113.0
B. Cash
outflow
2106.0
2114.0 7
1,
4
8
6
2107.0
2115.0 6
4
3,
5
1
8
2108.0
2116.0 5
3
1,
1
8
1
2109.0
2117.0 6
0
8,
8
8
7
2110.0
2118.0 6
4
9,
8
6
9
2111.0
2119.0 2
3
9,
3
0
1
2121.0 1. Total assets

schedule
2129.0 including
replacements
2122.0
2123.0
2124.0
2125.0
2126.0
2127.0
2130.0 7
1,
4
2131.0 1
8
9,
2132.0 1
8,
7
101
2133.0 2
2,
5
2134.0 1
6,
2
2135.0 2
3
9,
3
2136.0 7
9,
1

8
6
4
8
4
2139.0 3
9
1,
5
7
6
5
9
3
0
1
3
0
1
7
1
2140.0 4
2
8,
1
9
3
2141.0 4
7
6,
9
3
7
2142.0 5
1
1,
3
0
9
2143.0 _
2153.0 a) Interest
2146.0
2154.0 _
2147.0
2155.0 7,
2
0
0
2148.0
2156.0 5,
4
0
0
2149.0
2157.0 3,
6
0
0
2150.0
2158.0 1,
8
0
0
2151.0
2159.0 _
2161.0 b) Repayments
2162.0 _
2170.0
2178.0 _
2164.0 1
5,
0
0
0
2172.0
2180.0 6
3,
3
6
9
2165.0 1
5,
0
0
0
2173.0
2181.0 9
0,
3
6
0
2185.0
2186.0
2194.0 _
2187.0
2195.0 4
6
0
2188.0
2196.0 4
6
0
2189.0
2197.0 4
6
0
2166.0 1
5,
0
0
0
2174.0
2182.0 1
0
5,
0
8
8
2190.0
2198.0 4
6
0
2167.0
2169.0
2177.0 4. Corporate tax
2163.0 1
5,
0
0
0
2171.0
2179.0 3
9,
7
9
8
2201.0
2209.0
C.
Surplus /
deficit
2202.0
2210.0 0
2217.0
2218.0
2203.0
2211.0 9
7,
0
8
1
2219.0
2204.0
2212.0 1
2
8,
6
4
2
2220.0
2205.0
2213.0 1
8
7,
8
4
9
2221.0
2206.0
2214.0 2
2
8,
5
3
2
2222.0
2207.0
2215.0 2
3
9,
3
0
1
2223.0
2144.0 1,
8
0
8,
0
1
5
2152.0
2160.0 1
8,
0
0
0
2168.0 6
0,
0
0
0
2176.0
2184.0 2
9
8,
6
1
5
2192.0
2200.0 1,
8
4
0
2208.0
2216.0 6
8
7,
2
4
2
2224.0
2225.0
D.
Cumulative
cash bal.
2226.0 0
2227.0 9
7,
0
2228.0 3
1,
5
6
2229.0 2
1
9,
4
2230.0 4
4
7,
9
2231.0 6
8
7,
2
2137.0
2. Operating Costs
(Cost of Sales)
2145.0 3. Debt Service
2193.0 5. Dividends 4%
on equity
2138.0 _
102
2175.0
2183.0 _
2191.0
2199.0 _
2232.0

8
1
2233.0
2241.0
2234.0
2235.0
0
2236.0
0
9
2237.0
4
1
2238.0
4
2
2239.0
2240.0
2242.0 *Salvage values. Land: 8,571; 4/5 of buildings: 4,229; Working

Capital: 226,501
2243.0
239,301
2244.0
2245.0
2246.0
2247.0
2248.0
2249.0
2250.0
2251.0
2252.0
2253.0
2254.0
2255.0
2256.0
2257.0
2258.0
2259.0
2260.0
Schedule 10: Projected Cashflow Table and Calculation of
Present Value (In USD)
2262.0
2263.0
2264.0
2265.0
2266.0
2267.0
2268.0
2261.0
Year
2269.0
2277.0
2285.0 Investment
Costs
2293.0 Net Profit after

Tax
1
2270.0
Constr.
2278.0
2286.0 7
1,
4
8
6
2294.0 _
2
2271.0
3
2272.0
4
2273.0
5
2274.0
*Sal val
2275.0
Total
2276.0
2279.0
2287.0 _
2280.0
2288.0 _
2281.0
2289.0 _
2282.0
2290.0 _
2283.0
2291.0 _
2295.0 9
2,
8
6
3
2297.0 2
1
0,
8
3
9
2305.0 3,
6
2
4
2298.0 2
4
5,
2
0
5
2306.0 3,
6
2
4
2299.0
2307.0
2313.0
2314.0
2315.0
2284.0
2292.0 7
1,
4
8
6
2300.0 6
9
6,
7
6
8
2308.0 1
4,
4
9
6
2316.0
2301.0 Depreciation
2302.0 _
2303.0 3,
6
2
4
2296.0 1
4
7,
8
6
1
2304.0 3,
6
2
4
2309.0 Interest Add

back
2310.0
2311.0
2312.0
103

2317.0
Mid-term
Loan
2325.0 NET CASH

FLOWS
2333.0
2341.0 Discount
Factors at 14%
2349.0 PV at 14%
2357.0 NPV at 14%
2365.0 Discount
Factors at 17%
2373.0 PV at 17%
2381.0 NPV at 17%
2318.0 _
2319.0 7,
2
0
0
2320.0 5,
4
0
0
2321.0 3,
6
0
0
2322.0 1,
8
0
0
2323.0
2326.0 7
1,
4
8
6
2334.0
2342.0 0.
8
7
7
2
2350.0 6
2,
7
0
8
2358.0
2327.0 1
0
3,
6
8
7
2335.0
2343.0 0.
7
6
9
5
2351.0 7
9,
7
8
7
2328.0 1
5
6,
8
8
5
2336.0
2344.0 0.
6
7
5
2359.0
2352.0 1
0
5,
8
9
7
2360.0
2329.0 2
1
8,
0
6
3
2337.0
2345.0 0.
5
9
2
1
2353.0 1
2
9,
1
1
5
2361.0
2330.0 2
5
0,
6
2
9
2338.0
2346.0 0.
5
1
9
4
2354.0 1
3
0,
1
7
7
2362.0
2331.0 2
3
9,
3
0
1
2339.0
2347.0 0.
5
1
9
4
2355.0 1
2
4,
2
9
3
2363.0
2366.0 0.
8
5
4
7
2374.0 6
1,
0
9
9
2382.0
2367.0 0.
7
3
0
5
2375.0 7
5,
7
4
3
2368.0 0.
6
2
4
4
2376.0 9
7,
9
5
9
2383.0
2384.0
2369.0 0.
5
3
3
7
2377.0 1
1
6,
3
8
0
2385.0
2370.0 0.
4
5
6
1
2378.0 1
1
4,
3
1
2
2386.0
2371.0 0.
4
5
6
1
2379.0 1
0
9,
1
4
5
2387.0
2391.0
2392.0
2393.0
2394.0
2395.0
2396.0
2399.0
2400.0
2401.0
2402.0
2403.0
2404.0
2406.0
2407.0
2408.0
2409.0
2410.0
2411.0
2390.0
2389.0
2398.0
2397.0
2405.0 Internal Rate of Return =
182.09%
104
2324.0 1
8,
0
0
0
2332.0 8
9
7,
0
7
9
2340.0
2348.0 _
2356.0 5
0
6,
5
6
1
2364.0 5
0
6,
5
6
1
2372.0 _
2380.0 4
5
2,
4
4
0
2388.0 4
5
2,
4
4
0

2412.0
2413.0
2414.0
2415.0
2416.0
2417.0
2420.0 NPV at 14% =

$506,561
2421.0
2422.0
2423.0
2424.0
2425.0
2426.0
2427.0
2428.0
2429.0
2430.0
2431.0
2432.0
2433.0
2434.0
2435.0
2436.0 NPV at 17% =

$452,440
2437.0
2438.0
2439.0
2440.0
2441.0
2442.0
2443.0
2444.0
2445.0
2446.0
2447.0
2448.0
2449.0
2450.0
2451.0
2452.0
2453.0
2454.0
2455.0
2456.0
2457.0
2458.0
2459.0
2460.0
2461.0
2419.0
Schedule 11: Projected Income Statement (In USD)
2462.0
Year
2468.0
2474.0
Sales
2480.0
Cost of Sales
2486.0
2492.0
2418.0 1
8
2.
0
9
%
GROSS PROFIT
2498.0
2504.0
Less: Operating
Costs
2463.0
1
2469.0
2464.0
2
2470.0
2465.0
3
2471.0
2466.0
4
2472.0
2467.0
5
2473.0
2475.0
_
2481.0
_
2487.0
2476.0
546,437
2482.0
106,058
2488.0
2477.0
659,823
2483.0
128,065
2489.0
2478.0
796,736
2484.0
154,640
2490.0
2479.0
878,401
2485.0
170,490
2491.0
2493.0
_
2499.0
2494.0
440,379
2500.0
2495.0
531,758
2501.0
2496.0
642,096
2502.0
2497.0
707,911
2503.0
2505.0
2506.0
2507.0
2508.0
2509.0
105

2510.0
(excl. Cost of
Sales)
2516.0
2511.0
_
2517.0
2512.0
285,518
2518.0
2513.0
300,128
2519.0
2514.0
322,297
2520.0
2515.0
340,819
2521.0
2522.0
OPERATING
PROFIT
2528.0
2523.0
_
2529.0
2524.0
154,861
2530.0
2525.0
231,630
2531.0
2526.0
319,799
2532.0
2527.0
367,093
2533.0
2534.0
Less: Accrued
interest on
2540.0
Medium-Term
Loan (@ 12% p.a.)
2546.0
Less: Annual
Repayments
2552.0
2535.0
2536.0
2537.0
2538.0
2539.0
2541.0
_
2547.0
_
2553.0
2542.0
7,200
2548.0
15,000
2554.0
2543.0
5,400
2549.0
15,000
2555.0
2544.0
3,600
2550.0
15,000
2556.0
2545.0
1,800
2551.0
15,000
2557.0
2558.0
NET PROFIT
BEFORE TAX
2564.0
2559.0
_
2565.0
2560.0
132,661
2566.0
2561.0
211,230
2567.0
2562.0
301,199
2568.0
2563.0
350,293
2569.0
2570.0
30%
2576.0
Corporation Tax
2571.0
_
2577.0
2572.0
39,798
2578.0
2573.0
63,369
2579.0
2574.0
90,360
2580.0
2575.0
105,088
2581.0
2582.0
NET PROFIT
2583.0
_
2589.0
2584.0
92,863
2590.0
2585.0
147,861
2591.0
2586.0
210,839
2592.0
2587.0
245,205
2593.0
2595.0
_
2601.0
_
2607.0
2596.0
92,863
2602.0
0.1699
2608.0
0.806
2614.0
130%
2620.0
0.283
2597.0
240,724
2603.0
0.2241
2609.0
0.806
2615.0
207%
2621.0
0.351
2598.0
451,563
2604.0
0.265
2610.0
0.806
2616.0
294.94%
2622.0
0.401
2599.0
696,768
2605.0
0.279
2611.0
0.806
2617.0
343%
2623.0
0.418
2588.0
2594.0
Accumulated
Net Profit (Loss)
2600.0
Net Profit
Margin
2606.0
Gross Profit
Margin
2612.0
Rate of Return
on Investment
2618.0
Operating Profit
Margin
2613.0
_
2619.0
_
2624.0
2625.0
2626.0
2627.0
2628.0
2629.0
2630.0
2631.0
106

2632.0
2633.0
2634.0
2635.0
2636.0
Schedule 12: Projected Balance Sheet (In USD)
2637.0
CAPITAL
EMPLOYED:
2643.0 Share Capital
2638.0
YR.1
2639.0
YR.2
2640.0
YR.3
2641.0
YR.4
2642.0
YR.5
2644.0
2649.0 Retained Earnings
2650.0
2655.0
Shareholder's
Equity/Deficit
2656.0
2661.0
2662.0
2645.0
11,489
2651.0
92,863
2657.0
104,352
2663.0
2646.0
11,489
2652.0
240,724
2658.0
252,213
2664.0
2647.0
11,489
2653.0
451,563
2659.0
463,052
2665.0
2648.0
11,489
2654.0
696,768
2660.0
708,257
2666.0
2667.0 Long-Term Liabilities
2668.0
2673.0
2674.0
2679.0
2680.0
2669.0
60,000
2675.0
164,352
2681.0
2670.0
45,000
2676.0
297,213
2682.0
2671.0
30,000
2677.0
493,052
2683.0
2672.0
15,000
2678.0
723,257
2684.0
2685.0
EMPLOYMENT
OF CAPITAL:
2686.0
2687.0
2688.0
2689.0
2691.0
2692.0
2693.0
2694.0
2695.0
2690.0
`
2696.0
2697.0 Plant Buildings
2698.0
5,286
2704.0
10,171
2710.0
570
2716.0
11,430
2722.0
2699.0
5,022
2705.0
9,154
2711.0
513
2717.0
9,144
2723.0
23,833
2729.0
160,717
2735.0
2700.0
4,757
2706.0
8,137
2712.0
456
2718.0
6,858
2724.0
20,208
2730.0
297,960
2736.0
2701.0
4,493
2707.0
7,120
2713.0
399
2719.0
4,572
2725.0
16,584
2731.0
498,712
2737.0
2702.0
4,229
2708.0
6,103
2714.0
342
2720.0
2,286
2726.0
12,959
2732.0
732,583
2738.0
2741.0
32,631
2747.0
144,451
2753.0
12,402
2759.0
-28,767
107
2742.0
35,683
2748.0
159,588
2754.0
12,973
2760.0
89,716
2743.0
39,745
2749.0
177,157
2755.0
13,872
2761.0
267,938
2744.0
42,609
2750.0
189,781
2756.0
14,596
2762.0
485,596
2703.0 Production Plant Equip.

& Machy
2715.0 Vehicles
2721.0
LONG-TERM
ASSETS:
2727.0
CURRENT
ASSETS:
2728.0
2733.0
2734.0
2739.0 Accounts Receivable
2740.0
2745.0 Stock (Inventory)
2746.0
2751.0 Bank Balance and Cash
2752.0
2757.0 Other Current Assets
2758.0

2763.0
2764.0
2765.0
2766.0
2767.0
2768.0
2769.0
CURRENT
LIABILITIES:
2770.0
2775.0 Accounts Payable
2776.0
2781.0 Current Portion of Longterm
2782.0
2771.0
20,198
2777.0
12,998
2783.0
2772.0
20,956
2778.0
15,556
2784.0
2773.0
22,244
2779.0
18,644
2785.0
2774.0
22,285
2780.0
20,485
2786.0
2787.0 Liabilities
2788.0
2793.0
2794.0
2789.0
7,200
2795.0
2790.0
5,400
2796.0
2791.0
3,600
2797.0
2792.0
1,800
2798.0
2799.0
NET CURRENT
ASSETS:
2800.0
2805.0
2806.0
2801.0
140,519
2807.0
164,352
2802.0
277,004
2808.0
297,213
2803.0
476,468
2809.0
493,052
2804.0
710,297
2810.0
723,257
2812.0
2813.0
2814.0
2815.0
2816.0
2818.0
2819.0
184,550
2820.0
318,168
2821.0
515,295
2822.0
745,542
TOTAL CAPITAL
2811.0
2817.0
TOTAL ASSETS
2823.0
2824.0
2825.0
2826.0
2827.0
2828.0
2829.0
2830.0
2831.0
Schedule 13: Calculation of Payback Period (In USD)
2832.0
YEAR/ITEM
2837.0
2842.0
Net Profit
2847.0
Interest
2852.0
Depreciation
2857.0
"Profit"
2862.0
2867.0
2872.0 Year
2833.0
2
2838.0
2834.0
3
2839.0
2835.0
4
2840.0
2836.0
5
2841.0
2843.0
92,863
2848.0
7,200
2853.0
3,624
2858.0
103,687
2844.0
147,861
2849.0
5,400
2854.0
3,624
2859.0
156,885
2845.0
210,839
2850.0
3,600
2855.0
3,624
2860.0
218,063
2846.0
245,205
2851.0
1,800
2856.0
3,624
2861.0
250,629
2863.0
2864.0
2865.0
2866.0
2868.0
2869.0
2870.0
2871.0
2873.0 Am
ou
nt
pai
2874.0 Bal
an
ce
of
2875.0
2876.0
108

d
2877.0
2878.0 ba
ck
fro
m
2883.0 "pr
ofit
s"
2882.0
2887.0
2892.0
2897.0
2902.0
2907.0
2912.0
2917.0
2922.0
2927.0
2932.0
10
2937.0
Pay Back
YEARS
2888.0
0
2893.0
103,687
2898.0
156,885
2903.0
218,063
2908.0
250,629
2913.0
0
2918.0
0
2923.0
0
2928.0
0
2933.0
0
Period = 1.69
2879.0 tot
al
2880.0
2881.0
2884.0 Inv
est
me
nt
2885.0
2886.0
2889.0
-71,486
2894.0
32,201
2899.0
189,086
2904.0
407,149
2909.0
657,778
2914.0
657,778
2919.0
657,778
2924.0
657,778
2929.0
657,778
2934.0
657,778
2938.0
2890.0
-11,489
2895.0
92,198
2900.0
249,083
2905.0
467,146
2910.0
717,775
2915.0
657,778
2920.0
657,778
2925.0
657,778
2930.0
657,778
2935.0
657,778
2939.0
2891.0
2941.0
2942.0
2943.0
2944.0
2945.0
2946.0
2947.0
2948.0
2949.0
2950.0
2951.0
2952.0
2953.0
2954.0
2955.0
109
2896.0
2901.0
2906.0
2911.0
2916.0
2921.0
2926.0
2931.0
2936.0
2940.0

2956.0
2957.0
2958.0
Schedule 14: Business Ratios/Ratio Analysis
2959.0
Period
2960.0 C
o
ns
tr
uc
ti
o
n
2961.0
Capacity
2962.0
Year
2963.0
1
2969.0
2964.0
2
2970.0
2974.0
2975.0
2980.0
Percent of
Total Assets
2986.0
Accounts
Receivable
2992.0
Inventory
2998.0
Other Current
Assets
3004.0
Total Current
Assets
3010.0
Long-term
Assets
3016.0
Total Assets
2999.0
3022.0
3023.0
3028.0
Current
Liabilities
3034.0
Long-term
liabilities
3040.0
Total
Liabilities
3046.0
Net Worth
(Total Capital)
3052.0
3029.0
3058.0
Percent of
Revenues
3064.0
Revenues
2968.0
Sales Growth
Full
2976.0
2965.0
3
2971.0
5%
2977.0
2966.0
4
2972.0
5%
2978.0
2967.0
5
2973.0
5%
2979.0
2981.0
2982.0
2983.0
2984.0
2985.0
2987.0
2988.0
17.68%
2994.0
78.27%
3000.0
-15.59%
3006.0
87.09%
3012.0
12.91%
3018.0
100.00
%
3024.0
2989.0
11.22%
2995.0
50.16%
3001.0
28.20%
3007.0
93.65%
3013.0
6.35%
3019.0
100.00
%
3025.0
2990.0
7.71%
2996.0
34.38%
3002.0
52.00%
3008.0
96.78%
3014.0
3.22%
3020.0
100.00
%
3026.0
2991.0
5.72%
2997.0
25.46%
3003.0
65.13%
3009.0
98.26%
3015.0
1.74%
3021.0
100.00
%
3027.0
3053.0
3030.0
10.94%
3036.0
32.51%
3042.0
43.46%
3048.0
89.06%
3054.0
3031.0
6.59%
3037.0
14.14%
3043.0
20.73%
3049.0
93.41%
3055.0
3032.0
4.32%
3038.0
5.82%
3044.0
10.14%
3050.0
95.68%
3056.0
3033.0
2.99%
3039.0
2.01%
3045.0
5.00%
3051.0
97.01%
3057.0
3059.0
3060.0
3061.0
3062.0
3063.0
3065.0
3066.0
100.00
%
110
3067.0
100.00
%
3068.0
100.00
%
3069.0
100.00
%
2993.0
3005.0
3011.0
3017.0
3035.0
3041.0
3047.0

3070.0
Gross Margin
3071.0
3072.0
80.59%
3078.0
2.56%
3084.0
16.99%
3073.0
80.59%
3079.0
2.56%
3085.0
22.41%
3074.0
80.59%
3080.0
2.56%
3086.0
26.46%
3075.0
80.59%
3081.0
2.56%
3087.0
27.91%
3076.0
Management /
Administration
3082.0
Net Profit
(after Interest &
Tax)
3088.0
3077.0
3089.0
3090.0
3091.0
3092.0
3093.0
3094.0
Main Ratios
3095.0
3096.0
3097.0
3098.0
3099.0
3100.0
Current
3101.0
3106.0
Quick
3107.0
3102.0
7.96
3108.0
0.81
3114.0
32.51%
3120.0
80.72%
3103.0
14.22
3109.0
6.60
3115.0
14.14%
3121.0
71.07%
3104.0
22.42
3110.0
14.46
3116.0
5.82%
3122.0
61.09%
3105.0
32.87
3111.0
24.36
3117.0
2.01%
3123.0
48.43%
3127.0
66.39%
3133.0
3128.0
58.45%
3134.0
3129.0
46.98%
3135.0
3083.0
3112.0
Total Debt to
Total Assets
3118.0
Pre-tax
Return on Net
Worth
3124.0
Pre-tax
Return on Assets
3130.0
3113.0
3131.0
3126.0
71.88%
3132.0
3136.0
Business
Vitality Profile
3142.0
Revenue per
Employee
3137.0
3138.0
3139.0
3140.0
3141.0
3143.0
3144.0
$27,322
3145.0
$32,991
3146.0
$39,837
3147.0
$43,920
3148.0
3149.0
3150.0
3151.0
3152.0
3153.0
3154.0
3155.0
3119.0
3125.0
Schedule 14: Business Ratios/Ratio Analysis (continued)
3156.0
Additional
Ratios
3162.0
Net Profit
Margin
3168.0
Return on
Equity
3174.0
3157.0
3158.0
3159.0
3160.0
3161.0
3163.0
3175.0
3164.0
16.99%
3170.0
20.05%
3176.0
3165.0
22.41%
3171.0
58.63%
3177.0
3166.0
26.46%
3172.0
45.53%
3178.0
3167.0
27.91%
3173.0
34.62%
3179.0
3180.0
Activity
Ratios
3181.0
3182.0
3183.0
3184.0
3185.0
3169.0
111

3186.0
Accounts
Receivable
Turnover
3192.0
Collection
Days
3198.0
Inventory
Turnover
3204.0
Accounts
Payable Turnover
3210.0
Payment Days
3187.0
3188.0
1.67
3189.0
1.85
3190.0
2.00
3191.0
2.06
3193.0
3216.0
Total Assets
Turnover
3222.0
Fixed Assets
Turnover
3228.0
3217.0
3229.0
3194.0
30
3200.0
0.73
3206.0
0.86
3212.0
30
3218.0
2.96
3224.0
16.43
3230.0
3195.0
30
3201.0
0.80
3207.0
0.82
3213.0
30
3219.0
2.07
3225.0
21.19
3231.0
3196.0
30
3202.0
0.87
3208.0
0.83
3214.0
30
3220.0
1.55
3226.0
28.76
3232.0
3197.0
30
3203.0
0.90
3209.0
0.83
3215.0
30
3221.0
1.18
3227.0
39.45
3233.0
3234.0
3235.0
3236.0
3237.0
3238.0
3239.0
3240.0
Debt to Net
Worth
3246.0
Current
Liability to Liability
3252.0
Debt-Service
Coverage Ratio
3258.0
3241.0
3259.0
3242.0
0.37
3248.0
0.34
3254.0
4.67
3260.0
3243.0
0.15
3249.0
0.47
3255.0
7.69
3261.0
3244.0
0.06
3250.0
0.74
3256.0
11.72
3262.0
3245.0
0.02
3251.0
1.49
3257.0
14.92
3263.0
3264.0
Liquidity
Ratios
3270.0
Net Working
Capital
3265.0
3266.0
3267.0
3268.0
3269.0
3271.0
3276.0
Interest
Coverage [Times
Inte3282.0
rest Earned
Ratio - TIE]
3288.0
3277.0
3272.0
$176,48
6
3278.0
3273.0
$192,68
8
3279.0
3274.0
$212,13
0
3280.0
3275.0
$226,50
1
3281.0
3289.0
3284.0
21.51
3290.0
3285.0
42.89
3291.0
3286.0
88.83
3292.0
3287.0
203.94
3293.0
3294.0
Additional
Ratios
3300.0
Assets to
Revenue
3306.0
Current Debt /
Total Assets
3312.0
Acid Test
3295.0
3296.0
3297.0
3298.0
3299.0
3301.0
3302.0
0.34
3308.0
3.90%
3314.0
0.81
3303.0
0.48
3309.0
1.70%
3315.0
6.60
3304.0
0.65
3310.0
0.70%
3316.0
14.46
3305.0
0.85
3311.0
0.24%
3317.0
24.36
Debt Ratios
3199.0
3205.0
3211.0
3223.0
3247.0
3253.0
3283.0
3307.0
3313.0
112

3318.0
Sales/Net
Worth
3324.0
3319.0
3325.0
3320.0
3.32
3321.0
2.22
3322.0
1.62
3323.0
1.21
3326.0
3327.0
3328.0
3329.0
113

3330.0
Schedule 15: Sensitivity Analysis (In USD)
3331.0
Items
3332.0
3333.0
3334.0
PAT
BEP
IRR
3336.0
Base Case
3337.0
3338.0
3339.0
245,205
20.73% 182.09%
3341.0
Increase in
3342.0
3343.0
3344.0
Operating Costs by 5%
233,276
22.33% 169.92%
3346.0
Selling Prices up
3347.0
3348.0
3349.0
by 25%
398,925
14.00% 310.61%
3351.0
Decrease in Raw
3352.0
3353.0
3354.0
Materials by 10%
257,139
19.99% 191.88%
3356.0
Increase in Raw
3357.0
3358.0
3359.0
Materials by 10%
233,270
21.54% 172.34%
3361.0
3362.0
3363.0
3364.0
3365.0
3366.0
3367.0
3368.0
3369.0
3370.0
3371.0
3372.0
3373.0
3374.0
3375.0
3376.0
3377.0
3378.0
3379.0
3380.0
3381.0
3382.0
3383.0
3384.0
3385.0
3386.0
3387.0
3388.0
3389.0
3390.0
Key:
BEP:
IRR:
PAT:
Break-Even Point
Internal Rate of Return
Profit after Tax
114
3335.0
Payback
3340.0
1.69 Yrs
3345.0
2.67 Yrs
3350.0
1.36 Yrs
3355.0
1.64 Yrs
3360.0
1.74 Yrs

3391.0
3392.0
3393.0
3394.0
APPENDIX I: ASSIGNMENTS HANDLED AND COMPLETED TO
DATE BY JOSA
3395.03396.0
Client
3397.0
Assignment
No
1. 3398.0
Old Kampala 3399.0
Supply of briquettes
Primary School
2. 3400.0
Buy
Fresh 3401.0
Supply of briquettes.
Restaurant
3. 3402.0
Akandonda
3403.0
Construction of briquette institutional
Family
stoves.
4. 3404.0
Kibale
View 3405.0
Capacity building for the staff of
1 Ltd
Kibale View Eco tourism site to adapt
briquette production and usage to conserve
Kibale National Park.
5. 3406.0
Youth on Track 3407.0
Supply
of
Briquette
production
2 - Jinja
equipments.
6. 3408.0
3 Group
Hope
family 3409.0
Capacity building for group members
in briquette production, entrepreneurship
skills and supply of briquette production
equipments.
7. 3410.0
AMREF
3411.0
Supply of tools, equipments and
6
machines and exposure training to waste
utilization for community groups.
8. 3412.0
Caritas
3413.0
Training for trainer of trainers (TOT) in
Buikwe
charcoal briquette making and tailored energy
saving stove making.
3414.0
Train in business and financial
management skills.
9. 3415.0
Compassion
3416.0
Briquette
training
out
of
Busia cluster
biodegradable waste;
3417.0
Train in business and financial
management skills;
3418.0
Supply
of
Briquette
Production
Machines.
10. 3419.0
Living
Earth 3420.0
Energy saving stoves training for
Foundation UK &
entrepreneur groups.
ACEDO
Sierra
Leone.
11. 3421.0
Bread for Life 3422.0
Briquette
training
and
machine
115

supply.
12. 3424.0
ST.
Therese 3425.0
Supply of Briquette press machines.
3423.0
Youth Development
Project
13. 3426.0
Strong Youth 3427.0
Supply of energy saving stove
for
Development
metallic Liners.
International
14. 3428.0
Living
Earth 3429.0
Briquette training for Youth in Hoima
Uganda
municipality.
15. 3430.0
D & J Impex 3431.0
Training in briquette making & Supply
Ltd
of Briquette press machines.
16. 3432.0
JNR Consults
3433.0
Environmental and Social Impact
Assessment (ESIA) for the Bududa
Nabweya Gravity Flow Scheme contracted
by
Robert
Ndyabarema
the
main
consultant.
17. 3434.0
Living
Earth 3435.0
Briquette training for Youth group in
Uganda
Bulisa District Kihungya Sub County.
18. 3436.0
Living
Earth 3437.0
Briquette training for CBOs and NGOs
Foundation- UK
in Makeni Town - Sierra Leone.
19. 3438.0
Kick
Carbon 3439.0
out
of
Kitchen
Uganda
(COOKUganda)
20. 3440.0
Kittutu Child 3441.0
Development
Centre
21. 3442.0
Kyebando
3443.0
Basoka
Kwavula
Association.
22. 3444.0
Boroboro
3445.0
Manufacturing
Company
23. 3446.0
Rubaga Child 3447.0
Development
Centre
24. 3448.0
AMONKA Ltd
3449.0
Briquette training and Supply of
Briquette press machines.
25. 3450.0
Individuals
3451.0
Conduct functional skills training in
organised by LEU.
briquette production and energy saving
stoves.
26. 3452.0
Golden Bees 3453.0
Building capacity of bee keepers to
Ltd under SNV
adopt honey production through use of
116

transitional hives in districts of; Kasese,
Kabarole, Kamwenge Kyegegwa, Kyenjojo,
Bundibujo, Arua, Yumbe, Moyo, Kapchorwa
and Lira in partnership with Golden Bees.
27. 3454.0
Bukanga Child 3455.0
Development
Centre
28. 3456.0
Kabugo
3457.0
Supply of institutional stoves &
Restaurant
briquettes.
29. 3458.0
Busulumba
3459.0
Child Development
Centre
30. 3460.0
Individuals
3461.0
Train
in
briquette
production,
clients organised by
marketing and financial management.
LEU
31. 3462.0
Self
Help 3463.0
Provide training in Plastic collection
Groups
and briquette entreprise for cluster level
groups.
32. 3464.0
Walukuba
3465.0
Training Jinja - Compassion groups in
Child Development
briquette
production,
handling
and
Centre. (CDC)
marketing.
33. 3466.0
Individuals
3467.0
Briquette training conducted at
client organized by
Namirembe Resource centre.
LEU
34. 3468.0
Caritas Lugazi 3469.0
Conducted training in Briquette
making and Energy saving stove making at
Kayunga Roman Catholic Parish.
3470.0
117

Josa Green Fuel Technologies Business Plan

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JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Biomass, an energy-producing source, is used principally in the form of

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

The Josa Green Technologies Ltd's bio-fuel briquettes and energy-saving

To provide a 5-year operating plan for the briquettes and energy-saving

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

A total investment of US$ 60,000 is being sought as project recapitalization

US$ 4,150 (UShs 14.5 million) will be spent on construction of

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Carbonised briquettes can act as a replacement for charcoal for domestic

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

We intend to compensate our personnel well, so as to retain their invaluable

1.10 Financial Performance

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Figure 1: Performance Highlights (PY2 PY5)

1.11 Local Social Impact of the Business Products or Services

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

PURPOSE OF THE DOCUMENT

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

INTRODUCTION & BACKGROUND

The most recent government strategy relating to biomass use is reflected in

1All Africa, Uganda: Museveni Re-Assures Citizens On State of Economy, 22

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

A lack of appropriate regulatory framework governing the use of

The Biomass Economy

The contribution of firewood and charcoal to Ugandas GDP is estimated at

The level of demand, coupled with unsustainable harvesting and poor

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Briquettes and their Potential

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Project Brief & Opportunity Rationale

Biomass, an energy-producing source, is used principally in the form of

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Figure 2: Charcoal price per kg (2004-2011)

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Business Model and Value Proposition

Biomass, an energy-producing source, is used principally in the form of

Source: Uganda Investment Authority

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

A total investment of US$ 60,000 is being sought as project recapitalization

US$ 4,150 (UShs 14.5 million) will be spent on construction of

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Total Project Cost

TOTAL PROJECT FUNDING

Project Financial Performance Parameters

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Table 3: Key Project Performance Parameters (USD)

Break-even Point (BEP):USD 182,126 at a capacity utilization of 20.73%

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Josa Green Technologies Ltd.

Josa Green Technologies Ltd (Josa) is an integrated multi-disciplinary

Though the spearhead project promoters of Josa Green Technologies Ltd

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

Agro-processing of biomass waste into char and then briquettes as a

To provide unparalleled services to organizations /firms /governments

A successful Company / business with Excellent Customer Service and loyal

Quality and Excellence

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN

At Josa we believe that sustainable utilization of natural resources and the

To provide a 5-year operating plan for the briquettes and energy-saving

JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN