TABLE OF CONTENT

1.0 Executive summary.......................................................................................................3

1.1. Political environment................................................................................................4
1.2. Social-cultural environment......................................................................................4
1.3. Technological environment.......................................................................................4
2.0 BUSINESS DESCRIPTION.........................................................................................5
2.1. Mission.....................................................................................................................5
Providing the best product and services to our customers and workers until they feel as
a part and parcel of our project........................................................................................5
2.2. Vision........................................................................................................................5
Management team;...........................................................................................................5
2.3. Product/ service description......................................................................................5
2.4. The location and size of the market..........................................................................5
3.0. The product development.............................................................................................6
3.1. Required steps involved in producing our products.................................................6
3.2. A time line for production.........................................................................................6
3.3. The needs for the development of our product.........................................................6
3.4. Competitive advantage.............................................................................................6
4.0. Enterprise analysis........................................................................................................7
4.1. The nature of the environments................................................................................7
4.2. Enterprise in relation to the changes in the nature of the economy..........................7
4.3. The enterprise financial position and performance...................................................7
4.4. The relationship between the government and our enterprise..................................7
5.0. Market analysis.............................................................................................................8
5.1. Our target market for the produced products............................................................8
5.1.0. Market demographics........................................................................................8
5.1.1. Purchasing behavior of our products.................................................................8
5.2. Market niche description..........................................................................................8
5.3. Pricing.......................................................................................................................9
5.3.1. Pricing methodologies.......................................................................................9
6.0. Competition..................................................................................................................9
6.2. Market share description.........................................................................................10
6.3. Opportunity.............................................................................................................10
7.0. Management and organization....................................................................................10
7.1. Background of finding management......................................................................10
7.1.1. Education.........................................................................................................10
7.1.2. Experience.......................................................................................................10
7.1.3. Interest in the idea of our project.....................................................................10
7.2. Organization Chat...................................................................................................11
8.0. Marketing strategy......................................................................................................11
8.1. Purpose of the marketing strategy...........................................................................11
8.2. Samples of Marketing materials and medium for getting the message out............11
9.0. Operations...................................................................................................................12
9.1. In the harvesting period..........................................................................................12
9.2. Production capacity.................................................................................................12
9.3. Distribution of the product......................................................................................12
9.4. Facilities and equipment management....................................................................12
10.0. Financial plan to estimate profit and loss, and cash flow projection........................12
10.1. Summary of key points and capital requirements for the Implementation of the
Business Plan.................................................................................................................12

Business Plan for afforestation 1

 10.3. Table C; 10 years expected fund generation plan to support enterprise
implementation..............................................................................................................14
10.4. Capital: Loan From CRDB Tshs 4,800,000.00 and Cash in hand Tshs
7,200,000.00..................................................................................................................15
11.0. Appendix...................................................................................................................16
11.1. Cash flow statement..............................................................................................16
11.2. Balance sheet........................................................................................................17
12.0 Expansion of the project............................................................................................17
12.1. The goals...............................................................................................................17

Business Plan for afforestation 2

 A TEN - YEARS AFFORESTATION PLAN FROM 2009/2019 – DISMAS
ENTERPRISE.

1.0 Executive summary

DISMAS ENTERPRISE is entering the first year of operation in 2009. And is the only
big ENTERPRISE in Iringa – Kilolo District and marketing will be the key to
development of introducing a number of varieties of tree and increase awareness as well
as the customer base.

The DISMAS ENTERPRISE is location at Mapanda Village in Kilolo District – Iringa

Region and 105 kilometers South East from Iringa town.

The purpose of DISMAS ENTERPRISE is to plant various species of trees so as to cater

the needs of the community by providing products and services of superior quality at a
fair price to our customers so as to earn adequate profit which is required for the total
enterprise to grow and by so doing provide the opportunity for our employees to achieve
their reasonable objectives. It aims to be the leading venture within Southern highland
part of Tanzania and in Tanzania at large.

The enterprise is owned by six Directors namely Mr.Jacob Kilamlya, Mr.Dismas Nziku,
Mr. Fidelis Ngowi, Mr.Monte Kilamlya, Sr. Eliaichi Malissa and Miss Henerica
Masilamba. The directors are knowledgeable in Marketing, Accounting, Human
Resources, Economics, and they are characterized by have a well and long working
experience in their respective fields. All directors are qualified with Masters of Business
Administration.

DISMAS ENTERPRISE will offer variety of product mix like timber logs, firewood,
charcoal, electric poles, honey.

DISMAS ENTERPRISE faces challenging in offering and distributing its products to its
customers. Those challenges come from existing ventures like Mufindi paper Mills
Company, Sao-Hill Company, Tanwat; which may further grow and provide strong
Business Plan for afforestation 3
competition to DISMAS ENTERPRISE. With Creative and professional Agro-Business
personnel our business will be effective and efficient. Furthermore it offers a variety of
merchandise product identity, quality and novelty, high employee motivation and good
sale attitude and it hold position of been innovative and aggressive service options.

1.1. Political environment.

Prevalence of peace and calmness in this country will stimulate smooth operation of
enterprise activities. However, it might happen (though not always) that the government
may enact or pass laws having negative impact in this enterprise. Sometimes, individual
government personnel under good feature of his/her position might have negative
opinions about the enterprise on unfavorable laws, which in turn will make difficult for
our products to access employment markets within or even in external markets.

1.2. Social-cultural environment.

Under this lies the complex challenge where it is expected people will have various
lifestyles. Some people prefer to stick in their beliefs, values and norms, the behavior
which in the future could result into undesired performance of the enterprise goals..

1.3. Technological environment.

In the modern world, technology is still gaining its importance in all dimensions of
human development. In this enterprise, improvement of technology is necessary in order
to cope up with the changing world of science and technology. DISMAS ENTERPRISE
will need to invest more in information and communication technology, use of improved
seeds and application of afforestation husbandry. On the other hand to create aware-ness
to the surrounding community.

Business Plan for afforestation 4

2.0 BUSINESS DESCRIPTION
2.1. Mission.
Providing the best product and services to our customers and workers until they
feel as a part and parcel of our project.

2.2. Vision.
To be the leading enterprise in Tanzania, in 10 years to come.

Management team;
The team will consist of two Chief Executive Officers – one to supervise the farm and the
other to supervise the forest activities. There will also be 2 operational/functional
managers and 160 casual workers to conduct day to day activities of the enterprise.

2.3. Product/ service description.

The services/products that will be provided by DISMAS ENTERPRISE are designed to
provide customers with the benefits of convenience and friendly to environment.
DISMAS ENTERPRISE will offer variety of product and services mix like timber logs,
firewood, charcoal, electric poles, tree seedlings, honey, raw materials for paper mills,
match box mill and water source protection as well as water catchments area.

2.4. The location and size of the market

DISMAS ENTERPRISE is entering the first year of operation in 2009. And is the only
big ENTERPRISE in Iringa – Kilolo District and marketing will be the key to
development of introducing a number of varieties of tree and increase awareness as well
as the customer base.
The DISMAS ENTERPRISE is location at Mapanda Village in Kilolo District – Iringa
Region and 105 kilometers South East from Iringa town
Our location has based on remote area;
 Most of area is degraded.
 Plenty of land
 Good climatic condition.
 Cheap labors

Business Plan for afforestation 5

3.0. The product development
3.1. Required steps involved in producing our products.
We are raising seedling at the nurseries, this process mature from five to six months since
we begin transplanting seedlings up to the main farm for planting. The seedlings are
raised closer to the farm.

3.2. A time line for production.

This activity is a long term plan. We have planned to exist 10 years for planting
plantation and 10 years for harvesting. Our extensive plan will be planting 40 hectares
annually for 10 years. Generally the project will be active for 20 years and from there
will be revolving activity.

3.3. The needs for the development of our product.

We normally need more human power to run our project. Human power helps various
activities in the mother nursery and on the field for various field operations. Example
preparation of land, raising seedlings on the nursery, irrigation and transplanting (tending
operations on the nursery). We further need mechanical power like tractor which helps us
to pick seedlings from the horticulture to farm for transplanting.

3.4. Competitive advantage

The following are the major ways in which we will take an advantage over our
competitors;

 Creative and professional personnel in Agriculture.

 Our enterprise is accessible by rough roads which are passable through out the
year.
 High employee motivation and good sale attitude.

Business Plan for afforestation 6

4.0. Enterprise analysis.
4.1. The size, maturity, and competitive nature of the enterprise.
Our enterprise is well sized with 400Ha, and the maturity of yet planted trees is lying
between 9 to 10 years.
Our enterprise has some competitors like SAO HILL, Tanzania Wattle Company and
Escarpment Forest Company in Mafinga and Mgololo in Mufindi District – Iringa.

4.1. The nature of the environments

The area is located on southern highlands of Tanzania ranging between altitude of 1750 –
2000 meters above sea level and receives an average of 1600mm of rains per annum , the
soils are clay with moderate acid in general it is the climatic condition favoring our
project.

4.2. Enterprise in relation to the changes in the nature of the

economy.
Our project is not much affected by the changes in the nature of the economy because the
yet planted trees on the farm are kept as assets, and on the same time it does not need
more workers throughout the year. Only in rainy seasons more workers are required and
few in dry seasons which is not big deal in managing them.

4.3. The enterprise financial position and performance.

We are going to start our enterprise with 12millions whereas 60% is the contribution from
among the partners and we are expecting to request a loan of 40% from CRDB. With this
capital the performance of the work will at least be measure not less that 95% per year.

4.4. The relationship between the government and our

enterprise.

There is no any restriction from the government about the development of our enterprise.
The government only advises us to leave 20 meters in both sides of the water sources for
water preservation and when harvesting we are advised “plant many trees as we cut
down one”. And this is the policy existing every where in this country.

Business Plan for afforestation 7

5.0. Market analysis.
5.1. Our target market for the produced products.
Our target market is to meet the demands of all people. Our potential customers will
include;-
 Various institutions which want expand the size of their buildings, which will
require timber for the construction of those buildings.
 Paper mills like that of Mgololo in Mufindi we have planned to convince them
until they become our permanent customers in 10 years to come. Our vision
shows that this will be possible since we will be producing pines spp at large, as
the demand of that paper mills.
 Export of timber logs to our neighbor countries example, South Africa and Kenya.
 Individual customers, like carpenters, seedling planter, and others who wish to
build their own houses.

5.1.0. Market demographics

We have made research about the market information and analysis. We have recognized
that our target market centers will be four namely; Mapanda village along the site,
Mafinga town near GAPCO filling Station, Makambako near Train station and at Iringa
town (Ipogolo) near bus stand.

5.1.1. Purchasing behavior of our products.

Our research of two years shows that the purchasing power of timber in those locations is
higher as compared to other places since are located on the main road except one center
where do provide services for that surrounding the farm.

Business Plan for afforestation 8

5.2. Market niche description.
The identified markets in 5.1 above are located in good places in such away that there is
no any prohibition for transportation of the products. The places are passable and before
we start harvesting timbers, we have planned to introduce tree nursery for selling
seedlings to the customers from next year in December. We have made advertisement
through radio and magazines indicating the plan and the performance of DISMAS
ENTERPRISE to the public.

5.3. Pricing.
Our plan about pricing will depend on the type of timbers produced. And therefore the
price will vary basing on the nature of pieces produced. In order to sell more we have
planned to lower the prices of our products over our competitors. For example our
competitors till this moment are selling seedlings at the price of Tshs.70 per seedling.
Since our research shows that next year will raise the price up to Tshs 100 per seedling,
therefore at that time we will be selling at the price of Tshs 70 per seedling. For timber
price will vary on the species of tree and again will consider production cost so as to
overcome the competitors, normally unit will base on cubic feet of timber produced.
Present price range between Tsh 4000.0 to Tsh 5000.0

5.3.1. Pricing methodologies.

Pricing have a numbers of setting methodologies such as; at the production place the
prices of the products will be reduced to favor our customers who come to appreciate our
progress, under the market places we will be selling at the yet set price since we have
incurred some expenses to bring the products to the market, Standard mark up
percentages will be awarded for the customers who purchase more quantity (0.5 tone or
above) of our Timber products and will be given Our Business LOGO card as gift while
we are keeping reminding them to purchase more.

6.0. Competition.
6.1. Description of competition.

Business Plan for afforestation 9

Threats from existing business privately owned (like Kenyan and EFC investment in
Mapanda) and publicly owned (like SAO – HILL in Mufindi) which may further grow
and provide strong competition to DISMAS ENTERPRISE.

6.2. Market share description.

Our plan is to increase market share for at least 20% every year based on sales of the
increased merchandise. With reference to the identified markets based on research we
conducted, the ability of increasing market share is certainly.

6.3. Opportunity
 Poor reputation of many existing forestry.
 Being new and difference from existing business at the global level.
 User-friendliness of our business is one of the basic opportunities.

7.0. Management and organization.

7.1. Background of finding management.
We are highly formal, well organized in such away that personnel of DISMAS
ENETRPRISE are with good qualifications relating to our project. This gives us
confidence about good progress and success in our project. The personnel have the
following qualifications;-

7.1.1. Education.
We will be employing workers at least having advanced diploma in Agro - business and
or Agro – forestry. Workers with this type of education possibly to progress well our
project.

7.1.2. Experience.
Apart from having good education as we mentioned in 7.1.1 above, we will need the
workers with experience of not less than two years. We are doing this to avoid cost of
training the newly workers with non experience.

Business Plan for afforestation 10

7.1.3. Interest in the idea of our project.
We will try to employ workers whom we think will be interested with our enterprise. We
will use some technical methods to ensure that we get relevant workers. Example,
evaluating or analyzing the performance of the workers and continue employing those
who are useful and reducing those who are no useful.

7.2. Organization Chat.

This tells how the organization is being segmented to run up the business. We have
evaluated that this segmentation increases performance and is very easy to evaluate the
performance. Each department will include well qualified personnel, which will help to
reach the goals of DISMAS ENETRPRISE.

Director

Farm planting
Finance department Nursery department Transferring department
department

8.0. Marketing strategy.

Initially we will commence with sign post placed along the road showing the sites where
our production is taking place as well as locations of our market centers, and distributing
business cards and LOGOS to the customers. We further have planned to develop website
where our information will be displayed to the world wide and we will use Television and
radio to market more DISMAS ENETRPRISE.

8.1. Purpose of the marketing strategy.

The purpose of this marketing strategy is to make our products to be known at global
level and to influence customers to purchase more our products.

Business Plan for afforestation 11

8.2. Samples of Marketing materials and medium for getting the
message out.
Through television the message about our products will be easily given out to the
customers. At the beginning of DISMAS ENETRPRISE, apart from raising seedlings for
planting and selling we will engage in preparation of samples to represent the whole
population through television so as to attract more customers.

9.0. Operations.
9.1. In the harvesting period.
Apart from producing timber not less than 20 tones per week from 10 years to come,
more firewood are associated with cutting down trees and therefore we will be benefiting
by selling firewood, also charcoal will be produced to maximize returns on investment.

9.2. Production capacity.

We will largely be producing 1200000 cubic feet yearly from 10 years to come. We are
also expecting to produce 180000 tree seedlings for sale and 60000 tree seedlings for
planting on our farm.

9.3. Distribution of the product.

Economical research has helped us to decide that in each point as market place plus
production place we are to put branches of our products so as to reduce some costs like
transport costs for distribution.

9.4. Facilities and equipment management.

Initially we have one tractor which will facilitate implementation of various activities on
the DISMAS ENETRPRISE. Among these activities are like transferring seedlings to the
farm and carrying some manures for mixing up with normal soil filling in ports for
raising seedlings.

Business Plan for afforestation 12

10.0. Financial plan to estimate profit and loss, and cash flow
projection.

10.1. Summary of key points and capital requirements for the

Implementation of the Business Plan.
The Implementation of our Business plan will be subjected to the enterprise’s goals, and
budget. Periodical review of the budget will assist flexibility of the budget and placing of
additional modifications. Effective implementation of this plan will depend on the
enterprise’s management, as justified below;

Table A; Expenditure for10 years of afforestation summary plan.

Period No. of seedlings Area to be Cost per Place of

to be planted planted (Ha) 40Ha (Tsh) Activity
July2009-Jun 2010 60000 40 3000000 Mapanda
July2010-Jun 2011 60000 40 3600000 Mapanda
July2011-Jun 2012 60000 40 4200000 Mapanda
July2012-Jun 2013 60000 40 4800000 Mapanda
July2013-Jun 2014 60000 40 5400000 Mapanda
July2014-Jun 2015 60000 40 6000000 Mapanda
July2015-Jun 2016 60000 40 6000000 Mapanda
July2016-Jun 2017 60000 40 6600000 Mapanda
July2017-Jun 2018 60000 40 7200000 Mapanda
July2018-Jun 2019 60000 40 7200000 Mapanda
Grand Total 600000 400 54000000

Table B; 10 years Casual labor budget – plan

Year Period No. Man-days Man – days Total (Tshs)

Unit
2009- 2010 July-Dec 160 2500 400000
Jan – April 240 2500 600000
2011- 2012 July-Dec 160 2500 400000
Jan – April 240 2500 600000
2013- 2014 July-Dec 160 2500 400000
Jan – April 240 2500 600000
2015- 2016 July-Dec 160 3000 480000
Jan – April 240 3000 720000
2017- 2018 July-Dec 160 3000 480000
Business Plan for afforestation 13
 Jan – April 240 3000 720000
2009- 2010 July-Dec 160 3000 480000
Jan – April 240 3000 720000
2011- 2012 July-Dec 160 3000 480000
Jan – April 240 3000 720000
2013- 2014 July-Dec 160 3000 480000
Jan – April 240 3000 720000
2015- 2016 July-Dec 160 3000 480000
Jan – April 240 3000 720000
2017- 2018 July-Dec 160 3200 512000
Jan – April 240 3200 768000
2019 - 2020 July-Dec 160 3200 512000
Jan – April 240 3200 768000
Total 12760000

10.3. Table C; 10 years expected fund generation plan to support

enterprise implementation.

Period No. of Cost No. of Price sold Total Net Profits

seedlings to incurred seedlings per Revenue (Tshs)
be raised (Tsh) to be sold seedling (Tshs)
July2009-Jun 250000 12500000 180000 70 12600000 100000
2010
July2010-Jun 250000 13750000 180000 80 14400000 650000
2011
July2011-Jun 250000 15000000 180000 90 16200000 1200000
2012
July2012-Jun 250000 16250000 180000 100 18000000 1750000
2013
July2013-Jun 250000 17500000 180000 110 19800000 2300000
2014
July2014-Jun 250000 17500000 180000 110 19800000 2300000
2015
July2015-Jun 250000 17500000 180000 110 19800000 2300000
2016
July2016-Jun 250000 17500000 180000 110 19800000 2300000
2017

Business Plan for afforestation 14

July2017-Jun 250000 18750000 180000 120 21600000 2850000
2018
July2018-Jun 250000 18750000 180000 120 21600000 2850000
2019
Grand Total 25000000 165000000 1800000 183600000 18600000

10.4. Capital: Loan From CRDB Tshs 4,800,000.00 and Cash in

hand Tshs 7,200,000.00

10.5. Table C; Expected yields by the end of the project.

Period Woodlot Expected Price sold Total Total Total

matured timber per (ft³) Cost(Tshs Revenue Profit(Tshs
per (40Ha) product (ft³) in billions) (Tshs in in billions)
billions)
July2018-Jun 60000 1200000 5000 1.2 6
2019 4.8
July2019-Jun 60000 1200000 5500 1.2 6.6
2020 5.4
July2020-Jun 60000 1200000 6000 1.3 7.2
2021 5.9
July2021-Jun 60000 1200000 6000 1.4 7.2
2022 5.8
July2022-Jun 60000 1200000 6000 1.5 7.2
2023 5.7
July2023-Jun 60000 1200000 7000 1.5 8.4
2024 6.9
July2024-Jun 60000 1200000 7000 1.5 8.4
2025 6.9
July2025-Jun 60000 1200000 7000 1.6 8.4
2026 6.8
July2026-Jun 60000 1200000 7500 1.6 9
2027 7.4
July2027-Jun 60000 1200000 7500 1.6 9
2028 7.4
Grand Total 400 12000000 14.4 77.4
63

Business Plan for afforestation 15

11.0. Appendix.
11.1. Cash flow statement
DISMAS ENTERPRISE AS AT 31. DECEMBER.2009.
CASH FLOW STATEMENT
SOURCE Tshs Expenditure UNIT COST TOTAL COST
Capital 7,200,000.00 400 hectares Plot 10,000.00 4,000,000.00
Loan 4,800,000.00 Buildings
3 building for offices and store 4,100,000.00
equipments
6 Chain saw 150,000 900,000.00
10 Wheel burrows 25,000 250,000.00
Hand tools 150,000.00
Wages:
2 Operational managers 300,000.00 600,000.00
Director 400,000.00 400,000.00
160 Casual workers 100,000.00 1,600,000.00

810,000.00
12,000,000.00 12,000,000.00

11.2. Balance sheet.

DISMAS ENTERPRISE AS AT 31. DECEMBER.2009.
BALANCE SHEET AS AT 14TH JANUARY 2009
ASSETS
FIXED ASSETS TSH TSH
Plot 4,000,000.00
buildings 4,100,000.00
CURRENT ASSETS
Stock (logs, seedlings,
firewood) 1,700,000.00
Bank 2,200,000.00
12,000,000.00
Capital 7,200,000.00
loan 4,800,000.00 12,000,000.00

Business Plan for afforestation 16

12.0 Expansion of the project.
12.1. The goals
 To open up other branches in all regions of Tanzania.
 To provide goods and service at affordable and reasonable prices.
 To dominate our market share within and outside the country.

REFERENCE;

ON LINE MATERIES
Retrieved on January 14, 2009 from http://www.tzonline.org
December 21, 2008 .The Guardian Pg 35.

Business Plan for afforestation 17