Question 1: When are you planning on expanding to other cities and who are

we planning on selling bricks to?

Answer: Our first expansion mission will be within the next 12-18 months and will be to the capital city
of Malawi, Lilongwe. The reason for this choice of city is that it has the greatest purchasing power of the
country and there is a lot of development happening in the city with its goal to be a “Modern City” by
2025. Having mentioned the purchasing power of the city, it should not be mistaken that my city,
Blantyre, doesn’t have the same purchasing power. It does as it is the economic capital of the country.
It’s just that because Lilongwe is the capital city and with the focus on most developments being the
capital itself a lot of economic movement will be centered around there.

Another reason for choosing this city is because of the raw materials that are available there currently
due to the developments which will be expounded on in question 5.

Having said that, bricks will mainly be sold to ngo’s, contractors and individuals who have land, with our
targets being the most developing areas in the city and surrounding areas.

Our other region of expansion will be to Mzuzu, but that will be only after we have settled in adequately
in Lilongwe which will roughly be within a year of establish the Lilongwe center.

Question 2: Would it be possible for me to make a list of potential clients?

Answer: Yes…

NGO’s: 1) buildON; 2) Habitat for Humanity; 3) Welt Hunger Hilfe & 4)Shining Light Community Trust, to
name a few I’ve recently seen put out tenders for environmentally friendly bricks this year, all with HQs
in Lilongwe.. In case of the last one, we have actually already done bricks for them even in our small
capacity as shown in the business plan

Contractors: with a list of 408 building contractors registered on the National Construction Industry
Council (NCIC), 209 contractors are registered in Lilongwe. Having said that, the proof is always in the
pudding as they say and the link to the NCIC website with contractors list is available:
http://ncic.mw/membership/membership-directory/

Having said this, building contractors in Malawi are notorious for subcontracting other companies to do
a range of services and that will play a big part for us getting work with them as we will position
ourselves (as our pricing model has shown) as the best possible price option when scanning the market.

Individuals: Not much we can say here apart from that people are building in Lilongwe and they are
building like crazy!!
Question 3: Do we have contact with any of them?

Answer: Yes. We have a working relationship with Shining Light Community Trust as we’ve made bricks
for their school block as shown in the business plan. We have a statement of serious interest from
buidOn as shown in the letter sent to me by country director Robert Loughlin. We have previously been
in touch with Habitat for Humanity to pitch our small brick making machine a while back but due to
capacity, we failed to convince them of accommodating there needs. We haven’t been in touch with
Hunger Welt Hilfe yet but have noted the tenders for environmentally friendly bricks in the papers of
which we would surely via for when the capacity increases. I got the tender document just to see the
requirements and the like and they were looking for 112,000 bricks in the initial phase of their project
and indicated that they’d want more in the future!!

As for contractors, yes we have. Built Environs; Lido Group of companies; Erid building contractors; and
Tikhalenawo building contractors. This was all a year and a half ago at which point I came to the
realization that with our current capacity, there wasn’t any chance of working with any contractors on
the market due to us not meeting production capacity. It was a tough pill to swallow but one that had to
be swallowed nonetheless.

This subsequently led to researching what mode of operation would be the best to meet production
capacity hence finding the twin block making machine and henceforth pitching it to Accesserator.

As evidenced on a phone call with Mr Loughlin, country director of BuildOn, he has expressed
enthusiasm over the proposed production capacity of 4000 bricks a day as the current SSB technologies
on the market are 1500-2000. This leads me to believe that it would be a great direction to take if
possible as we’d be right in line with current industry standards and in some cases, even surpassing
them.

Saying this, proposing that we do get to work with BuildOn in the format that was suggested in the letter
(which is highly likely provided capacity is there), what we would be advantaged to find out is that this is
a very powerful reference point to have for any company and by executing beyond their expectations
(which is what I always try to do because I was taught at a young age to “do more than what is expected
and expect more to do”) we’d have a solid reference for other NGO’s in the same field looking for similar
alternatives.

By positioning ourselves in this manner, what we can optimistically expect and hypothesis is that
essentially with one or two more machine additions in our operations, we’d effectively be able to do the
same work for BuildOn to other NGO’s like Habitat for Humanity and Welt Hunger Hilfe in their
operations which would be a powerful position to be in.

My reason for being so optimistic is that there is a local saying that when translated says that “If you can
gain the trust of one white man, then you are likely to gain the trust of a few more!” lol.. its not a racially
backed statement or anything but it came from a time when colonialists and the locals were building a
relationship and the locals would work through one or two trusted individuals to smoothen out issues
and build links.

Having said this, knowing that we’d crush the work with BuildOn to the most crushable point possible
(lol), we’d have a perfect reference point for other housing NGO’s who are probably already in
communication with each other since they are in the same field and not in competition with each other.
This would serve as a sustainable model of expansion.

Question 4: How are we planning to organize and staff this expansion?

Answer: the first thing to say is that I will be there on the ground setting up the same culture that is at
our HQ at all these expansion sites whenever they do happen. Organizing such a mission is such that by
modeling our current operations, it would help eliminate many of the unexpected variables that come
with such expansions.

What is meant is that we will choose a site just like our current site, a place where development is
happening but not yet at its peak and rent out a plot (with view to purchasing in the future) to setup our
worksites and a small regional office.

Because our key marketable feature to our potential clients is that our machine can go to their work
sites, what this therefore means is that we will be able to make bricks on our site for the local
community and then hire out the machine for “field work” just as we would be doing at our HQ in
Blantyre.

Concerning staffing, the key thing is the transferring on of skills and then expanding. What this means is
that we will utilize our current team in our expansion strategy when venturing out to other regions but
for training purposes. What this therefore means is that when we see our opportunity to expand is on
the horizon and can be implemented in let’s say 6 months, what we would do is hire up a new team
from the “expansion city” (basically locals) to come to HQ and get totally immersed in the production
process for those 6 months and then when we expand, we’d take them back to the new site to set up
our culture there and then proceed as usual. This team will include the foreman, brickmakers and the
site manager.

At this point in time, the new machine that would go to Lilongwe would already be in the country and
we’d basically have the new team train how to use their own machine on our site which would mean
greater brick capacity for those 6 months as well meaning more opportunities for revenue.

Obviously there will be other factors to be aware of such as housing, food etc, but those are issues that
are manageable when the time would come but the gist is rent a very economical house near our site,
house the team there, buy 10 50kg bags of maize, 2 50kg bags of beans, 2 50kg bags of rice and
perishables can be bought when needed and we are good to go.. a helper can be hired to cook the team
lunch and dinner and this will iterally not cost more than €2000 for the whole 6 months and that’s
including the salaries of the new team.

At this point on time, we’d be “in it” concerning business and we’d have the necessary finances in order
to facilitate such a program.

Question 5: how are we going to source raw materials from the different
centers?

Answer: Going in accordance with the assumptions made in the excel spreadsheet, we’d utilize the same
process we will do here which is to initially haul in a *hit load of soil at the very beginning to
accommodate our aggressive work initially and then work with that material before selling to fund our
very own excavator.

What has to be continually stressed with regard to the raw materials is that apart from the top soil that
is at a site, all other soil is very suitable for soil block making. It’s the process itself, the sieving, the
mixing, the molding and the curing that is essential for getting quality bricks. This is why even at the
foundational operation stage we are in now, we’d be at an advantage to collect as much soil as possible
from the mega construction projects around which would allow for less strain in collections in the
future. In most cases, one is welcomed to come collect tons and tons of soil from these sites because
the projects for the most part don’t need them.

Having said this, a note has to be said of the various site layouts that will be happening as we scale
which will show how operational setups will be

Please note that the illustrations below denote how are site setup would be in the cases of 1, 3, and 8
machines in a systematic smooth functioning facility.

All possible sites of working will therefore be indicated to have our soil requirements beforehand which
will therefore mean that the times when minimal construction work is happening and no external raw
materials are available, our sites will be the next source of soil for raw materials.

Saying this, the images below conclude the document and I hope this has clarified your questions. If not,
please feel free to send any more questions that I’ll attend to immediately.

Regards,

Chiku
1 machine 3 machines

8 machines