BUSINESS PLAN

FOR

GREEN HIGH WORLD PROPRIETARY

LIMITED (BW00002197395) T/A CRISP FRESH
FARM

P O BOX 26015
GABORONE

INTERGRATED FARMING
(PIG PRODUCTION)

IN
LETSWELETAU
(MOGOBEWAMORETLHWA)

SUBMITTED TO

FINANCIAL INFORMATION

BY

MR. M. MAGOLA

CELL: 71436155 / 74885188

1
1. INTRODUCTION AND CAPITAL COSTS

Company Ownership

Company Name Shareholders Nationality Shareholding %

Green High World Mbakiso Magola Motswana 100%

Proprietary Limited
(Bw00002197395)
T/A Crisp Fresh Farm

Company Vision:

To operate a commercial based and sustainable agri-business that provides solid returns for
the investors and also provide additional food security to the economy of Botswana through
modernized farming.

Mission Statement

To produce high quality pork meat that will be graded to attract customers, with affordable
prices.

Company Values

● Innovativeness
● Professionalism
● Customer Care
● Partnership
● Integrity

The promoter Mr. Magola is venturing into an intergrated farming producing pork meat. The
promoter has a farm at Letsweletau (Mogobewamorethwa) where the integrated farming will
be taking place. The promoter already has breeding stock of about 145 pigs. The promoter is
also a seasonal ploughing farmer and has already accumulated some farming implements as
follows:-

Assets acquired

Item Date (Year) Acquired Original Cost

Borehole installations and 220,000.00

Equipment
Reservoir 45,000.00
Tractor 136,000.00
Plough 35,000.00

2
 Planter 45,000.00
Shredder 18,000.00
Hummer Mill 26,000.00
Net shade 6,000.00
Trolley (10 ton) 150,000.00
Truck (4 ton) 310,000.00
Van 120,000.00
Breeding Stock P362,500.00

Pork meat production in Botswana is at very low production. Local production is 477 tons per
year and import about 518.99 from other countries.

This is why the promoter is engaged in the development of Intergraded Farming to reduce
importation of Pork meat in Botswana. This will contribute more food in Botswana through
citizen participation in the economy.

2. PROJECT CAPITAL COSTS

Financing Plan

Item Quantity Unit Cost Total Cost Equity Loan Supplier

Requested

Property

● Farm(Integr 250,000.0 250,000.00 250,000.00

ated) 0

● Piggery 1 19,317.25 19,317.25 19,317.25 Haskins

houses-
doors and
installation
s

● Store room 1 104,069.1 104,069.15 104,069.1 Genous

renovations 5 5 Venture
s

● Labour cost 2 6,000.00 12,000.00 12,000.00

Total Property 385,386.40 250,000.00 135,386.4

0

Machinery and
Equipment.

3
Borehole 1 220,000.0 220,000.00 220,000.00
installations and 0
Equipment

Reservoir 1 45,000.00 45,000.00 45,000.00

Tractor 1 136,000.0 136,000.00 136,000.00

0

Plough 1 35,000.00 35,000.00 35,000.00

Planter 1 45,000.00 45,000.00 45,000.00

Shredder 1 18,000.00 18,000.00 18,000.00

Hummer Mill 1 26,000.00 26,000.00 26,000.00

Net shade 1 6,000.00 6,000.00 6,000.00

Trolley (10 ton) 1 150,000.0 150,000.00 150,000.00

0

Truck (4 ton) 1 310,000.0 310,000.00 310,000.00

0

Van 1 120,000.0 120,000.00 120,000.00

0

Total Machine and

Equipment
1,111,000.0 1,111,000.0
0 0

Total Working
Capital

Breeding stock 145 1,862.07 270,000.00 270,000.00

Feeds for pigs 1 116,770.0 116,770.00 116,770.0 Nutri

0 0 Feeds

Salaries and Wages (3 14,400.00 43,200.00 43,200.00

Months
Salaries)

Total Working 429,970.00 270,000.00 159,970.0

Capital 0

Total Project Cost 1,926,356.4

0

4
 Total Equity 1,631,000.0
0

Total Loan 295,356.4

Required 0

Financial Assumptions

Loan Amount P295,356.40

Installment P3 061,03

Interest Rate 4.2%

Repayment Period 7 years

Sales increase in % 6% annual

Expense increase in % 5.5% Annual

Tax Rate 22%

3. OWNERSHIP AND MANAGEMENT

Management Team

Name Qualifications Experience

Degree HRM 40 years
Mr. Mbakiso Magola

4. OWNERS PERSONAL BALANCE SHEET

Personal Balance sheet of: Mbakiso Magola

Spouses name: Balulami Nchadi Magola
Married in / out of community Yes / No

Assets:
Immovable Property:
Plot No / Location Type of Size Remaining Estimated
Ward Land Lease Value
Lentsweletau Mogobewamoretlw Integrated 18h 15h 250,000
a field

Movable Assets:
Types of Assets Original Cost Year of acquisition Net Book Value
Vehicle

5
Truck 4 ton 450,000 2017 310,000
Van-Toyota Hilux 260,000 2015 120,000
Machinery and
Equipment
Borehole 190,000 2014 220,000
installations and
Equipment

Reservoir 45,000 2021 45,000

Tractor 190,000 2016 136,000

Plough 35,000 2017/2020 35,000

Planter 55,000 2018 45,000

Shredder 18,000 2021 18,000

Hummer Mill 26,000 2021 26,000

Net shade 6,000 2021 6,000

Trolley (10 ton) 150,000 2021 150,000

Description No Value (Pula)

Livestock
Cattle 30 120,000
Small Stock (Goats 50 50,000
and Sheep)
Piggery 270,000 270,000
Chickens 3000 3000
Debts / Receivables
Shares in companies 50,000 2018 50,000
Other assets
Fixed Deposits with
banks
Cash at Bank and in 50,000 50,000
Hand
Total assets 1,654,000.00

Liabilities Description Amount

Loans secured by Mortgage 0,00
over immovable Property
Loans under Hire Purchase 0.00
Tax Liabilities 0.00
Personal Loans 0.00
Creditors 0.00
Other Liabilities 0.00
Any Contingent liability as Guarantor for 0.00
other or bond/s over property/assets used

6
as security
Total Liabilities 0.00

5. PRESENT PROPOSAL

Project Location

The business will be located at Lentsweletau (Mogobewamoretlhwa). Kindly refer to the

attached Title Deed

Production Process Piggery

Pig production cycle

The life cycle begins with the piglets, which normally weigh 1.5-2 kg. In each birth event
(farrowing), 8 to 12 piglets are born, although sows can produce litters of more than 20.
Large litters have many small piglets, most of which may not survive; those that do may
grow very slowly.

The piglets remain with their mother for 21 to 42 days, depending on the pig management
practice of the farm. Piglets are weaned by removing the sow from the pen. Thereafter,
they are fed formulated feed. After a few days of adjustment, the weaned pigs are kept in
weaner pens for an additional 30 to 60 days until their weight reaches 20 kg. They are then
moved into porker pens where they remain until they reach their market weight of 75-100
kg. The life span of a porker is anywhere from 150 to 230 days from birth to the abattoir.
When slaughtered, the dress weight of the porkers is approximately 70% of live weight.
The main inputs in pig production are: breeding stock (gilts, sows, and boars); water for
drinking and cleaning; feed (grains, protein supplements, minerals, and vitamins);
preventive medicines and therapeutic drugs; housing and materials handling; management
and husbandry; and sanitation, disinfection, and waste removal. Waste removal must be
integrated with proper disposal in the environment, which means pollution control,
resource recovery, and recycling. The pig production cycle can be divided into three
phases: breeding, weaning, and growing/finishing.

Breeding

Breeding involves the mating of a sow or gilt (a female pig 5-7 months old that has not
been bred before) with a boar, or artificial insemination. After conception, there is a
gestation period averaging 114 days, during which the pregnant sows are housed in
individual gestation pens.

A week before the sow is scheduled to deliver, she is moved into an individual farrowing
pen. During the farrowing period, the animal requires special care and attention. The period
from birth to weaning is called the lactation period. After the piglets are weaned, some of
the best female weaners are kept as replacements for the sows. These animals constitute the
herd of gilts.

7
Mating Period

The mating period lasts from the date of weaning the previous litter until the day of
conception. During this time, the sow must be kept in a pen or a stall close to boars to
stimulate estrus. Estrus is the cyclic period of sexual activity in female mammals. It is
commonly called "heat" and is characterized by secretions, ovulation, and acceptance of
the male.

The timing of the sow's first oestrus after weaning varies from 5 to 40 days. The
conception rate for first service is normally about 80%. The oestrus cycle of the sow is 21
days. In commercial pig production, it is desirable to reduce the number of days between
farrowing and conception to produce more litters per sow per year. A high proportion of
the sows that are in good physical condition will begin to come into heat 3-7 days’ post
weaning. Adequate boar power is essential for effective synchronization of post weaning
heat.

If a sow fails to conceive within 28 days’ post weaning, the farmer will cull her. This is
enough time for her to have been bred twice. With each 21-day delay, the sow must
produce two extra pigs just to pay for the time and feed she has consumed. Similarly, if
gilts do not conceive after being bred three times, they are culled.

Gestation Period

The gestation period ranges from 110 to 120 days; 114 days is the average. During this
period, the sow should be individually confined to prevent fighting with other sows and to
restrict her activity and feed consumption. Individual stalls, rather than pens, are
recommended to reduce embryo loss as a result of fighting. These gestation stalls may be
the same ones occupied by the sow during breeding, or they may be located in another part
of the barn. If there are separate facilities for breeding and gestating sows, then extra
movement of animals is required. The choice of combined or separate breeding and
gestation areas should be made by the manager when the farm is being designed.

Lactation Period

The lactation or suckling period of the sow begins when she farrows (i.e., gives birth to her
litter of piglets); it ranges from 3 to 5 weeks. A long suckling period is not practiced in
commercial production for economic and productivity reasons. Farrowing pens are the
most expensive units to construct and, as such, need to be reused as often as possible. The
nursing of large piglets weakens the sows, and thus affects their productivity and
rebreeding.

Gilt Replacements

Immediately following the lactation period, old and unproductive sows are culled. These
sows are replaced by young gilts. The number of gilts kept for breeding must be sufficient
to replace those culled. Because the first estrus cycle of gilts is variable, it is recommended
that one gilt be kept for every three or four litters farrowed. A gilt is considered a
"replacement" gilt from the time her litter mates are sold for slaughter until she is bred at
about 8 months of age. Replacement gilts may be housed in group pens or in stalls in the

8
breeding barn. In either case, they are placed near boar pens to stimulate sexual
development.

Most gilts reach puberty at 5-6 months. From this period on, the gilts will periodically
show signs of "heat" (i. e., will stand to be mated to a boar). The estrus cycle will stop
temporarily when the gilt is pregnant and start again after the sow has been weaned from
her piglets. It is best not to mate the gilt in her first two heats. During these two heats, only
a small number of eggs (ova) are produced; therefore, mating would result in only a small
litter. Moreover, at this stage, the gilt is still small and growing. Pregnancy might overly
stress the animal, interrupt her growth, and result in difficulties in rearing the litter.

Weaning

When the suckling period is ended by removing the sow from the farrow pen, the piglets
are called weaners. The demarcation between the weaner period and the grower/finisher
period depends on the day of change in ration. Generally, piglets are called weaners until
they reach 20 kg live weight at about 8 weeks of age.
It is customary to wean pigs from 3 to 5 weeks of age. If pigs are weaned at 3 weeks or
younger they should weigh a minimum of 5 kg. Some reasons for seeking early weaning
are to produce more than two litters per year from each sow; to take advantage of the high
feed-conversion efficiency in young piglets; to produce heavier and more uniform grower
pigs; to save on feed for sows because of the short lactation period; and to improve the
welfare of the sow, which is neither overly stressed nor loses weight excessively during the
short lactation periods.

The period after weaning is the most stressful on the young piglets as they are taken away
from the sow and forced to change from a milk diet to dry feed. Often, they are also moved
to a new pen. The stress of feed change is lessened by starting the baby pigs on a prestarter
dry feed while they are still nursing and by continuing them on the same diet for at least 1
week before changing to the starter ration.
Most managers move the piglets from the farrowing stall to weaner pens on the day of
weaning. Some producers arrange the production schedule so the piglets can remain in the
farrowing stall 3-7 days after weaning to further reduce stress. If this practice is to be used,
then it must be considered in the planning phase of farm development because more
farrowing stalls will be required. The disadvantage of this scheme is the additional cost for
farrowing stalls and the extra space they require.

Feed for weaner pigs is normally a dry mash. Weaner pigs consume a daily maximum of
0.7 kg dry feed. On large farms, mechanical conveyors can be used to move the feed to pen
self-feeders.

The weaner pigs are 8-10 weeks old when they are moved to the grower pen. After the pigs
are moved out, the weaner pen should be thoroughly cleaned and left to rest for 3 or 4 days
before a new batch is moved in.

Growing and Finishing (Porkers)

In commercial production, the last phase may be divided into the grower (up to 55 kg of
animal live weight) and finisher stages (up to market weight). Growers are fed a ration that
is high in protein; whereas fibre content is increased in the porker ration. Because growers

9
are smaller than porkers, they require less space per pig and thus, there are economic
savings in having two types of pens, but this means moving the pigs twice.

In Botswana, the average market age was 200 days (28 weeks), at which time the pigs
weighed 80 kg. Some farmers used superior genetic strains and good management to
produce market pigs in 170 days (24 weeks).

Estimated capacity and useful assets/plant life

Item Capacity Useful life

Farm 18 hectors Indefinite

Plant/equipment replacement schedule.

ITEM Replacement Period

Building 50 years
Furniture and Fixtures 15 years
Machinery and Equipment 15 years
Small farm tools 5 years

Production Plan

Products Quantity Price/Kg/Bag/ Monthly sales Annual sales

pig
Pula Pula Pula
Live Pigs 10 pigs 2,000.00/ pig 20,000.00 240,000.00
Pig Carcass 1260kg 31.75.00/kg 40,000.00 480,000.00
Total Sales 60,000.00 720,000.00
Projections
● 145 breeding stock for pigs.
Assumptions
● Slaughtering 15 pigs per month (Average weight of pig carcass is 84kg)
● Sales to be increased by 6%.
● Cost of sale account for 35%

Possible production risk and Measures

Risks Measures

10
 Transmission of Disease (African swine Such measures include:
fever epidemiology)
 Direct pig-to-pig contact.
 Consumption of contaminated feed
(swill feeding).
 Vehicles and other fomites,
clothing, footwear, surgical
equipment.
 Workers and visitors.
 Slurry.
 Genetic materials.
 Bites from ticks.
11
 No swill feeding.
 Avoid feeding pigs with fresh
fodder harvested in areas at risk for
ASFV exposure.
 Buying pigs from trusted and
certified sources (ASFV-free
commercial holdings).
 Keeping pigs confined in stables.
 Restricting the access to pig ‘s
stables only to people in charge of
taking care of the animals.
 People working in contact with
pigs should wear clothes and
footwear to be worn and used only
when working in the stable and to
be left in the stable after use.
 Workers cannot bring food onto the
premise.
 People working in contact with
pigs should wash hands with soap
before entering and leaving the
premise.
 Using effective disinfectants to be
placed at the entrance of the stable.
 Proper disposal of dead animals or
parts of dead animals to avoid the
spread of infected material and also
to attract wild animals.
 No wild boar or part of it, shall be
brought onto the premise.
 In areas at risk for the presence of
ASFV in wild boar, where the viral
contamination of the environment
can be high, effective disinfectants,
such as calcium hydrate (slaked
lime), should be spread and
renewed, around pig‘s stable and at
the entrance .
 Pig’s owner and people in charge
of pigs shall avoid visiting other
farms.
Furthermore, to enhance ASFV early
detection:
 Veterinary services should be
informed in case of dead or sick
pigs.
  Home slaughtering should be
carried out under veterinary
supervision.

Predators The farm is secure with a fence and the is

also secured pig houses,
Theft There will always be employees taking
care of the pigs and the farm,

1.1 MARKET
Target market:
Target Market:

● Supermarkets (Food outlets)

● General Dealers
● Government Institutions
● Hotels and Guesthouses

Letters of intents attached

Market size:
Market size stood at 477 local productions and import
518.99 tons of Pork meat.

Our Production estimate is 15.12 tons per annum.

Competitors: There are few suppliers of Pork meat in Botswana,

Piggery Project Competitors.

Competitor Location

Masy Holdings South East Botswana

Sebele Pig Multiplication Sebele

Unit

Other Farmers Around the country

Market share of Although the there are few farmers in Botswana, Chain
your competitors: stores such as Choppies, Spar, Shoprite etc import Pork
meat from South Africa and sells in bulk to customers.

Every competitor supplies less than 10% market share.

12
Market share your
project intend to Market Share for Piggery Products
achieve:
Botswana Currently produce 477 tonnes and imported
518.99 tonnes of processed pork products. Our intention is
to produce 6800kg of pork meat per month which translate
to 81.6 tons per year and result in 81.6/ 996 x100= 8.19%
Market Share.

Marketing strategies
the project will use
to gain this market
share:
⮚ The Promoter’s emphases are on producing
high quality Pork Meat.
⮚ In the first year of production Promoter will
certify his products through ISO standard by
Botswana Bureau of Standard for quality
purpose and consistency in production
standards. Our machinery will be tested and
certified by BOBS.
⮚ The business will have two set of prices to its
target market (Wholesale price and Retail
price), Discounts (10%) is going to be given
to those customers who buys in bulk and
consistently.
⮚ The business will ensure that stock is always
available, we are going to engage our
customers for feedback concerning demand
and supply. We will also produce to optimal
level so that we may contribute to reduction
of importation of pork meat.
⮚ The Promoter believe in high customer
service, all our client facing staff will be
taken through intensive customer service
training.
⮚ Our prices will be affordable since, the
business will be sourcing raw-material locally
in Gaborone therefore cost of production will
be low.

Distribution 1) Producer
channel:
Wholesales

Retailer

Consumers

13
 2) Producer Retailers Consumers

3) Producer Consumers

The business will be using the above three types of

distribution channels.

Where;

A) Producer will be “The Promoter”

B) Wholesale will be Enterprises like “Sefalana,
Trans, Trident and Fours)
C) Retailers will be shops like “Supermarkets”
D) Consumers will be Hawkers and Individuals”

Supply channel:
Raw Materials (Feeds, Vaccination & medication and
packaging material) will be sourced from the following
shops:

● Super Feeds
● Agrivet
● Agri Shop
● Agrichem
● BAMB
● Agri Feeds
● Nutri Feeds
● Techno feeds.

There are many suppliers who supplies us with raw-

materials all the above suppliers have been in a business
for more than 10 years and are reliable suppliers.
Pricing: Pricing Strategy
The business will focus more on two pricing strategies:

1. Competition-based pricing
The Promoter will utilize competitor’s pricing data for
similar products to set a base price for their own products.
Rather than focusing on production costs or the value of
the item, this pricing method relies heavily on market data.

2. Cost-plus pricing
This is a basic strategy that works by considering the total
cost of making a product and adding a mark-up to that to
determine the price of a product. This is a good strategy in
the long term. A business owner needs to first understand
the costs involved in production: material, labour, storage,
machinery, utilities and such. The mark-up price that is
added to the top of production cost is what the company

14
 makes in profit

Price
Products Average Market Price

Live Pigs P2000/pig

Pork Carcass P55.00/ kg

Promotions:
● use of flyers,
● discount strategies for repeat customers
● Billboard with picture of the premise.
● Door to door marketing in companies
● Online advertising like website creation and use of
social media example Facebook.
● Outdoor Advertising: Signboards, bus seats
headrest and bus stops.
● Newspapers and telephone directory
● Grading will also be of good advantage
● Private Radio stations
● Customer loyalty program
● Brand Development and Management

Possible market
risks and Measures Market Risks Mitigation Measures

Charging high prices than Our prices will be

our competitors. affordable at market rate.

Providing ungraded All our products will be

products. graded, and packaged
according to grades.
Quality will vary according
to grades.

Late payments to suppliers The suppliers will always

be paid on time and where
ever there is credit facility
it will be adhered to.
Whenever there is
challenges with payments,
the Directors of the
company will renegotiate
with suppliers for better
payment plan.

15
 More competition coming We will make an intensive
marketing through social
media and word of mouth.

Lack of delivery The promoter has 4-ton

truck that will be used for
deliveries to customers.

7. IMPLEMENTATION SCHEDULE

The following implementation schedule is merely tentative and is subject to a number of

factors, including the timing and availability of funding of the project. These times frames
commence from when the project financial application has been submitted to NDB and
excludes the time spent to date to secure the farm, business plans and other activities that
took place to ready the project for financial application.

It is anticipated that the project will take 2 months to complete from the day of approval of
the loan. The programme will begin with a month long of sourcing raw-materials for
buildings and engaging contractor. The contractor will also mobilise to site during this
month, following which the construction works will commence and take 3 weeks to
complete.

Complete
Activity M1 M2 W3 W4
Activities
Acquisition of Farm implements,
construction storeroom, fencing,
breeding and Pig houses.
Submission of Loan Application
Loan Approval
Contractor Engagement
Contractor Mobilisation
Construction Works
Purchase of inputs
Recruitment of staff
Licensing and start Operation.
*Pre-Construction activities already complete

16
Project Benefits
● The project is good because it’s a modern farming and it will contribute
towards provision of food in Botswana.
● It will help Local food market and street venders, hawkers and other pig
farmers.
● The project will create 7 employments and it is anticipated to add at least 3
more employees in 5 years’ time.
● The success of this project will increase agricultural earnings in the
economy.

8. INPUTS AND EMPLOYMENT

Inputs are required and the cost of the inputs.

Total cost of
raw materials. Items Cost per Month
Feeds Feeds for pigs 15,000.00
Vaccination and Medication P1,500.00
Total Cost 16,500.00

Transport Costs 0.00

Suppliers for Nutri Feeds
Raw-Materials Super Feeds
AgriShop
Agrivert
Employment
and Salaries Salaries and Wages      
Salary Per
Position Number Month Total
Farm Manager 1 3 000,00 3,000.00
Farm Labourers 4 1 600,00 6400.00
Drivers (Tractor
&Truck) 2 2 500,00 5000.00
Total 7   14,400.00

Overhead Operating Costs.

Costs
Items Cost per month
Accounting fees 500.00
Advertising and Promotions 550
Bank Charges 450.00
Business licenses and permits 250.00

17
 Stationery 500.00
Postages and Delivery 250.00
Repairs and Maintenance 500.00
Vehicle Fuel and Oil 1,300.00
Vehicle services 550.00
Total Operating Expenses 4,400.00

Loan P3 061,03
repayments
Total P38,361.03

9. RISK AND SENSITIVITY

A Statement of possible risks is required, such as capital expenses overruns, limited market
penetration, lab our and technical risk factors. Address how those will be overcome. Where
considered necessary, an environmental impact assessment study may be required. Determine
what components of the forecasted cash flow affect significantly, such as decrease in sales,
changes in inputs costs or in market share.

What could stop the business from ● Poor customer Service

Succeeding? ● Bad reputation
● International and national
movement restrictions and
lockdown due to natural
disasters.

Is the machinery insured? ● Machinery will be insured. ___

Am insured ● There will also be workers man
compensation insurance for
workers.
Can somebody in your family takeover if ● Yes
you are ill?
Can you get spares for machinery? All the machinery and equipment parts
are available locally in Gaborone.
What will stop your business from Competitors (New and Existing) if they
selling the amount you said it would drop the price, we may be forced to
sell? drop too.

Does the price of the stock go up No, prices increase annually.

quickly?
Can you get enough people into your There is labour locally in Lentsweletau.
business to do the work?

10. SWOT Analysis:

Promoters are required to give a summary of the STRENGTH, WEAKNESSES

18
OPPORTUNITIES AND THREATS OF THE PROJECT. Strength and weakness are
internal to the company while opportunities and treats are external to the company.

What is the business going to do better than
its competitors?
What is strong in my business?
● The promoter already has a trucks
and van for delivery to customer.
● The promoter will produce fresh
high quality products that will be
graded.
● Products will be certified through
BOBS for quality standards.
● The promoter will engage with all
supermarkets, restaurants,
butcheries,
● The farm is well developed, with
borehole equipped, reservoir,
fenced and cleared.
● The promoter also invested in farm
implements such as tractor, plough,
planter, Hammer mill and shredder.
● There is also a truck used for
farming.
● There is also storerooms and pig
houses

What is weak in business? ● Lack of funds for finalizing farm

developments such as piggery-
houses and Storerooms

Where else can I increase my sales? ● Sales increases Annually

What can hurt my business?

● High competition
● Natural Disasters that affect
business industry e.g., COVID-19
pandemic
● Animal Diseases

11. SECURITY

Description Age Original cost Open Market / Estimated

Book Value Forced Sale
Value
Immovable
Property
Machinery and
Equipment
Motor Vehicles

19
 Livestock
Bank Guarantee
Any other
guarantee
Life Insurance
Policy
(surrender
value)
Other

12. 5 years Financial Projections

Income statement Month 0 Year 1 Year 2 Year 3 Year 4 Year 5

for year end Startup Feb-23 Feb-24 Feb-25 Feb-26 Feb-27
Sales revenue            
Sales 0 720 000 763 200 808 992 1 781 760 3 848 030
             
Total sales 0 720 000 763 200 808 992 1 781 760 3 848 030
Cost of sales            
Opening stock 0 16 500 17 408 18 365 19 375 20 441
Raw-Materials (Feeds, Vaccine and
Medication) 0 198 000 208 890 220 379 232 500 224 847
Other cost 0 0 0 0 0 0
Closing stock -16 500 -17 408 -18 365 -19 375 -20 441 0
Total cost of sales -16 500 197 093 207 933 219 369 231 434 245 287
Gross profit 16 500 522 908 555 267 589 623 1 550 326 3 602 742
Operating expenses            
Depreciation Expense 0 120 735 120 735 120 735 120 735 120 735
Payroll - Staff 0 172 800 182 304 192 331 202 909 214 069
Advertising and Promotion 0 6 600 6 963 7 346 7 750 8 176
Bank Service Charges 0 5 400 5 697 6 010 6 341 6 690
Business Licenses and Permits 0 3 000 3 165 3 339 3 523 3 716
Merchant Account Fees 0 6 000 6 330 6 678 7 045 7 433
Office Expense: Stationery 0 6 000 6 330 6 678 7 045 7 433
Postage and Delivery 0 3 000 3 165 3 339 3 523 3 716
Repairs and Maintenance 0 6 000 6 330 6 678 7 045 7 433
Staff Training 0 2 400 2 532 2 671 2 818 2 973
Telephone: Mobile 0 6 000 6 330 6 678 7 045 7 433
Vehicle Expense: Fuel & Oil 0 15 600 16 458 17 363 18 318 19 326
Vehicle Expense: Servicing/Repairs 0 12 000 12 660 13 356 14 091 14 866
Total operating expenses 0 365 535 378 999 393 203 408 189 423 999
Net operating income 16 500 157 373 176 269 196 420 1 142 137 3 178 743
Other expenses            
Interest Expense 0 12 801 11 702 10 552 9 349 8 092
Total other expenses 0 12 801 11 702 10 552 9 349 8 092
Net income before tax 16 500 144 571 164 567 185 868 1 132 787 3 170 652
Normal income tax 0 31 806 36 205 40 891 249 213 697 543

20
Net income after tax 16 500 112 766 128 362 144 977 883 574 2 473 108

Balance sheet Month 0 Year 1 Year 2 Year 3 Year 4 Year 5

at year end Startup Feb-23 Feb-24 Feb-25 Feb-26 Feb-27
ASSETS            
Current assets            
Current account 179 970 390 639 613 946 852 676 1 828 756 4 414 632
             
Total cash 179 970 390 639 613 946 852 676 1 828 756 4 414 632
Trade and other receivables            
Accounts receivable            
Total trade and other receivables 0 0 0 0 0 0
Inventories 16 500 17 408 18 365 19 375 20 441 0
Total current assets 196 470 408 046 632 311 872 051 1 849 197 4 414 632
             
Non-current assets            
Investments 0 0 0 0 0 0
Property, plant and 1 625 1 504 1 384
equipment 1 746 386 651 917 182 1 263 447 1 142 713
Cost 1 746 386 1 746 386 1 746 386 1 746 386 1 746 386 1 746 386
Accumulated depreciation 0 -120 735 -241 469 -362 204 -482 939 -603 673
Intangible assets (goodwill, licenses,
rights) 0 0 0 0 0 0
Total non-current assets 1 746 386 1 625 651 1 504 917 1 384 182 1 263 447 1 142 713
TOTAL ASSETS 1 942 856 2 033 697 2 137 227 2 256 233 3 112 644 5 557 345
             
LIABILITIES AND EQUITY            
LIABILITIES            
Current liabilities            
Bank overdraft            
Trade and other payables 0 0 0 0 0 0
Accounts Payable 0 0 0 0 0 0
Current income tax 0 0 0 0 0 0
VAT payable 0 0 0 0 0 0
Payroll contributions and
deductions 0 2 006 2 204 2 413 2 634 2 866
Total trade and other payables 0 2 006 2 204 2 413 2 634 2 866
Current portion of long-term loans 0 0 0 0 0 0
Total current liabilities 0 2 006 2 204 2 413 2 634 2 866
Non-current liabilities            
Shareholders loans 0 0 0 0 0 0
Commercial loans 295 356 271 426 246 395 220 215 192 832 164 192
Hire purchase and lease
creditors 0 0 0 0 0 0
Total non-current liabilities 295 356 271 426 246 395 220 215 192 832 164 192
TOTAL LIABILITIES 295 356 273 432 248 600 222 628 195 466 167 058
             

21
EQUITY            
1 631 1 631 1 631
Capital contributed 1 631 000 000 000 000 1 631 000 1 631 000
Retained income 16 500 129 266 257 628 402 605 1 286 179 3 759 287
TOTAL EQUITY 1 647 500 1 760 266 1 888 628 2 033 605 2 917 179 5 390 287
TOTAL LIABILITIES AND EQUITY 1 942 856 2 033 697 2 137 227 2 256 233 3 112 644 5 557 345

Cash flow statement Month 0 Year 1 Year 2 Year 3 Year 4 Year 5

for year end Startup Feb-23 Feb-24 Feb-25 Feb-26 Feb-27
Cash flow from operating activities            
Net operating income 16 500 157 373 176 269 196 420 1 142 137 3 178 743
Adjustments for non cash items            
Depreciation Expense 0 120 735 120 735 120 735 120 735 120 735
  16 500 278 108 297 003 317 155 1 262 871 3 299 478
Changes in working capital            
Inventories -16 500 -908 -957 -1 010 -1 066 20 441
Trade and other receivables 0 0 0 0 0 0
Trade and other payables 0 2 006 198 209 220 233
Net cash flow from operations 0 279 206 296 244 316 353 1 262 026 3 320 151
Interest received 0 0 0 0 0 0
Dividends received 0 0 0 0 0 0
Interest paid 0 -12 801 -11 702 -10 552 -9 349 -8 092
Taxation paid 0 -31 806 -36 205 -40 891 -249 213 -697 543
Cash retained/ (utilized) 0 234 599 248 337 264 910 1 003 463 2 614 516
             
Cash flow from investment
activities            
Purchase of property, plant and
equipment -1 746 386 0 0 0 0 0
(Acquisition)/ disposal of intangible
assets 0 0 0 0 0 0
Investments (made)/ redeemed 0 0 0 0 0 0
Cash (utilised)/ released by
investment activities -1 746 386 0 0 0 0 0
             
Cash flow from financing activities            
Equity raised/ (redeemed) 1 631 000 0 0 0 0 0
Retained income and reserves at take
on 0          
Loans raised/ (repaid)            
-Hire purchases 0 0 0 0 0 0
-Commercial loans 295 356 -23 931 -25 030 -26 180 -27 383 -28 641
-Shareholders loans 0 0 0 0 0 0
Bank overdraft 0 0 0 0 0 0
Cash (utilised)/ provided by
financing activities 1 926 356 -23 931 -25 030 -26 180 -27 383 -28 641
             
Cash and cash equivalents            
Increase/ (decrease) for the year 0 210 668 223 307 238 730 976 081 2 585 875
Balance at beginning of year   0 210 668 433 975 672 705 1 648 786

22
Balance at end of year 0 210 668 433 975 672 705 1 648 786 4 234 662

23