Business Planning roundtrip Uganda: Moses Otile
Early April the AAA project director Hans Nijhoff, jointly with Uganda country coordinator Karama Farid went on a Business Planning roundtrip in Uganda visiting AAA members. The aim of this roundtrip was to finalize Business Plans with a select group of Ugandan members, that participated already twice in writeshops organized in Kampala. The members visited during this roundtrip are Hellen Elungat, Manesseh Icidri, Moses Otile, Juliane Tushabe, Stephen Isaka and Jean Kaahwa. These members presented the most concrete ideas on upscaling their businesses during the BP writeshops and have serious plans to apply for (inter) national funding. In the coming weeks new blogs will appear on the business ideas of these members.
Moses Otile (based in Lira) is in the business of purchasing maize and sorghum from over 10.000 farmers through a group of 40 buying agents. After sourcing, the maize, sorghum and millet are milled into maize flower and/or stored in warehouses. After packing, 60% of maize is sold to local breweries and 40% to local markets; all sorghum is sold to breweries. The business idea of Moses is to introduce improved production methods through mechanization and local storage including pre-cleaning, thereby enabling the company to offer better prices to farmers. His idea is to replace warehouses for central storage by silos that require less space, less land, and are much easier to handle. Through own milling, packaging and marketing, a shift will take place of higher maize sales to local markets, while still supplying the breweries. Improved price levels to farmers will result in a growth of the present 10.000 farmers in 2013 to 20.000 in 2017.
The required investment for scaling up consists of various fixed components such as mechanization for hire, local storage and pre-cleaning, each of these components will be based in 5 rural areas. Also 1 central silo is needed for drying and cleaning, a milling facility and finally, maize packaging & marketing. Therefore total hardware costs amount to 1 Mln USD. Additional to the hardware, another 500.000 USD is needed for hiring staff and training of farmers, and 500.000 USD for commodity finance (working capital).