Rural Transportation with 3 Wheel-Motorcycle with 130% ROI

Opportunity Snapshot

  • Country: Gambia Gambia
  • Industry: Charity, Non-Profit
  • Stage: Seed
  • Investment size: $600,000 / min. $300,000
  • ROI: 130% in 5 years
  • Type of investment: Debt

Investment Opportunity

This is a means of transporting rural populace with covered 3 wheel motor vehicles that can carry 5 people at a time and earn daily income while employing 300 youths.

We presently have some tri-motorcycles running in few remote areas within our community and this has been a source of income, and also a means of reducing unemployment problems among the youths. We have been able to buy 5 units for some youths and the invested capital was recouped after 24 months of being used as a means of transportation where the pilot project was conducted.
Thereafter, the 5 beneficiaries became the new owner.

From our experience, and because of the urgent need to alleviate poverty in our community , especially now, that the youths are embarking on illegal migration to Europe for lack of employment we hereby propose this timely intervention to empower our youths. There will be employment opportunities for some youths that will be trained as motorcycle mechanics, tire vulcanizes, conductors and more. A total of 300 youths will be directly employed while many more will be able to earn an income from this project indirectly.
This project will import 250 units of Tri-motorcycles at a discounted cost with replacement parts, servicing parts and an experienced mechanic that will be on ground for a year to transfer the skills and train the locals to carry out successful maintenance and servicing of this tri-motorcycles to maintain them to serve for many years.

Every 12 months additional units will be purchased and given out to the youths to repay the amount of over 24 months duration and the recovered investment used to purchase additional units to empower more youths. The youths that successfully repay the loan will now become the new owners and a transfer of ownership done for them to become fully empowered and become self employed.

The funding required is to launch the first phase of the 200 units for the already 200 beneficiaries identified and anxious to come on board and become commercial rural motorcyclist. We hope to train 10 youths as motorcycle mechanics with the technical officer that will be sent down to assist in maintenance of these 3 wheel-motorcycles for a period of one year for importing 200 units special package. If well maintained, these 3 wheel-motorcycles can serve for 4 years minimum.

This project will fully empower 1600 youths directly to become self employed and owners of 1600 3 wheel-motorcycles in our community within 5 years using this social enterprise project platform.

Competitive Advantage

We have already done our research and conducted a pilot test programme to determine the viability and feasibility of this project. We have been fully active and done several successful projects in our community in the last 12 years of our being established as a not-for-profit organization.

There are no visible competitors except for the few local importers of these tri-motorcycles that are sold at exorbitant prices that is beyond the reach of the average income earner. We also have experienced marketers, accountants, auditors and administrators that will ensure the successful implementation of this project. A total of 30 projects have been successful executed by this organization in the last 12 years supported by local and international funding agencies.

Rationale for the deal

We realized that there is an urgent need for our intervention in the areas of alleviating poverty and empowering the youths in our community. The phenomenon of the youths going “back way” illegal migration to Europe can be minimized by providing this social enterprise for them to become owners of tri-motorcycle and be empowered to be self employed commercial motorcyclists.
This project will give these youths a leverage to create wealth and mitigate rural urban migration from these rural communities. This project will empower 1600 youths as commercial motor cyclists and over 100 will earn income as motor cycle mechanics, tire vulcanizes and panel beaters.

Finally, this project will culminate in a wealth creation venture for the rural populace that will maintain and sustain a rapid development of the rural communities because of the income generated by these youths.

Presently, the rural populace has to wait for several hours for buses coming from the cities to transport them within their own communities of distances between 2-5 km. The people also pay as much as double the fares we are asking for presently.

We are able to make money by asking each commercial cyclist to carry 5 passengers per trip and make maximum 10 trips to and from daily to make the minimum expected income and work for only 25 days a month while the “rest days” will be used for routine maintenance of the motorcycles.

Use of financing

Initially financing will be used for:
• Purchase of initial 250 units of Tri-motorcycles.
• Shipping & clearing of the tri-motorcycles.
• Purchase of replacement, spare and servicing parts.
• Legal and accounting fees
• Training of beneficiaries
• Administration and Transport costs to supervise beneficiaries.
• Licenses, Insurance & tri-motorcycle plate registration numbers
• Salaries of cash collectors.
We will require a round of financing for $600,000 or two rounds of $300,000 each within six months.

Opportunity for the investor

We will require US$600,000 loan.
We are prepared to pay 25% interest yearly on the capital for 4 years and the interest and principal repaid back fully by the fourth year. The first year is assumed to be the moratorium period. We want a silent investor

2017 2018 2019 2020 2021
Income : $562,500 1,012,500 900,000 1,552,500 810,000
Expend.: 10,500 12,000+150,000 20,000+300,000 25,000+ 800,000 30,000
Beneficiaries 250 280 420 290 360

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