Solid Waste Collection and Recycling Business Seeking Equity Finance

Opportunity Snapshot

  • Country: Uganda Uganda
  • Industry: Waste Management
  • Stage: Start-up
  • Investment size: $270,550 / min. $210,550
  • ROI: 50% in 2 years
  • Type of investment: Equity
Solid Waste Collection and Recycling Business Seeking Equity Finance Uganda's capital city, Kampala, generates approximately 80% biodegradable waste that is good raw material for manure composting and bio-gas production. Image courtesy: Ian 'Harry' Harris, 2007, Flickr CC.

Investment Opportunity

Uganda's capital city, Kampala, generates approximately 80% biodegradable waste that is good raw material for manure composting and bio-gas production.

Our start-up is a Solid Waste Recycling business that will offer benchmark services in Kayunga District, Uganda. The business units will balance hygiene, environmental concerns, and sanitation. This garbage business will be provided with unmatched levels of customer service and attention. Sales are projected to be substantial in year two and growing moderately by year four.

The Market Segments
The business will target the neighbouring districts. The main garbage yard on focus will be in Kayunga, the proposed location for our headquarters. The segment is growing at 10% per year with 20,000 prospective customers. This segment is especially attractive since most of the local farmers are not using farm manure.
The second market segment will comprised of the districts Mukono, Wakiso, Mpigi, Luwero, Mubende and Mityana, which have a total potential of 85,000 farmers.

Market Strategy
There is a big clientele base in all districts’ households as well as other clientele categories like the industries, schools, institutions, commercial office blocks, hotels, hostels and embassies.
For the start, three Districts will be served, that is, Kayunga, Wakiso and Luwero, by targeting the above clientele categories.
The above-identified Districts have an increasing rate of farming growth at rates of 5.2% which justify increased need for garbage services. Besides in an era of shrinking Districts’ budgets and a restriction of the scope of the jurisdiction, the problem of garbage is likely to intensify which calls for alternate approaches to be developed.

Market Analysis
They are 43 major players in the market some of which include Nabugabo Updeal Joint Venture, Great Waste and Recycling Foundation, Bison Consult International, Aron Waste Limited and Bin-it Services Uganda Limited, Norema limited, among others.

Management Team
The business will be led by Eng. M. (for full name, please contact the owner) as the CEO. The business will initially hire services of other desired professionals (or companies) like land surveyors, sales & marketing personnel, architects to mention but a few.

a. To achieve a sustainable environment for all the Districts in study area, focusing on proper garbage collection and disposal by the year 2016.
b. To empower Districts through awareness programmes on proper hygiene and sanitation practices.
c. To contribute revenue to the treasury through payment of taxes.
d. To assist Districts develop waste generation minimization programmes.
e. To generate income for the members and the people employed by the company for better standards of living.

To have a garbage free environment in the District Study areas, with healthy people and pollution free environment.

To contribute to the provision and delivery of quality, sustainable and customer-oriented garbage collection and recycling services efficiently and effectively in order to ensure Cleanliness in Districts under study and increase farmland productivity through application of organic manure.

Keys to Success
The following factors will be key towards the success of the business.
a. Having well trained human resource in the area of garbage collection. The work force has to be trained how to handle the different types of garbage ranging from plastics, polythene bags, food waste to broken glasses.
b. Ensuring proper coordination and communication with our customers.

Competitive Advantage

The company will employ well trained and experienced workers in the field of waste management. The workers will be issued with mandatory minimum personal protective equipment (PPE) in accordance with the health and safety proposed procedures. We will ensure consistent application of the safety standards. The client's complete risk assessment will be done to know risk levels and plan accordingly. Health and safety standards and procedures will be communicated to our staff on each site to ensure they understand their responsibilities and adhere to them.

We shall deploy state-of-the art garbage collection trucks unlike our competitors that are currently using open to air trucks. We shall be separating our waste in different categories and sale and/or process accordingly to get products for income generation unlike our competition who just dump in an open area without value addition.

To sustain advantage in the future the company management will ensure quality assurance through training, monitoring and evaluation, and motivation of staff. The part of the profits will be used for corporate social responsibility through implementation of community projects that improve their living standards. Such projects would include training centre for skills development in waste management and entrepreneurship, health facilities, education centres etc.

Rationale for the deal

Garbage collection is largely viewed by Ugandan population as not good a venture and filthy job. Therefore, very few companies are into the business. This means the company has vast area of operation and many people that generate waste but do not know how they can dispose of them. The CEO did research on ''Resource recovery of solid wastes''. This coupled knowledge acquired over field experience as a civil engineer has placed me at an advantage to run the business.

Use of financing

I would need only one round of financing. The funds will be spent as detailed below:
• Purchase of 5 Acres of Land
• Construction of garbage sheds
• Construction of site offices and recycling plant
• 3 garbage trucks purchase
• Waste recycling machine; monthly operating costs (office and field costs)
• Solar lighting equipment
• Engineering, architectural, structural, electro-mechanical, legal, mandatory local fees

Opportunity for the investor

I am looking for a silent investor. The Return on Investment is expected to be 50% for two years and the investor should consider negotiations for withdrawing from company shareholding after four years. The equity investor will hold 30% of the company shares. The investor will get dividends of up to 5% of the profits after taxes, depreciation, amortization and of course depending on the business year of each year.

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