- Country: Zambia
- Industry: Agriculture
- Stage: Start-up
- Investment size: $6,000,000 / min. $500,000
- ROI: 76% in 3 years
- Type of investment: Debt
The funding is to buy land and develop buildings and buying farming equipment and tractor motor vehicles and six months working capital.
This will be training with Production College. The products are training and farming in livestock and horticulture. The aim of the investment project is to create employment for youth and food creation. The funding is to buy land, building and farming equipment.
Owing the above factors FIPS has identified Zambia to have great potential to establish the first private training center offering training with production in the field of agriculture and supported by the following factors: Land and water for agriculture are scarce natural resources hence the promotion of good land management has taken center stage in Zambia which has got vast fertile land although underutilized and easy to acquire with our support.
Zambia is divided into three major ecological zones. Zone 1 receives rainfall below 800 millimeters; Zone 2 receives rainfall between 800 and 1000 millimeters whilst Zone 3 receives rainfall above 1000 millimeters. The vegetation of the country is mainly savannah woodlands in high rainfall regions of the country and tropical grassland in low rainfall regions which is good for agricultural.
Zambia has got stable political situation, 70% of youth are unemployed who are our potential students, 75% of youth lack skills, Zambia is a land locked country surrounded by other country with unstable political situation e.g. DRC, Angola, Zimbabwe, Rwanda, Burundi etc. Who will be our potential customers with food produce by FIPS students
The food produced will be also sold locally to the urban population, which is above 8 million or exported to the other countries.
All rural areas in Zambia have got good road network, and readily available power, which are also important to promote agriculture.
FIPS will initially sensitize the youth the importance of agriculture training to the community and government through media and through carriers fairs at various secondary schools will be conducted.
The annual turnover will be around $759 000 USD. Investors in the project can contact us on Merar.
This a new product most of the private school/college 95% they offer commercial and IT courses which do not have employment market to the youth after completing hence we do not have any such college in Zambia. The idea was developed in Botswana and it working.
The project is sustainable from school fees and farm products which will be sold to the public.
Rationale for the deal
The project is self-sustainable in the sense that the project will have two sections training farms and production. Both wings will have food produces, which will be sold to the community at a reasonable price.
The students will pay school fees which far less by 35% from the current market in Zambia. The income generated from this project will be used to loan re payment and other finance students project as youth loan revolving grant account from which youth who have successful completed the course will be issued with loan to establish small scale farming business and repay the loan at a lower interest rates this is to attract the students.
The project will also hire out tractors and trucks to the other farmers in the nearby villagers as way of raising funds and promote stakeholder participation.
During the school holiday the facilities will be used for hired or used to run for local or international in workshops to the farmers and youths to provide capacity building to them.
The main aim of the project is to increase jobs to the youth and reduction of hunger in the southern Africa. The youth when set the farms they will also employee fellow youths and produce food. During the first 60 months the project, we are expected to train over 1300 youths. Our target is to form 40 groups of modern and well managed young small scale farms business which is much needed by the youth who will also employee over 800 youths and each farm will have on average of 4 directors from the youths and 1 mentor director from the FIPS management.
The 40 registered young farms will formed during the five years period and able to produce products with annual turnover amounting to $60 000.00 per group or farm per year. The young farmers will be independently from FIPS.
The annual turnover of food products will be $312,000 USD, school fess are $320,000 USD.
To protect the business risk the farm products will be covered under the insurance cover of farming with a premium of $10 000 USD.
Use of financing
The funding is to buy land and develop buildings and buying farming equipment and tractor motor vehicles and six months working capital. We are looking for $547,000 USD. This will be the only finance the project will fund it self.
Opportunity for the investor
The loan is $547 000 in 6 years with interest rate of 31.5%. The investors if they want can buy shares or not it up to his choice. The maximum share percentage we are willing to give away is 35% if they opt to buy the shares but they wont be the working director.
The installment schedule will be quarterly payments.
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