Manufacturing of paper/plastic take away boxes and containers

Opportunity Snapshot

  • Country: Zimbabwe Zimbabwe
  • Industry: Manufacturing
  • Stage: Start-up
  • Investment size: $100,000 / min. $80,000
  • ROI: 20% in 3 years
  • Type of investment: Equity

Investment Opportunity

Setup of a factory to manufacture plastic or paper take away boxes and other packaging.The material has to be recyclable as per government requirement.

The project involves setting up and production of paper and plastic food packaging mostly targeting the fast food industry in Zimbabwe.This will involve purchasing of machinery for designing and molding the packaging.Machinery to print on the material as per request is also needed.Spares will also be needed to maintain the machinery and also skilled labourforce to effectively run the machines.

Competitive Advantage

The government of Zimbabwe has with immediate effect banned use of polystyrene packaging due to health concerns.(Herald newspaper 12/07/17). There are too few recyclable packaging materials manufacturers to cope with the massive shortage that looms.The governments local empowerment drive is lucrative for locally registered business.I can register the business locally with the investor coming in with capital which is then turned to equity on agreeable terms.

Rationale for the deal

This ban presents an opportunity for alternative packaging materials manufacturers be it plastic or paper as demand will soar and thus need to be addressed as the ban has already been made into a law(Statutory Instrument 84 of 2012). The ban had been mooted previously but only came into effect this year after giving the industry leeway.
The food industry in Zimbabwe especially fast food outlets is fast growing with the urban population.Fast food outlets are opening and expanding rapidly as the entrepreneurial approach adopted by government for empowerment ensures less people spend time at home to eat home cooked meals.A paradigm shift to western meals is also occurring which are offered by these fast food outlets and restaurants and thus the demand for packaging of this food is also increasing

Use of financing

The financing is for purchase of manufacturing machinery,spares and truck for transportation and rental of warehouse and working capital.

Opportunity for the investor

The investor will get 40% of the company and 20% return on investment per year

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