KALANGA WARD

BUSINESS PROPOSAL
 Table of Contents

Confidentiality Note .................................................................................... 3

Executive Summary ................................................................................. 4
1.0 Introduction …………………………………………….………………….... 4
1.1 Concept………….…………………………………………………. 4
2.0 Business Description….......………………………………………………. 4
2.1 Overview of the Industry……………………................………… 4
2.2 Mission Statement ……………………...………………………… 5
2.3 Vision......................................................................................... 5
2.4 Values.......................................................................................... 5
2.5Product Description ……….……………………………………... 5
3.0 Marketing............................................................................................... 5
4.0 Expected Market …………………….………………………………………5
5.0 Processes……………………………………………………………………. 6
6.0 Capital Investment Requirements ……………….......…………………….6
6.1 Production and Operating Costs ….……………………………… 7
6.2 Project Product Cost and Price Structure…………………………7
6.3 Profitability Analysis Table………………………………………… 8
7.0 Risks………………………………………………………………………… 8
8.0 Conclusion…………………………………………………………………….8

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Confidentiality Note
Information in this Business Plan relating to Aquaculture based business plan shall not be disclosed
to any other party outside the recipient and shall not be used, duplicated, or disclosed in part or in
whole for any other purpose apart from the purpose of evaluation and approval for grant funding. The
information in this Business Plan is to be treated with confidentiality and may only be disclosed or
imparted to parties of the recipient who may be directly or indirectly part of the evaluation and
approval process of this application.

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Executive Summary
1.1 Business Concept
Kalanga Fisheries is a fish production company in its formation phase. The concept of the business
will be that of fish farming practices (Aquaculture). Fish is the cheapest source of protein and has the
potential to increase the nutrition levels in many diets of the people. Because most of the natural
water bodies are being exploited and depleted, Kalanga Fisheries will help increase on the levels of
fish in the Copper-belt district and Zambia as a whole. The idea of coming up with this company was
due to a project survey which was carried out in various districts throughout the nation which showed
that there was potential to grow fish in production tanks. The breeding tanks would produce up to
2500 fish per pond considering 10% mortality of the fingerlings. The materials that will be used are
seeds (fingerlings), above ground tarpaulin tanks and circulation systems. The company will be
located in the Copper-belt province (Kalulushi). The company will have outlets in Kalulushi , Kitwe, as
well as Kasumbalesa boarder town (between Zambia and Congo DRC), in order to cater for the ever
growing demand from the Congolese DRC market, with the intention to have outlets in all provincial
headquarters where our product may be needed and in some rural area too. The company is
anticipated to grow at a rate of 7% per annum on the local markets. The fish products to be produced
will be of good quality and reliable because the personnel who will be involved in production
management are highly knowledgeable and experienced in the field of aquaculture and the feed will
be from established sources. The company will require a total capital of Four Hundred and Sixty
Eight Thousand Kwacha (K468,000), to set up the production tanks to start the operation.

2.0 Business Description

2.1 Overview of The Industry
The fishing industry in Zambia is a very competitive industry but has a very large market of fish
nationwide. Despite increasing demand very few companies grow fish for table size. Fish farming
industry includes both the commercial and subsistence farming industries. The objective for
commercial fish farming is to produce fish to supply markets at a competitive price and make a profit
while doing so. The market is therefore, the driving force for commercial fish farming. On the other
hand, subsistence farming does not have competitive prices. The key parameters that determine the
levels of production and success in fish farming are; water quality, feed quality, seed quality and
human resource. How one manages these parameters vis-à-vis the prevailing market demand and
price, determines the viability of a commercial fish farm. Because of a high demand of fish and
because of few companies dealing with fish, my business will fit in the market without any constraints
as there is a free entry of market and that my business will help to create employment through
meeting the demands of the local people.

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 2.2 Mission Statement
Make available a stable supply of high quality table sized fish for the local people.
2.3 Vision
To fulfil its mission, Kalanga Fisheries will be producing quality sized table sized fish. It will be an
employer of choice for permanent and seasonal workers needed for feeding, pond maintenance,
harvesting the fish and provide a safe working environment for its employees. It will strive to
incorporate the latest technology into its operations to increase its efficiency.
2.4 Values
Focus: We focus on our customer satisfaction and the rest will follow.
Integrity: We make responsible decisions based on professional standards.
Innovation: We encourage thoughtful, creative and inspirational ideas.
Teamwork: We build better when we work together.
Growth: We develop professionally through expanding our capabilities with innovative training.
Accountability: We empower each other to take ownership of our actions.
Quality: We strive for excellence through ensuring the freshness of our products.
2.5Product Description
Kalanga Fisheries will be dealing in three products. Primarily this will be table sized fish, down the line
we plan to expand our product range to include fingerlings and fillet fish.
Seedlings, or fingerlings, are small juvenile fish of 7cm and above. Fingerlings of 10g and above are
suitable to stock in grown out tanks directly. Fingerlings of 5g or less should be stocked into a nursery
pond first until they are above 10g. Table sized fish is fish which has reached a weight of 150g or
more depending on the market and is ready to be consumed. Fillet fish is a processed deboned fish.

2 Marketing
Kalanga Fisheries’ marketing strategy will consist of but not be limited to the following:
 Engage in direct marketing through door-to-door visits to prospective clients in order to acquire
customers.
 Use of billboards, flyers, social media, and networking to create awareness of the farm fresh
products.
 Working closely with the local authorities in order to build long term relationships through
offering of transfer of skills programmes in the form of workshops, creating more revenue and
ultimately benefiting the communities.
 Offering promotions and discounts in order to attract new clientele.

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3 Market
3.6 Expected Market
The expected target market will be the local community, fish traders, retailers as well as exportation to
neighbouring countries.

4 Processes
The farm will consist of a minimum of eight tanks of 2500L litres each. Stocking is on a five piece per
square meter basis of Tilapia bream. Therefore the total number of Tilapia stocked will be 25,000.

5 Capital Investment Requirements in Zambian Kwacha (K)

Capital Investment Units Quantity Unit Cost Total (K)
Pond construction No 8 30,000 240,000
Solar System No 1 50,000 50,000
Harvesting Nets No 2 1,000 2000
Total 292,000

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 5.6 Production and Operating costs in Zambian Kwacha (K)
Cost Item Unit Unit Quantity/day Production Production Production
s Cost Cost/day Cost/month Cost/Bi-
annual
Direct costs
Fingerlings Pcs 1 25,000 25,000 25,000 25,000
Fish Feed Kgs 28 16 448 13,440 80,640
Sub Total 25,448 38,440 105,640
General Overheads
Labour 6500 39,000
Rentals 5000 30,000
Miscellaneous 500 3,000
Sub Total 9,700 72,000
Total Operating Costs 40,890 175,640

1) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year
for all assets.
2) Direct costs include: materials, supplies and other costs that directly go into production of the
product.
3) The valuation currency used is Zambian Kwacha.

5.7 Project Product Cost and Price Structure

Item Period Output Unit Product Unit Total
Cost Cost/year Price Revenue
(ZMK)
Tilapia 6 22,500 1 22,500 21 472,500
months
Per 45,000 1 45,000 21 945,000
year
Total 45,000 45,000 945,000

1) Consideration of 10% mortality of the Tilapia per term.

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 5.8 Profitability Analysis Table
Profitability Item Per 6 months Per year
Revenue 472,500 945,000
Less: Capital, 467,640 643,280
Production &
Operating costs
Profit 4,860 301,720

6 Risk Management
There are several factors that could affect the demand for our products. The economy of Tilapia is
forecast to grow and remain competitive over the next ten or fifteen years; this could result in
increased competition. Our company will address these risks by continuing to offer competitively
priced products of our superior quality. Due to affordability of fingerlings/seedlings, demand is
projected to remain constant. We will track changes in consumer trend by maintaining strong
relationships with our retailers. Small independent retailers could lose market share to large retailers
and discount stores. Increasing the availability of our seedlings by affiliating with retailers throughout
the province should enable our company to achieve the projected sales targets. The availability of
labour could become a problem with the expansion of our product lines and increased sales volume
will enable our company to promote our part time employees to permanent employees. Once we have
enough workers we will be in a position to offer a more comprehensive benefits package. The
company also needs to know much technology threats that can be expected on the type of product
since raising of fingerlings/seedling is a competitive industry, especially that more fish farmers are
being established which require good quality of fingerlings.

7 Conclusion

The promoters of Kalanga Fisheries have conducted a detailed analysis of each section of this
business plan and are confident that this aquaculture project will be a viable and profitable venture
that will greatly contribute to the economy of the entire district and the country as a whole by providing
employment opportunities and facilitating the increase of the levels of fish in the Copper-belt district
and Zambia as a whole. The company will also ensure that its operations are within the limits of its
licences and will ensure full compliance to all regulations and standards set by all related regulating
bodies.

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