Every week ZBIN covers investment inquiries from our members. One common trend is that of members with capital but clueless of what to invest in. A lot of people with capital but not sure of sectors to invest in. This has resulted in many people flooding a few investment sectors. ‘Munhu wese arikubva ati ndezvipi zvirikuita mari obva amhanyira ikoko, kunzwa kuti zvihuta zvaita mari nyika yese yomhanya kuzvihuta’ So ZBIN likes to expand the investment options for our members and followers and today we take a look at the Agro Processing Industry, a very relevant industry because the year 2017 promises to be a very good agricultural season. Why not a good rain season given the above normal  high rains that we have been receiving for the past one and a half months?

So the rains should guide some in terms of investment. The hope being that the trend of good rains will continue for the coming years. Let us start by defining Agro Processing:

It involves the transformation of agricultural produce into a different physical or chemical state. It encompasses technical and mechanical processes that range from packaging to the transformation of raw material into final products.

So some will concentrate on farming and others will concentrate on adding value to agricultural produce. Some will invest in producing maputi, snacks, biscuits etc.

Easy to set up Agro-Processing industries

Simple Packaging

Have you ever been in a local supermarket and observed packaged sugar beans, butternut,matemba,mufushwa,honey and amacimbi. Do you think the companies who packaged these products used sophisticated expertise or machinery? We do not think so-all they would have done is to get a reliable source of supplies from farmers and then make good connections with retailers.

Simple Manufacturing

There is an abundance of simple manufacturing machinery available that produces products such as Maputi, Butternut,’Freezits, Cooking Oil and Soap. This machinery can be sourced from $500 and above.

So there you are good folks, we have just given you introductory stuff we hope to bring you detailed information about Agro-processing. There are a lot of opportunities in this sector that need investors some with little capital like production of Maputi, some may require high vaue capital like the production of ciggarretes from tobbacco.

Our next report will give you detailed information on the current status of the sector, level of competition,opportunities and risks and guidance on how to enter the sector.

Wishing you a Blessed Sunday

In my last post on investment, I gave you important advice on critical steps to take before considering investing. You do not just go and pour in monies in a project without sufficient information about the profitability of the project. I said you need to study the macro economic environment, the industry, geo-political issues, the markets and trends, level of competition and policy issues. I also mentioned the importance of engaging consultants or having access to investment reports or market surveys.

Industry Analysis

This morning we will cover industry analysis-an important area because you would like to know about an industry as a whole, developments in the industry, competitors in the industry and lastly whether there is room for new entrants who can make money in the industry. I will try and make this as simple as possible so that everyone can benefit from the information.

Transport Kombi Sector: Let’s say you would like to start a kombi business. At a higher industry level you are going to need information such as:

ü  The number of kombis on the road at national level

ü  The number of kombis plying your targeted route

ü  Most profitable routes in your city

ü  The kombi vehicle models in demand

ü  Amount of money collected per day by kombis

ü  Kombi sector developments in Zambia, Malawi or South Africa

ü  Buy to rent models

ü  At national level, operational issues such as cost and availability of fuel, cost and availability of spare parts

ü  Any developments in terms of Lorries or private cars ferrying passengers?

ü  Government Policy regarding kombis-are there proposed changes

ü  Substitutes-You may want to know whether buses will be reintroduced on roads, any developments on the railway sector. Number of cars imported per year. Number of mshikashika entering your targeted route.

ü  Number of people buying or entering the kombi business. Why are they entering the sector?

ü  Number of people exiting the kombi business, why are they leaving? What are the trends in terms of exiting kombi business?

ü  Road Fines-how much is each kombi paying per day? Is the figure increasing or decreasing?

ü  Toll gates? Are there plans to introduce more toll gates?

So this is just a brief analysis of the kombi industry-you will need to have this basic information before plunging head on to invest in the industry. ZBIN will be providing you with an example of the Kombi Industry in the next 3 weeks.

So there you are investors- the message remains Do Not Invest Without Enough Information. Some of the information can be found from our Watsapp forums where our members are always discussing business ideas on a daily basis.