Finances capital costs finacial support plot

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FINANCES CAPITAL COSTS FINACIAL SUPPORT (PLOT DEVELOPMENT) COST RECOVERY BENEFITS BENEFIT TO THE ECONOMY It will contribute to the economy of Botswana through payments of taxes, rates, reduce unemployment, and boost Phitshane Molopo’s economy. BENEFIT TO THE COMMUNITY The Project will create employment opportunity to a minimum of twenty five (25) Batswana at inception stage therefore reducing unemployement rate. The low level post will be filled with the local residents of Phitshane Molopo and surrounding areas. LEIPEGO (2015) Page 13
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Table below shows the number of People to be Employed and their roles Job Title No. of Post(s) Minimum Qualifications Manager 1 Diploma In Civil Engineering /Construction Management Accountant 1 Diploma in Business Administration and Accounting Receptionist/Administration officer 1 Certificate in Business Administration /Customer Service Certificate Plant Operator 2 JC and Appropriate licenses Forman 2 JC / NCC in bricklaying is added advantage labourers 16 Able to read and write Cleaners/ Grounds man/Staff assistant 2 JC TOTAL 25 The Benefit to the Owner The business owner will gain profit and hence improved financial status. The owner will achieve his dream of creating employment to Batswana, and give back to the community of Botswana as he benefited by acquiring free education sponsored by Government of Botswana. The owner will also relive the government from not having too many graduates who are not absorbed in the working class. FINANCES Financing Structure The project shall be started from scratch. The start-up capital shall be used for the Development of Plot (construction of facility), furnishing and equipping the industry. The project will start at small scale and develop into full scale after two years from initial stage. At the inception stage the Project will run at 50% scale and it will gradually grow to full scale within a two year period from stating date. The development of plot will cost approximately P384, 000.00 , for construction of Administration Block, Installation of Cement Hoppers, preparation of moulding platform, and construction of raw material bay, installation of utility services and equipping . The funds for expenses ( P153, 000.00 ) for business operation and administration will be required at the inception stage as well. Therefore a total of P 537,000.00 shall be sourced from financing agencies such as; National Development Bank (NDB), CEDA, etc. The project cost breakdown is as elaborated in the next page. PROJECT CAPITAL COSTS LEIPEGO (2015) Page 14
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Description of Investment Amount (Pula) PROJECT CAPITAL Construction 200,000.00 Long term assets (Brick Moulding Machine set) 100,000.00 Contingency 40,000.00 UTILITY INSTALLATION Electricity 15,000.00 Phone/Fax 5,000.00 Water 25,000,00 EXPENSESES Labour Expenses (Fist three months) 65,000,00 Stocking Materials 42,000.00 Operational Costs-1st three months (eg Bills) 30,000.00 Administration Costs 15,000.00 Grand Total 537,000.00 PROPOSAL FOR FUNDING OF THE PROJECT FEASIBILITY AND MARKETING VIABILITY The project is viable as crusher dust will be bought and collected from Lobatse and cement will be purchase from warehouses in Lobatse as well or even in the neighbouring South Africa. Borolong District has high demand of building bricks hence the market for our products has a market share of 50% in the district.
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