TYEC Projects

Tanzania Youth Elite Community (TYEC) here presents the projects summary, the project that TYEC Plans to undertake projects from early 2014

The Project Are;

Agricultural Related

·         Onion Production (Cultivation)

·         Millet & sorghum production(cultivation)

·         Bee keeping

Non-Agriculture Related Projects

·         Microcredit for microfinance

·         Food and beverage production (processing)

Agricultural Related

i/ Onion cultivation

TYEC Intends to start the Onion cultivation from the start of the year 2014 The project will be under taken in different places, but TYEC has set some places priority and benchmark              due to the historical nature of production the production environment (climate/weather) the easy and accessibility to market places

TYEC has decided to invest in onion cultivation because the necessary requirement for union cultivation can be met but also there is a promising demand of product and not forgetting the output and return per unit area for investment

TYEC will initially cultivate onions in Tanga Region and if possible within the same year (2014) TYEC shall extend to other regions including Manyara, Morogoro and Iringa.

The basic requirement and effective strategies to onion cultivation

Initially; TYEC plans to cultivation up to 50 acres where the Breakdown of cost associated and benefits accrued are as described below per unit acre.

 The cost per acre of onion estate

The cost includes Plot, Machinery, Man Power, Seeds and Nurseries, Fertilizers, Weed control Insecticides, Irrigation, Harvest and Store.

ITEM	UNIT	COST/Tshs
The Plot	1 acre	30,000
Machinery	Various	200,000
Seeds and Nurseries		100,000
Man Power		300,000
Fertilizers	2 packs	100,000
Weeds control		40,000
Insecticides	2 Gallons	40,000
Irrigation		100,000
Harvest		100,000
Storage		100,000
Total		1,110,000

The projected Output

Due to the recent and ready and proved onion cultivation, the seeds that are recommended would bring out 100bags- 130bags per acre. Making our projects basing not at higher output but somewhere between, let’s take 105bags, as our output bags.

Sales =

 Each bag > 100kilos

Each kilo > 1000Tshs

Each bag = 100kilos * 1000Tshs

                        = 100,000Tshs

For our 1000bags = 105 100,000Tshs

                        = 10, 500,000Tshs

A good return: Than 800% Return

Then we can now all project the Gross Profit = 9,390,000Tshs per Acre.

ii/ The Millet and Wheat cultivation

TYEC intends to invest in millet and Wheat production in Manyara, Singida and Dodoma but starting away, TYEC will set priority in Manyara region in (either Galapo area or Simanjiro) this is because Galapo and Simanjiro are good reference when we talk about millet and sorghum production/cultivation because the necessary requirements for Millet and Sorghum can be easily met, but also there is promising demand of the products and not keeping aside the out and return per unit areas kilometres.

The Basic Requirements and Effective Strategies to Progression

TYEC intends to starts with 50 acres or more if possible and bellow is the breakdown of costs and return per acres basis.

The cost includes Plot, Machinery, Man Power, Seeds and Nurseries, Fertilizers, Weed control Insecticides, Irrigation, Harvest and Store.

ITEM	COST
The Plot	30,000
Machinery	50,000
Seeds and Nurseries	50,000
Man Power	200,000
Fertilizers	50,000
Weeds control	50,000
Insecticides	50,000
Irrigation	-
Harvest	50,000
Storage	50,000
Total	580,000

The project output:

Due to the proven Millet and Sorghum cultivation,

1 acre of millet and sorghum will have output between 700kilos to 9000kilos, let us take the average if not the lower margin.

The price of millet and sorghum at the harvest times ≥ 500

That make possible for 7000kilos to bring about 3,500, 000Tshs

That makes possible 9000kilos to bring about 4,500,000Tshs

With gross profit between 2,920,000Tshs and 3,920, 000Tshs per acre.

iii/ Bee Keeping project

TYEC intends to invest in bee keeping as it is one of the niches that have a good and over average return at a reasonable cost of production.

TYEC will initiate its bee keeping project in Arusha, Kilimanjaro, Morogoro and Tabora; but starting TYEC has given Arusha and Kilimanjaro the priority as the area has a good and reasonable number of recommended trees or flowering shrubs for the bee keeping project but also the region is easily accessing the market; as Arusha alone takes ≥ 500,000 litres a month and most of it is imported.

The basic requirements

The basic requirements are based on acre though we are planning to have many acres as possible. We will take recommended and proven figures to project our costs and return per acre.

The requirements includes the plot (forested), Hives, Security, man power, Harvest and packaging. The marketing and sales part is done by TYEC personnel.

ITEM	COST /Tshs
Plot	50,000
Hives (70)	4,200,000
Security	100,000
Man power	100,000
Harvest	200,000
Packaging	130,000
TOTAL	4,780,000

NOTE:

The most interesting bee keeping is that; HIVES ARE A LONG TERM INVESTMENT.

We do purchase the hives - we will continuously be harvesting the Honey without reinvesting in purchase of Hives for a period of at least 4 years.

The other interesting part of investing in bee keeping is that TYEC will harvest quarterly; 4 harvest per annum. Hence the budget of

Quarter	Cost		Litres		Revenue		Gross Profit
1st quarter		4,780,000		700		4,200,000		-580,000
2nd quarter		530,000		700		4,200,000		3,670,000
3rd quarter		530,000		700		4,200,000		3,670,000
4th quarter		530,000		700		4,200,000		3,670,000
TOTAL		6,370,00		2,800		16,800,000		10,430,000

Yearly Budget

YEAR	COST	SALES	GROSS PROFIT
Year 1	6,370,000	16,800,000	10,430,000
Year 2	2,170,000	16,800,000	14,630,000
Year 3	2,170,000	16,800,000	14,630,000
Year 4	2,170,000	16,800,000	14,630,000
TOTAL	1,288,000	67,200,000	54,320,000

2. NON AGRICULTURAL RELATED

i. Microcredit and Microfinance

TYEC understands the Economic challenges to the most of Tanzanian Youths, though TYEC intends to start and extend several projects, considering the growing number of Unemployed Youths and the emerging class of Entrepreneurs, TYEC can’t afford hiring all Youths, but if it can provide soft term loans to Youth, can become a great impact to the Economy.

Then comes the idea of starting a Microcredit-Microfinance institution, where we shall start our first Microcredit in the second year of TYEC operations (2015).

Due to the formalities and guidelines of BOT, no one shall be allowed to start a financial institution without meeting the basic requirements as follows.

Type of Institution	Required start Up capital
Commercial Bank	5,000,000,000
Microfinance(Nationwide)	800,000,000
Microcredit (one branch)	200,000,000
Saccos	5,000,000

Due to this requirement, TYEC will start with a Microcredit in the Year 2015, the capital shall be from Year 2014 projects, and in 2017 TYEC will transform to the full Microfinance Institution, opening multiple branches in Tanzania, to serve as more Youths as possible.

The full description of Microfinance institution is in the Microfinance Business Plan, developed by TYEC personnel, the financial advisor.

ii/Food and Beverage Processing Industries

Tanzania is endowed with wonderful food resources. TYEC has spotted these opportunities, and will exploit them. TYEC understands how this food resource has been unexploited, rather We sometimes import ready made goods letting ours rot. Surprisingly done, but that’s how is it.

TYEC has set three potential regions, where the Food and Beverage Industries shall be invested.

Karagwe (Kagera Region)

Karagwe is one of the most blessed districts in Tanzania on food production, Karagwe do produce raw maize, beans, millet and Sorghum, Banana, Potatoes, But also Animal products like (Eggs, Meat, Milk, Animal Skins)

All of these products are raw and unprocessed.

It can be seen as illogical to invest in a far North Western District in Tanzania, but also think of its potentials, as it is only district in Tanzania that borders three countries (Uganda, Rwanda and Burundi). Also the processed food can feed the whole Lake Zone, Some parts of Kenya via Lake Victoria and DRC via Lake Tanganyika.

Other two Food processing industries will be in:

Tanga Region.

Endowed with Fruit resources, but wonderful enough we also import Juice from Qatar, while Muheza people can’t even see their oranges. This is the Great Opportunity for Our Youths.

Iringa/Mbeya (Southern Highlands)

TYEC don’t like seeing the Youths from the Southern Highlands abandoning from their potential land, very fertile, and going to city (Dar es Salaam) and start selling stuffs at the Bus terminal, an activity that can’t prove their potential and let them be financially secure.

We are planning to invest there, use the potentials (fertile lands that results into a good agricultural harvest-our raw material, the labour- THE Youths that will be hired in our processing Industry), But coming to the Market potentials;

·         The southern Highland industry can serve the Southern Highland itself and the rest of Tanzania.

·         Can serve Malawi, Zambia and Mozambique.