Kamal Group, the Dar es Salaam-based steel bar manufacturer is backing up students from University of Dar es Salaam (UDSM) willing to venture in cashew nut processing project and later make potential entrepreneurs.
The Group has come up with the project that will see hundreds of Tanzanians owning small scale cashew nut processing factories, and thus putting them on the right track to becoming active participants in the country’s industrialisation agenda.
The project—which the Kamal Group chairman, Mr Gagan Gupta presented to business students and other entrepreneurs who gathered at the UDSM at the weekend— is built on a system that is largely employed in India.
“I came up with this idea after thinking deeply on what I can do to make Tanzanians become successful. If I came all the way from India and became successful in Tanzania, why can I not make Tanzanians successful?” enquired Mr Gupta as he put his message across about 100 participants at the UDSM’s Business School.
Kamal Group will make it easy for at least 100 entrepreneurs to own small scale cashew processing factorie The idea sought to equip the students with the practical knowledge of running businesses.
“Tanzania has lots of opportunities and the business climate is good. Entrepreneurship has been the only missing link which we are now here to offer…. “The university will give you knowledge but we are here to show you how to run a factory so those of you, who will join the project will be like my students,” he said.
The project is developed in such a way that Kamal strikes a partnership deal with a commercial bank whereby the steel manufacturer will furnish up to 100 entrepreneurs with all that they need to start 100 cashew nut processing factories.
The entrepreneurs will be furnished with land, equipment, water and electricity for conducting the processing. An entrepreneur needs to have as seed capital of 16.92m/- and the task of seeking the international market for the processed cashew nuts would be taken by the company.
“Kamal has all the responsibilities of introducing the processed cashew nut to international packaging. The entrepreneur has no any challenge for procurement and selling. It is the opportunity to learn and earn for the entrepreneur as Kamal does all the other responsibilities,” Mr Gupta said.
The 16.92m/- will be equal to 20 per cent of the 84.6m/- in machinery, land and building costs that each entrepreneur is required to have to set up a small scale processing factory. The remaining 67.68m/-, which is equivalent to 80 per cent of the factory costs, will be financed through a bank loan.
“This was deliberately designed to ensure that an entrepreneur gets the pain and the desire to yield return on that investment,” Mr Gupta said.
The project is designed in such a way that instead of graduates to scout for job, they actually create employment since a min-plant can employ between 20 and 25 workers. In return, each of the entrepreneurs will be able to make up to 37.8m/- each year in profit from the cashew nut processing business after deducting operation costs.
The amount in profits will go up to over 60m/- per year after completion of payment of the bank loan in a period in not more than three years.
Some participants hailed the initiative, saying it was a sure response to Tanzania’s industrialisation needs.
“This can surely help us to own factories. Through this initiative, banks will no longer be thwarting our factory ownership dreams to a lack of collaterals because Kamal will do that on our behalf,” said Ms Elizabeth Munisi, a second year student. And Kusiluka Justis, who completed his studies last year, said, through the initiative, Kamal will also be responsible for the market needs of entrepreneurs.
“It is really good and we need to grab the chance,” he said.