Business Plan for Project Karagwe
Executive Summary Company Overview Products & Services Industry & Marketplace Analysis Marketing Strategy Operations Strategy Development Strategy Management Team Financial Summary Offering Appendix A—Maps Appendix B—Schematic Diagram Appendix C—RE Enterprises Appendix D—Survey Description Appendix E—Board of Advisors Appendix F—Resumes of Founders Appendix G—Financial Statements
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Company Overview. Ambeeka Energy Solutions will empower the world’s underdeveloped communities through the application of solar and wind energy technologies. The company will become the world’s leading provider of renewable energy (RE) products and services, with projects potentially spanning all seven continents, by 2014. Industry & Marketplace Analysis. One third of the world’s population has no electricity. The majority of these people live in rural, remote areas of the world’s poorest nations. Global development is a multi-billion dollar industry, with the World Bank providing huge sums of money to fund large-scale projects. In the past ten years, global electricity demand has grown by 40%. During this time, the use of RE has expanded at ten times the rate of fossil fuels. Experts predict that the world’s electricity demand could triple by 2020, a colossal increase that will be fuelled by the industrialization of developing countries. As a specialty provider and integrator of RE systems designed for developing communities, Ambeeka will position itself to capitalize on this explosive trend. Ambeeka will establish its first project in Karagwe, Tanzania, which lies near the western shore of Lake Victoria, deep in sub-Saharan Africa. Products & Services. Ambeeka will introduce affordable electricity to Karagwe by offering attractive financing options for solar electric systems. This will enable families to make purchases in small monthly installments, in the same way that a consumer would buy an automobile in the United States. In addition, Ambeeka will construct a 15,000-watt solar/wind power station and community center, where services such as electric coffee processing, water pumping, refrigeration, computing, telecommunications access, and Internet browsing will be sold. This community center will also serve as a nucleus of education, where Karagwe residents will be exposed to a contagious spirit of entrepreneurship. The services provided here will enable, motivate, and educate people to start new businesses. In this way, Ambeeka’s presence in Karagwe will substantially boost the region’s economic prosperity. Marketing Strategy. Karagwe is a dispersed farming community of 350,000 people. The area is so remote that power lines may never be extended there, and only 2% of the population has electricity. Ambeeka’s target customer is a Karagwe family that earns about $700 per year. A basic solar electric system will be priced at $288, or $24 per month. Market research conducted in Karagwe strongly suggests that this price is feasible, despite the fact that it represents 45% of a typical family’s annual income. Currently, Karagwe families use crude and dangerous kerosene lamps to light their homes, and expensive dry-cell batteries to power their radios. A solar electric system is safer, more reliable, provides better lighting, and promises better value than the alternatives mentioned above. Construction of the power station and community center will advertise Ambeeka’s dedication to a sustainable, long-term presence within the community. Ambeeka has partnered with a local company called the Columbia Solar Electronics Workshop (CSEW). Working with CSEW, Ambeeka will sponsor informational forums to educate customers about the economic benefits of financing, the technology behind solar electricity, and the use of electricity in cultivating a prosperous economy. Operations and Development. In October 2000, Ambeeka will begin...
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