DRAFT

DRAFT

Business Plan
Centuries Cocoa Products

January 2018
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Page
Environmental Analysis 03
Industry Overview 10
Company Background 17
Marketing Strategy 29
Project Overview 34
Human Resource Plan 38
Project Risk Analysis 43
Financial Plan 45
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Environmental
Analysis
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Republic of Ghana
Capital: Accra

Population 28.20 million

Area 238,533 sq. km
Climate Tropical
Major languages English,
African languages including Akan, Ga
and Ewe

Major religions Christianity,

Indigenous beliefs, Islam

Life expectancy 64 years

(men), 66 years (women)
Currency Cedi Source: UN, World Bank Country Profile

Ghana has had a stable political environment since 1992. The country has made appreciable progress in
institutionalizing multiparty democratic governance within the framework of the 1992 constitution. This
followed a period of military interventions after gaining independence in 1957. Attempts were made by
previous regimes to initiate multiparty democracy but was subjected to several military interruptions.
Since 1992, there have been smooth transitions of power from one democratically elected government to the
other. The National Democratic Congress (NDC) was in power from 1992 to 1999, led by Jerry J. Rawlings
and the New Patriotic Party (NPP) led by John A Kuffour was in power from 2000 to 2008. The NDC took over
power again in 2009 and retained it in the 2012 election. In the recent general elections held in December
2016, the NPP took over power from the NDC.
In comparison to the situation in the other West African countries, and even across the entire continent, the
political environment in Ghana can be considered peaceful and significantly stable. The peaceful atmosphere
has led to the influx of a number of businesses in the past. More recently, the successful resolution to the
main opposition party’ challenge of 2012 election results as well as the peaceful 2016 election and change of
government has further reinforced Ghana’s already strong democratic credentials.
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Economic Overview
2014 marked a difficult year for the Ghanaian Macro-Economy. Burdened by a number of growth
impediments including a protracted energy crisis, weak currency and large fiscal deficit, Government
activity over 2015 was thus centered on obtaining inclusive growth, value addition and diversification
through the pursuit of prudent macroeconomic and financial measures.
After obtaining support from the International Monetary Fund (IMF) to provide technical assistance and
Balance of Payments support for the next three years, the outlook for the economy is much brighter.
The fact that Ghana has so far successfully met all performance criteria under the three-year Extended
Credit Facility (ECF) with the IMF provides evidence that tough fiscal consolidation measures initiated over
2015 are yielding positive results and generates some level of confidence in the ruling government’s ability
to manage the economy going forward.
In addition, the emerging oil sector with its associated export and fiscal revenues is likely to further reduce
the risks of macroeconomic instability and provide a substantial boost to growth over the long term.
Gross Domestic Product
The commencement of oil production in December 2010 led to Ghana recording one of the highest growth
rates in the world in 2011 (14.1%).
Since 2011 however, growth has been declining steadily. From 14% in 2011, GDP growth fell to 9.3% in
2012 before dropping to 7.3% in 2013. Real GDP growth further dropped sharply to 4% in 2014, before
decreasing marginally to 3.9% in 2015. According to the supplementary budget, expected GDP growth for
2016 is 4.1%. As at the end of 2016, GDP growth was revised at 3.7%. GDP growth for 2017 is estimated
at 7.9 as a result of the boost in oil production, following delayed Jubilee FPSO Turret Remediation Project,
which would now start in 2018.

GDP Growth rate %

9 7.9
8 7.3
7
6
5 4
%

3.8 3.7
4
3
2
1
0
2013 2014 2015 2016 2017

Source: GOG Budget Statements

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Total value of GDP (in current prices) for 2017 stood The year-on-year growth rates of the various
at GH¢204,078 million. sectors for the 3rd quarter of 2017 shows that
the Industry sector recorded the highest growth
BMI International forecast a steady growth in GDP
of 16.6%; the Agriculture sector followed with
levels over the medium to long term as policies
10.0% and Services with 5.7%.
aimed at increasing oil production, improving
electricity generation and diminishing deficits take
effect. 2017 Q3 SECTOR BREAKDOWN
GDP at current prices
250.00
204.08 Agriculture
23%
200.00
167.35
GH¢ Billion

150.00 136.96 Service

113.34 53% Industry
93.42 24%
100.00

50.00

-
2013 2014 2015 2016 2017

Source: 2018 GOG Budget Statement

Source: GSS & 2018 GOG Budget Statements
Sector Breakdown
The three broad economic sectors which contribute
to Ghana’s Gross Domestic Product (GDP) are the
agricultural, industrial and services sectors. The
agricultural sector which for long had dominated
economic activity has given way to the services
sector after the rebasing of the national accounts
series from 1993 base year to 2006 by the Ghana
Statistical Service (GSS) in November 2010.
According to the 2018 Budget Statement, the
sub-sectors that recorded double-digit positive
growth rates are Fishing (57.0%), Mining &
Quarrying (40.8%), Health and Social Work
(24.0%), Water and Sewerage (21.5%),
Electricity (15.3%), Education (14.4%), Public
Administration, Defence & Social Security
(13.0%) and Information & Communication
(10.7%).

In the third quarter of 2017, the services sector

overall output is estimated at 55.9%, a marginal
decline from 56.8% in 2016. The Industry sector is
estimated at 25.6% an increase from 24.3% in
2016, the Agriculture sector is estimated at 18.5%,
compared with 18.9% recorded in 2016.
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Sectoral Growth Rates Agriculture Sector
20
Growth 2013 2014 2015 2016 2017 2018 P
15 Performance
%

10
Crops 5.9 5.7 2.5 2.5 4.3 4.5
5
o.w Cocoa 2.6 4.3 -8 -7 3 4.2
0
-5 Livestock 5.3 5.3 5.3 5.3 5.3 5.5
2013 2014 2015 2016 2017 2018 P
Forestry & Logging 4.6 3.8 1.4 2.5 3.9 3.9
AGRICULTURE INDUSTRY SERVICE

Fishing 5.7 -5.6 4.3 5.7 3.5 4

Source: 2018 GOG Budget Statements

Source: GSS & 2018 GOG Budget Statements

The diagram above highlights broad sectorial growth
rates whilst the tables below provides detail of the
Agricultural sub-sectors contribution to GDP
Agriculture Sub-
Sector- GH¢ 2013 2014 2015 2016
million
Crops
15,742 18,144 20,168 22,618 26,582 30,447
o.w Cocoa
1,981 2,409 2,370 2,615 2,950
Livestock
1,223 1,318 1,558 1,832 2,173
Forestry &
Logging 2,019 2,537 2,925 3,322 3,938
Fishing
1,249 1,279 1,483 1,793 2,081
Source: GSS & 2018 GOG Budget Statements
The Crops subsector grew from roughly GH¢15.7
million in 2013 to GH¢26.6 million as at the end of
2017 and a projected growth of GH¢30.4 million,
highlighting the relatively large weight the sub-
sector’s contribution to GDP.
Cocoa in particular increased its contribution to
GDP rising from GH¢1.9 in 2013 to a projected
GH¢3.4 million at the end of 2018.
Growth in the sub sector however has been
uneven, which has been attributed primarily to
the erratic nature of government support.
2017 2018 P
For instance, Government intervention
programmes such as the mass-spraying,
distribution of subsidised fertiliser as well as
free distribution of improved cocoa seedlings
3,365
were not implemented consistently over the
2,517
past 5 years, defeating the purpose of the
interventions.
4,477
Given the perception that demand for cocoa is
likely to increase in future years and also taking
2,507
into account the position of Ghana’s cocoa
sector at the global level, the Government has
pledged to support various initiatives being
undertaken by Ghana Cocoa Board (COCOBOD)
to assist farmers and revive production.
The Minister of Finance indicated that the
measures being supported included sustained
good agronomic practices, increased use of
fertiliser and other interventions for the
intensification of cocoa production.
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Exchange Rate
• The Bank of Ghana’s prime rate was 13.5% in
• The cedi has depreciated against all the major trading December 2010, before reducing to 12.5% by
currencies such as the dollar, pound and euro over the end of 2011. Since then, it increased
the past five years (2011-2015). consistently over the period 2012 to 2015,
ending 2015 with a rate of 26%. It reduced to
• The mid-year budget review indicated that the cedi 25.5% in 2016.
recovered much of its value against the dollar
between January and April 2016. This provides some • The Monetary Policy Rate has been reduced by
assurances to businesses going forward that the 550 basis points (or 5.5%) from the beginning of
sharp decline experienced in recent years, which the year to November 2017 to 20%. The
caused significant increases in input costs, is being reduction is as a result of gradual improvement
stabilised gradually in the macroeconomic fundamentals, exchange
rate stability, easing inflation pressures, and
• As at August, 2016, the Bank of Ghana (“BOG”) improved sentiments. It is expected that banks
monetary database reported rates of the dollar, euro will continue tinkering around their lending rates
and pound to the Cedi of GH¢3.94, GH¢4.41 and downwards.
GH¢5.26 respectively.
Inflation & Monetary Policy Rate
Inflation 30 26 25.5
• Ghana achieved single digit inflation in 2010 and 21 20
20 16
%
maintained it through to 2012. This was however
short lived as overall inflation levels increased 17 17.7
15.4
10 13.5 11.8
consistently from 2012 to 2014.
0
• As at December 2015, inflation was 17.7%. It further 2013 2014 2015 2016 2017
reduced to 15.4 in December 2016. The downward Inflation MPR
trend in inflation was mainly driven by exchange rate
stability, tight monetary policy and prudent fiscal
Source: GOG 2018 Budget Statements, BoG
consolidation policies.
Foreign Exchange Rates
• As at December 2017 inflation was 11.8%. 10.00

Interest Rate
%

5.00
• Lending rates are very responsive to the pattern of
the monetary policy rate as banks pass on increases -
to customers. Due to the relatively small balance 2013 2014 2015 2016 2017
sheet of Ghanaian banks, it is often difficult to obtain Euro € Dollar $ Pound £
significant credit locally. Most investors are therefore
forced to look to foreign banks for financing. Source: GOG 2018 Budget Statements, BOG Monetary Database
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Ghana’s reputation for political stability remains intact following the December 2012 elections, and the
nation is widely regarded as a safe place to do business.
Key economic indicators show a relatively stable condition, even though exchange rate fluctuations
threaten the gains made so far. Ghana is undergoing a multi-year economic boom, fueled by the burgeoning
oil and gas sector which is attracting a lot of foreign investment.
The current stable macro economic environment, combined with the inflow of foreign investors into the
country, lends credibility to (and ample reason to be optimistic about) the success potential of Ghana’s
numerous significant agricultural projects.
Looking ahead, we expect investment in Ghana to hold up over the medium term given the strong growth
outlook, favorable business environment and wealth of investment opportunities. The Government is
seeking to broaden and deepen private sector investment in agriculture.
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DRAFT

Industry
Overview
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Ghanaian Cocoa Industry

Ghana was until the 1970s the leading world producer of cocoa. According to the Institute of Statistical, Social
and Economic Research, Cocoa was the highest foreign exchange earner for Ghana, contributing as much as
45% of total foreign exchange in the 1960s.

In the 1990s, cocoa’s share of the country’s total export earnings averaged about 35% annually. As at 2015, the
annual percentage share has dropped to about 27%, yet, it remains the most important economic crop for the
nation.

It has been estimated that up to three (3) million people in Ghana are directly and indirect employed by the
cocoa industry, making the commodity an instrumental vehicle for lowering poverty incidence in the cocoa
growing areas and providing employment for a fairly wide range of skilled and unskilled labour.
The cocoa year in Ghana is divided into two distinct periods, with the main season made up of the 33 weeks
between October and June, and the lighter, mid-crop season during the shorter summer months. The mid-crop
season generally accounts for 15% to 20% of the total annual harvest.

The six main cocoa growing regions in Ghana are the Ashanti, Brong-Ahafo, Eastern, Volta, Central and
Western Regions. The Western Region, bordering Côte d’Ivoire, is responsible for more than half of overall
national cocoa output, with production dominated across Ghana by small family-run farms on plots of less than
3 hectares.

• Cocoa
Growing
Location

Source: Oxford Business Group Cocoa Sector Report

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Ghanaian Cocoa Industry

The structure of the cocoa sector was prior to reform process characterised by complete monopoly. The
market was in the hands of the government which through the CMB (Cocoa Marketing Board) was the only
authorised domestic buyer and exporter of cocoa.

The CMB carried out its activities through its subsidiaries the PBC and the CMC. In addition, its subsidiary the
Quality Control Division (QCD) was responsible for controlling the cocoa quality

The first phase of reform was initiated in 1984/85 and focused on restructuring the CMB. The CMB was made
more streamlined by a reduction of the amount of staff from around and by a cut- down on overlaps in the
organisation. The many operational and institutional changes of the CMB led to it changing its name to Ghana
Cocoa Board (COCOBOD). The second phase, which was implemented in 1993, consisted of a re-introduction
of the multiple buying system and implied that private LBCs were once again allowed to operate on the
domestic market together with the PBC.

The objective of the liberalisation reform was to introduce competition on the internal market and improve the
chain with regard to its operational and financial performance as well as open up for the possibility of paying
higher competitive producer prices.
The cocoa sector, as it is organized today is portrayed in the diagram below. The main players are farmers,
LBCs and COCOBOD. In addition, various government and business groups providing extensions and inputs to
farmers as well as bank and credit facilitators are important actors on the market. Hence the cocoa sector
consists of a chain of economic activities related to production, transportation, quality control and marketing of
cocoa
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Key Participants in Industry

Key Participants Impact

The Ministry of Finance and Economic Oversees Ghana’s economic policies and programs the
Planning national budget and resource allocation

Ghana Cocoa Board (COCOBOD) and Implements government policies and programmes on cocoa
subsidiaries and selected cash crops

License Buying Companies Internal marketing of cocoa purchasing cocoa directly from
the farmers and selling to statutory body

Cocoa Processing Companies Responsible for processing of cocoa

Cocoa Farmers On-farm production and pre-harvest/industrial processing

of cocoa

International Buyers/ Global Companies Creating demand for cocoa

Civil Society Organisations Promoting rights and corporate responsibilities

Research Institutions of Ghana (CRIG, Conducts research and development on the cocoa tree and
ISSER, RM&E) farming systems for innovations
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External Marketing of Cocoa

Ghana cocoa beans have long been known for their quality and depth of flavour. According to the International
Cocoa Organization (ICO) Ghana cocoa is richer in Theobromine and Flavonoids which have given the beans the
unique, mild and rounded flavor and as such the quality of Ghana cocoa beans have become the world’s
standard against which all cocoa is measured.

The International Cocoa Standards require cocoa of merchantable quality to be fermented, thoroughly dried,
free from smoky beans, abnormal or foreign odor and free from any evidence of adulteration. It must be
reasonably free from living insects, broken beans, fragments and pieces must be seasonably uniform in size.

Cocoa from Ghana continues to enjoy high premium on the World’s Commodities Markets because of its
unsurpassable high quality and the COCOBOD grading mechanism has done much to ensure it remains so.
Buyers of cocoa pay a premium ranging $50-$100 because of the high quality of the beans. Quality control of
cocoa beans is very rigorous. The high quality of Ghana cocoa beans has been diligently maintained over the
years, through the effective quality control practices and monitoring at the time of purchase by the Quality
Control Division (QCD) of COCOBOD.

As part of their responsibility the Quality Control Division undertakes fumigation and disinfection of beans to
ensure that only insect free cocoa beans are exported; rodent control is also carried out in all cocoa storage
premises to prevent damage to the beans in storage; and inspection, grading and sealing of cocoa for the
international and local markets. Ghana cocoa is subjected to a minimum of three stages of quality inspection
prior to shipment. This gives added assurance and confidence to the customers to buy Ghana Cocoa at all
times. This confidence in Ghanaian Cocoa is reflected in the country’s export levels and earnings

Merchandise Exports

The value of merchandise exports for 2015 was US$ 10,357 million, a decrease of 21.6% compared to the
outturn in 2014.

Falling commodity prices on the international market adversely affected earnings from major exports, notably
oil and gold. Marginal increases were recorded however in the export of cocoa beans and timber while a
marginal decrease was registered in other exports.

The value of exports for cocoa beans and products decreased from US$2,828 million in 2012 to US$2,267.3
million in 2013. The sharp decline was attributed to a fall in prices.
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Developments in Balance of Payment-
2013 2014 2015 2016
US$ million
Current Account (5,704.0) (3,694.5) (2,808.3) (2832)
Merchandise Trade Balance (3,848.3) (1,383.4) (3,928.9) (1773)
Exports (f.o.b) 13,752 13,217 10,357 11,137
Cocoa Beans & Products 2,267 2,613 2,764 2,572
Gold 4,966 4,388 3,213 4,919
Timber & Timber Products 166 185 202 254
Crude Oil 3,885 3,725 1,931 1,345
Other Exports 2,468 2,306 2,247 2,046
Imports (f.o.b) (17,600.2) (14,600.2) (13,465.1) (12,910.2)
Non-Oil (14,049.8) (10,906.3) (11,418.3) (11,085)
Oil (3,550.5) (3,694.0) (2,046.7) (1,825)
Net Exports of Goods under
(820.5)
Merchanting
Source: Bank of Ghana 2015 Annual Report

In 2014 however, cocoa beans exports value increased to US$2,613 million, as a result of a growth in
prices due to strong demand and heavy commercial buying. The average price of cocoa also generally
trended upwards, rising to US$3,003 per tonne from US$2,484.4 in 2013.

Cocoa performed strongly with the market remaining bullish throughout 2015. The price rose to an
average of US$3,082 per tonne in 2015 from US$3,003 per tonne in 2014.

The rally in cocoa prices in 2015 stemmed from supply concerns in major cocoa growing regions.
Ghana’s traditional export earners are Gold and Cocoa Beans. As at the end of 2015, gold and cocoa beans
comprised approximately 31% and 27% of Ghana’s exports respectively.

In spite of a drop in cocoa bean exports figures in 2016, both cocoa production and prices are expected to
rise over the long term, coupled with an expectation for global demand to outgrow global supply amid
increased appetite from the emerging middleclass market. The cocoa market is expected to remain as
one of Ghana’s primary exports going forward.
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Analysis of Industry

Porter’s five forces model has been used to analyse the competitive intensity and the attractiveness of
healthcare industry to potential investors, and this is presented below.

Competitive Rivalry: Medium

Bargaining Power of Suppliers: Medium
•At the farm level, competition is high. Further
• The main suppliers to internal marketers are Bargaining Power of Suppliers along the value chain however, there are a
the cocoa farmers who have the option to sell
limited number of processors and secondary
to any LBC they choose
participants

Competitive Rivalry Threat of New Entrants

Bargaining Power of Customers

Threat of New Entrants: Medium

Bargaining Power of Customers: medium
• Establishing a cocoa farm is not particularly
• Cocoa customers are health conscious, capital intensive making it easy for new entrants
working class Ghanaians. They are not Threat of Substitutes to enter this market.
typically organized, but have a wide range of
• There are significant barriers to entry however
options for cocoa products to purchase. The
in the area of cocoa processing.
bargaining power is therefore medium
Threat of Substitutes: Low
• In terms of health and quality standards,
there a limited number of agricultural
products who can compete with cocoa
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Company
DRAFT

Background
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Overview
This business plan captures Centuries Cocoa Products Ghana ("Centuries") direction, objectives and
strategies to help achieve its vision of being the leading player in provision of cocoa products in Africa. It also
contains the grounds for the launch of the All Day Natural Cocoa Powder product for the local and
international market.
Background
Ghana was until the 1970s the leading world producer of cocoa. According to the Institute of Statistical,
Social and Economic Research, cocoa’s share of the country’s total export earnings averaged about 35%
annually in the 1990s.
As at 2015, the annual percentage share, dropped to about 27%, yet, Cocoa remains the most important
economic crop for the nation.
It has been estimated that up to three (3) million people in Ghana are directly and indirect employed by the
cocoa industry, making the commodity an instrumental vehicle for lowering poverty incidence in the cocoa
growing areas and providing employment for a fairly wide range of skilled and unskilled labour.
Almost all Ghanaians have tasted cocoa products before and natural cocoa powder is no different. These
individuals have used cocoa powder for different purposes like home pastries and as a beverage.
Against this backdrop, Centuries Cocoa Products plan to strategically introduce ‘All Day Natural Cocoa
Powder ’. A natural cocoa powder for sale on both the local and international market.
Corporate Objectives

Mission

To produce natural cocoa products to satisfy the

health needs of customers

Vision
To be a leading player in providing quality and
affordable cocoa products across Africa and the
world”
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The company aims to operate as a pacesetter, Ing. Benjamin Nathaniel
providing quality and affordable cocoa products Amponsah Dora King Allotey-
across Africa. Fordjuor Annan
To achieve its Mission & Vision, Centuries have
identified the following keys to success:

Offering quality and affordable

1 products. 72% 20% 8%

Reliable and timely deliveries of Board of Directors

2 products
3 Develop a team that is capable of
delivering quality consumer service
Engaged professional team with in
4 depth knowledge to deliver our
brands of products to the
unreached consumer
Employing creative and innovative
5 marketing to strengthen market
presence
Centuries has a five -member board of directors
which consists of a Chairman and four other
members, including the Deputy Managing Director
and a Board Secretary.
The board is responsible for proper management of
the Company, including determining corporate
objectives as well as formulating and reviewing
operational and financial policies and strategies.
The combined professional backgrounds of Centuries
Cocoa board members encompass a broad spectrum
of specialties that will help the Company to execute
its vision and mission, including expertise in
business, management, plant engineering, logistics,
banking, and property security

Shareholding Structure Composition of Board of Directors

Name Position
Centuries Cocoa is owned by two individuals. The
majority shareholder, Ing. Benjamin Amponsah Ing. Benjamin Amponsah Fordjour Chairman
Fordjour, owns 72% of the Company, whilst Miss
Dora King owns 20% and 8% of the shares is Prof. Emmanuel Ohene Afoakwa Managing Director
owned by Nathaniel Allotey-Annan. Deputy Managing
Ing. James Acquah Danso
Director
The chart to the right reflects Centuries current
shareholding structure. Nathaniel Allotey-Annan Director Finance
Director Corporate
Col. Comfort Ankoma-Danso
Affairs
Dora King Company Secretary
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Board Profiles

Ing. Benjamin Amponsah Fordjour

Chairman

Mr. Fordjour is Centuries Cocoa founder and Chair. He holds a City and Guilds Certificate for
General Course in Engineering, specializing in Electrical Installation as well as an MBA Social
Entrepreneur from the Catholic University of the Sacred Heart in Italy.

He possesses 28 years experience as a marketing practitioner and has established and

managed about 5 entities from 1988 till date.

Mr. Fordjour brings the following key skills to the Centuries Board- Business
Management and Administration, Project Planning, Marketing and Export management.

Prof. Emmanuel Ohene Afoakwa

Managing Director

Prof. Afoakwa is the Managing Director for Centuries. He is a Professor & Head of Nutrition
and Food Science Department of University of Ghana, Legon. He holds Doctorate degree in
Nutrition and Food Science.

Prof. Afoakwa key role is to develop cocoa and chocolate products, food safety and
regulatory management , compliance of international standard for food, research and
development of new products, selection and training of nutrition and food scientist for
the project. He is also a board member.
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Board Profiles

Ing. James Acquah Danso

Deputy Managing
Director
Mr. Danso is the Deputy Managing Director for Centuries. He holds a City and Guilds
Certificate for General Course in Engineering, as well as a Mechanical Engineering Higher
National Diploma (HND) from the Kwame Nkrumah University of Science and Technology
Kumasi.

He possesses 31 years experience, holding a variety of roles such as Production Manager and
Chief Engineer with Cocoa Processing Company Limited

Mr. Danso brings the following key skills to the Centuries Board- Business
Management and Administration, Operations, Production and Plant Engineering
Management.

Nathaniel Allotey-Annan

Director of Finance

Mr. Allotey-Annan is Centuries Cocoa Director of Finance. He holds a Certificate in Banking

and Finance from the National Banking College in Accra. He possesses 39 years as a
Professional Banker of GCB Bank Limited Accra Ghana.

Mr. Allotey Annan brings the following key skills to the Centuries Board- Banking &
Finance, Funds Management, Financial Control, Monitoring and Evaluation of cash
inflow & outflow, salaries of staff.
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Board Profiles

Col (RTD) Comfort Boatemah Ankoma-Danso

Director Corporate Affairs/ Human
Resource
Ms. Ankoma-Danso is Centuries Cocoa Director of Corporate Affairs. She has a Bachelors of
Arts Degree from the University of Cape Coast. She also has 28 years experience as a
commissioned officer of the Ghana Armed Forces and was Director for Public Affairs of the
Ministry of Defense.

Ms Ankoma-Danso brings the following key skills to the Centuries Board- Corporate
Affairs, Human Resource Development and Management, Property management,
security and Safety Management.

Dora King

Company Secretary/Director

Ms. King is the Company Secretary. She holds a DIP in Information and Communication
Technology and possesses 16 years experience in the areas of office administration and
management as well as data handling,

Ms.King brings the following key skills to the Centuries Board- ICT & Data
Management, Stock Administration. Word processing and office staff management
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Based on existing information made available, the company’s project’s strengths, weaknesses,
opportunities and threats. Below is a summary of the assessment.

Strengths Weaknesses

• Strong team of directors with varied useful • Initial investment into expanding the company
experience is large.
• Directors of Centuries have good social
standing in Ghana
• Centuries Cocoa Festival has documented
success of generating interest in cocoa
related products, providing a good marketing
platform for Centuries products.

Opportunities Threats

• Opportunity to market cocoa powder • Existing Inflationary trends could adversely

internationally to satisfy demand impact input costs associated with
• Existing willingness to pay for Centuries production.
products amongst local retailers and • Lack of funding could derail the company’s
international buyers progress
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DRAFT
• Centuries Cocoa Products Ghana Limited is a member of
Centuries Development Group (GH) Limited

• The prime objectives of the company are:

• Manufacturers of Cocoa Products

• Operators and managers of cocoa vendor shops and
commercial showrooms.
• Operators of cocoa mobile vendor vans.
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Centuries Development Group (GH) Limited
Centuries Cocoa Products Ghana Limited forms part of the Centuries Development Group. The Group was
strategically incorporated to encompass activity across various value chains. Highlighted below are brief
profiles of each subsidiary

Magena Trade and Commerce Limited

Magena Trade and Commerce Limited established in 1988 as a professional marketing and
transport development company to promote transporting of logistics and corporate staff ,
commercial marketing of made in Ghana innovative products.

Centuries Speciality Paper Industries Limited

Centuries Speciality Paper Industries Limited established in 2008 to manufacture graded and
branded paper disposable cups for cocoa consumption programme and export, toilet and
pocket tissues, specialize paper bags for powdered products packaging materials for
agricultural produce and nursing of seeds.

Centuries Industrial Company Limited

Centuries Industrial Company Limited established in 1990 to manufacture carton boxes, pulp
and paper products, exercise books, paper converting, etc.

Centuries International Cocoa Chocolate Festival

Organization

Centuries International Cocoa Chocolate Festival Organization established in 2009 to create and
develop the concept for the nation wide natural cocoa beverage consumption and products
promotion, research and source for buyers and traders for micro marketing of cocoa beverage
consumption and finished products
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Operational Analysis

Business Flow
BisaWorld’s business flow involves seven primary
elements which are captured in the diagram below.
The diagram highlights the reliance of each stage of
the process on the others, such that a defect or
mistake in one stage of the process could easily
affect the other stages and bring the process to a
halt.
Cocoa received
Sorting Processing
from farm
• Packaging: Packaging will be done in 200-
gram and 400-gram aluminum foils sachets,
after which they are labelled and packed in
boxes.
• Weighing: The packaged products are
weighed to ensure the right quantities are
obtained before the boxes are sealed.
• Storage: The finished products are kept in
Centuries finished goods warehouse for
dispatch.
• Dispatch: Centuries works with distributors
who pick up the product from the factory.

Storage in
Packaging Weighing finished goods
warehouse

Dispatch

• Cocoa received from farm: Centuries is in

partnership with both Cocoa Processing Company
and Cargill. These companies will be responsible
for receipt of produce and working with farmers
across Ghana.
• Sorting: This is done at the factory of Centuries
Strategic Partners. The cocoa is carefully
inspected to ensure they are pest free, disease
free and free from foreign materials. The bad ones
are rejected and discarded.
• Processing: Processing into cocoa powder will be
carried out at Cocoa Processing and Cargill
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Internal Controls

Overview

Centuries internal control structures are critical to its operational performance, protecting the Company’s
resources from fraud, suspicious transactions and mismanagement, and ensuring its compliance with laws,
regulations, and its own internal policies. The control environment is composed of the following:

• a board of directors that is committed to sound corporate governance;

• a management team that manages in a sound and prudent way;
• Procedural controls supported by effective training and clear communication between management and
staff; and
• an independent quality control mechanism to monitor the effectiveness of
the procedures in place.

Key Internal Control Structures

The key internal control structures that Centuries has established include, among other things, the following:

1. Governance

The Company’s overall business is governed by its board of directors, with the support of management. The
board is responsible for promoting high standards of integrity and ethics, and for fostering a culture within the
organisation that emphasises and demonstrates to all levels of personnel the importance of internal controls.
The board ultimately is responsible for ensuring that an excellent and effective system of internal controls is
established and maintained.

The management team is responsible for implementing strategies and policies approved by the board;
developing processes that identify, measure, monitor and control risks incurred by the Company; and
maintaining an organisational structure that clearly assigns responsibility, authority and reporting relationships.

2. Quality Control Activities

Quality control activities are instituted at various levels within the packaging and distribution levels to ensure
that Centuries All Day products are of the highest quality and are safe for consumption. For example, the
Company has instituted procedures that ensure product safety is addressed through the analysis and control
of biological, chemical and physical hazards.
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DRAFT

Marketing Strategy
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Marketing Strategy

Centuries has adopted strategies to sell on both the local and the international markets. The Company
also intends to explore other opportunities to increase its market share and boost exports.
Strategy in the Local Market

Centuries’ local market is categorized into three(3) entities namely individual customers, industries and
the commercial cocoa products traders as micro retailers.

Individual customers: Almost all Ghanaians have tasted cocoa products before and natural cocoa powder
is no different. These individuals have used cocoa powder for different purposes like home pastries and
as a beverage but, only few individuals know about the health benefits of the cocoa powder.

Centuries Cocoa Products Ghana is going for individuals who want to live healthy life and longevity and
also prevent ailments and diseases by drinking natural cocoa powder all day
Industries: These industries include the beverage companies, Cosmetics Company and baking
companies have a ready market there for our brand of raw material (cocoa powder) as their priority .

Their demand is also all year round which will help balance the irregular request of the individuals, there
will also be a long term contract to help in the stability of our relationship.

Commercial Cocoa Products Traders :The members of this association will each operate and own a
commercial registered enterprise to sell direct throughout the ten (10) regions to ensure individuals ,
secondary schools and other tertiary and corporate institutions in the district capitals buy direct at
source . Magena Trade and Commerce will supply exclusively our brands to the members at the
Regional capitals.

For the past year, there have been campaigns in 16 Metropolitan, Municipal And District Assemblies
(MMDAs) in the Greater Accra Region after which 16 micro trading depots will be opened as
permanent marketing units in each of the district.

The campaign will also continue to the major cities in the country namely, Kumasi, Takoradi and Tamale
with awareness talk and walking on the health benefits of natural cocoa powder beverage consumption
and products promotion.
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Distribution Channels

Distributors
Dispatched to trading depots
• Centuries will establish trading depots in the major regional cities
and districts of the country who will be supplied with its product in
bulk.

Whole sellers
Sold to micro retailers
• Centuries will establish 500 micro-retailers within the districts to
supply products to individuals and industries.

Sold to individuals
Individuals • Individuals shop at retail stores (e.g., supermarkets and shopping
malls), and purchase Centuries’ product.

Centuries International Cocoa Chocolate Festival Organization, a promotion and cocoa consumption
research and products marketing development company, will create and develop the product marketing
concept through a series of events and activities throughout the major cities in the regions of Ghana.

These activities are as follows:

• Marketing extensively through a series of events and activities.
• 21 day Cocoa Festival in the cocoa village within AMA administration
• 5 day cocoa festival at each of the 16MMDA’S slated to promote and market our brands of products
• Collaboration with Ghana Educational Service for a nationwide campaign cutting across all institutions.
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• Collaboration with Ghana Health Service to create and develop nationwide awareness on the health
benefits talk and walk for natural cocoa powder beverage consumption.
• Collaboration with the Nutrition and Food Technology Department of University of Ghana to organize
forums and create awareness on the Nutritional Value and benefits in both natural cocoa beverage
powder and chocolate on regular consumption in Ghana.
• Relationship with clients (developing loyal, consistent, health and satisfied clients).
• Develop an extraordinary annual products promotion programmes to reward loyal consumer and traders

Strategy for the International Market

Centuries intends to begin exporting All Day Natural Cocoa Powder by employing the following strategies:
Establish connections with the European Embassies here in Ghana to market our products.

• Establish agreements with leading super markets and restaurants in the West African sub-region and
European market to supply All Day Natural Cocoa Powder.
• Participate in international food fairs.
• Diversify its product to meet the needs of its international consumers (diversification could be in size,
packaging material etc.)
• Target the exportation of Cocoa powder to the European cocoa powder market.

The Value Chain

The diagram below shows the
Exports
4
steps Centuries with the
assistance of Cargill Ghana and
Cocoa Processing would follow to 3 • Exports to
produce safe and healthy cocoa Transportation the European
powder for the export market. market
2
Packhouse • Transportation
from packhouse to
1 the airport
Cocoa Processing • Packaging of
powder into plastic
jars and sachets
• Cleaning • Weighing
• Sorting & grading of
raw material
• Processing of raw
cocoa to powder.
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 Centuries Cocoa conducted a market survey to analyse the potential market size of powdered
cocoa in Ghana and the West African sub-region.

 The survey was conducted on 2,500 respondents, out of which 500 indicated that they would
readily retail Centuries Cocoa Powder.

 With regards to international export, a number of private companies in Korea and Dubai
expressed interest in purchasing All Day Cocoa These results indicate that a very high demand
for Ghanaian Cocoa Powder exists,

 Centuries Cocoa has a large potential market size if it positions itself to supply internationally

 International targets for All Day Cocoa Powder as well as target demand for countries
approached are outlined below

Country Targeted Demand

Korea At least 5000 metric tonnes of

product

Belgium At least 5000 metric tonnes of

product

Netherlands N/A

United Kingdom N/A

Estonia N/A
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 The management of Centuries have identified priority areas for the distribution and sale of the All
Day Cocoa products to the local market for the first year of operations.

 Centuries has targeted 16 Metropolitan, Municipal and District Assembly(MMDAs) within the
Greater Accra Region.

METROPOLITAN ASSEMBLIES
1. AMA (Accra Metropolitan Assembly) Capital, Accra
2. TEMA (Tema Metropolitan Assembly) Capital, Tema

MUNICIPAL ASSEMBLIES CAPITAL

3. Ga West Municipal, Capital Amasaman
4. Ledzokoko-Krowor Municipal, Capital Teshie – Nungua
5. Adentan Municipal, Capital Adentan
6. Ashiaman Municipal, Capital Ashiaman
7. La Nkwantanang- Madina Municipal, Capital Madina
8. Ga Central Municipal, Capital Sowutuom
9. Ga South Municipal, Capital Weija
10. La Dade - Kotopon Municipal, Capital La
11. Ga East Municipal, Capital Abokobi

DISTRICT ASSEMBLIES
12. Ada West, Capital Sege
13. Ada East, Capital Ada-Foah
14. Kpone – Kantamanso, Capital Kpone
15. Ningo – Prampram, Capital Prampram
16. Shai – Osudoku, Capital Dodowa
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DRAFT

Project
Overview
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Project Concept

Centuries Cocoa Product, Ghana Limited processes cocoa beans as raw materials into semi-finished and
finished cocoa products. The Company intends to pursue its goal and intends to embark on a number of
projects which are programed to be implemented in nine (9) phases spanning from 2016 to 2022.
This business plan however focuses on the first phase of activities of Centuries which is the production of
the two main types of natural cocoa powder with the brand name ‘All Day Natural Cocoa Powder’, for the
local market and export.
The company in partnership with Cargill Ghana Limited and Cocoa Processing intends to produce and supply
cocoa Powder for packaging into plastic jars and sachets for the local and export market.
Centuries Cocoa Products Ghana Limited will produce two main types of natural cocoa powder products for
the life span of the industry for local consumption and for export. These are:
• Alkalized natural Cocoa Powder in 45kg two ply paper bags and 25kg in paper cartons respectively.
• Non – alkalized natural cocoa powder pack in 400g and 200g plastic jars and sachets.

Processing for export and local market

Role of Cargill /Cocoa Processing Role of Centuries

Ghana Limited

Farms
Receiving Weighing Packaging Local
Cocoa &
beans
Export
from
farmers Storage in
Sorting Milling finished goods Market
warehouse

Cleaning Drying Marketing

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Key Drivers

Motivation
Centuries believes in sustainable agriculture, which is the production of food, plant or animal products using
farming techniques that protect the environment, public health, human communities, and animal welfare.
Some of the health benefits of natural cocoa products include; the prevention of stroke, hypertension,
diabetes T2, Cancers, Migraine, Cardiovascular diseases, Menstrual disorder, it also enhance the immune
system of the body and it is an energy booster to mention a few.
Company Challenges
Centuries is making solid strides toward attaining its corporate objectives, although the Company continues
to face challenges. Some of these challenges are listed in the table below.

Bottleneck Impact

Inadequate supply of Low yield by farmers due to poor farming practices and rain fed farming causes shortages
cocoa for processing of cocoa, especially in the lean season. As a result, Centuries will be unable to purchase
adequate amounts of cocoa for processing. This reduces productivity and the Company
produces at a loss due to high operating costs and because it is unable to take advantage
of economies of scale.

High prices of cocoa Due to the shortage of cocoa from farms. This increases the input cost for the Company.

Power Fluctuations Power fluctuation has a highly negative impact on production. The power fluctuations
present inefficiencies in the form of an inadequate power supply and low productivity
during power outages.

Inefficient machines Centuries has in adequate machines and packaging materials, which prevents production
and packaging in large volumes.
materials

Centuries is confident that with the right capital injection, the Company’s production system will improve
significantly and will enable it to attain and consolidate a commanding commercial market advantage.

Social Impact
Enhance cocoa
businesses in
the community
Raise the
standard of
living in the
vicinity
Good
accounting
practices by
SME
Annual corporate social responsibilities
in Ghana
-To Sponsor Wasa of the Ghana Armed Forces and other
events of Government security services agents.
-The annual festival of arts and culture of Ghana Education
service
-The annual health programmes of Ghana health Service .
-To participate and organize joint programmes with all major
hospitals , orphan homes, traditional festivals as a benefit
within the regions and district capitals for individuals to
understand the need to promote sales and marketing of
made in Ghana cocoa brands, promote and organize good
health walk clubs, create health benefit awareness for all day
cocoa consumption, develop and implement a strategy to set
up and register marketing outlets and search for retailers
during programme of activities .
-To jointly organize annual nutrition and health benefit
seminar
DRAFT
Employment
Provide
assistance to
young
entrepreneurs
Poverty Alleviation:
Develop and Train SME owners
-Centuries are registration ongoing 3,500 Ghanaian
entrepreneurs for each to own operate one registered (1)
(SME ) small and medium enterprise with one (1) brand new
two to 4 bowl beverage vendor machine (coffee machine) to
dispense cocoa beverage in schools, hospitals and the premises
of corporate organizations and strategic places of Accra and
Tema cities and other MMDA’S within the districts of Ghana as
job creation .
SMALL AND MEDIUM ENTERPRISE (SME’S) ACCOUNTS:
-Centuries finance and banking division will ensure all SME
owners open and operate regular accounts with our bankers
GCB Bank Limited to enable our marketing team deliver supply
of branded “ALL DAY COCOA AND CHOCOLATE PRODUCTS”
including graded and branded paper disposable cups to their
shops.
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DRAFT

Human
Resource
Plan
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Organisational Structure

BOD
Co Sec. / Director
ICT /Bilingual
CEO / MD Office Secretary
Admin, Planning
ICT Data & Stock
Marketing
DMD
Production / OPS Eng.

DIRECTOR HR/CORP. DIRECTOR FINANCE

AFFAIRS ACCOUNTS
Security, Corp Affairs, Monitoring &
(1) Office Secretary Human Resource Evaluation
(1)
QC Manager Management
Sales Promotion
Account Accounts Officer
Supervisor (1) (1) Officer
QC Officer Transport
Procurement / General
Officer (1)
Service Sales & Marketing Manager
Purchase & (1)
Supply Messenger/ Security
Staff / Cleaner Mechanic Regional Sales Sales Promotion Nationwide Distribution
Staff
Drivers (1) Deputy
(2) Staff Assistant Assistant
(2) (1) Supervisor (1) (1)
Supervisor Supervisor
(1)
Sales & Sales & Distribution Staff
Marketing Staff Promotion Staff (5) (4)

(3)

The design of the proposed organisational structure for Centuries takes into consideration the need for the
structure to be:
 relatively flat to eliminate positions that could be considered superfluous;

 efficient and cost effective; and

 sufficient to support the operations of the Company most effectively.

In this regard, all key services and operational departments which are characteristic of a well-managed and
efficient agro-processing company will be provided to facilitate the discharge of the operational and financial
control functions.
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Board, Management and Personnel

Board of Directors
Centuries is currently governed by a five-member board of directors which consists of a chairman and three
other members (one of whom serves as the secretary to the board). The board members have been chosen on
the basis of professional experience in the corporate setup, and success in managing their own business affairs
as well as in handling international assignments and duties.

Board Meetings
The board will meet quarterly to review the operational and financial decisions and direction of the Company. In
its sittings, the board will review, among other things, the following documents:
 Operations Report;

 Performance Review Report; and

 Budget Analysis Report.

In addition to its quarterly sittings, the board’s members also will adopt technological means of communicating
to deliberate on important and time-sensitive issues as and when they arise. This will enhance the speed and
efficiency of critical decision-making.

Management
Centuries is managed by a team of highly experienced management personnel, and this is expected to continue
going forward. Some of these personnel have been involved with the agro-processing industry for several years,
and in various capacities.
To maintain a high standard of job proficiency, management will institute a continuous training programme for all
employees to keep them abreast of the dynamics and best practices of the industry.
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Recruitment Plan
Centuries has drawn up a plan to recruit qualified and experienced staff to fill the positions that are critical
for operational success. The recruitment plan, which will be implemented over the next four years of
operations, is reflected in the adjacent table. The number of personnel is expected to change when the
business expands.

Actual selection will be based on interviews with applicants. This will be to ascertain whether they have the
knowledge and experience required for the positions they seek to occupy.
Measures will be instituted to ensure work satisfaction and employee retention. The Company will provide a
healthy and safe working environment that is conducive to, and encourages, efficient on-the-job delivery.

The Company will outsource its marketing function to the Ghana Institute of Management and Public
Accounts (GIMPA. A team of 35, including one supervisor would be made available to exclusively market
Centuries Cocoa products across all 10 regions

Centuries will also provide staff with continuous training to keep its employees abreast of changes in the
agro-processing industry, while ensuring that staff remuneration is highly competitive by industry standards.

. YEAR 1 YEAR 2
CEO/ Managing Director 1 1
Deputy Managing Director 1 1
Company Secretary/Director 1 1
Director Finance 1 1
Director HR/Corp Affairs 1 1
Manager Sales and marketing management / business Admin 1 1
Sales and Marketing Supervisor 1 1
Q/C Officer 1 1
Transport Officer 1 1
Office Secretaries 2 2
Quality control/ R&D administrative Manager 1 1
Assistant Supervisor 1 1
Procurement/General Services
Security Officer 1 1
Finance/Accounts Officers 2 2
Commercial Drivers 1 2
Cleaner/messenger 1 2
TOTAL 19 20
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Staff Training
As mentioned earlier, Centuries will invest in the growth and advancement of its employees in order to
boost their productivity. The Company will align its training programmes with those of leading organisations
in the industry. The training programmes that will be organised for its staff include:

Training for factory personnel:

• Food safety and food quality
• Hazard Analysis Critical Control Point (HACCP)
• Pack House operations
• Good personal hygiene
• Traceability
• Health and environmental risk management
• Use of Company software (technical, financial and operational)

Conclusion
Due to the dynamics of the agro-processing industry and its associated risks, Centuries has assembled a
team of highly competent, accomplished, and experienced professionals to make policy decisions on its
operations. Employees will be hired based on a careful analysis of their background, qualifications,
professional experience and other personal characteristics required to operate successfully in such an
environment. Centuries plans to recruit and hire additional qualified and competent personnel as its scale of
operations increases.
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DRAFT

Project Risk
Analysis

Project Risks and Mitigation
Risk Description Rating
 Political instability –
this relates to the
possibility of political
unrest in the country
Political Risk that may interrupt Low
the project,
compromise
operations, and/or
impact cash flow.
Environmental  Risk from operations
Low
Risk in the community
 Interest rate
fluctuation – this may
result primarily from Medium
changes in the prime
rate.
 Exchange rate
fluctuation – this risk
may occur as a result
of the high demand
Financial Risks
for international High
currencies resulting
in the gradual
depreciation of the
domestic currency.
 Inflation – this may
arise due to a general
increase in the prices High
of materials needed
for the processing
Impact
The risk of any political unrest is
low. Ghana has traversed a
number of general elections and
it is seen as a stable
democracy.
The processing and packaging of
powdered cocoa is very simple,
and waste from its production
has no negative impact on the
environment.
Changes in interest rates will
result in an increase in interest
expenses.
The domestic currency has
seen a downward trend against
the major international
currencies. This is expected to
have a significant impact in
terms of exchange losses.
Increases in the prices of
processing inputs have the
effect of inflating production
costs. This could affect the
project’s funding, and impact its
viability.
DRAFT
Mitigation Measures
• Even though the risk of
political instability is low,
appropriate insurance
measures will be
undertaken to provide
cover.
• Packaging materials used will
be recyclable
• If it incurs debt, the
Company will negotiate for
a fixed interest debt facility
to mitigate any changes in
interest rates.
• The Company also will
engage in exports to ensure
inflow of the dollar to help
reduce the impact of
exchange losses on its
operations.
• Management will embark
on a cost saving approach to
purchase materials in bulk
and in advance.
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Project Risks and Mitigation

Risk Description Rating Impact Mitigation Measures

 Low demand of The risk of low demand for

• Though market risk is very low,
the Company will adopt and
powdered cocoa powdered cocoa is minimal as
execute an aggressive
in the local and Low cocoa powder can be used for
marketing strategy to increase
international diverse consumable products across
and consolidate its customer
markets. the globe.
base.

 Threat of new • The Company has a well-

entrants from established value chain, from
Market Risks well- farms to the end consumer, that
established, fast- New entrants, especially from well- promises its consumers very
moving established brands, could compete healthy and safe powdered
consumer goods Medium for market share and reduce the cocoa.
companies that
easily could add
Company’s customer base. • Setting up a production plant
with an established source of
powdered cocoa
raw materials is difficult to
to their product
achieve.
lines.
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DRAFT

Financial Plan
Overview
DRAFT
This section provides a brief analysis of revenues and costs. It also provides cash flow estimates for
Centuries over the first year of operations, where products are intended to be distributed and sold locally.
Analysis of Cost
Our analysis of cost is divided into two categories: initial investment cost and operating cost. Based on
estimates obtained by management, a total of GH¢8,000,000 will be sufficient for both initiating production
and managing day-to-day expenses over the first year.

Initial Investment Cost

The project’s initial investment cost pertains to total amount necessary for kick starting operations.
A breakdown of initial investment cost is highlighted in the table below.

Item Estimated cost Total Cost

Description GH¢
Vehicles 1,678,080
18%
Raw Materials & Packaging 3,000,000
Office Rent 456,000
Office Space 1,140,000
Dispenser Machine 267,840 82%
Total 6,541,920
Initial Investment cost Operating cost

Operating Cost
These comprise estimated costs for conducting day to day business activities. Total Operating costs were
estimated at roughly ¢1.5 million. Based on market research conducted and an appreciation of prevailing
conditions amongst industry participants, the following assumptions were made

Description Assumption (% of operating cost) Estimated cost

Administrative Expenses 15% 218,712
Staff Costs 25% 364,520
Utilities 30% 437,424
Marketing 30% 437,424
Total 100% 1,458,080
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Revenue
Centuries has targeted the local market for sales during its first phase. In the second phase where the
international market will be targeted an estimated 60,000mt worth of products will be exported annually
across Belgium, India, China and South Korea
The Centuries All Day Product will be marketed in 400g packages sold at a wholesale price of GH¢12. It is
anticipated that sales will grow quickly locally as Centuries markets the product intensely across all the ten
(10) regions. The 400g All Day Product will be made available in cartons, with 1 carton of the 400g product
containing 12 individual sachets, worth an estimated GH¢144.
Cost of Sales
Centuries will pay Cocoa Processing/ Cargill a fixed fee of GH¢12,000 per tonne of product processed.
The table below summarizes projected carton sale per region for the 400g All Day Product.

Region Cartons Sold Per Region Revenue per region (GHȻ)

Greater Accra 100,000 14,400,000
Upper East 10,000 1,440,000
Upper West 10,000 1,440,000
Ashanti 50,000 7,200,000
Eastern 30,000 4,320,000
Central 10,000 1,440,000
Brong- Ahafo 20,000 2,880,000
Western 20,000 2,880,000
Volta 5,000 720,000
Northern 10,000 1,440,000
Total 265,000 38,160,000

Cash Flow Projections

In projecting Centuries Cash flow position over the first year, the following assumptions were made
• Operational Expense of ¢8,000,000 will be sufficient for engaging only in local production for a year.
International sales were thus assumed to be zero.
• Accounts receivable are assumed to be 10% of sales
• A fixed fee of ¢12,000 is paid per tonne to Centuries suppliers
• Accounts Payable was assumed to be 10% of operational expenses
• Tax & Other Liabilities encompass 25% of Cash from Operations
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Cash Flow Projections (cont;d)

Forecasted Cashflow Statement

Direct Method GH¢

Annual Sales 38,160,000

Beginning Accounts Receivable 0

Ending Accounts Receivable (3,816,000)

Cash Receipts from Customers 34,344,000

Cash Payments to Suppliers (15,264,000)

Operational Expenses (8,000,000)

Accounts Payable 400,000

Net CF from operating activity 11,480,000

Tax Payments & Other Liabilities (2,870,000)

Net Cash Position 8,610,000

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Property of Centuries Cocoa Products Ghana