Republic of Botswana

Poverty Eradication
Guidelines
Implementation of Packages
2012

Contacts:
Office of the President: 3950805
Ministry of Agriculture: 3689339
Ministry of Labour and Home Affairs: 3912290
Ministry of Local Government: 3971916
Copyright, Government of Botswana Poverty Eradication Guidelines Ist Issue 2012
 Foreword
I t is now 45 years since Botswana
attained independence. At the time of
Independence, Botswana was classified
as one of the ten poorest countries in the
world, and is now classified as one of the
middle income countries. We have also
over the years managed to reduce the
level of poverty in the country. Statistics
show that people in the country living
below the poverty datum line have
reduced from 59 percent in 1985/86
to 30 percent in 2002/03. Based on
the statistics of 2010/11 statistics, 20.7
percent of people are living below the
poverty datum line.

In his Inaugural Address of 2009, His

Excellency the President of Botswana
identified Poverty Eradication as one of his Flagship Programmes. The coordination of
poverty eradication is now in the Office of the President headed by me and assisted by the
Minister for Presidential Affairs and Public Administration, Hon. M.E.K Masisi.
Following the successful launch of the poverty eradication roadmap during the Pitso in
Mahalapye, more consultation have been held with the nation through regional Dipitso,
kgotla meetings, full council meetings, radio and television talk shows. At the same time
phase one on the roll out of the Poverty Eradication Programme was accelerated. Data
synthesised from the consultations and from practice has culminated in these guidelines
which I deem as timely and appropriate.

The objectives of launching the guidelines are to:

• Aid all stakeholders to understand the underlying principles of the poverty
eradication programme;
• Ensure that there is a common platform for implementers across the country;
• Provide valuable information to the beneficiaries for them to make informed
decisions in selection and management of the projects;
• Provide valuable knowledge transfer to the rest of the nation which they can
use to kick start their own projects at various scales; and
• Ensure that the core principles of transparency and objectivity are inbuilt into
the programme.

Owing to the dynamic environment and the underlying principle of continuous improvement
within which the Poverty Eradication Progamme operates, I expect these guidelines to be
updated every two years.

His Honour the Vice President of Botswana

Lt. Gen. Mompati Sebogodi Merafhe

i
Governance of the Poverty Eradication
Programme

Setting up effective governance structures is imperative owing to the fact

that they are the key to efficient, effective, and efficacious development,
implementation, review, and continuous improvement of the Poverty Eradication
Programme. It also enables all stakeholders to know how to contribute to the
initiative, access information, and seek aid. It is owing to this that I hereby briefly
state the governance structures of the programme.

The head of the Poverty Eradication Programme is His Honour the Vice
President, Lt. Gen. M.S. Merafhe, assisted by myself, the Honorable Minister for
Presidential Affairs and Public Administration. We report to His Excellency the
President every two months on progress during the Special Cabinet Meetings.
I also chair the Poverty Eradication Cabinet Subcommittee which meets ones
a month and is comprised of the following: Assistant Minister of Finance
and Development Planning, Hon. G. Somolekae, Assistant Minister of Local
Government, Hon. B. Tshireletso; Assistant Minister of Trade and Industry,
Honourable V.T. Seretse; Assistant Minister of Education, Honourable K.
Rakhudu; and Assistant Minister of Agriculture, Honourable O. Molebatsi.

Supporting our work is the Poverty Eradication Task Team comprised of

professionals from implementing ministries which meets once a week and is
chaired by the Permanent Secretary for Poverty Eradication. The technical work
done by the task team, through the support of the Poverty Eradication Unit at
the Office of the President, is vetted by the above structures and is used to direct
operations of implementing ministries.

The Department of Social Services through its social workers is the key access
point to all those who seek information about the programme or are interested in
any of the poverty eradication projects.

As His Honour the Vice President and I always say, our doors are open to
anyone who wants to positively contribute to the eradication of poverty. Poverty
eradication is a challenge we can conquer if we are united in effort as Botswana
and our development partners.

Minister for Presidential Affairs and Public Administration

Honourable M.E.K. Masisi

ii
Table Of Contents
1. BACKGROUND 6

2. OBJECTIVES OF THE IMPLEMENTATION GUIDELINES 6

3. EXPECTED OUTCOMES 7

4. COMPONENTS OF THE PROGRAMME 7

4.1 The Packages 7

4.2 Financial Models 8
4.3 Group Projects 8

5. ELIGIBILITY CRITERIA 8

6. SKILLS TRANSFER 9

7. PROGRAMME IMPLEMENTATION 9

8. ISSUES FOR CONSIDERATION IN IMPLEMENTING THE PACAKAGES 10

8.1 Community Mobilization 10

8.2 Needs Profiling 10
8.3 Identification of the Project 10
8.4 Training 10
8.5 Development of a Project Plan 10
8.6 Resource Mobilisation 11
8.7 Marketing 11
8.8 Gender 11
8.9 People with Disability 11
8.10 Psychosocial Support 11
8.11 Confidentiality 11

9. MONITORING AND EVALUATION 12

10. REVIEW OF THE GUIDELINES 12

11. ANNEXURES 12

1
Acronyms and Abbreviations
MOESD - Ministry of Education and Skills Development
MLG - Ministry of Local Government
MLHA - Ministry of Labour and Home Affairs
MoA - Ministry of Agriculture
MEWT - Ministry of Environment, Wildlife and Tourism
MTI: Ministry of Trade & Industry: DIA - Department of Industrial Affairs
DTCA - Department of Trade & Consumer
Affairs
DoCD - Department of Cooperative
Development
DETs - District Extension Teams,
CBOs - Community Based Organizations
NGOs - Non Government Organizations
FBOs - Faith Based Organizations
MOA - Memorandum of Agreement
BOBS - Botswana Bureau of Standards
RADP - Remote Area Development Programme
BNYC - Botswana National Youth Council
DPEC - District Poverty Eradication Committee
LEA - Local Enterprise Authority.
CEDA - Citizen Entrepreneurial Development Agency
LIMID - Livestock Management and Infrastructure Development
OP - Office of the President
WAD - Women's Affairs Department
DET - District Extension Team
DSS - Department of Social services
M&E - Monitoring and Evaluation
S&CD - Social and Community Development
SSN - Social Safety Net
VDC - Village Development Committee

2
LEGAL FRAMEWORK GUIDING THE POVERTY
ERADICATION INITIATIVE
The Poverty Eradication Initiative operates within an environment where there are
legal instruments, acts and policies implemented as a matter of control of various small
businesses. The expectation is that businesses set up under the Poverty Eradication
Programme operate within the current legal framework. Table 1 outlines policies, Acts
and guidelines that have informed the preparation of these guidelines. The list is not
exhaustive.

Table 1: Policies, Acts and Guidelines

Policy/Act/Guideline Implemented By Responsible Officers
1. Guidelines for registration MTI Through all Commercial officers in
of micro and small businesses District Councils Councils
exempt from licensing Department of
requirements, March 2011 Industrial Affairs and
SMMEs Policy 1999, Industrial Department of Trade
Development Act 2006 and Consumer Affairs}
Trade Act 2003 MTI
2. Local Authorities Procurement MLG and District Council Secretaries/
and Asset Disposal Act 2008 Councils Adjudication
Secretaries
3. Public Health Act 1981 MOH,MLG and Environmental Health
Local Authorities Officers, Health
Inspectors and Home
Economics Officers in
all councils
4. Food Control Act 1993 MOH,MLG and Environmental Health
Local Authorities Officers and Home
Economics Officers in
all councils
5. Waste Management Act MEWT, MLG and Environmental Health
1998 Local Authorities Officers
6. Smoking Control Act 2004 MOH, MLG and Environmental Health
Local Authorities Officers
7. Factories Act 1992 MLHA, MTI Commercial officers in
Councils
Department of
Industrial Affairs and
Department of Trade
and Consumer Affairs}
MTI

3
8. Building Control Act 1962 MLH, MLG and Physical Planners in
Local Authorities councils and land
boards
9. Early Childhood Care and MOE&SD, Social Workers, Home
Education Policy - 2001 MLG and Local Economics Officers
Authorities and Community
Development Officers

Policy/Act/Guideline Implemented By Responsible Officers

10. Economic Diversification MTI and Local Economic Planners,
Drive guidelines Authorities
11. Botswana Bureau of Ministries,MLG and Home Economics Officers
Standard. (BOBS) Act No 16 Local Authorities in Councils
of 1995
12. Strategic Framework for MLG and Local Community Development
Community Development in Authorities officers, Home Economics
Botswana - 2010 Officers and RADP
Officers.
13. Revised National Youth MYSC, All Ministries, Youth Officers in all
Policy - 2010 Local Authorities and Ministries and Local
BNYC Authorities
14. Revised National Policy MLG and Local Social Workers, Home
on Destitute Persons - 2002 Authorities Economics Officers and
Community Development
Officers
15. Guidelines for MLG and Local Social Workers, Home
Implementation of the Authorities Economics Officers and
Rehabilitation Programme for Community Development
the Destitute Persons-2002 Officers
16. Revised Remote Area MLG, other ministries Community Development
Development Programme and Local Authorities officers (RADP)
(RADP) Guidelines -2009
17. Poverty Eradication Road Ministry of State Poverty Eradication
Map - 2010 President and the Coordination Unit, Poverty
relevant Stakeholders Eradication Task Team
18. Bee Keeping Act 1910 MOA MOA Officers
19. Natinal Policy for MOA MOA Officers
Agriculture Development 1991
20. Town and Country MLH, Local Authorities Physical Planners in
Planning Act, CAP 32:09 councils and land boards

4
Policy/Act/Guideline
21. Legislation on Pre-
packaging of Food, 2002
22. Forest Policy, 2011
23. Forest Act, 1968
24. Tourism Act, 1992
25. Agricultural Resources
Conservation Act, 1974
26. Herbage Preservation
Act, 1978
27. National Policy on
Vocational Education and
Training, 1997
28. Vocational Training Act,
1998
29. Revised National Food
Strategy, 2000
30. BOBS Standards (relevant Botswana Bureau of
standards) Standards (BOBS)
31. Gaborone City Council
General Bye-Laws, 1966
Implemented By Responsible Officers
MoH Public Health Officers
MEWT Department of Forestry
and Range Resources
MEWT Department of Forestry
and Range Resources
MEWT Department of Tourism
Department of Forestry
and Range Resources;
MEWT
National Conservation
Committee
Department of Forestry
MEWT
and Range Resources
BOTA Training Institutions
BOTA Training Institutions
MFDP, MoA Food Security Officers
Relevant Sectors
Councils Enforcement Officers
5
 1.0 BACKGROUND
Botswana was classified as one of the ten poorest countries at the time of
independence in 1966 and currently it is classified as a middle income country.
Though Botswana has achieved such economic growth, the country still faces socio
economic challenges such as poverty. The spread of poverty is geographical with
some areas heavily affected than others. Botswana has introduced several initiatives
to combat poverty and these include programs for orphans and destitute persons,
subsidized Self Help Housing Agency (SHHA) and agricultural schemes. Despite
these efforts, results from the Botswana Core Welfare Indicator Survey (BCWIS)
2009/10, reveal that the poverty headcount rate stands at 20.7%, which is
relatively high for a middle income country.

Botswana’s goal is to surpass the Millennium Development Goal target of reducing

extreme poverty by half by 2015. Therefore; Botswana has taken a bold step to shift
from poverty reduction to poverty eradication. This has prompted the Government
to come up with a Poverty Eradication Programme which is aimed at improving
the livelihoods of Batswana by addressing all aspects of poverty including among
others; the policy environment, the institutional framework and the establishment of
sustainable economic empowerment projects. The Poverty Eradication Programme
will aid in attaining food security, and at a
minimum sustainable livelihoods amongst
disadvantaged individuals and/or families.

The Guidelines for Implementing Poverty

Eradication Packages are therefore developed
to provide all-embracing guidance in the
implementation of empowerment projects
in support of the overall Poverty Eradication
Programme.

2.0 OBJECTIVES OF THE IMPLEMENTATION GUIDELINES

The objectives of the implementation guidelines are to:
• Provide an environment for smooth and transparent implementation
and coordination of sustainable poverty eradication projects.
• Harmonize procedures for implementation of poverty eradication
projects with a view to ensuring efficient utilization of resources.
• Provide a coordinated platform for all stakeholders in the
implementation of poverty eradication projects.

6
3.0 EXPECTED OUTCOMES
The expected outcomes of the programme will be as follows:
• Economically empowered individuals and families
• Enhanced self-esteem amongst beneficiaries
• Prosperous , productive and innovative individuals

4.0 COMPONENTS OF THE PROGRAMME

4.1 The Packages

Table 2 provides an indicative list of assistance
packages to be covered under the programme.
The financial Plans and Cash Flow Projections are
presented in the Section for Annexures.

Table 2
Food items Non Food Items
Jam Kiosk
Pickles Home Based Laundry
Food catering Leather Works
Food Packaging Textiles
Backyard garden Tent Hire
Bakery Landscaping
Small Stock Hair Salon
Poultry Backyard Tree Nursery
Bee Keeping Upholstery
Handy Crafts( basketry , wood carving, pottery )
Arts, Craft and Traditional Songs

The list is non-exhaustive and will be updated as and when packages have
been appraised and approved. It must also be noted that beneficiaries will not
be allowed to engage in businesses that are deemed illegal and hazardous to
human life and the environment.

7
4.2 Financial Models
Financial models have been prepared for each package. The models have been
validated based on worst case scenario business environments and as such, actual
performances can surpass the projections. It is also true that if there is extreme
negligence in managing the operations, the business may collapse. It is expected
that the beneficiaries will use the grant to start their entrepreneurial journey and
grow their business through the years.

4.3 Group Projects

For packages with starting costs of more than P10, 000, group projects are
necessary and encouraged. Groups should have a constitution or a standard
guiding document stipulating how they operate; and where they do not have such
a document, they should be assisted to develop one.

5.0 ELIGIBILITY CRITERIA

The following eligibility criteria will be used as a guide

• Beneficiaries should be able bodied Batswana citizens aged 18 years

and above and should demonstrate ability, interest and commitment to
undertake the project.
• Eligible persons will be identified through the assistance of the Ministry
of Local Government.
• Beneficiaries should include amongst others registered destitute
persons, potential destitute persons, those engaged in the Ipelegeng
program, people with disability
and other vulnerable groups.
Other community members
who are not included in these
categories will be
given technical advice.
• People who previously benefited
from Government schemes may be
considered upon assessment for
possible assistance.
• An individual can only benefit
once from the program and
priority will be given to first
applicants.
• At the commencement of the
project, beneficiaries will be required to enter into a Memorandum of
Agreement (MOA) which will also stipulate the location of the project.
• In the event that the beneficiary is deceased or incapacitated another
member of the household will be assessed for possible takeover of the
project and will be expected to sign a new Memorandum of Agreement
(MOA).

8
6.0 SKILLS TRANSFER
Beneficiaries shall be trained in
all aspects relating to their project
components. Additional aspects of
training will be outsourced to relevant
stakeholders. The training will also
include life skills so that beneficiaries
develop into more competitive
entrepreneurs.

7.0 PROGRAMME IMPLEMENTATION

Ministry of State
President will be
responsible for overall
coordination of the
programme. A
National Task Team
has been established
to oversee the program
operations, provide strategic direction and come up with operational guidelines for
poverty eradication packages. For effective implementation, respective ministries
have been assigned to coordinate various projects or activities comprising:

• Ministry of Environment, Wildlife and Tourism (MEWT) – Backyard tree

nurseries, landscaping and fisheries
• Ministry of Agriculture (MoA) – Small stock, Bee keeping, Backyard gardens
and poultry
• Ministry of Local Government (MLG)/ Ministry of Labour and Home Affairs
(MLHA) – Bakery, Textiles, Food Catering, Hair Salon, Kiosk, Laundry,
Leather products, Jam and pickle products, Packaging of grains, Tent hire,
Upholstery, Handy crafts, Pottery, Indigenous knowledge
• Ministry of Trade and Industry (MTI) - business training and management,
licensing, financing and quality control
• Ministry of Education and Skills Development (MOESD) - literacy skills and
Business skills training
The success of this program will require full participation of the District/ Urban
Development Committees, District Extension Teams, Village Extension Teams (VETs),
private sector and parastals, Community Based Organisations (CBOs), Non-
Government Organizations (NGOs), Faith Based Organizations (FBOs), media and
the business community. This will ensure involvement of all the relevant stakeholders
and optimal utilisation of resources at District and village levels.

Local Contact Point for the Programme: The Social and Community Development
Offices (Social Workers and Community Development Officers) will serve as the
main contact points.

9
 8.0 Issues for Consideration
in Implementing the Poverty
Eradication Packages
8.1 Community Mobilisation
The concept of community mobilization involves public education about the
program, identification of projects and their goals, and activities to be undertaken.
This will involve facilitating the efforts of individual beneficiaries, and groups to
appreciate the importance of the program and participate in all decision-making
processes. This process will enhance ownership of the end product.

There will be need to involve community leaders (e.g. District Extension Teams,
Member of Parliament, Kgosi, Councilor and Village Development Committees,
Ward Development Committees, Village Health Committees, Village Youth
Committees, Village Farmers Committees, Faith Based Committees, Village
Extension Teams, etc.) who can assist in realising the desired change. Individual
and group counseling needs to be an integral part of this phase.

8.2 Needs Profiling

The purpose of needs profiling is to identify the needs, capabilities and capacities
of the clients to inform project selection, possible training and services required.
In this instance, the purpose will be to determine the needs of the people and the
relevance of the project to be embarked on.

8.3 Identification of the Project

There are numerous projects that the beneficiary can choose from, and a list of
some of the suggested projects is provided in Table 2. The list is not exhaustive.
The selection of the project by the client will be based on the client’s identified
needs, interest as well as availability of resources after validation of the project.
The project will have to be suitable to the area.

8.4 Training
The beneficiaries will be trained in entrepreneurial skills on the project they have
chosen. The professionals therefore, have to identify training needs and design
relevant training. The trainers will use multi disciplinary approaches in designing
training programs and are expected to coordinate their activities for effective
service delivery.

8.5 Development of a Project Plan

A plan in any undertaking is an important tool because it provides guidance on
what is to be done and how that task is to be carried out. The beneficiary should
be in a position to understand what needs to be done for the success of the project.
Implementers and beneficiaries should be sensitized to appreciate the importance
of developing and owning a Project Plan.

10
 8.6 Resource Mobilisation
This part sensitises implementers and beneficiaries that resources have to be
mobilized and these include land, finances, transport machinery and human
resources. Implementers should work within the recommended budget line for the
project. As much as possible, it is critical to use locally available raw materials.

8.7 Marketing
Beneficiaries will be expected to market their products within their local communities.
Available possible avenues include among others, door to door, market days,
Women’s Expo, shows, exhibitions.

8.8 Gender
Gender considerations are an integral
part of any programme. These would
include taking into account the needs of a
multiplicity of vulnerable groups.

8.9 People with Disability

The projects selected should take into
account the interests and needs of people
with disabilities. People with Disabilities
(PWDs) are people within the community
who are disadvantaged due to physical or mental impairment that has occurred
due to illness, accident or genetic condition. The Poverty Eradication Programme
(PEP) is aimed at empowerment of Women, Youth, PWDs and other disadvantaged
sections of the society thereby allowing them to overcome poverty, and end
inequality.

Providing sustainable and formal employment for PWDs through PEP initiatives will
in turn allow them a degree of independence, financial security and bring them
closer to mainstream into society. It is therefore incumbent upon the Government to
take affirmative action for PWDs to ensure that they are included in any programme
designed to elevate the status and well-being of the disadvantaged in the community
and by doing so, raise them from a position of government-dependency to that of
financial independence, self-reliance and dignity.

8.10 Psycho-social Support

Each beneficiary must be recognized as an
individual with his/her own strengths and
weaknesses. Therefore each person must be
treated with respect and dignity, recognizing
that he/she is unique. Psycho-social support
will be provided to enhance self-esteem of the
beneficiaries.

8.11 Confidentiality
Issues discussed between the beneficiary and the
appraisers should remain confidential.

11
9.0 MONITORING AND EVALUATION
District Extension Teams will monitor projects on a continuous basis and report to the
relevant structures. A standard monitoring tool will be used. The Village Extension
Team will form part of the monitoring team and give feedback to the relevant
structures on a monthly basis. Such an arrangement is crucial to ensure individual
household performance tracking.

10. REVIEW OF THE GUIDELINES

The guidelines will be reviewed every two (2) years.

ANNEXURES:

A1: Kiosk
Financial Plan
Item QUANTITY Unit Cost (P) Total Cost

Container 1 4,400.00 4,400.00

Fridge 1 1,200.00 1,200.00
48kg gas cylinder for fridge 1 780.00 780.00
Shelving material 1 1,500.00 1,500.00
Stock 5,000.00 5,000.00
Contingency @ 5% 644.00 644.00
TOTAL 13,524.00 13,524.00

Assumptions

A mark-up of 35% is assumed

Profit and Loss Account

12
Projections (P)
Year 1 Year 2 Year 3
Turnover 81 000.00 89 100.00 98 010.00
Cost of Goods Sold 52 650.00 57 915.00 63 707.00
Gross Profit 28 350.00 31 185.00 34 303.00
Bank Charges 240.00 264.00 290.00
Transport Charges 1 800.00 1 980.00 2 178.00
Rent - - -
Wages 6 000.00 6 600.00 7 260.00
Net Profit 20 550.00 22 605.00 24 865.00

A2: Home Based Laundry

Financial Plan
Item Quantity Unit Cost Total Cost
Washing machine 1 3 000.00 3 000.00
2x Iron industrial 2 375.00 750.00
(Washing powder,
Detergents 1 000.00 1 000.00
Fabric softer)
Water Per month 600.00 600.00
Ironing board 2 150.00 300.00
Generator 1 4 000.00 4000.00
Drying line 1 300.00 300.00
Pegs 4 25.00 100.00
Petrol 1500.00
Total 11 550.00

Key Assumptions:
It is assumed that the laundry will be dealing mainly with washing and ironing
garments.
Item Monthly demand Pricing (P) Total Monthly turnover
Basket 40 75.00 3000.00
Blankets 10 60.00 600.00
Ironing 50 items 5.00/ item 250.00
TOTAL 3850.00

Cost of Goods
Water P 200.00
Detergents P 600.00
Total P800.00

13
Profit and Loss Projections
Year 1 Year 2 Year 3
Turnover 46 200 50 820 66 902
Cost of Goods Sold 9 600 10 560 11 616
Gross Profit 36 600 40 260 44 286
Fuel 6000 6600 7260
Wages 12 000 13200 14520
Total expenses 18 000 19 800 21 780
Net Profit 18 600 20 460 22 506

A3: LEATHER WORKS

Financial plan
Item Cost
Cutting table P3 000.00
Cutters P 500.00
Sewing machines P5 000.00
Patterns P 500.00
Needles P 500.00
Glue P 100.00
Processed Leather P10 000.00
Unprocessed leather P10 000.00
Tanning Polish P 200.00
Soles P1 000.00
Threads P 200.00
Buckles P 500.00
Working Capital P5 000.00
P36 500.00
5% contingency P 1 825.00
P38 325.00

Key Assumption

Annual Turnover of P310 500.00

14
Cost of Goods Sold

Monthly Expenditure/Cost of goods sold

Items Cost
Leather x 10 meters P10 000.00
(Glue, soles, threads, polish,buckets) P2 500.00
Annual Costs 12 500 x 12 P12 500.00
TOTAL P150 000.0

Monthly Demand Pricing Sales

Wall Hangings 10 35 P3 500.00
Shoes 50 100 P5 000.00
Belts 50 100 P5 000.00
Cushions 10 150 P1 500.00
Bags 15 250 P3 750.00
Mats 5 500 P2 500.00
Hats 20 150 P3 000.00
Wallets 25 65 P1 625.00
P25 875.00

Profit and Loss Account

YEAR 1 YEAR 2 YEAR 3
Turnover 310 500.00 341 550.00 375 705.00
Cost of goods sold 150 000.00
Gross profit 160 500.00 176 550.00 194 205.00
Transport 12 000.00 13 200.00 14 520.00
Wages 30 000.00 33 000.00 36 300.00
Bank charges 1 200.00 1 320.00 1 452.00
Net Profit 117 300.00 129 030.00 141 933.00

15
A4. JAM AND VEGETABLE PICKLES
Financial Plan
Item Cost (P)
Burner gas Rim Stove 1,500. 00
2x48kg gas cylinders 1,560.00
Retail scale (15 Kg) 2,000.00
Stainless steel table 2,500.00
2 x 30L Stainless steel pots 3,700.00
Assorted utensils 2,500.00
Working capital (Stock) 15,000.00
Contingencies 5% 1,288.00
TOTAL 30,198.00

Raw materials supplies

The main sources of the raw materials (and packaging inputs) are local
horticultural farmers (including backyard garden beneficiaries) and food industry
suppliers.

Key Assumptions
Monthly demand Pricing (P)
Assorted jams 500 3.50
Vegetable Atchar 600 10.00
Pickled beetroots 300 3.00
Tomato purée 500 10.00

Sales
Item Sales per month (P)
Assorted jams 500x P3.50=P1,700.00
Vegetable atchar 600 x P10.00=P6,000.00
Pickled beetroots 300 x P10.00=P900.00
Tomato purée 500x P2.50= P5,000.00
Total P13,650.00
Annual turnover=P163, 800.00

16
Cost of Goods Sold
The monthly input costs
Ingredient Quantity Price (P)
Melons and Fruits 100 kg 600.00
Sugar 50 kg 1000.00
Vegetables 200 kg 3166.00
Vegetable oil 20L 335.00
Various additives - 200.00
P5301.00 per month

Annual Cost P 5,301.00 X 12 = P63, 612.00.

Financial Plan
Item Cost (P)
2 Burner gas boiling table 1,500. 00
2x48kg gas cylinders 1,560.00
Retail scale (15 Kg) 2,000.00
Stainless steel table 2,500.00
2 x 30L Stainless steel pots 3,700.00
Assorted utensils 2,500.00
Working capital 15,000.00
Contingencies 5% 1,288.00
TOTAL 30,198.00

Raw Material Supplies

The main sources of the raw materials (and packaging inputs) are local horticultural
farmers (including backyard garden beneficiaries) and food industry suppliers.

Key Assumptions
Monthly demand Pricing (P)
Assorted jams 500 3.50
Vegetable Atchar 600 10.00
Pickled beetroots 300 3.00
Tomato purée 500 10.00

Products sold at 30 – 50% below current supermarket price

17
Profit and Loss Account

Projections (P)
Year 1 Year 2 Year 3
Turnover 163 800.00 180 180.00 198198.00
Costof Goods Sold 63 612.00 69 973.20 76 970.52
Gross Profit 100 188.00 110 206.80 121 227.48
Bank Charges 240.00 264.00 290.00
Transport Charges 3 600.00 960.00 4 356.00
Wages 18 000.00 19 800.00 21 780.00
Total charges 21840.00 24 024.00 26 426.00
Net Profit 78 588.00 86 446.80 95 091.48

18
A6. BAKERY

Financial Plan
Item Cost (P)
4 Burner Gas stove 1,400. 00
2x48kg gas cylinders 1,560.00
Confectionery fridge (small) 1,500 .00
Dumping table (small) 750,00
Bakery Scale 500.00
Assorted baking pans 2,000.00
Working capital 12,000.00
Contingencies 5% 985.50
TOTAL 20,695.50

Raw Material Supplies

The main sources of the raw materials are local wholesalers and supermarkets.

Key Assumptions
Monthly demand Pricing (P)
Diphaphatha 700 2.50
Mapakiwa 500 2.50
Fat cakes 1500 2.50
Queen cakes 450
Cake 4 25.00

Sales
Item Sales per month (P)
Fat cakes 1500x P2.00 = P3, 000.00
Phaphatha 700 x P2.50 = P1, 750.00
Buns 500 x P2.50 = P1, 250.00
Queen cakes 450x P2.50 = P1,125.00
Cakes 4 x P25.00=P100.00
Total P7, 225.00

Annual turnover=P86, 700.00

19
Cost of goods sold

Ingredient Quantity Unit price (P)

Flour 50kg 244.00
Bread pre mix 10kg 205.00
Oil 10 litres 380.00
Baking powder /yeast - 150.00
P979.00 per month

Management Team and Employment Levels

The promoter needs to attend the following business workshops; Basic record
keeping, Basic book keeping, and home economics.

Profit and Loss Account

Projections (P)
Year 1 Year 2 Year 3
Turnover 86 700.00 95 370.00 104 907.00
Cost of Goods Sold 11 748.00 12 923.00 14 215.00
Gross Profit 74 952.00 82 447.00 90 692.00
Bank Charges 240.00 264.00 290.00
Transport Charges 3 600.00 3 960.00 4 356.00
Wages 18 000.00 19 800.00 21 780.00
Total Expenses 21 840.00 24 024.00 26 426.00
Net Profit 53 352.00 58 687.00 6 756.00

20
A7: TEXTILES

Financial plan
Item Cost (P)
Domestic overlocker 1,800.00
1 straight machine 3,000.00
Zig zag domestic machine 1,200.00
Cutting table, 4 chairs 1,100.00
Industrial ironing board 150.00
Generator (5KVA) 6,000.00
Accessories 1,000.00
Sewing material 10,000.00
Working capital 5,000.00
Contingencies 5% 1,462.50
TOTAL 30,712.50

Sales
Item Quantity per month Turnover (P)
Alterations 50 850.00
German print 3 1,200.00
Uniform 6 different sizes 900,00
Pillows 10 350.00
Curtains 5 750.00
Patched throws 8 600.00
Total 4,650.00
Annual turnover = P55, 800

Profit and loss account

Projections(P)
Year 1 Year 2 Year 3
Turnover 55 800.00 61 380.00 67 518.00
Cost of Goods Sold 11 748.00 12 923.00 14 215.00
Gross Profit 44 052.00 48 457.00 53 303.00
Bank Charges 180.00 198.00 218.00
Transport Charges 1 236.00 1 360.00 1 496.00
Wages 7 200.00 7 920.00 8 712.00
Total expenses 8 616.00 9 478.00 10 426.00
Net Profit 35 436.00 38 979.00 42 877.00

21
A8: FOOD CATERING
Financial Plan
Item Cost (P)
Three burner industrial gas stove x 2 2,900.00
Food warmers x 4 1,556.00
Pots 380.00
Catering tables x 2 2,200.00
48kg gas cylinders x 2 1,560.00
Serving spoons x 6 100.00
Disposable dishes 250.00
Deep frying pan 178.00
Bowls x 4 160.00
Cutlery 120.00
Groceries 3,000.00
Plastic serving tables x 4 + chairs 1,390.00
Shade 600.00
Contingency @ 5% 720.00
TOTAL 15,113.00

Key Assumptions
We assume that the food vendor will be supported by at least 20 customers
depending on the location of the business. Meals are charged between P16 to
P19 per plate. We assume that on average the promoter will be able to serve at
least 20 customers per day.

22
A9: TENT HIRE

Financial Plan
Item Cost (P)
2 x Tents @ 7,500 each 15,000.00
Tables x 6 1,800.00
Chairs x 50 2,250.00
Overlays 1, 500.00
Seat covers 2,250.00
Cutlery 1,500.00
Plates x 100 500.00
Glasses x 100 250.00
Flowers 780.00
Vase x 6 210.00
Contingency @ 5% 260.40
TOTAL 26,300.00
Year 1 Year 2 Year 3
Turnover 50000 55000 60500
Cost of Goods Sold 3600 3960 4356
Gross Profit 46400 51040 56144
Operational Expenses
Transport Charges 8400 9240 10164
Fuel 2100 2100 2100
Wages 18000 19800 21780
Total expenses 28500 31140 34044
Net Profit 17900 19900 22100

The Table above is constructed under worst case scenario whereby the tent is hired
only six times in a year.

Key Assumptions
Hiring of the above mentioned items is not done on a daily basis as the business
caters for special events such as weddings, parties and funerals sometimes. In
a month the items will be hired 4 times, during weekends. These are taken as a
package.

Turnover
Since small tents will be used, the package will be P8, 500 per session.
Monthly income = P8, 500 x 4 = P34, 000 (possible during peak months only)
Annual turnover = P204, 000 (normal trading)

Costs
Costs here will involve transportation of the goods and labour.

23
A10: LANDSCAPING
Financial Plan
Garden tools (wheel barrow, horse pipe, rake, scissors, spade, digging fork,
watering can, Lawn mower)
Item Cost
Garden Tools P1 000.00
Lawn mower P3 000.00
Working Capital
Seeds/seedling, P900.00
Stones, Soil, Manure,
Transport P2 300.00
Contingency 5% P 360.00
TOTAL COST P7560.00

Working capital for three months

Key Assumptions
We assume that the landscape will do 11 jobs per month,
1 major landscaping job at P3 500.00 per project, and 10 maintenance projects
at P300.00 per project.

Sales Assumptions
Job Quantity Cost
Landscaping development 1 P3500.00
Maintenance 10 P 3000.00
Total Cost P6500.00

Annual Turnover – P6500.00 X 12 = P78 000 and P50, 000.00 for

normal trading

Costs of goods sold

Plants Price Qantity Total
Grass P50.00 1 50.00

Landscaping: Transport
soil,
stones, P200.00
manure,
P300.00
seedlings/seeds,
P200.00
Maintenance - transport P300.00
Total P1000.00

24
Operational expenses

Profit and loss account

Projections (P)
Year 1 Year 2 Year 3
Turnover 50000 55000 60500
Cost of Goods Sold 3600 3960 4356
Gross Profit 46400 51040 56144
Operational Expenses
Transport Charges 8400 9240 10164
Fuel 2100 2100 2100
Wages 18000 19800 21780
Total expenses 28500 31140 34044
Net Profit 17900 19900 22100

25
A11.00 BACKYARD TREE NURSERY

Financial plan
Item Cost (P)
Shade net 60% (10 x 5 x3 x2 m) 5000.00
Treated gum poles 1830.00
U-nails 100.00
Cement 140.00
Various nursery tools 874.00
Twin roll 30,00
Nursery inputs 3600.00
Water connection 1000.00
Water tank 600.00
Sub total 13 468.00
Contingencies 10 % 1346.80
Grand total 14 814.80

Sales Assumptions
Item Sales per month (P)
Assorted tree seedlings 500 x P25.00 = P12 500.00
Potted plants for hiring 3 x P200.00 = P600.00
Total P13 100.00

Annual turnover P13 100.00 X 12 = P157 200.00

11.3 Raw Material Supplies

The main sources of raw materials are locally collected for free, sold in the
supermarkets and commercial tree nurseries (Leaf mould, sand, cuttings, seeds, kraal
manure and used containers)

11.4 Operation costs per month

Labour P500.00
Water bill P200.00
Transport to the market P400.00
Total P1100.00

26
11.5 Costs of goods sold per month
Seeds/seedling P500.00
Polythene bags/flower pots P500.00
Pesticides P300.00
Total P1300.00

11.6 Profit and Loss Account

Projections (P)
Year 1 Year 2 Year 3
Turnover P157 200.00 P172 920.00 P190 212.00
Cost of Goods Sold P15 600.00 P17 160.00 P18 876.00
Gross Profit P141 600.00 P155 760.00 P171 336.00
Operational Expenses
Transport Charges P4800,00 P5280.00 P5808.00
Water bills P2400.00 P2640.00 P2904.00
Wages 6 000.00 6 600.00 7 260.00
Total expenses P13 200.00 P14 520.00 P15 972.00
Net Profit P128 200.00 P141 040.00 P155 144.00

27
A12.00 HAIR SALON
12.1 Financial plan
Item Cost
Hair Relaxers P100
Dryers P150
Steamers P1500
Mirrors P300
Tint P50
Braids P10
Combs P10
Water bill P100
Electricity bill P150
Shampoo P50
TOTAL P9 300.00

12.2 Raw materials supplies

The main sources of raw materials are local wholesalers and hard wares.

12.3 Key assumptions

Monthly demand Pricing (p)
Singles (plaiting) 10 150
Carrot 12 70
French 15 21
Retouch 15 50
Shampooing 15 20
Haircut 20 20

The services provided will be mainly confined to hair plating and hair cuts

12.4 Sales
Items Sales per month Total
Singles (plaiting) 10xP150 1500
Carrot 12xP70 840
French 15xP21 315
Re-touch 15xP50 750
Shampooing 15xP20 300
Haircut 20xP20 400
Total 4105

28
Annual Turnover P49 260.00
12.5 Cost of goods sold
Item Quantity Unit Price (p) Total
Hair relaxer 5 100 500
tint 5 20 250
Braids 10 100 1000
Shampoos 5 50 250
Total 2000.00

12.6 Profit and loss account

Year 1 Year 2 Year 3
Turnover 49260 54186 59604.6
Cost of goods sold 24000 26400 29040
Gross Profit 25260 27786 30564.6
Wages 18000 19800 21780
Total expenses 18000 19800 21780
Net Profit 7260 7986 8784.6

29
A14 BACKYARD GARDENING
Table1: Budget for Vegetables enterprise (with drip irrigation system) for the
general Population
Unit Total
Item Quantity
Price (BWP) Cost(BWP)
Capital items
Plot 1 Part Nil
Shade net 1 2000.00 2000.00
Water tank (5000L) 1 3470.00 3470.00
Tank stand 1 500.00 500.00
Family drip 1 670.00 670.00
gutter 3 (3.6x100x75) 62.00 186.00
outlet 1 30.00 30.00
Garden tools Wheel barrow,
Set 500.00 500.00
rake, and spade
Poles 9(3x75x100) 35.65 558.00
Fence (diamond mesh) 2 rolls 245.00 490.00
8 Gauge wire 5kg 65.00 65.00
Water pipes(black) 20m roll of 25mm 2.00 20.00
Saddle 1 50.00 50.00
Tap 1 60.00 60.00
Water connection
1100.00
(Water Utilities Cooperation)
Sub-total 9669.00
10% Contingency 967.00
Total 10676.00

30
Table 2: Budget for vegetables enterprise (with drip irrigation system) for People
with Visual impairment using sense of touch.
Unit Price Total Cost
Item Quantity
(BWP) (BWP)
Capital items
Plot 1 Part Nil
Shade net 1 2000.00 2000.00
Water tank (5000L) 1 3470.00 3470.00
Tank stand 1 500.00 500.00
Family drip 1 670.00 670.00

Gutter 3 (3.6x100x75) 62.00 186.00

Out let 1 30.00 30.00

Garden tools – wheelbarrow,
Set 500.00 500.00
rake and spade
Poles 9 35.65 558.00
Fence 2 245.00 490.00
8 Gauge wire 5 kg 65.00 65.00
Water pipes (black) 20m roll of 25mm 2.00 20.00
Saddle 1 50.00 50.00
Tap 1 60.00 60.00
Water connection (Water
1 100
Utilities Corporation)
A network of ropes
– materials – Thin
dropper poles, ropes for 838.40
interconnection from garden
to house.
Sub total 9699.00
10% contingency 969.00
Total 10668.90

Materials for the network of ropes are as follows: 28(25x50x1.8) treated poles
and 8(30x10mm) braided plastic ropes. The construction of the rope network
assumes that the house and the tap is 20m away from the net shade house hence
8 poles and 2 ropes will be used for the network from the net shading to the tap
and house. The rest of the poles and rope will form a network on the plots with one
pole at the end of each plot.

31
Table 3: Budget for vegetables enterprise (with drip irrigation system) for People
with Physical disabilities using wheel chairs, crushes
Unit Price Total Cost
Item Quantity
(BWP) (BWP)
Capital items
Plot 1 Part Nil
Shade net 1 2000.00 2000.00
Water tank (5000L) 1 3470.00 3470.00
Tank stand 1 500.00 500.00
Family drip 1 670.00 670.00
Gutter 3 (3.6x100x75) 62.00 186.00
Out let 1 30.00 30.00
Garden tools – wheelbarrow,
Set 500.00 500.00
rake and spade
Poles 9(3.6x75x100) 35.65 558.00
Fence 2 (Diamond mesh 245.00 490.00
8 Gauge wire 5 kg 65.00 65.00
Water pipes (black) 20m roll of 25mm 2.00 20.00
Saddle 1 50.00 50.00
Tap 1 60.00 60.00
Water connection (Water
1 100
Utilities Corporation)
Raised timber plots –
(materials-treated timber poles,
8 gauge wire ) and organic P4400.00
bags-(DPC sheets, bags,
topsoil, organic manure
Sub total 14099.00
10% contingency 1409.9
Total 15508.9

NB. Materials for the raised timber plots are as follows: 20(50x75x5.4) treated
poles, 25(50x75x2.1) treated poles, 30(75x100x1.8) treated poles, 100 x 1.2m
treated droppers, 100 empty bags (50kg capacity).

32
References
1. Ministry of Local Government, Department of Social Services:
Guidelines for implementation of the rehabilitation programme for the
destitute persons, 2002.
2. Poverty Eradication Roadmap, 2010. Ministry of State President.
3. Department of Extension Services Coordination and Department of Social
Services, 2011. Manual for the Poverty Eradication Backyard Garden
Initiative.

4. Ministry of Local Government: National Policy on Destitute Persons, 2002

33
Poverty Eradication
Task Team

Chairperson: Dr. J. Mothibi

Molefe Keaja Office Of The President Sarah George
Ministry of Local Government Ministry of Agriculture

Chada Koketso Dr. Martin kebakile Valencia Mogegeh Pauline Monare Rebecca Kgosi Kebabonye Molefhi
Office Of The President NAFTRC Dept. of Women's Affairs Economic Divesification Drive Poverty Eradication - MOA Office Of The President

Kutlwano Sebolaaphuti Agnes Setlhogile Bakane S. Bakane Delic Sehunwe John Phatshwe
Office Of The President Dept of Industrial Affairs Dept. of Women's Affairs Dept. of Social Services BNPC

Queen Turner Anthony Mokobi Lebani Nthoyiwa Ranakedi Moyo Antoinette Motiki
Bee Keeping LEA LIMID Office - MOA RIPCO DOSET

Kemoabe O. Ditedu Mophuthuludi Molatudi Peter Olekantse Boemo Keikotlhae Thibogang J. Malibala
Poverty Eradication - MOA DCEC Dept. of Forestry & Range Res. Dept. of Social Services DOSET

Ompelege Mokime Tiroyamodimo Kayawe Gomolemeo Tselakgopo David Manenye

Poverty Eradication - MOA CEDA Dept. of Social Services Office Of The President -IT