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Bio-Energy Distributors Solution Limited
Bio-Energy Distributors Solution Limited
Bio-Energy Distributors Solution Limited
Prepared for:
Date: 2nd January 2018
Email: energybiosol@gmail.com
Executive Director
1. EXECUTIVE PLAN
Global warming, caused by CO2 and other substances, has become an international concern in recent years. To
protect forestry resources, which act as major absorbers of CO2, controlling the ever-increasing deforestation,
along with the increase in the consumption of wood fuels, such as firewood and charcoal, is an urgent issue.
Given this, the development of a substitute fuel for charcoal is necessary. Briquette production technology, a
type of clean charcoal technology, can help prevent flooding and serve as a global warming countermeasure by
conserving forestry resources through the provision of a stable supply of briquettes as a substitute for charcoal
and firewood.
Bio-Energy Distributors Solution Limited (BEDS) is a standard charcoal briquette production and distribution
firm under the subsidiary of Zamlink Translation Solution based in Lusaka district of the Lusaka Province of
the Republic of Zambia. Although are a small servicing business and household in around Lusaka district, but
that will not in any way stop us from maximizing our potential in the charcoal briquette production and
distribution line of business. We hope to grow the business beyond Lusaka district to other districts in Zambia
and the rest of the world.
We have developed a method of producing charcoal from previously unused charcoal dust waste and agri-waste
products. Charcoal provides significant advantages over raw biomass fuels because the process of carbonization
reduces the particulate emissions, and reduces the risk of developing respiratory infections. In order to
contribute to the reduction in deforestation, the improved charcoal process needs to be a low-cost, timesaving
technique that produces the high yield of good quality charcoal using locally available material to ensure this
technology is appropriate.
2. PROBLEM STATEMENT
Although Zambia is an agricultural country with vast amounts of forests and trees, at the present time, the
majority of its agricultural waste is not being fully utilized for the production of energy. Our failure to transform
Zambia’s natural agricultural wastes into charcoal briquettes has resulted in an increased exploitation of
Zambia’s primary forests. Most Zambian households use wood, charcoal, biomass and coal as their primary
source of cooking fuel. Widespread burning of unprocessed biomass in Zambia has well-characterized impacts
on health and environment. Indoor air pollution, which is large to exposure to smoke and particulate matter
emitted by the combustion of unprocessed biomass estimated to cause much deaths in women and children.
Deforestation also causes soil erosion, increasing vulnerability to flooding and causing lower crop yields from
farms.
3. COMPANY BACKGROUND
Zamlink Charcoal Briquette Distributors is a Zambian based charcoal briquette firm under a subsidiary
company of Zamlink Translation Solution, dedicated to promoting, facilitating and advocating for the
widespread adoption of energy efficient solutions for communities around the country that depend on biomass
energy as their primary source of fuel for cooking and household energy. As a way to carry out our mission and
support the alleviation of energy poverty, we are starting a robust campaign and advocacy in the production of
charcoal briquettes using biomass waste products. We believe in the slogan of “No waste goes to waste”, as any
waste material is a variable tool to an alternative energy product.
4. MISSION AGENDA
We will be providing alternative biomass energy products to promote the sustainable use of waste products for
heat and micro-power generation and be a viable trading business that ensures all those engaged are enhanced
in their abilities and fairly recompensed for their efforts by applying the benefits of our innovations and
enterprise to promote the localised provision of energy solutions that in turn create skilled employment,
promote low carbon economies and engender community cohesion.
5. PROPOSED INTERVENTION
The need for this proposal cannot be overemphasized as the demand for efficiency energy is too high and the
unprecedented levels of deforestation is getting out of hand, hence the need for a viable alternative source that
will reduce the heavy energy burden and mitigate deforestation. We will be producing and distributing
alternative renewable energy products such as charcoal briquettes, briquette geysers, briquette braziers and
briquette boilers across national borders and continental regions. Our intention of starting a charcoal briquette
production and distribution Company is to promote the efficiency usage of alternative renewable energy
sources as a replacement of ordinary charcoal, solar power and hydro-energy products. This project will
endeavour to provide charcoal briquettes as an alternative source of fuel energy to charcoal and firewood,
which are the most prevalent and less efficient sources. The initial goal for this project is to establish a charcoal
briquette production and distribution mechanism for the local communities using local agricultural waste
materials such as sawdust, charcoal dust and many other agro wastes i.e. Maize husks, straw. Once in place and
operational, we will provide energy efficient options to the community at large to include fuel, briquette stoves,
briquette geyser and boilers. In turn the farmers will benefit massively in the value chain production of
briquettes that they may be using for their energy needs and get some income through the selling of briquettes.
6. PROJECT DURATION
Depending on the availability of funds, we intend to run this program on a continuous annual production of
the briquettes in order to grow this industry in becoming a beacon of development among charcoal vendors
and farmers. Proposed Project can commence production within 2-4 weeks after sanction and first
disbursement of term loan.
This project will result in significant co-benefits, categorized below using the three pillars of sustainable
development: economic, social and environmental impacts.
Economic Impacts
Income- and employment-generating effects through the improvement of existing businesses and the
promotion of new businesses
Reduced money spent on fuel wood, freeing up financial resources for tuition, clothes, books, food,
tools and equipment of students institution of learning who have been affected by load-shedding.
Social Impacts
Environmental Impact
Reduced deforestation leading to protection of water, and maintaining the biodiversity due to preserved
forest cover
The project will have a greater economic impact among the men and women, as it will provide direct source of
revenue and alleviate the poverty levels among the men, women and youths. Since the raw material for the
production of charcoal briquettes is readily available and the production process is not complicated as
compared to lump charcoal, the product will be cheaply obtained among many users of this product. The
project will benefit un-employed people in rural areas; self help groups (SHGs) – men and women, farmers and
enterprises.
Due to poverty in most rural areas, and the escalating high load-shedding crisis, the demand of charcoal
briquettes in most areas is tremendous and likely to increase with the increase in population of below poverty
line. Institutions, households, restaurants and farmers all have different heating requirements and by meeting
those needs charcoal briquettes will become more attractive to them. Customization through blending
feedstock will also provide charcoal briquettes with a competitive advantage over conventional charcoal. Better
market research is required to assess consumer requirements across the main market segments in order to tailor
briquette products for their use. In time, we intend to start exporting briquettes to nearby countries in the sub-
Saharan region and the entire continent including Europe, Asia and Australia.
In order to continue to be in business and grow, we must continue to sell our charcoal to the available market,
which is why we will go all out to empower our sales, and marketing team to deliver our corporate sales by;
Introducing our charcoal production and distribution business by sending introductory letters to
residence, merchants and other stakeholders in both Lusaka and other Provinces in Zambia
Opening our production and distribution business with a network service provider so as to capture the
attention of residence who are our first targets
Engaging in road show in targeted communities all around Lusaka Province from time to time to sell
our products
Advertising our products in community based newspapers, local TV and radio stations
Listing our business and products on yellow pages’ ads (local directories)
Leverage on the internet to promote our charcoal production and distribution business
Engage in direct marketing and sales
Establishing distribution sales points across major towns and regions country wide
Encourage the use of Word of mouth marketing (referrals)
10.4. Competition
Given the current energy status of Zambia, a large number of companies have moved into the production of
energy incentives, mainly the solar power. However, dependence on solar alone is not a solution enough
especially in times when the heat energy from the sun is considered to be at very low rate. Hence, biomass
energy is considered to be the most efficiency and cheap energy source and easy to produce for the countrywide
supply. Other than our own company, there is not a multi-fuel charcoal briquette production and distribution
company, which is able to produce charcoal briquettes for a nationwide and international market base. To that
end, we will maximize this period to have a greater mass increase in the production of briquettes in order to
meet the wide client base for the product. Therefore, we will utilize this period to provide a good quality
product meting the international standard quality product.
Moreover, even if you are successful at first, new competitors could enter your market at any time to steal your
regular customers. Hence, we will not hesitate to adopt successful and workable strategies from our
competitors. We are going to be one of the very few charcoal briquette production and distribution companies
in Zambia that will also engage in wholesale distribution and exportation of charcoal briquettes. Another
competitive advantage that we have is the vast experience of our management team, we have people on board
who are highly experienced and understands how to grow business from the scratch to becoming a national
phenomenon. Our large and robust distribution network and of course our excellent customer service culture
will definitely count as a strong strength for the business.
One thing is certain, we will ensure that in future, we open our outlets in various cities not just in Lusaka, but
also all across Zambia. With that, our brand will be well communicated and accepted nationally. These outlets
will contain all our different sizes of charcoal briquettes in excess for the consumers to have access. Each outlet
will serve a determined geographical location based on the population value. We will ensure that our employees
will be well taken care of, and their welfare package will be among the best within our category in the industry.
10.6. Publicity & Advertising Strategy
Regardless of the fact that our charcoal briquette production and distribution business is a standard one that
can favourably compete with other leading charcoal production and distribution business in Zambia as a whole,
we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available
means to promote our products and services. We have a long-term plan of opening outlets in various locations
all around Lusaka province and other key cities in Zambia, which is why we will deliberately build our brand to
be well accepted in Lusaka province before venturing out to other cities in Zambia. In fact, our publicity and
advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here
are the platforms we intend leveraging on to promote and advertise Zamlink Charcoal Briquettes Distribution
Company;
Despite being around for a number of years, knowledge of briquettes and how they differ over firewood and
regular charcoal, is largely unknown among populations in Zambia. Therefore, we intend to have a robust
countrywide marketing, utilizing every opportunity and meeting the consumers in their native language when
explaining our product concept.
11. CHARCOAL BRIQUETTE ONLINE PROJECT
We intend to establish a vigorous online community that nurtures and promotes a countrywide community of
charcoal briquette stakeholders. This website will utilize best practices to employ social media and networking
in the service of alleviating energy poverty around the country. We shall provide a dynamic and active online
hub with access to a thriving marketplace of shared ideas and experiences, free resources and the latest news
concerning biomass development. We will be hosting some international conference indabas for sub-Saharan
countries that will lay a blueprint for achieving sustainable production and use of solid biomass fuels like wood
fuels and charcoal.
We have prepared a budget for the implementation of our business plan. This includes the revenue and costs
for our sales projections as well as the start-up capital requirements for testing, new premises and equipment
and funding of growth. Our assumptions about the factors affecting financial performance such as customer
numbers, sales value and overheads will form Key Performance Indicators (KPIs) and we will use these to
monitor progress. Following an analysis financial measure, in order to sustain this project, a total funding
request of K60 900.00 will be required as the following tables highlight.
We have been able to critically examine the charcoal briquette production and distribution line of business, we
have analyzed our chances in the industry, and we have been able to come up with the following sales forecast.
The sales projections are based on information gathered on the field and some assumptions that are peculiar to
start-ups in Lusaka Province.
13. CONCLUSION
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of
the employees, their investment strategy and the business structure. If all of these factors are missing from a
business (company), then it will not be too long before the business close shop. One of our major goals is to
build a business that will survive off its own cash flow without the need for injecting finance from external
sources once the business is officially running. We know that one of the ways of gaining approval and winning
customers over is to retail our charcoal a little bit cheaper than what is obtainable in the market and we are well
prepared to survive on lower profit margin for a while.
Household fuel use is a major energy problem in the developing world. Cooking with biomass (which is free) is
associated with childhood pneumonia; the leading cause of childhood death across the world. Wood charcoal
made traditionally is a clean alternative, but can be expensive, and is also associated with deforestation. Our
technique allows clean-burning charcoal to be made from previously unused agricultural and charcoal waste. It
allows poor farmers to make a profit from previously worthless crop waste. The technology is simple, cheap
and quick, and uses locally available materials.