Professional Documents
Culture Documents
Concept-Note-Shuraako
Concept-Note-Shuraako
DIRECTIONS: Completing and submitting the Concept Note is a mandatory first step in Shuraako’s application process. Ensure that all
questions are answered according to the guidelines stated throughout this form. The submission must be in English.
Once completed, submit the Concept Note (and accompanying documentation) to the appropriate regional representative: Ms. Sahra
Hassan (shassan@shuraako.org) responsible for Somaliland, or Mr. Abdirahman Mohamud (amohamud@shuraako.org) responsible for
Puntland, and Mr. Mohamed Abdi Hashi (mhashi@shuraako.org) responsible for South Central Somalia. If you have not received
acknowledgement of submission within 10 business days, email Shuraako immediately (info@shuraako.org). If you have any questions
pertaining to the Concept Note contact your regional representative. Once received, Shuraako will review and identify candidates that are
most appropriate for investment.
1
Concept Note Template
1. Business/Project Details
Business Name Kaah Electrical General Trading Co.
Investment Request ($) 100,000
*Owner Cash Contribution ($) 50,000
*A cash contribution of at least 30% of total project cost is required
Telephone +252-907794700
Telephone (additional) +252-907790036
Email kaahcompany1@gmail.com
Email (additional)
Name of Authorized Representative Farah Warsame
Telephone +252-907794700
Telephone (additional) +252-907790036
Email farahwarsame@gmail.com
3. Business/Project Description
3.1 Location
Check the appropriate box.
☐ South Central
☒ Puntland
☐ Somaliland
2
Concept Note Template
3.4 Registration
Are you registered with any of the following?
Check all that apply.
☒ Chamber of Commerce
☐ Business Association
☐ Co-operative
☒ Government Entity. Please specify below:
Ministry of Ministry of Commerce and Industry
Local Municipality (Dawladda Hoose) of Garowe district, Puntland state of Somalia.
Other
b. Do you operate under any other business names that are not written in your Registration/License? If yes,
please list below:
3
Concept Note Template
4. Business/Project
4.1 Business Profile
Provide a brief business profile. Please address the following 3 points:
a. How has your business started (brief history)?
b. Describe the products and/or services your business provides.
c. What problem(s) or need(s) does your business solve/address?
KAAH General trading and Solar Company which is currently based and operates in all Puntland regions. The
company is headquartered in Bosaso, the commercial town in Puntland. The Company was established in January,
2003. KAAH General trading has been growing and expanding its operations throughout Puntland regions and has
successfully opened branches in Garowe and Kalkio in the last year.
In local Somali language “KAAH” means “Light” which we aim to light up our society through quality and
quantity, social needs based commodity and it plays the meeting Somali community demand for supplying
electronic and solar system materials, and as well supplier for all Somali big towns.
KAAH Solar Energy plans to sell all types of Solar panels, water pumps, inventors, off-grid solar facilities, street light solar
systems, renewable energy accessories and providing Solar installation as means of sales revenue generation source for the
business. We are intending and purposefully to be one stop shop for all your solar and renewable energy.
a) Photovoltaic Solar (Pv) Power panels of all types and any sizes
b) Off-grid Solar System Kits
c) Water pumps
d) Inventors
e) Solar Street lighting kits
We also provide the following services as an added value to our customers and to create one stop shop for
renewable energy for our customers.
The combination of the above products and services will address the needs of the Somali people who are living in Puntland
regions specifically and in Somalia as generally. Our products and services will save the cost incurred for electricity
consumption up 20% in the first two years for our customers after having been installed the off-grid solar system and
provides energy consumption consultations. KAAH will sell reliable solar energy, water pumps and off-grid solar systems in
terms of warrant and quality. Moreover, a free delivery and consultations which is our unique business selling propositions.
In Puntland, our competitors don’t keep satisfied their customers both quality and quantity while, we are the only company
who can solve all their solar energy and renewable needs.
4
Concept Note Template
4.2 Market
Describe your market (including local and international market).
a. Where and what size is your market?
b. Who are your target customers (e.g. age, type, location)?
KAAH targets to gain a market from the Bari region, Sanaag region, Nugaal and Mudug regions in Puntland. Our
specific target customers will be Domestic, Agricultural Farms, Business Entities, INGOs, UN and Government and
Small Industries in Puntland regions as clearly above
Presently, our target customers are domestic households, small and medium enterprises-SMEs, Agricultural production farms
as end users (consumers). Beyond this, there will be distributors (businesses).
4.3 Competition
a. Who are your competitors and what do they offer? Please provide a brief summary.
In the below table, we summarized the competitive Analysis by listing the reasonable factors as shown in the corner of the
first column and have assessed the strength and weakness for our business (KAAH Solar Energy) and for our competitors.
We then gave rank on how important each factor is to our target customers on a scale of 1 to 5 (1=very Important, 5 not
very important)
Products S W W W 3
5
Concept Note Template
Price S W S W 2
Quality S W W W 1
Selection S S W W 3
Service S W W W 2
Reliability S W S S 2
Stability W S W S 3
Expertise S S W S 2
Company S S W W 1
Reputation
Location S S S W 3
Appearance S S S S 2
Sales
Method
Credit W S S W 3
Policies
Advertising W S W W 2
Legends:
1 2 3 4 5
Very Important Important Less-important Not Important Not very Important
b. What are your competitive advantages compared to the product/service offerings of your competitors?
Please provide a brief summary:
6
Concept Note Template
We are intending and have a clear understanding of our business niche and our unique segment
of the market for our products including Solar Panels and Submersible Water pumps.
Our unique product segments will be positioned and present our company to customers for the
following tactics:
Quality product positioning
Positioning based on Competition
Moreover, our competitive advantages is included that we set strategic actions that direct the
promotion of our products and services that matters for our esteemed our customers.
4.4 Production
Describe the activities that occur in the production and delivery of goods and/or services. Please address
the following 3 points:
a. How do you get your raw materials/supplies? Please include where your suppliers are located.
b. Describe the production steps for making, acquiring and/or providing your goods or services.
c. How do you deliver your goods or services to customers? Please include packaging, marketing and
transportation.
KAAH General trading company outsource solar panels, electronics and accessories from the overseas
of Somalia. The company has established a good relationship and signed with partnership contract
with most of the reputable companies including, Apex Power Solar, Holland Solar, Estar Solar.
Our above mentioned suppliers are located in Emirates, China and Malaysia. We have procurement
system when outsourcing solar panels from outside.
In order to outsource from the overseas, we determine our company requirements, we research the
different suppliers, then analyses the prices of the products, choose the best supplier with the
reasonable prices and quality, make Purchase Orders and payment.
As the company is general trading from the solar and other renewable energy equipment and
accessories, we trade from Dubai and sell and distribute in the country. Firstly, we calculate the Cost of
Goods Sold (COGS) of the items then added to value based pricing and we sold out to customers.
We deliver through taking a set of steps and procedures to deliver products to our customers and
these are including, we calculate estimates for transportations, Prepare and packaging products so as
to dispatching from the warehouse, printing delivery and acceptance letter, handing over the delivery
to the customers and collecting the signed product receipt and handover documents from the
7
Concept Note Template
customers.
KAAH General normally work all the week from 7:00 Am-8:00 PM thoroughly except Fridays.
4.5 Operation
Please address the following 2 questions in this section. Please provide a brief summary.
a. What kinds of facilities does the business have? Including land, offices, factories, stores, etc.?
b. How has the business grown since it started?
Currently, the company has set up a business development Executive office in Garowe that coordinates,
improve and the overall business operations of the company branches in Garowe, Bosaso, Qardho and Kalkio
which is recently launched at the beginning of 2021. As the financial Report of the company indicates, the
company has Fixed Asset with a value of more 1.1 Million Dollar including, Land, vehicles and other assets.
In the year of 2003 on January, Kaah General Trading Co. LLC was established by Farah Warsame who was an
Electrical technician, after having recognized the huge demand for electrical and electronic products in Garowe
town and its surrounding. After three years of successful operations, he saw market opportunity emerging from
Bosaso town and quickly entered the market by opening a new store in a very strategic location at the
downtown of Gaaca area, Bosaso-Puntland.
5. Investment
8
Concept Note Template
KAAH Electrical General trading Company has been in the market since the last 18 years in Puntland in
the sector of Solar and Electrical accessories. During that time, the company has successfully opened
business branches in Bosaso, Qardho and Kalkio which shows the impactful growth and market share
penetrated. In the year of 2020, the company has signed a contract with foreign solar manufacturing
companies from UAE and China to be a supplier in the horn of Africa.
So, we have consistent demands for selling solar and it’s accessories in Puntland regions and this is the
one of the most significant we are seeking an investment from Nordic Horn Opportunity Fund through
Shuraako-Puntland office. In order to meet our customer’s demand and make sure that our supply is
meeting with the customers’ demand if not, we will lose our loyal customers and would not be able to
penetrate the exact target market share.
We are going to put this investment in the sector of renewable energy in order to change and improve the
domestic living stand and the small business owners those are struggling to pay relevant expensive
electricity in Puntland towns.
Currently, we sell an average of 145 photovoltaic Solar panels in every month and we believe in that
making an investment in this sector will generate a good profit margins and as well would increase the
revenue of the company, create employment for both skilled and non-skilled employees in the community.
As the company goal for Solar Energy System installation and selling is to be an efficient company to
implement and operate activities and to do it in a way that the company is financially profitable and
therefore sustainable, so that investors have a low risk and safe investment opportunity, that customers get
a good outcome and society as a whole gets a positive impact.
c. Have you received funding from a bank or other investors in the past?
☐ Yes
☒ No
9
Concept Note Template
6. Employment
Definitions:
Permanent employees: employees who work for you 6 months or more in a year
Temporary employees: employees who work for you less than 6 months in a year
Permanent female employees: female employees who work for you 6 months or more in a year
Permanent youth employees: employees between the ages of 15-35 employees who work for you 6 months
or more in a year
Temporary female employees: female employees who work for you less than 6 months a year
Temporary youth employees: employees between the ages of 15-35 who work for you less than 6 months a
year
10
Concept Note Template
Please use the definitions above to determine how many individuals you currently employ.
No. of
Current Job Types and Number of Each Type
Jobs
Job type Total Number of Employees
Branch Manager 5
Head of Operations 1
Cleaner 5
Watchman 6
General Manager 1
Total number of Data Entry 3
40
permanent employees Storekeeper 3
Driver 1
Port offloading security 1
Cashier 4
Sales 9
General Accountant 1
Marketing 1
Total number of
permanent employees 8 5 of them are cleaners while three of them are data entry.
that are female
KAAH has 31 permanent youth employees in all branches across
Total number of
Puntland regions. They are in the sales, operations, branch
permanent employees 31
managers, Accounting and Marketing departments of the
that are youth
company
Total number of These are casual staff that are hired occasionally/seasonally
13
temporary employees specifically in Bosaso town, Bari region-Puntland-Somalia.
Total number of
These female temporary staffs are given paid internship for a
temporary employees 4
period of three months or two months on demand basis.
that are female
Total number of All the 13 temporary staffs are youth and are recruited to support
temporary employees 13 and assist in carrying out sales and marketing campaigns of the
that are youth company.
One month after received this investment, we intend to hire four permanent staffs and three casual staffs.
b. Please fill out the table below. Enter the number of jobs you believe you will create in the four years
following the investment period, broken out by total, female, youth, job types and number of each type.
Please use the definitions above to determine what types of jobs you may create. Please include the types of
jobs that will be created by this project (ex: sales people, fishermen) for each year.
11
Concept Note Template
After Investment
12
Concept Note Template
6.4 Ownership
List all those who have an ownership stake in the business.
7. Collateral
List assets you or the business owns that can be pledged as collateral, not currently pledged to another financial
commitment (add rows if necessary).
13
Concept Note Template
Reference 2 Mohamed Said Al-fatxi Home Supplies Job Title: Owner Phone:+252907794146
Relationship: Family Email:
Reference 3 Xaamid Abdi Bixin Group Job Title: General Manager Phone:+252907797133
Samatar Relationship: Family Email:
In addition, list one person outside of your Company who might guarantee repayment to the investor.
14