YIMTU MEKONEN CULTURAL RESTAURANT

1. EXCUTIVE SUMMARY
Yimtu Mekone cultural restaurant project proposal is established with the objective of giving

services in Tilte kebele, Hawassa town, and Sidama region. The firm established by Ms.

Yimtu Mekonen who has good experience on running private business.

The initial investment cost of the project is estimated to be ETB 20,000,000.00 ( Twenty

million ). The feasibility analysis made for the project revealed that it has net present value

(NPV) of ETB 6,077,883, and internal rate of return (IRR) 52% which is by far greater than

the borrowing rate currently prevailed in the market (16.50%).

The project will recover its investment cost at the 3rd year of the estimated project life (10

Years). Thus, the payback period for the project is found to be 3 years. The project will

generate employment opportunities to 100 employees in addition to its extension role to

demonstrate modern production and management practices.

The restaurant business proposal was reduce the high demand in the Hawassa town Sidama
region.

1.1 Title :- Yimtu Mekonen cultural restaurant business proposal

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 YIMTU MEKONEN CULTURAL RESTAURANT
1.2 Promoter: Yimtu mekonen
1.3 Location of Project:- Hawassa town, Sidama region

1.4 Beneficiaries:

Permanent:
 National economy through increased of taxation.

 Help the development activities in the surrounding communities

 Create job opportunities to the community.

 Full time employees taken from the local communities and regional areas including
building manager, finance manager, secretary, accountant, cashier, purchaser, store
keeper and others.

Temporary
 Construction workers during construction of mixed use building

 Trading companies through the purchase of equipment such an equipment’s and

furniture’s, construction materials, vehicles and office equipment.

1.5 Vision
Yimtu Mekonen cultural restaurant vision is to be a renowned brand name in the hearts of
mixed use building users in Hawassa town. Being renowned means providing unparalleled
quality, cleanliness, service and value which satisfies each customer.

1.6 Mission Statement

Yimtu Mekonen cultural restaurant business project is in business to create an opportunity
which enables restaurant users to have unique experience of business through its quality
products and services. Located at the heart of the town, we strive to provide professional,
friendly and courteous services to the public. Yimtu Mekonen cultural restaurant aims to
provide all its service at reasonable price. Besides creating job opportunity right form
construction to service, the planned project treats employee’s welfare seriously and provides
training and rewards for those who join the project which encourages long-term, satisfying,
growth employment. The planned projects premise will be designed aesthetically to create an

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environment to woo customers. It strives to create and maintain a café that is comprehensive
and exceptional in its attention to every detail of operation. The planned project believes in
sustainability of the café business and adopts fair trade policy as a key to drive its business
forward.

1.7 Goals:
To produce, supply and distribute special quality service products for local and neighbor, and
giving quality classes for business man in the town.
To establish a self-sustaining and profitable business for the mutual benefit of all stakeholders
whilst ensuring minimal negative impact on the environment and local society.

2. INTRODUCTION
2.1 General Background
The current fast and dynamic economic growth of Ethiopia especially in urban area
necessitates equivalent growth of building and construction sector. The sector should expand
rapidly to support the overall economic development sustainable.
In the building sector of the economically, the multi- purpose in the one becoming rapidly
expanding in urban areas of the nation since dynamic economic development of urban
economy requires the construction of these buildings in towns to support the growing of
business service sectors like supermarkets, Beauty salon, shops, offices, cinemas, computer
center, restaurants, restaurant, assembly hall, guest house, and other activities. In this regard,
restaurant expands in the all parts of the country.
Investment and property development play an important role in any emerging markets or
economies. Property generally comprises residential houses and commercial real estate
property (mainly mixed use building) developed for rental business and sale. The property
investment market in Ethiopia remained under developed for several years. As a
consequence, the supply of residence, office space, shopping malls, and catering services in the
urban centers of the country is disproportionately low to cope with the growing demand in
the country spinning from the average growth in GDP of 5.5 percent over the last ten years
and population increase. The relatively good performance of the macro-economy (real growth
in GDP, low inflation rate and growth in investment and export sector) has stimulated

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unprecedented investment growth in the property sector over the last five years in consistent
with the global experience suggesting that investment in the residential and commercial
property (real estate) is greatly influenced by the performance of the macroeconomic
conditions. In general, a stable macroeconomic condition leads to economic and business
growth and develops investors` confidence. This certainly spurs large demand in the property
market for office space, shopping malls, catering services, apartment and residential houses.
Following growing demand trends, and with the expectation of high return on their
investment capital, large number of land developers pooled their financial resources and
invested in the property market.
To this effect, the owner of the envisioned restaurant Yimtu Mekonen ware cultural
restaurant has been living for long time in this town, was constructed in Hawassa town,
and undertaken this project study to check the market, technical and financial feasibility of this
project. The promoter is very ambitious and committed to realize the project. Hence, Yimtu
mekonen ware cultural restaurant was got the necessary support from the town
administration to make the project to be operational.
Looking at the past trends and permits issues by the Government to the construction of real
estate properties including the restaurant in the major urban areas of the country especially in
Hawassa town can easily conclude that the momentum is more likely to continue.
Besides, the government policies and incentives for the private sector investment are very
promising that motivates the promoter to engaged in mixed building business.

2.2 Objective of the Project

The major goal of this project is contribute towards the growth of the trade sector in Hawassa
town. Its specific objective includes the following.
 Construct and develop, restaurant facilities that enable to provide standard service to
business organization and visitors
 Undertake trading and either refuted business activities that enable to generate a
reasonable to the invested capital
 Develop modern business center that would provide services of international standard in
order to attract foreign visitors and thereby contribute towards the generation of hard
currency for the country .

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 Create employment opportunities for the population in the town and
 Contribute towards the beautification of the town through the construction of modern
building infrastructure and facilities.
 Generate profit and income tax for Government
 It was generated the profit for the company also

2.3 Project Description

The long term goal of the project is become the best choice in Hawassa town and its
surrounding areas by creating a differentiated experience capitalizing on personal service.
The historical nature of the town is as business unique location in one of the most attractive
parts of the occurrence of the town in Hawssa . The owner plans the project to restaurant
service to create high quality service to satisfy interest of customers in the town. Based on
environmental and other considerations, the entrepreneur has determined the type and size of
the building which is already determined by the site; conceptual planning and preliminary
analysis have been carried out by analysts.

2.4 Project Rational

Internationally the economic growth in this country is experiencing, the good governance
created and even if the town is in its nascent stage of development this project is feasible and
would be a model development in promoting and attracting different urban investments.
In order to respond to the created environment the town is in need of major, basic and feasible
urban project to be developed.
The existing promising investment opportunities, the demands of service needs along with
relatively sound investment support made by the government in such kinds of feasible
projects, compelled the project promoter to initiate the multipurpose oriented business project
to be established. Despite the promising business opportunities of the town, the trend on such
kinds of investment found minimum. Since there is no such kind of modern tourist facilities
and business station in the town to accommodate the existing demand of these services in the
town and the surrounding areas. The mismatch between the demand for and supply of such
kind of services in easily observed in the town. Therefore, the existing shortage or absence in
the supply of these services, along with its commercial and administrative access, better

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location and infrastructure access, escalating trend of urbanization and business activities, thus
it is with such reason that this project is identified and proposed and assumed to be more
profitable.
In general, the country`s decentralized state based economy, privatized and free market
economy; good governance creates a favorable environment for the development of
investment for private investors.

2.5 The Significance of the project

The envisaged project deemed to add to the economic development of the nation in general
and the region and town in specific with following ways;

A. Source of Revenue
As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income
taxes, payroll income taxes, and VAT or TOT are collected from undertaking business
activities, therefore, the building will serve as sources of revenue for the town as well as for the
region.

B. Employment Opportunity
One of the problems that our country faced is unemployment. Therefore, the current objective
of the government is working on tackling the problem if unemployment and fostering the
development process either through creating self employment or employment in other
organization. Hence, this project was hired around 41 individuals permanently working in
the company.

C. Sources of Social Service

In addition to serving as a source of employment and income for the region, the project
renders social for different group of people.
Hence, it is also providing the following services;
 Serve as a source of mental satisfaction for the different users,

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 Since, the center encompasses different recreational area; it was divert the attention of
the users from different evil deeds,
 It deemed to minimize the demand for shops and other bundles of
services in the area.
Furthermore, it serves as the pilot experience and ground for other investor to enter in to such
kinds of urban development. It also contributes on the efforts made on as a character given
building for physical development pattern of the townscape.

2.6 Project Location

As aforementioned on the introductory part the envisioned project is intended to be located in
region, Sidama Hawassa town .

2.7 Restaurant is Unique

Hospitality investments in the form of hotels, motels and resorts represent a unique
combination of real estate and business investment. Many of the characteristics of retail service
establishments are present along with the high capital investment that is common to real
estate ownership. Unlike other retail service establishments, the inventory (guest rooms,
lounge seats, etc.) has a short shelf life of as little as one hour. Unlike other forms of real estate,
rental (lease) periods are daily; however, rental rates can be raised on short notice. Another
factor, which is foreign to other forms of real estate, is the management and labor
intensiveness of the hospitality industry.

2.8 Professionals
Maximizing cash flow and return on investment in this unique business investment are best
accomplished by a team of experienced professionals with outstanding experience and
training combined with impeccable credentials. Through our refined technical resources and
thorough operational systems, Yimtu Mekonen cultural restaurant has a proven ability to
deliver service and value.

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2.9 Services
Yimtu Mekonen cultural restaurant provides bar and restaurant, DSTV services, and
technical and pre-opening services in all areas of the hospitality industry.

2.10 Experience
Ato Yimtu Mekonen cultural restaurant over 10-year veteran of the different business
industry founded Restaurant. Our staff has the depth of experience to manage our hotels
professionally, regardless of their scope and number of rooms. In addition, we are skilled in
the design and implementation of viable plans to increase a hotel's profile and profitability.

2.11 Management
Restaurant management is a significant career. Larger cafes may operate with an extensive
management structure consisting of a General Manager who serves as the head executive,
department heads who oversee various departments, idle managers, administrative staff,
and line-level supervisors. Degree programs such as hospitality management studies, a
business degree, and/or certification programs prepare hotel managers for industry practice.

3. BACKGROUND INFORMATION
Despite persistent and increasing growth in the demand for cafe supply by the existing
company is not adequate. In view of the current trends in economic growth and governments
plan to invest millions of dollars in infrastructure, hydro power projects, mining, road facilities
construction and other sectors, the current gaps between demand and supply is wide. Also it
is rear to find multipurpose hotel having all the services and products one might need
together in one place which saves customers time, energy and suffer.
Besides, the investment location selected is a major trade route towards Addis Ababa to
Shashemene road and Yirga Alem . In which a number of different vehicles travel through
daily. Mining, many coffee industries, University, Colleges, horticulture and different
mechanized agricultural works are currently amount of hotel along with the high demand of
the large needs.

3.1 Company Summary

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Yimtu Mekonen Cafe, soon to be located in Hawassa a town, will offer customers a
unique and innovative environment for enjoying great coffee, tea, soft drinks, fast foods, and
bed and bakery items. It also provides the visitors and the community a quality service with
reasonable price at an appropriate location

3.2 Company Ownership

Yimtu Mekonen restaurant is a sole proprietorship owned by Yimtu mekone . It will be
registered as private business with future vision to expand based on growth of the business
and demand.

4. GENERAL DESCRIPTION OF PROJECT AREA

The project area is located in Sidama region, Hawassa town, the major trade route of the
high way toward Addis Ababa – Moyale route covering a total area of 100 square meters.

In this route more than one hundred vehicles are expected to travel daily in and out of the
town. Therefore, there expected high demand for hotel, restaurant and other related services
in addition to the requirement of the location investment activities. There will also be the
construction of the region`s new trade center around, in the future and this will create a high
potential demand for both the station and the hotel services.

4.1 Location
Hawassa town is one of the known town and becoming the major from Eastern Arsi Zonal
Administration area by its production of cereal .

The site is in the Hawassa town and around 275 km from Addis Ababa.

5. The Market Study

5.1 Market Analysis
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There are a number of factors which affects the demand of standardized mixed building. Of
these factors, the most important to have influence is population growth and the level of
income. The currently expanding business organization the area has been inviting skilled and
unskilled labor forces to the town; in addition, the number of both government and non
government offices has been increasing. Above all the increase in the number of population of
the town increases for the provision of different services. Nowadays, most of the private
business organizations need their own small-medium offices in order to give their services
and provide their products, and they prefer the place that found in the center of the town.
As clearly indicated in the introductory part of this proposal, Hawassa town is one of the
dynamically growing towns of Sidama Region . Though the market demand gab for
restaurant in Hawassa town is not clearly understand there is wider gap for such demand as
many merchants, organizations are flouring to the town every day. From prior business
experiences, the demand of mixed use building in Bule Hawassa town, Sidama region is
very high and hence the demand and supply gap is very wide.

5.2 The Demand – Supply Gap

Hawassa town is situated in very center of which is highly known for its many business
organizations, governmental organization offices, NGOs office, bar and restaurant,
supermarket and many business activities are taken place. Hawassa town is also a major
business center and commercial route that attracts thousands of business travelers. These are
also the most important groups of potential customers that include both the local and foreign
tourists and the modern business community who choose services that range from economic
to high class standards. These groups would also choose a healthy comfortable climate that
combines a more traditional type with that of modern shops, offices, restaurants, and
restaurants. Even though when compared with similar sub cities in the region Hawassa
town seems to have no developed mixed use building, the existing supply is far behind the
growing demand for standard service. Hence, the project was solved the sources demand
problem in the town.
Over the last decade, there has been a significant growth in the number of local and
international trades across the country. This increase is mainly associated with the stimulation

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of economic activist and partly due to an increase in the flow of international and local traders
in to the town. Since Hawassa town is an important commercial center in addition there is a
significant increase in business activates and hence increasing the number of traders to the
town. Even though there is a lack of quantitative estimates that depict the actual demand and
also the annual growth rate mixed use building facilities and urban commercial facilities are
scarce in the town. So far in the town there is not enough development of such kind standard
building and it was feasible and will promote other investors from the town and the
surrounding areas. As a result there is a large gap between the developed and that of the
supply for modern offices; bank and restaurant accommodation hence this project would not
face any problem of demand in the town for its business centre and it would provide good
service to customers.

5.3 Current Supply of Hotel

Restaurant sector has shown a dynamic change in the past few years. The reason for this
could be rapid economic growth and a supporting public infrastructure development. Other
factors relevant in the specific case of hotels are the large increases in national and international
businesses, particularly firms in the services sector.
The business of Restaurant in Hawassa town in booming highly due to the recent rapid
growth experienced in Ethiopia. As a result, a good number of local and international
organizations are coming in place. Government offices which used to operate in limited

spaces all over the town are also concentrating on leasing new and modern buildings.
Increasing numbers of international organization and NGO’s which in the past had typically
converted residences into office space are now moving towards renting whole floors or even
multiple floors in modern city-center commercial buildings.

5.4 Target Customers

The target customers of this envisaged project include:-
1. Business community
2. Nearby business organization

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3. The government bureau
4. Small accounts (SOHO) SME
5. Nongovernment organizations

5.5 Market Promotional and Strategy

In order to penetrate and gain consideration market share, one of the major marketing
strategies for the project is consistently rendering quality service to its tenants. Due emphasis
must be placed on improving quality of service and facilities. The major marketing strategies
to promote the project and gain considerable market share include:
 Advertising through different means focusing on the existing service and facilities
 Promote in association to the key location and nearby business
 Working on sustained promotional work
 Working on public relations to reach and influence key persons and organization with
a town of making decision.
 Keeping the quality of its service / facilities and consistently improving with charging
situations.
 Seasonal discount pricing different others customer centric marketing strategies will
be used by the company

5.6 Competition
There are different forms of competition that may face the envisaged restaurant. These are
price and non price based competition. Moreover, there are different competitors that will
compete with the project either directly or indirectly. But the mixed use building under
discussion has diversified marketing strategies that could enable it come up with different
competitors in the market. Moreover it will frequently conduct competitors research which
focuses on, the strength and the weaknesses, the different competitors` strategies, the
techniques they use in rendering the service, their customer handling methods, and others.
Generally the project has many other projects all over Ethiopia which compete with it.

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6 Technical Study
6.1 Description of the Project Service / Product Mix
The envisioned mixed use purpose house was providing restaurant services to the different
customer groups. The building was having only ground. The purpose of the building
explained as follows;
 The ground floor designed for restaurant business and other business services
Besides, the building was having enough parking facility for its customers and green area in
its compound.

6.2 Utilities
A number of utilities world be put in place in order to insure smooth function of the project.
These utility include:
 Water supply,
 Telephone line internet broad band,
 Fuel, oil and lubricants,
 Drainage facility

7. Organization Structure and Manpower

The organization structure of the organization is arranged in such a way to address business
cooperative principle and practice. To this end the organizational structure needs to have a
general assembly, board of directors, an auditor team and a technical department to
perform production and marketing roles (see also above possible structure for market link
or chain).
To carry out the day to day activities of the business, however, there will be a separate office
management by a general manager which may consist of technical and administrative staffs
under the operational structure. Although, size of the organization is going to be depend on
size of the business and hence the business cooperative do have a clear organizational
structure in order to properly run and control (manage) the business as depicted here under.

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The number and quality of staff members to be recruited will depend on the volume of
work for production and marketing. Under the overall guidance of the board of directors,
the general manager will have full authority to run the business and recruit relevant staff as
per the required standard, demand of production and marketing strategies of the firm.
Though the market assessment made shows that the demand for the product is showing an
increasing trend, it is wise also to promote and create contract farming arrangements so as to
make the market more sustainable. For this end, the farm will introduce quality
management systems to continually improve, production outputs, strange and the
marketing process.

7.1 ORGANIZATIONAL STRUCTURE

General Manager Secretary

Building Marketing
Technical and
Administration
Maintenance Manager

HRM and Finance

Cashier
Purchaser 14
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Figure: - organizational structure of the building

7.2 Man Power Requirement with Qualifications

Table 2:- Manpower requirement
Monthly Annual
EXPECTED QUALIFICATION
POSITION No Salary Salary
Café Manager BA in Accounting and Management 1 4,500 54,000
Cashier and secretary 10+2 in Secretarial Science 1 2,500 30,000
Accountant BA in Accounting 1 3,000 36,000
Baresta 10+3 and 3 Year experience 1 1,500 18,000
Chief Cook Experienced in cooking 2 2,000 48,000
Janitor Grade 4 complete 1 600 7,200
Purchaser Diploma in purchasing 1 1,500 18,000
Cleaner Unskilled 4 600 28,800
Waiter Grade six complete and experience 6 800 57,600
Security guard Grade 10 complete 2 800 19,200
Benefit 20% of salary     63,360
Grand Total 20   380,160

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7 Financial Requirement and Analysis
The financial resource is a prime resource for undertaking any activity. Hence for
implementing this activity this restaurant a total of 20,000,000 ETB is required. From this 30 %
(6,000,000 Birr) will be covered by the promoter of the project while the rest 70% of ETB
14,000,000 will be covered through loan from bank at prevailing interest rate. Therefore, the
said amount of finance is needed for undertaking the following.

7.1 Fixed Investment

7.1.1 Land, Building and Construction
Table 3:- Building Maintenance

S.N Description of work Total Cost in Birr

1 Building Construction 8,409,700.00

2 Site Development 1,265,800.00
3 Designing and Supervision 324,500.00
Total 10,000,000.00
7.1.2 Building Machinery and Equipment
Table 4:- Machinery and equipment

S.N Description Measurement Total cost in Birr

1 Generator Unit 75,000
2 Carpenter tool box Set 12,000
3 Electrical tool box Set 10,400

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4 Plumber tool kit Set 5,000
5 Fire extinguisher (security equipment) Unit 9,000

Total 111,400

7.1.3 Office Furniture

Table 5:- Office furniture
Total Cost
S.N Description UOM Qty Unit Cost
1 Managerial Tables Unit 1 15,0000 15,000
2 Managerial chairs Unit 1 4,400 4,400
3 Office table with chair Unit 2 2,300 4,600
4 Secretarial table with chair Unit 4 1,200 4,800
5 Shelve Unit 2 2,000 4,000
6 File cabinets Unit 2 4,800 9,600
7 Guest chairs Unit 4 750 3,000
8 Carpet and Curtin LS     10,400
Total   55,800

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8.1.4 Computers and accessories
Table 6:- Computer and accessories

S.N Description UOM Qty Unit Cost Total Cost

1 Computers Unit 1 20,000 20,000
2 Fax machine Unit 1 7,000 7,000
3 Printers Unit 1 12,500 12,500
4 Cash machine Unit 1 7,000 7,000
Total 46,500.00

8.2 Initial Working Capital Determination for three Months

Table 8:- Initial working capital

Description Monthly Quarterly Cost/Year Four month

Wages & salaries 31,680 95,040 380,160 126,720
Purchase of café 111,852 335,557 1,342,228 447,409
Utilities (Electricity & Water) 41,250 123,750 495,000 165,000
Repair and Maintenance 65,840 197,520 790,080 263,360
Transport, stationery & services 75,482 226,446 905,784 301,928
Insurance expense 14,568 43,704 174,816 58,272
Telephone, fax, internet & postal 25,648 76,944 307,776 102,592
Others 35,280 105,840 423,360 141,120

Initial W.C 401,600 1,204,801 4,819,204 1,606,401

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8.3 Depreciation
Table 9:- Manpower requirement

Fixed Assets Estimated Costs Rate Depreciation Expense

Building and civil works 718,700 5% 35,935
Building machinery and equipment 111,400 20% 22,280
Office equipment and furniture
39,800 20% 7,960
Computer and accessories
28,500 25% 7,125

Total 898,400 73,300

9. Financial Analysis
The promoter has planned to cover about 70% of the investment capital for the envisaged
project. It is assumed to get loan from local bank. The loan would be used for the partial
expansion of restaurant working capital requirement.

9.1 Profitability
The financial statement, which is prepared based on the projected financial statements reveals
that the project would generate a net profit from first year .

9.2 Cash Flow Statement

The financial performance of the project shows financial capacity and positive cash balance.
The net cumulative cash flow of the project life increases from ETB 1.5 m in by the end of
project life.

9.3 Payback Period

The payback period is the length of time required to recover the initial cash outlay on the
project. The feasibility analysis carried out for Yimtu Mekonen cultural restaurant project

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shows that the project will recover its initial investment at the end of the 3rd year. (See table
below for detail information).

As you can see from the table, the cumulative net benefits of the project started to be positive
from the third year. This means the project can cover its investment cost at the end of the 3rd
year. The project is very much feasible in view of restaurant industry which normally took
longer time to recover the invested capital.

9.4 Financial Internal Rate of Return

Table 22:- Financial rate of return        

  Projection Years
Description - 1 2 3 4 5 6

Benefits              

Revenue - 5,247,000 5,771,700 6,348,870 6,983,757 7,682,133 8,450,346

S. value of Invest. -
Recovery Of W.
- - - - - -  401,600
Capital
Total Benefits 0 5,247,000 5,771,700 6,348,870 6,983,757 7,682,133 8,851,946
               
               
Costs              
Invest. in F/Assets 898,400 -          
Increase in W. Capital 401,600 0 20,080 21,084 22,138 23,245 24,407
Land Development 0            
Pre-operating cost 0            
  0            
Principal repayment 151,667 151,667 151,667 151,667 151,667 151,667

Operating Costs
- 4,819,204 5,060,164 5,313,172 5,578,831 5,857,773 6,150,661
Profit tax - 81,855 171,299 272,870 387,961 518,114 665,034

Total Costs
5,052,726 5,403,210 5,758,793 6,140,597 6,550,799 6,991,770
1,300,000

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194,274 368,490 590,077 843,160 1,131,334 1,860,177
Net Benefit After tax -1,300,000
276,129 539,789 862,947 1,231,121 1,649,448 2,525,211
Net Benefit Before tax -1,300,000
FIRR After tax 38%
FIRR Before tax 52%

The feasibility analysis made for the project revealed that it has net present value (NPV) of
ETB 6,077,883 and internal rate of return (IRR) before tax is 52% and internal rate of return
(IRR) after tax is 38% which is by far greater than the borrowing rate currently prevailed in the
market (9.5%).

10. Project Monitoring and Evaluation

The successful implementation of the project lies on the proper monitoring and evaluation
mechanisms. Record Keeping is the most important part of the process. Records must be
kept for all aspects of the project. The records will be important sources of data
/information for performance appraisal and adjustments based on monitoring results and
evaluation will be made quarterly. To this end the project will allocate enough budgets.

11.Recommendation
The projected income statement indicates that the project is profitable throughout its life. The
projected financial performance of the project also shows excellent financial capacity and
positive cash balance. Besides, the discounted cash flow shows cash surplus throughout the
project life and the financial internal rate of the project is higher than the cost of capital .

The initial investment cost of the project was ETB 20,000,000 of which 30% (6,000,000) were

covered from owner’s contribution and the remaining balance 70% (14,000,000) was covered

from bank loan. .

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The project will recover its investment cost at the 3rd year of the estimated project life (7 Years).

Thus, the payback period for the project is found to be 7 years. To make the project

environmental friendly, 3,000 square meter of land is allocated for protection of the

environment. The project will generate employment opportunities to 160 employees in

addition to its extension role to demonstrate modern production and management practices.

The project gauged against various parameters was assessed by varying the most significant
parameters and the result shows that the project can accommodate any price or cost variations
without significant implication on the profitability of the project.
Therefore based on the forecasted overall financial analysis, we can deduce that the Yimtu
mekonen restaurant project shall results improvement of the development sector is
supported and viable and worthwhile for implementation.

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