BAMVUMASE GENERAL

DEALERS LIMITED
Business Plan
@2022

Contact Details:

Calls | WhatsApp: +260975533447

Email: bamvumaseltd22@gmail.com

Website: -
Table of Contents
COMPANY PLEASANTRIES .................................................................................................................... 1
Executive Summary .................................................................................................................................. 1
Vision ........................................................................................................................................................ 2
Mission...................................................................................................................................................... 2
Goals ......................................................................................................................................................... 2
Core Values............................................................................................................................................... 2
PROBLEM STATEMENT ........................................................................................................................... 3
OUR INNOVATIVE SOLUTION ............................................................................................................... 5
PRODUCT/SERVICE DESCRIPTION ....................................................................................................... 6
1. Salaried loans .................................................................................................................................... 6
2. Marketer loans .................................................................................................................................. 6
3. Agricultural loans.............................................................................................................................. 6
4. SMEs loans ....................................................................................................................................... 6
MARKET OVERVIEW ............................................................................................................................... 7
Our Target Market .................................................................................................................................... 7
Buyer-persona ........................................................................................................................................... 7
Marketing Strategy.................................................................................................................................... 7
Our Product......................................................................................................................................... 8
Place ..................................................................................................................................................... 8
Price...................................................................................................................................................... 8
Promotion ............................................................................................................................................ 8
Physical Evidence ................................................................................................................................ 9
People ................................................................................................................................................... 9
Process.................................................................................................................................................. 9
Competitor Analysis ................................................................................................................................. 9
RISK ANALYSIS AND MITIGATION .................................................................................................... 12
Risk Identification................................................................................................................................... 12
Risk Mitigation ....................................................................................................................................... 12
CORPORATE GOVERNANCE AND MANAGEMENT STRUCTURE................................................. 14
Introduction ............................................................................................................................................. 14
Management Structure ............................................................................................................................ 14
 The Chief Executive Officer (CEO) - ..................................................................................................... 14
The Chief Finance Officer (CFO) ........................................................................................................... 15
The Chief Operations Officer (COO) ..................................................................................................... 15
The Chief Administration Officer (CAO) ............................................................................................... 15
Non-Executive Directors ........................................................................................................................ 15
Board Chairperson ...................................................................................................................................... 15
SOCIAL IMPACT ...................................................................................................................................... 16
Job Creation ............................................................................................................................................ 16
Rural Development ................................................................................................................................. 16
Youth and Women .................................................................................................................................. 16
FINANCIAL PROJECTIONS .................................................................................................................... 17
The Investment Needed .......................................................................................................................... 17
The Budget .............................................................................................................................................. 17
The Past Financial Statements Analysis ................................................................................................. 17
The Pro Forma Financial Statements ...................................................................................................... 17
APPENDICES ............................................................................................................................................ 18
 COMPANY PLEASANTRIES
Executive Summary
Bamvumase General Dealers was incorporated in 2018 as a company limited by shares. The entity
is involved in Micro-financing, General construction and hardware. This business plan focuses on
the entity’s micro-finance aspect and its expansion needs which seeks to assist the youth and
women smallholder farmers, SMEs, salaried employees and Marketers. The plan presents the
problem statement and the innovative solution the company has provided while a market overview
has been presented with the entity’s marketing strategy. The firm intends to raise an investment of
K3 million ($185,000.00) and projects itself to make attractive return on investment with clear pro
forma financial statements as evidenced by the past performance.

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Vision
To be a lender of choice for smallholder farmers and marketeers by 2030.

Mission
To offer indigenous financing at lower costs of borrowing to smallholder farmers and marketeers
enabling growth and easy access to funds.

Goals
In the quest to attain the organizational vision, we intend to achieve the following goals;

 To provide affordable financing to the local smallholder farmers, marketeers and low
income earners.
 Set up a streamlined financial system that meets market demand.
 Enhance job creation by fostering the growth of small business through financing.
 To increase the average productivity rate among low income communities by providing
them with financial literacy services.
Core Values
 Diligence: we provide our services and products with optimum care and support.
 Exceptionality: we are different and unique in our service and product delivery.
 Integrity: We are honest, transparent and fair in all our business dealings.
 Confidentiality: no divulging of clients or partners data and information to third parties.
 Professionalism: we adherence to ethical practice in all our operations.

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 PROBLEM STATEMENT
Serenje district is located in the central province of Zambia after Mkushi district which is near the
Great North Road. Most inhabitants of the area are smallholder farmers and marketeers who live
on low incomes earned from their output.

Most financial institutions in our target market offer their services to civil servants on the
government payroll as this group of borrowers is regarded to be low-risk. Smallholder farmers and
marketeers find it difficult to access finances as the requirements by lending institutions are not
favorable to these groups of individuals. This implies that almost 70% of the population in the
target market cannot access funds because of the demands by the lending institutions.

The farmers in these areas hold the largest share of farming output in Zambia. If the financial needs
of these farmers are not met, it means the farming output keeps on reducing. This in effect affects
the whole country in terms of food security and other processing. If agriculture output decreases,
the hunger levels are expected to increase causing even more malnutrition in the country.

Below is an identification of challenges faced by our target audience by cluster;

 Salaried borrowers: Most financial institutions in Zambia are only lending to public sector
employees leaving out the majority citizens that are employed in the private sector.
 Marketers: most marketers are women trading vegetables and other basic agricultural
commodities from backyard gardens. In this regard, they find it difficult to increase their
capacity and most of these spend years in stagnant businesses.
 SME Loans: Small medium enterprises like in most African countries play a very critical
role in the Zambian economy. With the high unemployment levels currently faced, most
young people are resorting to entrepreneurship as a main source of livelihood setting up
small medium enterprises operating across different sectors. However, the growth and
development of these enterprises is very limited due to limited access to finance for SME’s.
Majority finance institutions operating on the Zambian market do not provide financing for
SME’s while the few providing financing are charging very high interest rates with a lot of
conditions.
 The Zambian agricultural sector is predominantly small holder farmers who depend on rain
fed agriculture. These are mostly rearing livestock by open grazing and growing cash crops
such as maize, soya beans, vegetable and other agro products. However, reduced rainfall

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due to climate change has reduced the productivity of these farmers thereby calling for
immediate action to adopt climate adaptive solutions that will reduce their over dependence
on rain fed agriculture.

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 OUR INNOVATIVE SOLUTION
Our innovative solution is inclusion. We have transitioned from just offering credit facilities to
civil servants to smallholder farmers and marketeers. Our loan facilities help smallholder farmers
with funds to acquire farming inputs and meet their short term commitments. We have therefore
embarked on an expansion project to ensure we cover the needs of the smallholder farmers and
marketeers to ensure food security and enhance processing in the country. The target market
presents a huge opportunity that would allow the entity to reach a wider customer base.

We have therefore, decided to operate not only in Serenje by stretching to other towns like Ndola
and Chingola and we plan to penetrate Mkushi as well. We have also embarked on increasing our
online visibility to be reachable by many clients from anywhere in Zambia. The company has
collaborated with EaseOnTrack in order to ensure its loans are administered with ease for both the
clients and the company staff as well. The application operates as a finance system where users
can generate business transactions while directly receiving and making payments using mobile
money and bank accounts since the application will be connected to mobile money and internet
banking platforms. Through the application users will apply for concessional loans or conditional
lending to better their farming activities and market ventures. Our focus among our targeted
beneficiaries is irrigation solutions for crop farmers to stop depending on rain fed agriculture and
hydroponic solutions for livestock farmers to stop depending on open grazing. The marketer’s on
the other hand will be supported with working capital to increase their productivity. Our credit
products are listed under our profile on the financiers portal on EaseOnTrack clearly outlining the
terms and conditions for the users and targeted beneficiaries to see. The users will create an account
on the mobile finance application and directly apply to access any of the credit products listed
under our profile.

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 PRODUCT/SERVICE DESCRIPTION
Bamvumase Micro-finance offers its products in four categories as described below;

1. Salaried loans: these are loans offered to individuals in full-time employment in

government or the private sector. Most lending institutions prefer offering loans to civil
servants (government workers) only. Bamvumase Micro-finance on the contrary offers its
services on a non-discriminatory policy by improving the lives of both civil and non-civil
servants.
2. Marketer loans: this package is available for marketers who need financing to increase their
capacity. Most marketers in Zambia are women. These women face challenges to access
finances for capacity increment. This package comes with an education policy which helps
position the borrower (youth and women) in a better position to understand the basics of
investment and personal finance management.
3. Agricultural loans: This package is targeted at the youth and women involved in
agriculture. These groups of individuals are mostly smallholder farmers who have actively
participated in farming in their respective locations, but face are facing challenges with
finances to acquire farming inputs or meet their operating capital shortfalls.
4. SMEs loans: this package is for SMEs that are in need of funding to enhance their
operations through asset repairing or any other issues.

The repayment periods for the above loans depend on the amounts being loaned and the type of
borrower. The period ranges between a month to six months with interest rates between 4% - 29%
in accordance with the terms and conditions of a particular transaction.

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 MARKET OVERVIEW
Our Target Market
Bamvumase Micro-finances’ target market is comprised of the low-income smallholder farmers,
marketeers and low salaried individuals in employment. Our operations are currently focused in
Serenje, Ndola, and Chingola and are to be expanded to Mkushi district as well. The farmers in
Serenje and Mkushi present a very high opportunity as they are located along the Great North
Road which offers them easy access to markets.

The marketeers in these areas have a high number of customers as the towns are highly populated
and busy due to them being located along commercial roads or routes in the country. SMEs also
have a better chance to grow their business in such busy environments, which is why we offer free
investment education to our clientele to help them excel in such favorable environments.

Buyer-persona
This section highlights buyer-personas we target and work with;

Low-income smallholder youth and women farmers, marketeers, low salaried employees and
SMEs seeking efficiency. These are individuals or entities seeking finance to meet their finance
shortfalls. We often emphasize the youth and women, because these two categories have
difficulties in access finances from other lending or financial institutions.

Marketing Strategy
Our marketing strategy is designed to suit a particular market and not the general market, this is
because our target markets have differences which need to be handled with care and
professionalism. The marketing strategy for Ndola and Chingola may somehow be similar or to an
extent be duplicated but they cannot be used in Serenje and Mkushi as these two markets are rural
districts and may require a hybrid marketing strategy incorporating more of traditional marketing
and less of digital marketing.

Despite the differences, the strategies are focused on meeting the 7ps of marketing as described
below;

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Our Product: as described under the Product/Service Description, our packages are divided into
four categories to meet specific needs of specified groups of clients. These packages are marketed
to each category in ways appealing to the category.

Place: Our distribution channels include our offices and the EaseOnTrack platform to ensure easy
reach of our products by our target market. We ensure that we are always a call away from our
potential client.

Price: We have very attractive interest rates lower than our competitors with flexible modes of
payments and periods allowing the client enough time to focus on growing their business or sorting
out their financial challenges.

Promotion: We have a hybrid marketing style to ensure we reach all the clients in the target
market. We use billboards, flyers, local leaders, and roadshows for our traditional marketing, and
for the modern marketing strategies we take advantage of social media marketing and search
engine marketing. We can be reached on Facebook, LinkedIn, Instagram, Twitter and YouTube.

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Physical Evidence: Apart from reaching us on EaseOnTrack or social media, clients have access
to offices during operating days or via calls. We also do our due diligence to ensure mutual trust
between our entity and the customers.

People: we care for our human resource and for our clients, hence, we make sure our marketing
does not harm those involved in the activities and those whom the activities are meant for.

Process: our marketing processes are streamlined to ensure benefits outweigh the costs incurred
in conducting the activities. The EaseOnTrack is an adaptive innovative solution that helps clients
complete their loan applications with few clicks using any device. We also allow consumers to fill
the documents in person at our offices or outlets.

Competitor Analysis
Zambia has 35 registered Microfinance institutions. And majority of them, that is, 31 are based in
Lusaka province or at least originates from Lusaka province. Two of them originates from Kitwe
and one from Chingola, making a total of three (3) micro finance institutions originating from
Copperbelt province. One other micro finance institution originates from the Western province
and Mongu to be specific. The table below shows these records.

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NAME OF MICRO FINANCE NAME OF MICRO FINANCE CITY
CITY
INSTITUTION INSTITUTION

1. Agora Microfinance Zambia Limited Lusaka 19. Great North Credit Limited Lusaka

2. ALS Capital Limited Lusaka 20. Izwe Loans Zambia Limited Lusaka

3. Altus Financial Services Limited Lusaka 21. Madison Finance Company Limited Lusaka

4. ASA Microfinance Limited Lusaka 22. Meanwood Finance Corporation Lusaka

Limited

5. Bayport Financial Services Limited Lusaka 23. Microfinance Zambia Limited Lusaka

6. BIU Capital Limited Lusaka 24. Microloan Foundation Limited Lusaka

7. Chibuyu Financing Company Limited Lusaka 25. Moneta Finance Limited Lusaka

8. Christian Empowerment Microfinance Mongu 26. Nchanga Financial Services Limited Chingola
Zambia Limited

9. Direct Finance Limited Lusaka 27. Pulse Financial Services Limited T/A Lusaka

10. Dsight Finance Limited Lusaka 28. Robert & Syls Microcredit Limited Lusaka

11. Easy Cash Financial Services Limited Lusaka 29. Sigma Financial Solutions Limited Lusaka

12. Ecsponent Financial Services Limited Lusaka 30. Tandiza Zambia Finance Limited Kitwe

13. Elpe Finance Limited Lusaka 31. Unifi Credit Limited T/A Unifi Lusaka

14. Emerald Finance Limited Lusaka 32. VisionFund Zambia Limited Lusaka

15. Fair Choice Finance Limited Lusaka 33. Xtenda Finance Limited Lusaka

16. FMC Finance Lusaka 34. YesCash Zambia Limited T/A Lusaka
Expresscredit.co.zm

17. FINCA Zambia Limited Lusaka 35. Zambou Financial Kitwe

18. Goodfellow Finance Limited Lusaka

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Most of these finance providers are focused on offering lending services to established businesses
or high income earning clients, which gives Bamvumase a huge opportunity to offer unique
services to the unattended to clients.

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 RISK ANALYSIS AND MITIGATION
Risk Identification
The major risk faced by financial institutions is default by the borrowers or late payments, which
make them less liquid and affects their operational efficiency. This is undoubtedly the major reason
why most financial providers focus on civil servants, and well-established businesses.

Risk Mitigation
The default risk can be mitigated by ensuring clients back up their loan with securities like land
and other goods that are highly liquid.

Clients can also be assisted by offering them post contract services like advisory and investment
education. At Bamvumase, we ensure clients have continued access to our customer desk for
inquiries and other help they need during the tenure of the contract with us. The other factor is also
the flexible payment aspect, it has help a lot of clients meet their obligation with ease as they have
enough room to dismantle their debt over the period with ease.

To ensure efficiency, we have collaborations with the Ministry of Finance through the DDACC
(Direct Debit and Credit Clearing) and the CRB (Credit Reference Bureau). The Ministry of
Finance supports with the collection of funds from the civil servants by direct deductions from
their payments which are then remitted to our bank account. This has been a major assurance for
the organization in working with clients from the public sector. The Credit Reference Bureau
enables us to check the credit profile of a loan applicant to ensure we loan to clients with a good
payback record.

Risk Identified Mitigation

- Default risk - Back up amount with collateral: All our
loans are backed up by collateral which
include both movable and immovable
collateral.
- We have collaborations with Ministry
of Finance - DDAC and CRB to ensure
security.

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- Limited Financial literacy - EaseOnTrack: All our clients are set up
- Death on our financial management system
called EaseOnTrack and provided with
training on financial management and
record keeping.
- Loan Insurance: all our loan are insured
against the death of the borrower.

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 CORPORATE GOVERNANCE AND MANAGEMENT STRUCTURE
Introduction
At Bamvumase we believe in good corporate governance practices as a major contributor to the
success of organizations. To ensure we attain our vision, the company has invested in its
management. This section presents a look into the Bamvumase organizational structure.

Our board is composed of both Non-Executive Directors (NEDS) and Executive Directors to
encourage high integrity in fulfilling the fiduciary duties by the management employed to run the
day-to-day operations of the company.

Management Structure
The company management is as illustrated by the chart below;

Kalebi Phiri
Board Chairperson

Gift Mvula
Board Member
Chief Executive
Officer

Charity Kandonga Bibiana Kazembe Board Member

Gerald Chief Chief Operations

Administration Officer
Kwalombota Officer
Chief Financial
Officer
Board Member

The Chief Executive Officer (CEO) -

The chief executive is the general overseer of the company’s performance and remains accountable
for the company. He/she provides visionary leadership and ensures the entity remains on the right
track. Mr. Mvula’s varsity experience in the financial services industry, has enabled him to have a

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wide understanding how the micro-finances work. He served as a loan officer for a few institutions
in the Eastern province of Zambia before setting up the Bamvumase micro-finance.

The Chief Finance Officer (CFO)

The incumbent is responsible for the financial health of the entity and helps the entity with tracking
their budgets to remain liquid. Mr. Kwalombota has served under the financial department of one
of the biggest radio stations in the central province of Zambia in Kabwe. With this experience, the
incumbent brings to the management a wide array of expertise in the field.

The Chief Operations Officer (COO)

The position holder ensures that the organization’s activity on day-to-day activity are ongoing
efficiently and effectively. The position holder is expected to possess relevant team building and
leadership experience and character. Ms. Bibian M Kazembe has through time climbed the
company ladder by her dedication and commitment to serve under the company. Her competency
and work ethic has enabled her to help streamline the company operations.

The Chief Administration Officer (CAO)

This position is a support position which offers support to other positions by ensuring the
organization does well in planning, organizing, executing, controlling and coordination of its
activities. The incumbent is expected to have experience working in different functions and able
to understand the various functions of the organization.

Non-Executive Directors
The non-executive directors are a support system and help with ensuring the entity management
in charge of the day-to-day operations execute their roles diligently. The NEDs are made of
competent individuals with different professional backgrounds. Among them is Mr. Munalula a
legal practitioner, and Mrs. Charity Kandonga an Administrator.

Board Chairperson
The board chairperson Mr. Kalebi Phiri is a procurement officer by profession and works under
the Serenje District Education Board. The chairperson is charged with the responsibility of
handling the Bamvumase board issues and calls for audience of other board members when need
be to discuss the well-being of the company.

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 SOCIAL IMPACT
As an organization, we focus on ensuring the communities in which operate excel as we do. We
have committed ourselves to continued corporate social responsibility (CSR).

Job Creation
We have always aspired to be an employer of choice in our areas of operation. Zambia has a lot of
unemployed youths and women. We have from the word goal worked with the youth and women.
We wish to increase the number of employees from 9 to at least 20 by the end of 2023.

Our loans also help with working capital for most SMEs ensuring job security for the youth and
women already in employment. We also help with human power planning to our clients, to open
more doors for the youth and women.

Rural Development
We have always participated in the development of the areas in which operate by building proper
modern infrastructure in order to make these communities attractive to outsiders for conducting
business and for visiting destination. Our sites of operations are well built to the modern standards
need. We help the local leader in their quest to better the lives of the youth and women by providing
business opportunities like taxis and others.

Youth and Women

Among our shareholders are women. Our board and senior management have youth and women
holding lucrative positions. We recruit based on merit and not biasness.

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 FINANCIAL PROJECTIONS
This section will highlight the investment needed, the budget, the past financial statements and the
pro forma financial statements for the next five years after the investment.

The Investment Needed

The firm in its quest to expand operations to help more youth and women smallholder farmers,
SMEs, Marketers and low-salaried employees with ease of access to finance intends to make an
investment of K3 million translated as $185,000.00.

The firm in its capacity will raise 20% of the investment.

The Budget
The investment of K3 million ($185,000) will be disbursed as follows;

The Past Financial Statements Analysis

From the financial performance recorded in the years 2019, 2020, 2021 and 2022; it is clear that
the effects of the 2019 pandemic hit most businesses. Despite the pandemic, the business emerged
profitable and managed to recover its outstanding loans from its borrowers. The comparative
statements can be viewed in the appendix section of this document.
The Pro Forma Financial Statements
With its massive recovery and improvements in financial performance, the firm anticipates an
annual growth of 13% for the next 5 operating years. This growth will be as a result of the increase
in the loan portfolio with an investment of K3 million ($185,000) in additional districts to reach
more smallholder farmers, marketeers, civil servants and private workers.
The firm will extensively manage its operating capital by increasing cash in-flows and reduce cash
out-flows. The firm wishes to employ the best systems and tactics for loan recovery or debt
collection. Below is a pro forma income statement, the full statements can be viewed in the
appendices.

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APPENDICE

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Pro Forma Income Statement

BAMVUMASE GENERAL DEALERS LTD

Pro Forma Income statement for the periods ending 31.12 for 5 years
2022 2023 2024 2025 2026 2027
K'000 K'000 K'000 K'000 K'000 K'000
Interest Income 791 1800 2070 2381 2738 3148
Interest Expense -4 -5 -5 -6 -6 -7
Net Interest Income 787 1795 2065 2375 2732 3142

Other Financial Income

Other Financial Expense -62 -63.86 -65.7758 -67.7491 -69.7815 -71.875
Net Other Income 725 1732 1999 2307 2662 3070

Provision for Loan Losses 40 48 58 70 83 100

684 1683 1941 2238 2578 2970
Distribution Costs 10 11 12 13 15 16
Administrative Expenses 192 201 211 222 233 244
Depreciation 50 50 50 50 50 50
Profit before tax 433 1421 1668 1953 2281 2659
Tax on result 17 426 500 586 684 798
Net Profit 416 995 1168 1367 1597 1861

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