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Wenxin Zhong New Zealand 2nd Leader

Farani Tshishonga South Africa 2nd

Monica Ellmers New Zealand 1st

Nuo Xu China 2nd

Yipeng Wang China 2nd

Santosh Thapa Nepal 2nd


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Table of Content

1. Executive Summary…………………………………………………….
2. Business Overview……………………………………………………..
2.1 The problem………………………………………………………..
2.2 Solution Proposal…………………………………………………..
2.3 Product Description………………………………………………..
2.4 Intelligent Driving Test……………………………………………..
3. Market Analysis…………………………………………………………
3.1 Customer Analysis…………………………………………………
3.2 Competitor Analysis………………………………………………..
3.3 The Marketing Strategy……………………………………………
4. Financial Analysis……………………………………………………….
5. Implementation………………………………………………………….

1. Executive Summary
In South Africa, the problem of corruption within the government is very serious. The
same goes for traffic problems. Candidates can bribe the examiner to pass the
driving test and get a driver's license. This not only affects the fairness of the test, but
also greatly increases the danger of road traffic, resulting in frequent traffic accidents.

We, Drive-Safe South Africa, introduced a technology and equipment called Smart
Driving Test from China to prevent corruption during the test. This technology is
already in use in various cities in China with positive results. So we think the same
applies to South Africa, and even to all countries in Africa.

The total capital investment required is R151583, approximately $15000, which will
be used for system development and terminal purchase and installation in year 0.
Drive-Safe South Africa team members provided a total investment of $7000, with
the remainder being supplemented by bank loans.
The price is R30000, and the target customers are government agencies and driving
schools. At the same time, installment payment is allowed. This will give Drive-Safe
South Africa up to R7394400 in annual revenue and R2256253 in annual profit. In
our expectation, Drive-Safe South Africa's revenue has gradually increased in sales
in the first 1-3 years, peaked in the fourth year, and began to decline in the fifth year.
Business promotion in neighboring countries needs to be developed in the third year.

The UNSDG goals which we address are Sustainable cities and communities(11) and
Peace, Justice and strong institutions(16).
2. Business Overview

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2.1 The Problem


Road safety problems are also very serious in South Africa. In a 2013 report by the WHO,
the highest death tolls tended to be in African countries. 12,503 road fatalities in South Africa
in 2019 (IRTAD, 2020). Much higher than other countries.

At the same time, according to the Corruption Perception Index (CPI) of 180 countries and
regions around the world, South Africa's CPI is 44/100, ranking 70th. Although higher than
the average for sub-Saharan African countries with an average score of 33. This means that
corruption in the public sector in South Africa is high. Corruption Watch said 24% of all
corruption reports in 2021 were related to local governments. Abuse of power and bribery or
extortion accounted for 16% and 8% of the total reported.

Therefore, corruption can be considered to indirectly affect road safety issues. Bribes can be
used to buy driver's licenses from government officials and examiners or to cheat. It is
difficult for drivers who obtain a driver's license through this method to drive on the right
road. Even though they have not received systematic training. This has greatly increased the
occurrence of road traffic safety accidents.

2.2 Solution Proposal


To alleviate corruption in South Africa while reducing road traffic accidents our business is to
introduce an intelligent driving test Terminal(IDTT) from China. In order to test the market,
we will first introduce a few sets of systems and equipment to pilot in key cities in South
Africa. If the pilot is successful, the South African government can book and purchase
equipment and systems from us. At the same time, we will also provide services, such as
equipment maintenance, system updates and so on. At the same time, local residents are
trained in procedures and maintenance and then recruited as employees to provide services
for systems and equipment, thereby increasing employment opportunities. This system has
not been implemented in countries other than China. If it is successfully implemented in
South Africa, it can be extended to neighboring countries and regions. The market potential
is strong and the returns in the mid-to-late stage are huge.

We can also sell driving test systems to driving schools to help students conduct mock tests.
It mainly helps students to understand the test process and overcome the nervousness
before the test; find training defects, conduct targeted training, and provide scientific
guidance to students before the test. This can help driving schools increase their income by
charging practice test fees.

2.3 Product Description


Through a series of complete sets of intelligent invigilation systems and equipment,
candidates are remotely monitored by the examiner during the entire examination process,
and the examiner and the computer are jointly scored. Compared with the traditional driving
test method of escort driving test, this system reflects a great progress.First of all, it
minimizes the occurrence of human factors interfering with the test results. Ensuring fairness
and validity of exams. Reduce the direct contact between candidates and examiners, and
prevent bribing examiners in exams. Secondly, it realizes remote invigilation and intelligent
evaluation of candidates' test scores, which improves the efficiency of the test and reduces
the workload and pressure of the examiners. Finally, the driving style is standardized to
reduce the occurrence of traffic accidents.

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2.4 Intelligent driving test


It refers to the installation of computers, positioning systems, sensors, audio and video
acquisition and other equipment on the test vehicle. Instead of the original manual
evaluation, it records the audio and video data of the test process, automatically evaluates
the test items, and provides related functions such as test process playback.The intelligent
driving test system consists of a dedicated
vehicle terminal and an AutoInfoExt vehicle
information collector. The vehicle terminal is
used to collect vehicle status and driving data,
including vehicle speed, engine speed, gear
status, brake status, light signals, vehicle
location information, and more.

The vehicle test terminal integrates the


AutoInfoExt vehicle information collector, which
can collect 36 items of data including vehicle
location information, vehicle status information, and vehicle dynamic driving information.
Including: GPS positioning data, vehicle speed, rotation speed, three-axis acceleration, seat
belts, etc. There is no need for external sensors, the data is more accurate, the false positive
rate is lower, the stability is stronger and there are fewer changes to the vehicle, thereby
improving the safety of the vehicle.

3. Market Analysis
3.1 Customer Analysis
Government
In African countries and regions, driving habits are poor and traffic accident rates are high.
At the same time, the problem of government corruption is serious. Therefore, the intelligent
driving test terminal can effectively help African countries and regions to reduce the
occurrence of these problems. First of all, the human factor is minimized, and the fairness of
the test is truly realized. Candidates are remotely monitored by the examiner during the
entire examination process, and the system will score the candidates' examinations. The
examination process is more transparent, and examiners cannot modify scores for
illegitimate means such as bribery. It is conducive to government supervision and reduces
the occurrence of corruption.

For U-turn, crossing and crosswalk line items, IDTT will automatically identify and make
judgments based on the actual location of the test vehicle. At the same time, it can also
complete the evaluation of comprehensive examination items such as getting in the car,
starting, changing lanes, etc. Further standardize the test process, improve the accuracy of
test evaluation, and improve the test quality of vehicle drivers.

Driving School
After IDTT goes live, we will also sell smart driving test simulation terminals to local driving
schools. The IDTT will result in lower local driving test pass rates. Exams may initially fail to
accommodate the high standards of the system. Driving schools with simulation terminals
can provide simulation exercises for the test to correct bad driving habits and problems in

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the test. Its main purpose is to enable candidates to develop a good habit of civilized driving
and enhance the safety awareness of drivers through diligent practice.

3.2 Competitor Analysis


In terms of market competition, the African market has not clearly launched products similar
to the intelligent system for automobile driving tests. From the current situation, we have an
absolute advantage in the market competition - which means that we have no competitors at
the beginning.
However, once a product becomes popular, products similar to it will slowly appear and rise.
Therefore, it can not be underestimated in the later prediction of market competition.
For example, some intelligent development companies, such as Tesla, have good
experience in intelligent systems and product development, and the products we sell are
likely to be replaced by them in the future.

3.3 The Marketing Strategy


Sell ​Startegy
According to the market price, the price of a set of IDTT is about AZR23,790. The South
African Department of Trade and Industry (DTI) is duty-free for electronic products. Including
shipping and other fees, the price is AZR30,000 per set sold to the South African
government and local driving schools to ensure that the government and driving schools can
afford it. The company's main revenue is through the provision of annual services such as
system maintenance, updates and hardware repairs. The service fee is 8% of the IDTT price
multiplied by the IDTT usage for the year. At the same time, in the initial pilot stage, the
government and driving schools can purchase and try IDTT at 50% of the original price. The
remaining fees can be paid in the second year.

Operational strategy
According to the Technology Adoption LifeCycle (TAL), the initial adoption rate of new
technologies is 2.5%. Therefore, we set up 3-4 pilots in the main 3 cities of South Africa,
Johannesburg, Durban and Port Elizabeth, and each pilot has 5 sets of IDTT. Because these
are the main economic cities in South Africa, and the infrastructure is basically perfect.
Changes are then made based on feedback and needs. In the second year, it expanded to
three other major cities. Until the third and fourth year, IDTT is saturated in South Africa, and
the demand cannot rise, or it falls.

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Sustainability Strategy
With the development of technology, there will be better terminals to replace the current
IDTT. Recycle these old IDTTs at low prices and sell them to other regions and countries in
Africa for pilot purposes. While promoting our products, explore more markets to other
African countries. Develop business in various African countries and regions with the same
sales and operational strategy.

Talent Strategy
We can put some of the profits into local education and help those in need to obtain higher
levels of education. Occupations that meet the company's needs, such as software
engineers, hardware engineers, etc. can be directly recruited as employees after graduation.
Provide more employment opportunities for local people.

4. Financial Analysis
1 South African rand(AZR) = 0.98 NZD
At the price of AZR30,000 per set, Safe-Drive Africa made a small profit when the project
was implemented, with a cash flow of AZR415,371. By the third year, the cap is reached and
the cash flow is AZR256,253. Revenues start to decline in the fourth year and still be
profitable. Because the demand for the product within South Africa is saturated. The target
can be turned to countries in need near South Africa and rolled out in a network format. In
South Africa, ensure that the system can continue to operate.Demand started to pick up in
the fifth year, as commercial rollouts to remote areas had begun.

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Capital Investment
Safe-Drive Africa is partly funded by our team. The remaining investment will be through
loans from banks, suppliers and the South African government. The initial capital investment
is $15,000, and the seven members of the team save $1,000 each. In the initial stage, the
South African government can pay the deposit to purchase IDTT first, and our team uses
this deposit and funds to purchase products from suppliers. The resulting equity split will be
divided into: 84% to our team, 12% per person; 6% to suppliers; 6% to the South African
government; the remaining 4% for technology development and local infrastructure building.

5. Implementation
Implementation
Year 0: Proposal Preparation
Drive-Safe South Africa will finalize proposals and prepare funds to fund research and
development, with government approval. Once Drive-Safe South Africa is funded and
licensed, and we will work with our suppliers to modify and develop IDTTs that meet local
South African traffic safety requirements. Afterwards, pilots were set up in three major
economic cities in South Africa.

Year 1: Pilot Phase

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After the development of IDTT, pilot projects will be carried out in three major economic cities
in South Africa. Through the feedback and questions in the test, the IDTT is updated and
revised to conform to the driving of the local people and the occurrence of IDTT problems in
the test is reduced.

Year2: Growth and Expansion


In year 2, the pilot program will be successful. We will increase the number of IDTTs in the
three cities in the pilot program and begin pilot projects in various cities across the country.

Year 3: Consolidate Growth


This year, we will focus on nationwide implementation, ensuring that IDTT is available in
cities across South Africa. Demand is expected to grow gradually and in this year began to
be promoted to neighboring countries.

Year 4: Stabilize and Consolidate


At this time, the number of IDTT in South Africa has reached saturation, and the demand
remains unchanged or begins to decline. At this time, the main focus will be on system
maintenance, updates and other post-services. Pilot programs in neighboring countries and
regions begin.

Year 5: Broad Diversity Planning


This year will focus on infiltrating rural areas in various countries, helping to build and
improve infrastructure. Try to roll it out in rural areas, not just in developed areas with
developed economies and good infrastructure. We will have a full partnership with the
government this year.

Future potential

Drive-Safe South Africa continues to grow and the constituent growth will prompt expansion
not only on a geographical perspective but also on the industry and the existing partners.
Such expansion includes, Motorbikes, trucks and even construction vehicles testing. All road
vehicles that require licensing will fit within the same model software and same social
entrepreneurship business model can and will be used to enter different countries.

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Reference
World Health Organization. 2018. Global Status Report;

International Transport Forum. 2019. Road Safety Annual Report 2019: South Africa;

Transparency International, 2021, Corruption Perceptions Index. Retrieved from:


https://www.transparency.org/en/cpi/2021/;

WHO, 2018, 2018 World Health Statistics;

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