Mr Kleopas K.

Nghikefelwa
Ekoka Village.
Okongo Constituency
Ohangwena region.
Namibia
Cell: 0812755616
Email:kleopasn@gmail.com

BUSINESS PLAN
EKOKA FAMILY MAHANGU MILL

Table of Contents

1. Executive summary
2. business profile

3. . The market
 4. Description of product and business operations

5. Operational Plan

6. Risk Analysis

7. Organization and management

8. Summary

1. Executive summary

(a) Business Concept

Ekoka Family mahangu Mill is a small-medium enterprise that will produces and markets mahangu
meal products (with natural, organic and traditional taste), because some customers prefer local-
made nutritional food products.
The mill will purchase raw Mahangu corns, at negotiable price, from local mahangu farmers and
also from commercial mahangu fields (Such as Etunda Irrigation Scheme).

This is not a new product, we have already other mahangu meal products, well established in the
Namibian local market. But according to customers’ complaints, these existing Mahangu products
does not have enough natural, organic features or tastes, which many local people prefer.
Therefore, there is still a room in the market to accommodate new Mahangu meal products, with best
organic and traditional taste, that some customers prefer.
 Nutrient Content of Various Millets with comparison to Rice and Wheat (Source: Millet Network
of India, http://www.milletindia.org )

Crop / Nutrient Protein(g) Fiber(g) Minerals(g) Iron(mg) Calcium(mg)

(Mahangu)Pearl millet 10.6 1.3 2.3 16.9 38

100% natural, organic, healthy food with long lasting energy

(b) Financial Features

Ekoka Family mahangu mill is estimating to process more than 500 tons of Mahangu, and this expected
to produce more than 10,000 20kg bags of mahangu meal annually. But the business sales and
production will be fluctuating because of the following conditions;

 From December through March, the business will expect a high Peak sale because of high
demand and a low supply of Mahangu meal in the market.

 While low sales season is expected from July to September (during Mahangu, harvesting
period) when there is high supply and low demand in the Market.

 In the first year the business operational expenses estimated high, then the gross income and
sales.
 (c) Management

1xMachine
Operator/Miller
1x Team leader/
Technician
1x Business
1x Labour
owner/Manager

1x Labour

I will serve as a Supervisor/Manager, with my basic knowledge and experience to lead, plan
and organize people. As a Supervisor, I will also need some experience in Entrepreneurship.

Above all, the manager will be expected to have good custom care skills. She/he should also
have experience in cash or finance handling. Other needed skills will have provided during
the in-service training.

I will work hard as I am the owner of the business who will own a 100% share into the
business. The company can be amended when new shareholders is found.

As Manger I have also a good networking marketing skills. More experience and sound
knowledge in project management is required.

AMTA or Namibia Agronomic Board (agronomic advisers), will be hired on part-time, to

advice and guide me as a business manager, how to run the business profitable.

About 4 x casual workers (unemployed youth) will be trained and employed from
community, where the business will be operating.

1x Team Leader/Supervisor: to motivate other to work hard and also to receive the funds
from customers and keep it safe for Bank deposits.

1x Miller/Machine operator, will be employed to operate the milling machine.

1x Labour: To help customers to load mahangu bags in the transport.
1x Labour: to help customers to load mahangu bags in the machine or in the transport.
The four labours will also be responsible for performing function such as sorting,
gridding, crushing and packaging mahangu..

(d) Partnerships
 Mahangu
Small-
larger scale
producers

Mahangu
Ekoka Association/Local
Local business
trader/produc
Family markets,shops
mini
er/processing and
Enterprises outlets
associations

Mahangu
Marketing
AGENCIES

Ekoka Family mahangu mill need to establish a solid network and partnership with the local
Mahangu producers and grain processing associations, local mahangu consumers’
associations and local mini-market shops or outlets-that will sell mahangu directly to the
consumers.

The business will collaborate with other well-established small-medium milling business (in
the region) and learn from their experience.

Lastly, the business will need to establish good partnership with the local mahangu
marketing agencies (like AMTA Agro Marketing Agency and (NAB) Namibia Agro Board),
and benefits from the services and guidance they provide to mahangu millers.

(e) Capital

Ekoka Mahangu mill will need to secure a total amount of N$ 150,000 loan for use as seed
money to start-up the business facilities, such as a Mahangu Meal and facilities to store
mahangu corns and to keep safe the milling machine and equipment.

The loan amount will be helpful very much because it will reduce the financial start up
burden and help the business to start making profit easy, simple and fast.

Ekoka will contribute other capital in the form of capital, land, Machinery, Labour and
expertise. This contribution will also be used for inventory purchases and other operational
expenses (like electricity and transport logistics).
 (f) Economic Impact

With the current high maize and other food price in the Namibia market, Ekoka Mahangu
Mill will provide an alternative and affordable food in the market.

The local mahangu producers will also earn more income to support their poor family,
because they will save transport costs by delivering their crops to our local mill, instead of
travelling long distance to other towns.

Also, mahangu consumer will be proud to buy our product from the business that buy from
their family farmers. In this way we will create a strong family bond, and this will grow the
local economy and improve Namibia food security.

The business will also provide some part time job opportunities to many local unskilled
people, who will be recruited to work in the mill house.

2. business profile

A. The Business

i. Goals and Objectives

Mission statement- Ekoka Family Mill will produce a health and traditional mahangu meal
with real natural taste, which other Namibian mahangu meal product failed to deliver in the
market.
 To pull our country out of the economic recession, by promotes and expands
Namibia-rural Agriculture sector.

 To improve the living standard of our poor rural families that are depending on
producing and selling Mahangu for self- consumption and selling the surplus.

 To ensure food security and add value to mahangu raw-products.

 To feed Namibia Nation, because no society can survive without ability to feed itself.

 To empower the small-scale mahangu farmers.

 To create much-needed employment and job opportunities for local unemployed

rural youth and women, who have low labour skills.

 To improve mahangu market and enhancing Namibia rural economic

development.

 To Make profit by selling mahangu meal at affordable price.

 ii. Products and service

Ekoka mahangu Mill will purchase mahangu corns and process it by using a traditional process that produce
Mahangu Meal with a rational organic taste.

Mahangu will be bought from the local mahangu producers in large quantity (often sold in 50 kg bags) and stored
safe in dry place until processed. Once processed, the meal will be packaged in 10 kg and 20 kg bags before
transported to the market for sales.

We will be processing finer mahangu meal which is often traditionally used for cooking a think, firm and pasty
porridge called “OSHIFIMA” in “Oshiwambo. This meal is also used for cooking a thin/finer porridge for traditional
breakfast meal course. It also used for brewing “oshikundu” an Oshiwambo traditional no-alcoholic drink.

i. Type of Business

Ekoka family Mahangu Mill is a newly established local business, to be registered with the Ministry of trade and
Industry in Namibia. This business will start as a corporation Company with two shared holders who all serve as the
board of directors. But the new shareholders are welcome to join in the future.

During the operation the business will require 3 to 6 labours to function at full capacity, but during the high peak
season, the business will need to hire extra temporary workers, for the business to run well. These workers we will
hire them the local community and give them in-service training- how to work in Mahangu milling facility.

The Business Milling and storage facilities is planned to be located in Ohangwena region (where about 80/% local
farmers are mahangu producers), at Okongo town at Erf 338, where my family own a land available for business
purpose. This business area is well connected to good banking, transports, and water and electricity supply services.

The mill is expected to be fully operating as soon the finance is available, best before the 2021 Mahangu harvesting
season. The mahangu meal we produce, we will supply both wholesales and retails. We will only supply the business
that we have signed legal contract/agreement with them.

B. The Industry

i. Sector Description

Namibia Milling Sector History-since after independence, the industry has been dominated by Namib
Mill Company, which introduced some Mahangu meal products, called meme mahangu.
 Today, the industry is enjoying more competitive market with smaller milling business (such as
Opoto Mahangu Crusher, Ohangwena Traditional Mahangu Meal and Omhalanga Mills) gaining
ground against bill monopoly company like Namib meal.

From the year 2000, with the eruption and fast growing number of people moving (for different
reasons) from rural area (where they used to grow and produce own mahangu meal) to newly created
urban areas (where they are left with no other choice than to buy food in shops).

Many mini shops and supermarket (Mama Fresh, Riana and others) have started to stock mahangu
meal product in their business.

Today, the current inflation which caused high food price in Namibia market, this also forced a large
number of poor/low income to look at mahangu products as an affordable and alternative health
food.

The price of maize meal is pushed up by the local high demand and local low supply. While
Mahangu meal products are enjoying a stable price maintained by the supply high than the demand.

For illustration only: A Namibia Woman selling mahangu in the North at Open market.
 ii. Competition

There are two categories of mills in Northern Namibia: Small scale mahangu and Maize mills that (are often found in
small town and villages) only serve their local and immediate communities. While large scale Mahangu mills (Often
based in towns and cities) that sell their product throughout the year in all towns in the northern, central and coastal
areas of Namibia. With no other local mills (to satisfy the demand of the urbanized towns/cities), the large Mahangu
scale mills became the only competitors:
 Namib Mill, is the largest mills that only produce Meme-mahangu meal products to supply
all over Namibia and it has only one mill located (Ondangwa town) to supply the whole
northern and eastern part of Namibia.
 -Omhalanga Mill: is one of the largest Maize mill located in Oshakati town to supply maize
meal all over Namibia.
 -Ohangwena Traditional Mahangu Meal Business is one of the new mahangu mill located
in Oshikango town, to supply its products all over Namibia.
 -Opoto Mahangu Crusher Trading Company, is one of the second largest mahangu mill,
located in Ondangwa area, to supply mahangu meal product all over Namibia.
 The local mahangu milling house houses, who provide services to the local farmers.

Our business will also open its doors to collaborates and creates a competitive advantage
with other local small -scale Mahangu Mills who are doing better in the market. So that if all
of us are doing better, then our business will do better as well.
We will not be afraid to compete with large scale private and public mahangu milling companies, that are able to
spend a lot of money in marketing and enjoy customer brands recognition. Even they are well funded and established
in the areas of good infrastructures, they will not succeed like us to create a strong bond and relationship with the
small-scale/ rural mahangu producers.

The poor rural farmers also do not enjoy trading with larger scale mahangu mills, which often do not negotiate fairly
well about the price. Large Scale Mill Company only have one fixed price and they do not understand how much it
takes for the rural farmers to produce their best qualities traditional mahangu millets (Without GMO).

Above all, large scale mahangu milling companies (often they buy from commercial farmers (who use mahangu
GMO/Artificial seeds) which the process in high volumes that that quality is often neglected.
Competitive Advantage

As a second small-medium scale mill in Ohangwena region, Ekoka Family Mahangu Mill will offer the following
advantages over competitors;

 Location- Ekoka Mahangu Mill will be able to facilitate frequently, fast, simple and easier
deliveries assuring constant availability. Being local will also saves the transportation costs.
 Product Quality-There is currently no best Mahangu quality control enforcement in Namibia.
Larger mills do often produce poor quality meal due to negligence or simply as a result of
processing larger volumes of product (with poor quality control). For Ekoka mahangu mill, it will
be more manageable and better to control the quality of the small volume quantity. With our
Small Mill is better control the quality of the product without any difficult.
 Local knowledge/ family ties-traditional mahangu trading channels in Namibia consist of 1.
Producer 2. Grain/millet trader 3. Milling Agent 4. Retailer 6. Consumer. This make the process
more expensive, and the end of the process the product become expensive.
 With our business that have family ties with local mahangu farmers in Ohangwena, we will be
able to buy our Mahangu at better price directly from the producers, without using grain trader
and milling Agent. Therefore, we will be able to sell our mahangu meal products, roughly 50%
cheaper than a larger scale milling company that use Grain trader and Milling agent.
Above all, our local business will also be able to create good partnership with mahangu
producers.

iii. Market Characteristics

Namibia in General-Mahangu meal is the stable diet and nutrition that consumed by majority of the half of the
Namibia population that live in the northern side of Namibia. And average conservative adult from the north of
Namibia may consume more than 200 kg of maize per year.
Most people from the Owamboland will eat mahangu meal porridge for breakfast with Omaere/ Oshikandela milk,
lunch with meat and dinner with meat, soap or milk. As I grew up in the northern Namibia, mahangu meal has been
always a source of nutrition and food security for an average family.
My grandmother once told me, traditionally, a mahangu, cattle and a human has been always first valuable assets to
Owambo people. Even today we have the salary, money cannot be eaten. Therefore, you still need a mahangu meal to
eat and get energy to work before you get a salary.

Above all, “70% of the (Namibian) population is depend on the (Mahangu) sector for their livelihood”, this was
said in a deputy Minister, Anna shiwedhwa, in a speech read at the Mahangu champion and award ceremony at
Nrurenkuru in the Kavango West Region.
Local Target Market

Okongo district has combined population of around 21,321 inhabitants or people. The surrounding area of Eenhana
has about 24,193 inhabitants and Oshikango has about 27,599 inhabitants and other district of Ohangwena add
about 155,271.
Oshikango, Eenhana, Okongo are some of the fast growing towns Ohangwena region, with high urban population
and a lot of new (retailer outlets) mini-markets and small shops, that we will target. Ekoka Family Farm Mill will also
incorporate a small mahangu outlet at the mill to supply the immediate surrounding customers, to bring their own
grains and be milled.

iv. Industry Dynamics

Sales Fluctuation

Seasonal Fluctuations – throughout the northern side of Namibia, people practice substance farming, by planting and
growing Mahangu crops (in medium or small areas) around their traditional homesteads, and to feed themselves and
sell the surplus. Therefore, during mahangu harvesting season (June, July, August and September), there will less
demand for people to buy Mahangu meal in small towns (Okongo, Ongenga, Omungwolume, Ongha and others).

However, there will be still good sales to be expected in large urban towns (such as Eenhana, Ondangwa, Oshakati
and Oshikango), because here many families do not plant their own mahangu.
Also, from November, December, January, February, March, April, May and June the sales for commercially milled
Mahangu is expected to gain sharp increase again in all Northern areas, due to the following two reasons;

 Local Subsistence farmers do not have access to adequate facilities for their mahangu.
If there is a big surplus of mahangu during rain seasons (June-July) most of it is sold
away to earn extra income to buy other needs.
 Many poor subsistence Mahangu farmers (such as pensioners) do not grow enough
Mahangu to sustain them for the whole dry seasons.

The demand for commercial mahangu meal will always expected to drop again between May, June, July and August
every year when people again start harvesting and consuming their own mahangu crops.

Annually Fluctuation-The mahangu milling industry in Namibia has been enjoying a very good and stable
environment over the past few years, for the following reasons;

 Northern part of Namibia is one of the most favourite areas, with climates, of good
rainfall and sunshine, for growing Mahangu. Sometime, Droughts and floods destroy
mahangu crops which bring negative impact on Mahangu production. But for the past
year, Namibia has been producing more and more mahangu especially this year
(2017).

 During times of drought in the north, we always expect less Mahangu production. But
the price of mahangu do increase, because of high demand low supply. This give
opportunity to the milling business to make more money, with less suppliers.

Population growth

It can be accepted that 90% of Namibian from the northern part of Namibia consume mahangu as their staple diet. The
northern market for mahangu meal sales can be directly connected with Ohangwena, Oshikoto, Oshana and Omusati
regional population figures and growth rates.
The rapid expansions of people population from rural areas to new northern towns and settlements, can be visible
from the expansion of housing areas, new business and guest houses or lodges. And in these towns however, people
are no longer able to farm their own crop and they are forced to rely on commercial mahangu meal.

Trends

There is a new trend in Namibia, were the local people have discovered the health benefits of eating mahangu meal,
instead of maize meal. The government has been motivating the local people to continue keeping mahangu meal in
their health diet.
Today, the government has also approved, mahangu meal to be part of the nutritional diets used in local schools,
hostels, hospitals and prisons. During times of mahangu shortage or drought, the government allocate a lot of
money in its national budget to buy mahangu and maize meal from local suppliers (Small and large scale milling
business) for drought release food programs.

Political Climate-Namibia is currently enjoying peace and stability for the past 27 years, since the war ended in 21
March 1990. This attracted a lot of investors to bring development throughout the northern areas of Namibia, were
new roads, hotels, private hospitals and schools, shopping malls and business centres that are being developed in
Ohangwena and all part of northern Namibia.

Natural climate-there are main seasons that occur in the northern part of Namibia: it all began with a rainy season
(Summer-November and April. Then the rest is a Dry season, that start with winter (May, June, July) and
Autumn(August), the rest is spring season (September and October). Rainfall range from 300 to 600 per year in the
northern part of Namibia, where there is high production of Mahangu crops.
3.The Market

A. Target Market

The target Market is the highly Ohangwena region district of the northern part of NAMIBIA. This region covers about
(4,134 sq mi sq.) 10,706 km2 of Namibia, and include the new fastest growing towns, Oshikango, Eenhana and
Okongo. The area also covers the few upcoming small towns like Oshikunde, Omundaungilo, Ongenga, Ongha,
Omungwelume and Helao nafidi town.
Population Statistic- the target market population are people, who moved from rural to the urbanized towns. This
part of the population does produce and consume its own mahangu produce, soon after the dry harvest season between
May and October. But later on they will soon start starving and suffering from food shortage between November and
April. Therefore, will add this group to be part of our consumer base.

Majority of this rural population who moves to nearest urban towns in search for jobs so that they earn money by
working for local government office, small and large scale business. The northern urban towns also serve as regional
headquarters, with presence of government departments, commercial banks, hotels, supermarkets, private-public
schools and hospitals. People who are working here also will also be part of our consumer statistic.

B. Marketing Plan

Product use and benefit: Ekoka mahangu Mill will be satisfying a need in the Northern and central Namibia, to
provide good quality and affordable local produced mahangu meal, with a traditional taste.

Price Point: Mahangu meal currently retail price at N$ 140 per 20 kg. And at some towns the price is even high due
high costs of processing, packaging and transportation.
A local Ekoka Family Mill will provide affordable Mahangu meal to this market, without high transport costs, because
it will be produced and sold local, in the northern district. Our mill will also process Mahangu meal with by using a
traditional method, to create a natural taste, witch people preferred.

Sales and Channels: All retail sales and wholesales sales will be cash sales except for a few large accounts with
outlets will receive net payments after 30 days.

Marketing: Ekoka family will promotes its product through direct sales calls to business and retailer outlets. Word of
mouth advertising will also be the best effective and affordable method to use in northern part of Namibia, where
families, community members and neighbours still meet at church and local meetings, where they share information
openly.

Ekoka Mahangu mill will also organise a general public’s awareness, by launching the product officially, during
local community Farmers or Agricultural festivals and trade fairs.

By providing a good tasting and quality Mahangu meal, Ekoka Mahangu meal products will remove all barriers to be
accepted in the market by consumers. The brand name and logo “Ekoka Family Mahangu Meal”. Ekoka is the name
of our village, located in Ohangwena region, which is well-known for having a higher number of communal farmers
who produce Mahangu crops for self-consumption and sell surplus". A Ekoka is well-known name by “Oshiwambo”
speaking people, who are our target consumers of mahangu meal, therefore they can relate to it and be proud off it.
 4. Description of product and business operations

A. Product Manufacture/Service Provision

The best organic tasting Mahangu meal will be produced through a special traditional process, where the dried
mahangu corns are socked in the pool of water, for the nitric acid fermentation process to take place. This contributes
to lightening color of the flour and the development of the sour taste desired by consumers or development of lactic
acid. (Mallet and Du Plessis, 2001)

The mahangu milling process is a technical consist of cleaning, grinding and sieving operations. After each sieving
operations, seeds of a particular quality are drawn and the residue is recycled for further gridding or milling process.

Equipment/Facilities: The production of Mahangu meal requires a maize milling machine. The mill house will also
be constructed.
The milling machine need to be installed in closed/secure building, with good space and better air ventilation, to keep
it safe from thefts and unfavourable weather condition.

Another secure building with about 50 M2 will be required as temporary storage for daily finished maize meal
products waiting for delivery. While another medium building that capable of keeping enough tons of mahangu will
be required to store pre-processed mahangu.
Raw materials: The only raw materials required to produce the best mahangu meal are well sorted and dried mahangu
corns and water. Maize is purchased from various quantities packaged often in 50 kg bags. Our business will give the
local mahangu small scale farmers first priority before purchasing from mahangu large scale commercial farmers.
Clean Water will be supplied by the local town council, but a water tanker (about 400L) will be required to store water
in case there is water cut off from municipality supplier.

Regulations: Although the regulation are not yet very strictly applied in the Northern part of Namibia. The
(NAB)Namibia Agronomic Board is the legal body with objectives to promote the Agronomic industry and facilitate
the processing, storage and marketing of controlled products, such as Wheat’s, Maize and Pearl millets, which we
call Mahangu.

According to Namibia Agronomic board reports published on 23 March 2011, The Namibian Cabinet decision
(13/05/07/002) granted approval for mahangu to become a controlled product. And all millers who buy mahangu for
the purpose of selling flour will required to register with Namibia Agronomic Board and pay levy.

Other local regulation bodies are, Namibia Grain Processing Association was formed 26 March 2002, to promote
local grain industry. Mahangu Millers and Producers Association was formed just to give professional help, in
designing and printing, and add value to mahangu packaging flour.

The Ministry of Trade and Industry (MTI) is responsible for registering any company. Any company that has a
turnover of more than N$200,000 per year is required to further register for Value Added Tax (VAT).

The Namibia Standards Institute (NSi) is responsible for setting up industry standards and monitoring the adherence
of producers to those specific standards. Where Namibian Standards for a product or class thereof are not available,
South African standards (SABS) are employed.

Social Security Act, Act No. 34 of 1994 and the Employees Compensation Act, Act No. 30 of 1941 compels all
employers to register as Employers with the Social Security Commission and to make contributions on behalf of their
employees for the Employee Compensation Fund (ECF) and the Maternity, Sick and Death Benefit Fund (MSD).

Quality Control: Ekoka family farm will maintain a strict quality control of both incoming raw materials and also the
finished processing maize meal products.
 5. Operational Plan

Current Status

Ekoka mahangu mill is a newly corporation company, to be registered in 2020. The company will produce and supply
mahangu meal (nutritional food) products, that meet the traditional criteria or taste of northern Namibia growing
population.

To start the production by the 2021 Mahangu harvesting season, the business should erect Mahangu mill facilities by
2020, soon as the funding are made available. And see below how the business is planning to proceed with start-up
activities;

 Erection of building, ordering Mahangu mill

 Securing Contracts for raw material procurement

 Installation of electricity and milling machines.

 Recruitments of staffs

 Milling Operations

Activities

START UP ACTIVITIES ACCORDING TO THE TIME LINE:

2020/02 -ADMINISTRATIVE: BANK ACCOUNT, PERMITS…

2020/04
-ELECTRICITY APPLICATION WITH NORED
-BUILDING PLANNING, SOURCE OF MATERIALS
-STRATTEGIC PLANNING OF MAHANGU PURSCHASE 2019
2020/05 - END OF RAIN SEAON-BUILDING OF FACILITIES
2020/07
- PROCEED WITH ELECTRICITY APPLICATION

-start recruiting staff and milling operation training

2020/08 -order mill
 2020/10
-Finalize the construction of facilities

-extra training on milling operations

-training o and preparation for mahangu storage

2020/11 -Electricity installation

2021/01 -Mill installation

Sales Calls and procuring customers

2021/02 -Securing mahangu sources under contact

-Training staff on safety and customer care

-Sales calls and procuring customers

2021/05 -Receiving mahangu for processing and storage

-start milling operations

-Delivery of product to clients

Starting Costs

There are several Start-up costs that are due to infrastructure development. These costs are one-time
expenditures totalling N$ 150,000 and include;

N$ 50,000 –The Mahangu Mill machine and facilities

N$ 20,000 - Building to accommodate the Mill and processed

Meal.

N$ 10,000 - Storage for pre-processed mahangu.

N$ 1,000 - pest control treatment

N$ 50,000 - Electricity installation and wiring of the building.

N$ 20,000 - Admistrative/consulting work/ staff trainings

NB: (All estimated costs include labour, transportation, and fees where is needed).

Key Start up responsibilities

 Mr Nghikefelwa, I will be responsible for the following activities;

 Fundraising and loan applications, in-kind of loan application and investments. And also include all budgets
and overall project management.

 -Sourcing of power transformer, electricity lines and installations to connect to the public power lines.

 -Negotiating about the price with local electricity supply

 -Building location, oversight of building installation. Oversight of Mill installation.

 Sales call and procurement

 Businesses consultant manager- will be hired to carry out the following tasks;

 -Financial planning and record keeping

 -Strategic planning for sourcing the Mahangu.

 -Managing Administration

 -Workers and training of staffs

 Developing Marketing research and product development.

Work force

During the normal operation the mill will require 3-6 labourers to work full time from 8h00 to 17h00,
and work extra overtime during Mahangu harvest peak season.
I, Mr Nghikefelwa, will manage and oversee the weekly and monthly operations, and make long term
financial planning.

While the Operational leader leader/Supervisor will manage the day to day operational activities
such as;

 Overseeing milling operation

 Labour issue

 Facility Maintained

 Quality control and product delivery

 Finance and cash handling

 sales, marketing and administration

Workers will be well trained on location and will be responsible for running the mill.

Business capacity

Ekoka mahangu mill is expected to process more mahangu meal 10/20 kg bags per day. But the
production speed will be also being determined by the demand from customers.
 6. Risk Analysis

Strengths

The Mahangu milling industry is well established in Ohangwena region and other part of Namibia, where about 90%
mahangu consumers are based. Therefore, there is a mushrooming of Mahangu small scale mills in this area, but
Ekoka family mahangu mill is not competing with them, because they don’t produce same quality mahangu meal for
packaging and supply local outlets in urban area, throughout the Ohangwena region and other part of northern area.

Also, these small scale mills, are only there to renter immediate services to rural village customers, who bring their
own mahangu to produce meal to take home and feed their families.

Mahangu meal is a traditional nutritional food for of people in the northern Namibia, and always in high demand,
especially in the upcoming urban areas where Mahangu fields have been swallowed up by town infrastructures (roads,
mass housing, informal settlement and shopping malls) development.

The mahangu meal price is affordable many people in the northern side of Namibia, therefore Ekoka mahangu meal
will be even more affordable because it is produced, sold and consumed locally. There will be no need to add high
transport costs, like what Large Scale milling do.

Unlike owners of large scale milling business located outside of the regions, for Ekoka mahangu mill to be based
locally, it means more advantage to deliver (On time) products directly to retailers and business. This will allow our
Mill to create a health business relationship with local customers.

To be in Mahangu milling business, more information, mentorships programs and other technical assistance are
available from Agro-Marketing Trading Agency, Namibia Agronomic Board and other Mahangu/Grains Processing
Associations, with interest to assist Mahangu Small Scale Mill to succeed.

Weakness

The Mahangu milling industry, like agriculture, can easily be effected by droughts and lack of rain-falls. Even the
northern part of Namibia receives good rainfall, the nature is unpredictable. Therefore, we don’t know the mahangu
harvest seasons will be in other years to come.
Establishing mahangu business in northern area where people grow their own mahangu, is also very risk. Because not
all the mahangu consumers in the north will be buy our mahangu meal.

Is also expensive to build and run an industrial business in the northern part of Namibia, where it may be difficult to
get mechanics and parts to service and fix the milling facility on time. And this way the business can close down while
waiting for service. Above all, the northern part of NAMIBIA, has no reliable supplier of power during December-
rain season, when power line struck by lightning. Therefore, it will be required to have an alternative source of Diesel
engine power.
Opportunity

No need to buy a land to build a business, because there is plenty of services land available for industrial business
development in Okongo, Ohangwena region. To operate the business in the north, we will be close located to our local
mahangu small scale producers. This means less transport costs. Because of high unemployed youth in the region, is
easy to hire more reliable unskilled workers and train them at affordable costs, without breaking the BANK.

Threats

Ekoka mahangu mill will be buying mahangu from local small scale farmers, who rely completely on natural rains for
irrigation. The droughts can heavily and directly affect the business. Unlike, large scale mahangu producers, the local
mahangu farmers lack farming skills and assistance to help them to produce better harvesting during drought.

There is also a possibility for larger scale mahangu milling to lover their price, because they receive grants and
subsidies from government. But is difficult for Ekoka mahangu mill to lower its mahangu meal price, because we need
to recover the costs and make profits. In this way the competitors will beat our products down in the market.

7. Organization and management

Organization: Ekoka mahangu mill will be a family owned business which I owned by me, MR KLEOPAS
NGHIKEFELWA. But the ownership will be given to any willing investor, who is willing to invest in my business.

Management: As the manager, I will be responsible for fund raising and loan application. With technical assistance
of the qualified Agronomic experts, the directors will plan long term strategy, while days to days’ operations, will be
run by a Operation Supervisor/Leader, who should be overseeing milling operation, labour, maintenance, quality
control and product delivery. The supervisor will also be tasked for sales, marketing and administration.

Technical Experts: A Miller/Operator with technical training in milling processing will be employed. And he/she
will also receive necessary training that he she need to ran a Mahangu small scale mill.
Human Resources: Human resource requirements for working in mahangu small scale farm will be minimal. 3/5
work force Labour need to be in good state of health to load and download the bags of unprocessed mahangu and
mahangu packaged meal. They should also be able to monitor the mill during the operation, clean the mill and
surrounding areas, and seal the bags of processed mahangu meal. The basic wages for local unskilled labour from
N$600 to N$ 1,000.

8. Summary of Operational finances, Sources, and use of funds:

This Milling business is a straight forward, the Mahangu bought from local farmers, and processed by Ekoka
mahangu mill, then sold to local consumers, through local outlets and retailers or mini-markets.

And this whole process run with cash, no credits, and nothing is given free. Except if there is a guarantee to get
money later, while the money getting processed.

Ekoka mahangu mill need about N$ 150,000 as capital seeds (from local investors, development banks and others) to
use as start-up or seed money to start the business operational costs. Myself I will contribute about the rest in the form
of collateral, land, Labour and expertise.

Ekoka mahangu mill is planning to pay all expenses cash to prevent carrying more dept. At the same time, the
business also expects all sales, except for larger account to be in cash, so that the business will have cash flow to cover
its costs.

Ekoka mahangu mill will adopts all trading rules good and profitable business models used by other successful small
scale mahangu milling in the Ohangwena region and other part of northern Namibia.
 EKOKA FAMILY MAHANGU MILL
P.O Box 90096, Ongwediva, Namibia
Email:ekokammill@gmail.com
Tell: 0812778737

EKOKA
FAMILY MAHANGU
 MEAL
20kg
Namibia best organic food