ational University of Science and Technology

The CENTRE FOR CONTINUING EDUCATION

In partnership with the
ZIMBABWE ASSOCIATION of MICROFINANCE INSTITUTIONS
2023

EXECUTIVE CERTIFICATE IN MICROFINANCE and ENTREPRENEURSHIP COURSE

Assignment: 1

LECTURER: Mr K. D. Chingodzo

COURSE: Principles of Entrepreneurship

STUDENT DETAILS

NAME: Donald

SURNAME: Hove

GENDER: Male

CONTACT: 0783 234 116

EMAIL: hovedonie@gmail.com
POTATO FARMING PROJECT JULY (2023) – D’Espenco

Executive Summary
Donald Hove has been involved with the agricultural sector for all his life. He was born and
raised in Kasongore in Macheke – an intensive commercial farming district. Although he has
grown to be a financial analyst by profession, he has not been moved from his childhood hope to
become a founder of one of the leading intensive farming companies in the country specializing
in the horticulture business mainly potato production. After years of requests for his top class
potato, beans, vegetable, maize produce; he has attracted interests from large corporates, schools
and hospitals from as far as Harare and boarder Nyamapanda.

The proposed starting date for the envisioned three (3) year project is August 2023 at my farm,
Plot 24 Alexandra, district of Marondera Mashonaland East Province. This intensive farming
involves horticulture produce for sell to supermarket, institutions and individuals. In order for the
business to operate at full capacity, it should be able to grow potatoes at least (3) three times in a
year and also other farm produces to compliment and provide extra incomes to argument the
farm cash flow to help when the potatoes are maturing.

Marondera is mixed farming area mainly dominated by tobacco farming and animal husbandry
as a result of the farming and climatic conditions of region II. The location (5 k.m) of the farm in
relation to Marondera is a benefit to the project. This automatically means less transportation
costs from the project location making it also easily accessible. Electricity is available at the
farm. Also the network coverage of the (3) three cell phone networks i.e. Econet, Netone, Telcel
is available in the area. This is new project with intentions of initially starting to grow 0.5
hectare of potatoes under drip irrigation for harvesting in late December 2023 or early January
2024.

Vision
To be a major and biggest supplier of potatoes and potato charts in Zimbabwe and SADC, by
setting up a company that provides best quality products and services.

Mission
To be pursuing the project’s vision statement in a way that will express itself with the diligence
of the members to achieve the desired goal.

Our Values
 Commitment to honesty and professionalism
 Commitment to adhere to sound and ethical agriculture farming practices.
 Commitment to value the employees and upgrade their standard of life.

PROJECT JUSTIFICATION
Environment considerations
 The project is environment friendly as it does not consist of heavy machinery and use of
harmful chemicals thus supporting the “GO GREEN CAMPAING”.
 The use of organic in the run manure and recommended conservation principles will be
undertaken.
 Keeping of rainfall records and farm information for future and referral use.
Economic considerations
 This is an income generating business which will create employment thus reducing the
unemployment rate which has hit the country.
 There is an unforeseen advantage to the company that as a result of increased suppliers
on the market, there is reduction in product pricing by suppliers to curb competition.
 Inputs will be sourced out locally thus supporting the local industries.

MARKETING ANALYSIS
Target market
The proposed project will primarily target supermarkets, restaurants and/ or fast food outlets
which have flooded Zimbabwe especially in Harare and nearby towns like Marondera, Macheke,
Mrewa, Mutoko, etc. We are also looking into hospitals, boarding schools, hotels and even the
general public. There are also better and enticing opportunities if we try to export to, the eternal
markets.
Market trend
Market and demand of horticulture produce especially potatoes is on the rise as a result of:
 Health risk issues.
 Increased demand of potatoes from hotels, restaurants and food outlets, etc.
 The heneral populace opting for potatoes because of its richness in nutrients and starch
(Cde President Mnangagwa once said , "idhlai mirivo nema potato").
Market objectives
 To be able to sell the harvested potatoes in the first week prior to harvest
 To increase the sales by 50% or 60%. We hope this objective by increasing our
production base from 0.5-1.0 hac of potatoes per growing cycle
 Explore and export to original markets and even to international markets.
Competition
Competition in the potato production industry is currently not stiff due to the limited supply base
of potatoes. There is also disparity in importation of horticulture products from neighboring
countries.
Strategic Direction
SWOT Analysis
Strengths
 Excellent quality products which adds to goods reputation
 Proximity of the proposed project to the local residents and the CBD
 Highly skilled and experienced manpower
Weakness
 The potatoes are susceptible to disease
 Lack of funds needed for the establishment of the project.
Opportunities
 There is a constant demand of horticulture produce on the market especially potatoes
 New market points both locally and regionally.
Threats
 Project is sensitive to droughts susceptible to disease.
 Increased supplier prices may lead to reduced profits.
Strategic and Implementation for the business Project

Marketing Strategy
A sales person coupled with corporate brochures and business cards will serve to reach out to as
many customers. We will advertise our products on the television, radio, in newspapers, etc. We
will also advertise on the internet platforms such as Whatsapp, Facebook, Twitter, e.t.c.

Pricing Strategy
From the analysis carried out, we will sell our potatoes at an average price of $11 per extra-large
pocket. This is a reasonable and affordable pricing for both the business' and customers' end. As
a new player in the industry such a price as $11 per extra-large pocket of potatoes is favourable
to the business in way that will lure customers to buy our high quality products and enabling us
to comfortably position ourselves on the market. Once we have gained customers’ confidence we
then sell our potatoes with the actual price on the market.

Sales Strategy
In order to generate more sales, we will sell our potatoes at lighter weights or rather packaged in
smaller sizes than that of actual extra-large pocket to facilitate for those buyers who need smaller
pockets.

Production and Loan Requirements

Analysis
A loan funding of USD$5 000.00 is entailed for the purpose of infrastructural developments,
procurement of seed and the following items outlined below. For required quantities and prices
please refer to Cash-flow and Assumptions page and quotation attached to this document.

Production.
Seed, fertilizers, herbicides, pesticides, labour, water drip irrigation kit, land preparation, tractor,
hire and fuel.

Miscellaneous
Packaging, transport costs and watering cans
Management
This business project is 100% owned by Don Hove a youth. He has been in this potato farming
business for a long time as he was brought up in agricultural environments coupled with
management skills and agricultural knowledge gained from various organizations. More so, he
possesses extensive experience in business management skills positioning the project enroute to
success.

Key Personnel
Managing Director
Mr. Don Hove is the managing director. He has been a farmer and an Operations Manager for
over 8 years in the Microfinance industry and currently he is an indigenous businessman running
5 take-aways.

Finance Advisor
Mr. Makonye J. will be the head of finance department concerned with the farm’s accounts and
transactions. He is a qualified accountant by profession and holds an MBA in Corporate
Governance and has been in mixed farming for a period of more than (20) twenty years. His
obligation in this business project would be to financially advise the other member and be
responsible for the employee welfare.

Financial Management
Commitment register are maintained in respect of all production costs including inputs, land
preparation, labour and harvesting. In addition, electronic and computerized records are kept to
closely monitor daily production and sales to maximize security with use of software like farm
management. An accounting management software package will be adopted so as to produce a
computerized accounting system.

Risk Factors
1. Stocks
  To avoid loss from fire, theft, and pilferage we would make a fire guard right round the
farm and fields, pig sites and the store house.
2. Competition
 Our products on the market will be above the standards with nice attractive packaging
and presentation.
3. Livestock Diseases
 To curb potential diseases, fumigations will be properly carried out at rightful times.
4. Problems with Labour or suppliers
 By the business having the privilege of having a vast experienced Human Resources
manager we hope to curb this risk and have employees under a good management.
Conclusion
This mixed intensive farming project will take advantage of the increased demand of farm
products on the market by consumers. This has been the situation for over a decade and this
demand rose due to the shortage supply of farm products on the markets by very few captains of
the industry. Because of high demand of the farm products it also means increased prices of the
products thus high profits. In the past few years there has been a noticeable general shortage of
maize on the market and this has seen the public opting out for other especially potatoes and
meats. As an intensive farming project we aim to turn the problem to our own advantage and
increase the production base rapidly to boost our sales.

According to the financial analysis carried out on the viable potato business project, were among
the top list which dominated the charts due to their high yield –returns relative to expenses and
time to reach maturity of the crop.
 ATTACHMENTS
Potato Project
These are projections; the historical financial information on is available upon request.
Key Assumptions – Loan Interest and Repayment

5 LOAN REPAYMENT AND INTEREST

Principal 5,000.00
Interest rate p.a 10%
Tenure (months) 36
Repayment begins in 4th month

Balance b.f interest Repayment Balance c.f

1 5,000.00 41.67 - 5,000.00
2 5,000.00 41.67 - 5,000.00
3 5,000.00 41.67 - 5,000.00
4 5,000.00 41.67 138.89 4,861.11
5 4,861.11 40.51 138.89 5,000.00
6 4,722.22 39.35 138.89 4,583.33
7 4,583.33 38.19 138.89 4,444.44
8 4,444.44 37.04 138.89 4,305.56
9 4,305.56 35.88 138.89 4,166.67
10 4,166.67 34.72 138.89 4,027.78
11 4,027.78 33.56 138.89 3,888.89
12 3,888.89 32.41 138.89 3,750.00
13 3,750.00 31.25 138.89 3,611.11
14 3,611.11 30.09 138.89 3,472.22
15 3,472.22 28.94 138.89 3,333.33
16 3,333.33 27.78 138.89 3,194.44
17 3,194.44 26.62 138.89 3,055.56
18 3,055.56 25.46 138.89 2,916.67
19 2,916.67 24.31 138.89 2,777.78
20 2,777.78 23.15 138.89 2,638.89
21 2,638.89 21.99 138.89 2,500.00
22 2,500.00 20.83 138.89 2,361.11
23 2,361.11 19.68 138.89 2,222.22
24 2,222.22 18.52 138.89 2,083.33
25 2,083.33 17.36 138.89 1,944.44
26 1,944.44 16.20 138.89 1,805.56
27 1,805.56 15.05 138.89 1,666.67
28 1,666,67 13.89 138.89 1,527.78
29 1,527.78 12.73 138.89 1,388.89
30 1,388.89 11.57 138.89 1,250.00
31 1,250.00 10.42 138.89 1,111.11
32 1,111.11 9.26 138.89 972.22
33 972.22 8.10 138.89 833.33
34 833.33 6.94 138.89 694.44
35 694.44 5.79 138.89 555.56
36 555.56 4.63 138.89 416.67
37 416.67 3.47 138.89 277.78
38 277.78 2.31 138.89 138.89
39 138.89 1.16 138.89 0.00
896.83 5000.00
 PROJECTED GROSS MARGIN BUDGET FOR POTATOES
0.5 Hac

VARIABLE AMOUNT COST/Unit TOTAL COST

Charts (Seed) at $30/ Pocket 70 pockets $30 $ 1,050.00

Fertilizer: Compound C 15 Bags (50kg) $40 $ 300.00

Compound S 15 Bags (50kg) $40 $ 300.00
Ammonium Nitrate 70 kg/ hec $35 $ 635.00

Discing and ploughing 0.5 hac $70 $ 70.00

Fuel for Discing and ploughing $25/hec 21*$1.30 $ 32.50

Chemicals
Pesticides (Dimethoate 40 EC) 500ml/hec $6/1 $ 24.00
Fungicide (Duconil Cooper Oxychloride 500ml/hec $6/1 $ 24.00
Herbicides (Atrazine) 500ml/500l $6/1 $ 24.00
Fumigants (RDB) $6/1 $ 24.00
$ 96.00

*NB Usually in the rainy season the potatoes are sprayed once-
Every week due to diseases and high pest manifestations

Harvesting $ 150.00

Packaging $ 75.00

Wages and Security $ 300.00

Total Variable Costs ________________

$ 2, 408.50

Gross Margin $ 19,591.50

Less
Fixed Costs

Transport $ 300.00
Electricity/ Generator $ 300.00
$ 600.00_
_________________
Gross / Net Income $ 18,991.50

Notes / Summary
GROSS MARGIN
Sales – Variable Cost = Gross Margin

*NB Sales of 2000 pockets @ average price of $11/ pocket = $20.00 $ 22,000.00
2000 $ 11.00

Gross Margin
Sales $ 22,000.00
-variable Costs $ 2,408.50
Gross Margin $ 19,591.50
$ 19,591.50
Net Income
Gross Margin $ 19,591.50
-Fixed $ 600.00
Net Income $ 18,991.50