AFYA MBELE SANITARIANS

Founder members;
1. Job J Bisendo 03.4626.01.01.2021
2. Joshua Msham Mdhihiri 03.0634.01.01.2021
3. Derrick Dickson Kiwia 03.5342.01.01.2021
4. John Benjamin Kaaya 03.5361.01.01.2021
5. Nasri Z Mjata 03.9594.01.01.2021
6. Abdulkarim Chambo 03.7328.01.01.2020
7. Brighitta Shao 03.3147.01.01.2021
8. Dorothea Kilolo 03.7155.01.01.2021
9. Mariam Almas 03.3815.01.01.2021
10. Robert Agustino Ngoli 03.0678.01.01.2021
11. Faidhak Milton Mahanga 03.5697.01.01.2021
12. David Adola Chale 03.7016.01.01.2021
13. Ibrahim Almas Makiwa 03.9777.01.01.2021
14. Alli Ayubu 03.9591.01.01.2021
15. Happy Samweli Joseph 03.4115.01.01.2021
16. Ashrafu J Jani 03.4036.01.01.2021
 Table of content

Catalog
EXECUTIVE SUMMARY.....................................................................................................................2
FINANCIAL PLAN................................................................................................................................3
Costs of goods and projects in general....................................................................................................3
Operating costs................................................................................................................................4
Importation and inspection costs.....................................................................................................4
Pre-Shipment Verification of Conformity (PVoC)..........................................................................5
o FOB Value: 200,000,000 TShs...........................................................................................................5
o PVoC Rate: 0.6%................................................................................................................................5
Summary of charges;.......................................................................................................................6
Products...................................................................................................................................................7
Sample of few products ..................................................................................................................8
Human resource.......................................................................................................................................9
Proforma sales plan...............................................................................................................................10
One year cash flow projections..............................................................................................................12
Projected profit and loss(Tshs)..............................................................................................................13
Balance sheet projections......................................................................................................................14
Financial Ratios.....................................................................................................................................15
Current Ratio=Current Assets/Current Liabilities.........................................................................15
Quick Ratio=(Current Assets−InventoryCurrent)/Liabilities.........................................................15
Net Profit Margin=Net Profit/Sales...............................................................................................15
Return on Assets (ROA)=Net Profit/Total Assets.........................................................................15
Return on Equity (ROE): Net ProfitTotal Equity\Leverage Ratios:...............................................15
Debt to Equity Ratio=Total Liabilities/Total Equity.....................................................................15
Inventory Turnover=Cost of Goods Sold/Average Inventory........................................................15
Accounts Receivable Turnover=Sales/Average Accounts Receivable..........................................15
NPV analysis.........................................................................................................................................16
r is the discount rate (0.30 in this case),.................................................................................................16
References;............................................................................................................................................18

1
 EXECUTIVE SUMMARY

As the health and sanitation education spread among people,the demand for quality
and affordable sanitary products in the community grows too rapidly.This document
explains about financial issues in project of establishing sanitary store at Gongo la
mboto area in Dar es salaam region which will be named as Afya Mbele sanitarians
company.
In this document were are going to discuss different financial issues like cost of
establishing a project,costs of human resources,projected sales,profit and loss and the
balance sheet.We believe that,this document will give you all necessary information
that you wish to know before about sanitary store business.

2
FINANCIAL PLAN

Estimate the total amount of money required to start this sanitary store is about Tshs
600 millions in which will come from founders at beginning.This will be a partnership
organization,all charges will be charged according to laws regulating a partnership
financial matters(as individual not as a company).
At beginning,we will order a goods costing Tshs 200 millions while the remaining
amount will cover other financial and legal requirements.

Costs of goods and projects in general

Below are some sample cost categories associated with running a sanitary store in
Gongo la Mboto, Dar es Salaam, along with estimated costs in Tanzanian Shillings
(TShs):

3
Operating costs

Estimated Monthly Estimated annual

Cost Category Cost (TShs) Cost (TShs)
Rent 600,000 7,200,000
Utilities (electricity, water, etc.) 300,000 3,600,000
Salaries 4,700,000 56,400,000
Wages 500,000 6,000,000
Marketing and Advertising 2,000,000 12,000,000
Equipment and Fixtures 2,000,000 5,000,000
Insurances - 7,000,000
Operating Supplies 400,000 5,000,000
Transportation and Delivery 500,000 6,000,000
Repairs and Maintenance 350,000 4,000,000
Licenses 500,000 500,000
Taxes(18%) 20,000,000 240,000,000
Total Cost 31,850,000 356,700,000
*The given insurance above doesnot cover the insurance of goods only
but also cover the insurance of workers.

Importation and inspection costs

Afya Mbele Sanitarian we plan to order several products costing about total of Tshs
200 millions tshs from our suppliers including Foshan berime building material
co.ltd,Chaozhou primier ceramic co.ltd and Foshin smart home co.ltd.

This stock of Tshs 200M will be charged several changes from different institutions
like;
I)TRA 18% of cost of goods(tax and duties) equals to36,000,000 tshs

(ii)Agent fee (BEBA CLEARING AND FOWARDING)

4
According to our agreement with this agent,he will make a follow up of supplier
according to bill of order and making sure all goods reached at his point ready for
shipment to Tanzania.
-Agency fee=400,000 per container x 2=800,0000 tshs
-Documentation 80,000 Tshs
-Freight 650,000/container ×2= 1,300,000/- tshs
-Insurance(1% of cost of goods)= 2,000,000 tshs

(iii)Import duty by port(25% ordering cost) =50,000,000Tshs

Excise duty(12.5%)=25,000,000 tshs
VAT(18%)=36,000,000 tshs
Processing fee(0.6%)=1,200,000 tshs
Railway development(15%)=30,000,000 tshs

Pre-Shipment Verification of Conformity (PVoC)

For the Tanzania Bureau of Standards (TBS), the PVoC inspection fee is typically
0.6% of the Free on Board (FOB) value of the goods.

Calculation:

 PVoC Fee:
o FOB Value: 200,000,000 TShs
o PVoC Rate: 0.6%
o PVoC Fee = 200,000,000 TShs * 0.6% = 1,200,000 TShs

Additional Inspection Fees

If additional inspection by the Tanzania Food and Drugs Authority (TFDA) or another
regulatory body is required, these fees can range, but let's assume an average fee of
100,000 TShs.

Total Inspection Fees

PVoC Fee: 1,200,000 TShs

Additional Inspection Fees: 100,000 TShs

5
Summary of charges;

TRA = 36,000,000 tshs

Agent coststs= 4,180,000tshs
Port= 142,200,000 tshs
Total Inspection Fees= 1,300,000 TSh
Total = 183,680,000 Tshs

6
Products

The following are categories of sanitary products that we are going to

start with and total budget per each group of sanitary products;
Product Category Budget(Tshs)
Surface Cleaners (like Bathroom Cleaners) 10,000,000
Kitchen Hygiene Products (Dish washing Liquids,
15,000,000
Detergents,kitchen sinks)
Garbage Disposal Products (Trash Bags, Garbage
10,000,000
Disposals)
Personal Protective Equipment (PPE, like Face Masks) 10,000,000
Floor Cleaners (Vacuum Cleaners, Mop and Bucket
10,000,000
Systems)
Paper Products (Paper Towels, Toilet Paper) 15,000,000
Water Purification Products (Water Filters, Tablets) 10,000,000
Sanitary Disposal Products (Sanitary Napkin Disposal
8,000,000
Bags)
Menstrual Hygiene Products (like Sanitary Pads) 5,000,000
Incontinence Products (like Adult Diapers) 4,000,000
Cleansing and Maintenance Products (like Intimate
10,000,000
Wipes)
Menstrual Hygiene Products (Always Ultra Thin Pads) 5,000,000
Hand Hygiene Products (like Hand Sanitizers, Hand
5,000,000
Soap)
Other sanitary products 93,000,000
Total 200,000,000

7
Sample of few products that we will sell and their cost;
Since other costs like TRA and import duties will be charged based on total cost of
goods,also the price of each product will reflect the cost used to the time goods
reached our store and competitive pricing.
The following are few products that we are going to have;
Product Supplier Supplier name Competitors Our selling
price(Tshs price(Tshs) price(Tshs)
)
Carpet 336,746.31 Foshan berime 530,000 525,000
shampoo building material
vacum steam co.ltd
cleaner
Hanging 323,794.53 Foshan berime 550,000 548,000
bowl toilet building material
sink co.ltd
Toilet basin 104,758.91 Chaozhou primier 175,000 173,000
sink ceramic co.ltd
Round toilet 233,1132 Chaozhou primier 280,000 274,000
sink233 ceramic co.ltd
Hand shower 4,040.86 Foshan berime 10,000 9,800
building material
co.ltd
Hang wash 106,204.56 Chaozhou primier 200,000 193,500
basin ceramic co.ltd
Oval wall 88,072.12 Chaozhou primier 150,000 142,000
hang wash ceramic co.ltd
basin
Mounted 95,843.13 Chaozhou primier 180,000 170,000
washing ceramic co.ltd
basin
Plastic mould 95,843.18 Huizhou chungying 176,000 176,000
dust bin co.ltd
Garbage 6,346.50 Huizhou chungying 9,000 8,500

8
 waste bin co.ltd
Dish washing 88,072.12 Foshan berime 150,000 149,500
kitchen sink building material
co.ltd
Steel stainless 93,252.88 Foshan berime 170,000 170,000
kitchen sink building material
co.ltd
Sanitary bin 15,283.11 Foshin smart home 30,000 30,000
co.ltd
Stand 69,421.68 Foshan berime 130,000 130,000
washing building material
basin co.ltd

Human resource and costs associated to it.

Title Number Salary Total salary Education level
of
workers
General manager 1 800,000/- 800,000/- Bachelor degree of
business administration
Store manager 1 450,000/- 450,000/- Diploma
Administrative staff 1 450,000/- 450,000/- Diploma
Supply and marketing 1 450,000/- 450,000/- Diploma
manager
Procurement officer 1 450,000/- 450,000/- Diploma
Customer Service 3 350,000/- 1,050,000/- Certificate and below
Representatives
Sales and Marketing 3 350,000/- 1,050,000/- Certificate and below
Team/associate
Total 11 4,700,000/-
**The other day workers will be paid wages which budgeted up to 4,800,000/- Tshs
annually (day payment of day worker is about 10,000 Tshs and other day work
payments vary according to working hours and kind of work).

9
Proforma sales plan

On the issue of segment,we have access to several groups mentioned below and we
believe they will consume our goods due to the following reasons;
i) Research conducted by sampling some of our target customers and asking what
they prefers.
ii) Familiarity with the field.Some of the founders sre from those areas and they have
good interactions and relations with our target clients.

Below is a proforma sales plan based on different customer segments for a sanitary
store located at Gongo la Mboto, Dar es Salaam, with a starting capital of 500 million
Tanzanian Shillings (TShs). The sales projections are broken down by customer
segment and estimated monthly sales revenue:

Homeowners:
Monthly Sales Revenue: 15,000,000 TShs
Annual Sales Revenue: 15,000,000 TShs * 12 = 180,000,000 TShs

Contractors and Plumbers:

Monthly Sales Revenue: 20,000,000 TShs
Annual Sales Revenue: 20,000,000 TShs * 12 = 240,000,000 TShs

Businesses:
Monthly Sales Revenue: 20,000,000 TShs
Annual Sales Revenue: 20,000,000 TShs * 12 = 240,000,000 TShs

Interior Designers and Architects:

Monthly Sales Revenue: 10,000,000 TShs
Annual Sales Revenue: 10,000,000 TShs * 12 = 120,000,000 TShs

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Retailers and Distributors:
Monthly Sales Revenue: 10,000,000 TShs
Annual Sales Revenue: 10,000,000 TShs * 12 = 120,000,000 TShs

Total Annual Sales Revenue: 180,000,000 TShs (Homeowners) + 240,000,000 TShs

(Contractors and Plumbers) + 240,000,000 TShs (Businesses) + 120,000,000 TShs
(Interior Designers and Architects) + 120,000,000 TShs (Retailers and Distributors) =
900,000,000 TShs

This proforma sales plan provides an overview of the potential sales revenue for the
sanitary store based on different customer segments. Actual sales may vary based on
factors such as market demand, competition, and operational efficiency.

11
One year cash flow projections

Month Starting Cash in Cash out Net cash Cash

balance flow Tshs flow flow Tshs balance
Tshs Tshs Tshs
January -
600,000,000 75,000,000 415,530,000 259,470,000
340,530,000
February 101,000,00 325,070,000
259,470,000 35,400,000 65,600,000
0
march 115,000,00
325,070,000 32,000,000 83,000,000 408,070,000
0
April 110,000,00
408,070,000 34,000,000 76,000,000 484,070,000
0
may 135,000,00
484,070,000 156,000,000 -21,000,000 463,070,000
0
June 463,070,000 98,000,000 29,000,000 69,000,000 532,070,000
July 125,560,00
532,070,000 33,000,000 92,560,000 624,630,000
0
August 145,000,00
624,630,000 34,000,000 111,000,000 735,630,000
0
Septembe 167,654,00
735,630,000 33,000,000 134,654,000 870,284,000
r 0
October 154,800,00
870,284,000 198,500,000 -43,700,000 826,584,000
0
November 132,000,00
826,584,000 31,000,000 101,000,000 927,584,000
0
December 150,560,00
927,584,000 33,500,000 117,060,000 1,044,644,000
0

12
Projected profit and loss(Tshs)

2025 2026 2027 2028 2029

Sales(Tshs)
Cash sales 1,509,574,000 1,755,000,000 1,800,000,000 1,850,000,000 1,880,000,000
Credit sales 102,426,000 162,500,000 130,500,000 180,500,000 150,000,000
Gross profit 1,612,000,000 1,917,500,000 1,930,500,000 2,030,500,000 2,030,000,000

Less
expenses;
Cost of 605,000,000 650,000,000 680,000,000 700,000,000 713,000,000
goods
Rent 7,200,000 7,800,000 7,800,000 8,000,000 8,000,000
Utilities 3,600,000 3,800,000 3,900,000 4,000,000 3,900.00
Salaries 56,400,000 56,700,000 56,900,000 57,000,000 57,000,000
Wages 6,000,000 6,100,000 6,200,000 64,000,000 65,000,000
Marketing
and 12,000,000 13,000,000 14,000,000 15,000,000 15,000,000
Advertising
Equipment
5,000,000 3,000,000 3,700,000 4,000,000 4,000,000
and Fixtures
Insurances 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000
Operating
5,000,000 5,600,000 6,000,000 6,500,000 6,000,000
Supplies
Transportati
on and 6,000,000 6,500,000 6,000,000 7,000,000 7,000,000
Delivery
Repairs and
4,000,000 4,000,000 4,000,000 4,000,000 3,500,000
Maintenance
Licenses 500,000 500,000 500,000 500,000 500,000
Total cost 1,322,700,000 1,414,000,000 1,476,000,000 1,577,000,000 1,599,003,900
Net profit
289,300,000 503,500,000 454,500,000 453,500,000 430,996,100
before tax
Tax(30%) 86,790,000 151,050,000 136,350,000 136,050,000 129,298,830
Net profit
202,510,000 352,450,000 318,150,000 317,450,000 301,697,270
after tax

13
Balance sheet projections

Projection for your balance sheet 5 years starting from January 2025(Tshs)
Year 2025 2026 2027 2028 2029
Assets
Cash 202,510,000 352,450,000 318,150,000 317,450,000 301,697,270

Receivables 102,426,000 67,560,000 99,670,000 103,789,000 123,650,000

Insurance 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000

Utilities 3,600,000 3,800,000 3,900,000 4,000,000 4,000,000

Inventory 62,350,000 15,000,000 16,870,000 21,600,000 20,860,000

Equipment
5,000,000 3,000,000 3,700,000 4,000,000 4,000,000
and fixture

Total
382,886,000 448,810,000 449,290,000 457,839,000 461,207,270
Assets

Liabilities

Wages 56,400,000 56,700,000 56,900,000 57,000,000 57,000,000

Salaries 6,000,000 6,100,000 6,200,000 62,500,000 63,500,000

Payables 45,826,000 21,670,000 22,600,000 7,300,000 4,292,730

Accrued
108,888,000 61,720,000 60,510,000 15,361,000 14,000,000
expenses

Total
217,114,000 146,190,000 146,210,000 142,161,000 138,792,730
Liabilities

Equity
Capital 600,000,000 600,000,000 600,000,000 600,000,000 600,000,000
loan 0 5,000,000 4,500,000 0 0

Total
Liabilities 382,886,000 448,810,000 449,290,000 457,839,000 461,207,270
and Equity

14
Financial Ratios

Current Ratio=Current Assets/Current Liabilities

Quick Ratio=(Current Assets−InventoryCurrent)/Liabilities

Net Profit Margin=Net Profit/Sales

Return on Assets (ROA)=Net Profit/Total Assets

Return on Equity (ROE): Net ProfitTotal Equity\Leverage Ratios:

Debt to Equity Ratio=Total Liabilities/Total Equity

Inventory Turnover=Cost of Goods Sold/Average Inventory

Accounts Receivable Turnover=Sales/Average Accounts Receivable

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Year 2025 2026 2027 2028 2029
Current Ratio 1.76 3.07 3.07 3.27 3.32
Quick Ratio 1.48 2.97 2.96 3.07 3.17
Net Profit Margin 0.13 0.18 0.16 0.16 0.15
Return on Assets 0.53 0.79 0.71 0.69 0.65
(ROA)
Return on Equity 0.34 0.59 0.53 0.53 0.50
(ROE)
Debt to Equity 0.36 0.24 0.24 0.24 0.23
Ratio
Inventory Turnover 21.21 36.56 92.63 81.99 75.32
Receivables 15.74 22.56 23.09 19.96 17.85
Turnover

NPV analysis

NPV=sum of cash inflow-cash out flow

NPV=cf/(1+r)^t - cf0
where:
CF is the cash flow in period t
cf0 is cash out flow/capital invested
r is the discount rate (0.30 in this case),
t is the time period (year).

From above financial projections;

Cf1=202,510,000 Tshs
Cf2=352,450,000Tshs
Cf3=318,150,000Tshs
Cf4=317,450,000Tshs
Cf0= 301,697,270 Tshs
r=30%=0.3

16
NPV=[(202,510,000/(1+0.3)^1)+(352,450,000/(1+0.3)^2)+(318,150,000
/(1+0.3)^3)+(317,450,000/(1+0.3)^4)]-600,000,000
NPV=701,786,040−600,000,000=101,786,040Tshs

Conclusion:
The NPV of the project is Tshs 101,786,040. This positive NPV indicates that the
project is expected to generate a return above the 30% discount rate and will be a
viable investment.

17
References;
Books:
Bizimana, A. (2017), Entrepreneurship Development in Tanzania. ABC
Publishers,Tanzania
Doyle, P. (2019),Marketing Management and Strategy,5th ed,Pearson,Uk.
Kotler, P., & Armstrong, G. (2018). Principles of Marketing,17th ed, Pearson,UK
Retail Association of Tanzania. (2017),Retail Business Handbook. RAT
Publications,Tanzania.
Solomon, M. R. (2018). Consumer Behavior: Buying, Having, and Being,12th
ed,Pearson,Uk
Varley, R., & Rafiq, M. (2014),Principles of Retail Management,3rd ed, Palgrave
Macmillan,New York

Online Sources:
Tanzania Investment Centre. (n.d.). Investing in Tanzania. Retrieved from
http://www.tic.co.tz
World Bank. (2020). Doing Business 2020: Tanzania. Retrieved from
https://www.doingbusiness.org
Tanzania Bureau of Statistics. (2020). Annual Economic Survey. Retrieved from
http://www.nbs.go.tz
Ministry of Industry and Trade, Tanzania. (2020). Trade Policy. Retrieved from
http://www.mit.go.tz
Tanzania Revenue Authority. (2020). Tax Guide. Retrieved from http://www.tra.go.tz
Business Registrations and Licensing Agency (BRELA). (2020). Business Licensing
Information. Retrieved from http://www.brela.go.tz
Confederation of Tanzania Industries. (2019). Annual Report. Retrieved from
http://www.cti.co.tz
Tanzania Invest. (n.d.). Retrieved from https://www.tanzaniainvest.com

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