Businessafrica.net Newsletter ISSN 1563-4108
Dr. QUENUM & ASSOCIATES
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AFRICABIZ VOL 1- ISSUE: 37
MAY 15 - JUNE 14, 2002
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Editor: Dr. Bienvenu-Magloire Quenum
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A WORD FROM THE EDITOR


Dear visitor and international investor,


We warmly welcome you, if this is your first visit to Africabiz Online - The ultimate newsletter on trading and investing in 49 sub-Saharan African countries. If you are a regular and faithful reader, welcome back.

If you are a regular and faithful reader, welcome back.

- THIRD ANNIVERSARY

This delivery marks the third anniversary of AFRICABIZ Online. Every month, since 37 months, we provided you with news and information about sub-Saharan African countries - with regards investing atmosphere - and delivered to you score of astounding business opportunities capable of generating double-digit annual growth rate. Many feedback encourage us to continue on the same line of delivering free content about investing and trading in and out Africa.

- TO BUILD ON EXISTING ASSETS OR START AFRESH FROM RUBBLES?

Since three years, the international community witnessed with amazement and bewilderment the erratic land reform's policy performed by Zimbabwe's Mugabe - click here for updated news on Zimbabwe.

Now, in the middle of year 2002, came the time of reckoning: Zimbabwe is hit by famine. Mugabe declares states of emergency. In other words Mugabe launches a May Day message for Aid Agencies to supply food to Zimbabwe. Mugabe is blaming persisting drought in Southern Africa for the famine.

One could, however, wonder if drought isn't the perfect scapegoat behind which Mugabe is hiding to escape from his glaring political and economical mistakes. Is drought the real cause for famine in Zimbabwe? As a faithful reader of AFRICABIZ Online put it:

From: @daffodil.com Sent: Friday, May 03, 2002 5:50 PM To: editor@africabiz.org

Subject: ZIMBABWE GOVERNMENT SPONSORS DESTRUCTION OF PRODUCTION AND CALLS FOR SUPPORT AT THE SAME TIME ?

Thought you might have an answer to such a question ? How can a Government sponsor and support wholesale looting and destruction of a once very productive food base (and foreign currency earner) and at the same time go out and call for international aid ?

Sad. Isn't? To see Zimbabwe in such dire straits. A country which used to stand as a regional economic power to be now down on its knees to such a "degrading" state of begging for food.

It is obvious that land reform to empowering Zimbabwe's black farmers is a absolute necessity. That reform, however, could have been planned and performed with sagacity to protecting the existing and efficient agricultural structure developed by Zimbabwe's white farmers.

In the contrary Robert Mugabe led a demagogic policy of land invasion and seizure, which doubtless played a great part in the current state of famine as per May 2002.

One could wonder why the land reform problem remained dormant for quite 23 years (since the independence day) to be suddenly addressed in a manner of improvisation, confusion and snafu. It seems that Zimbabwe's ruling party, under the leadership of Mugabe, acted just to satisfy the interests of a gang, which only target is to hang on to power. Disregarding, first, the detrimental economic and social cost to the country; and second, subsequent damage done to Africa's image and standing vis-à vis the international community of investors.

Let's hope that other African decision makers throughout the continent will learn from the sad and quick crash of Zimbabwe's agriculture. Let's hope that they will stop short from making the same aberrant political and economical mistakes. Let's hope that they won't act like Emperor Nero.

We African will gain more in terms of economic development if we always take sound political and economic decisions to preserving existing assets. Whatever may be the resentful thoughts we still ruminate about past behavior of former colonial powers and some of African citizens we must resist temptation of harsh actions, which are counter productive.

We should realize that it is always better to build on existing assets; instead of starting from rubbles.

Any African country, which nowadays adopts destructive strategy like Zimbabwe's Mugabe cannot expect to be salvaged by the international community. Anyway, even if some international aid is given in such circumstances, the country is still loosing as donated food competes with local agriculture's production and deprive local farmers from much needed revenues. The national authorities also are the big losers. Their decision making freedom is challenged by would be donors. Click here for an article titled: Donnors tell Mugabe: no devaluation, no food aid by Abel Mutsakani News Editor of Zimbabwe's Financial Gazette dated 5/9/02 3:11:41 AM (GMT +2)

Furthermore there are now plenty of other countries around the world; which cry for help and deserve more to be assisted than those which purposely destroy their own hard built assets.

Contributor's Guidelines is here to review. Your contribution on "How African countries / entrepreneurs could bridge the developing gap" is welcome
.

Many thanks for dropping by and see you here on June 15, 2002.

Dr. B.M. Quenum
Editor of AFRICABIZ
Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA


- Several business opportunities with high profit making potential which are economic catalysts and components to the Strategy for African Countries - here available - have been introduced to you. They are listed in following table.

a- SHEA BUTTER (Issues 5, 6, 7, 11, 12, 13)
b- BLUE GOLD (Issues 14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN (Issues 20, 21, 22 and here)
d- KENAF (Issues 23, 24)
e- VEGETABLE OIL (Issues 25, 26, 27 and 28)
f- CEREALS (Issues 30, 31, 32, 33)
g- FRUITS (34, 35, 36)

- TROPICAL FRUITS INDUSTRY AS INCOME BUILDING POWER FOR AN AFRICAN COMMUNITY / PART IV : GLOBAL OVERVIEW OF PASSIONFRUIT'S AGRIBUSINESS

In Issue N° 35 an investment estimate to establishing 500 hectares of Passionfruit agribusiness had been exposed. And we evaluated the purchasing price of the raw material (passionfruit) by the processing plant being equal to US $ 86 per metric ton.

In Issue N° 36 investment related to establishing a processing plant for the transformation of 7,500 metric tons of passionfruit produced by the plantation had been exposed.

- ANIMAL FEED PRODUCTION

During the daily processing of 28,846 metric tons of passionfruit, 2,500 kg per hour of following byproducts are generated:

Rinds
Residual Pulp
Pips

These byproducts are suitable to manufacturing animal feed through an adequate technology of mixing them with limepowder. The resulting hydrated cake is pressurized to remove the remaining juice. The dehydrated cake is then dried out in a desiccator to produce granulates of good quality animal feed.

Quantity of granulates per hour: 563 kg / hour (from 2,500 kg of raw material as above outlined). That is to say 4,500 metric tons per days or 4,500 x 260 = 1,170 metric tons per year (Capacity of the Passionfruit processing plant: 7,500 metric tons of passionfruit; one shift; 5 days / week (260 days / year - click here for more)
.
- HOG FATTENING / ANIMAL BREEDING

The quantity of animal-feed granulates resulting from the agribusiness operation based on the establishment of 500 hectares of passionfruit plantation (35) and the processing of related 7,500 metric tons of passiionfruit (36) could be used for hog fattening operation here exposed, which demonstrates that economic activity based on passionfruit development is a real economic catalyst.

- GLOBAL OVERVIEW OF PASSIONFRUIT AGRIBUSINESS AS INCOME BUILDING POWER FOR AN AFRICAN COMMUNITY

Items
Amount
(US$ x 1,000)
INVESTMENT

1-Total investment 500 hectares Plantation of passionfruit

2,450

2- Total investment Processing Plant for 7,500 metric tons of passionfruit 2,450
3- Total investment for animal breeding 750

Total investment for the operation

5,750
PRODUCTION LEVEL
1- Passionfruit = 7,500 metric tons
2- Passionfruit Concentrate at 32° Brix = 529 metric tons
3- Passionfruit Syrup for carbonated soft drink = 1,725 metric tons
4- Animal feed granulates = 1,170 metric tons
5- Finished hogs = 3,060
OPERATING COSTS

Total Operational Expenses

1,580
GENERATED REVENUES
1- Passionfruit = 7,500 metric tons x 78 US $ per metric ton 585
2- Passionfruit Concentrate at 32° Brix = 529 metric tons x 3,500 US $ per metric ton 1,886
3- Passionfruit Syrup for carbonated soft drink = 1,725 metric tons x 1,000 US $ per tons 1,725
4- Animal feed = 1,170 metric tons x 50,51 US $ per metric ton 60
Total OF Revenues 4,256

- IMPORTANT REMARK ABOUT REVENUES

The international selling price of passionfruit concentrate can reach up to US $ 6,000.00 per metric ton for product of very good quality with 32° Brix.. You will notice, however, that we have been very conservative and chose a selling price far bellow that level: US $ 3,500.00. That is to say only 58% of the selling price for good quality product.

Nevertheless one can notice the astounding result that this venture can produce. The Ratio of Revenues versus Operational Expenses is : 4,226 / 1,580 = 2,67. It is a real and powerful Income Building Power capable of driving upward the economic development of a regional territory in any African country as here extensively exposed.

We Dr. Quenum & Associates have the expertise to producing Feasibility Study / Business Plan covering all operational aspects (plantation establishment processing of passionfruit to fruit-juice's concentrate plus animal breeding operation); that is to say: soil analysis; seeds and species selection; nurseries setup, plantation organization and management; plantation's production planning; processing plant sizing, engineering coordination; operational staff training organization and startup assistance; marketing in Europe / Americas and Asia of processed fruit juice. Business-to-Business online marketing website designing, setup/ hosting and management's training; additional business operations organization to using byproducts(rinds and seeds) and so on. For any interested party contact Dr. Quenum & Associates.


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