Jogendra walvoikar 12065 Marketing (2012-14) Country: Uganda.

Uganda officially the Republic of Uganda, is a landlocked country in East Africa. Uganda also lies within the Nile basin, and has a varied but generally equatorial climate. The official language is English. Luganda, a central language, is widely spoken across the country, Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizeable mineral deposits of copper and cobalt. The country has largely untapped reserves of both crude oil and natural gas. While agriculture accounted for 56% of the economy in 1986, The current estimated population of Uganda is 35 million. Uganda has a very young population, with a median age of 15 years.

Country analysis.
Climatic condition. Ugandas weather in general Straddling the equator, there is little year round fluctuation in temperature and no real winter or summer. The hottest months are January and February when the average daytime range is 2433C (52-91F) with peaks of up to 40C/104F in the far north. The south has two wet seasons: from mid- September to November and March to May. The dry season from December to February means only that it rains less and the gorilla parks remain fairly wet during these months. The second dry season- from June and July- is considerably drier. Still, with 1000 to 2000mm (39.4-78.7in) of rain every year, it can rain at almost any time. The north, including Murchison Falls and Kidepo Valley, has one continuous wet season from March to November and a more obvious dry season from December to February. So we can say that Uganda climate is good agriculture. http://www.safaribookings.com/uganda/climate

Natural resources
Uganda has substantial natural resources, including fertile soils, regular rainfall, small deposits of copper, gold, and other minerals, and recently discovered oil. Uganda has never conducted a national minerals survey. Agriculture is the most important sector of the economy, employing over 80% of the work force. Coffee accounts for the bulk of export revenues. http://www.forbes.com/places/uganda/

Agriculture
Uganda is endowed with a warm climate, ample fertile land and regular rainfall all of which provide one of the best environments for agricultural production in sub-Saharan Africa. Agriculture has for several years formed the backbone of Ugandas economy contributing approximately 37% of the Gross Domestic Product (GDP). Agricultural products contribute nearly all of Uganda's foreign exchange earnings, with coffee (of which Uganda is Africa's leading producer) contributing the largest percentage of 19% of the country's exports. Exports of non-traditional products, including hides, skins, vanilla, vegetables, fruits, cut flowers, and fish are growing, while traditional exports such as cotton, tea, and tobacco continue to be mainstays

Industrial manufacturing
Ugandas Industrial manufacturing sector is relatively small. The sector is dominated by subsidiaries of multinational corporations. The presence of subsidiaries of multi-national corporations is largely attributed to the Government of Ugandas privatisation programme which commenced in the mid 1990s

Financial service industry

Financial service industry in Uganda comprises the Banking, Insurance, Microfinance and investments sectors, remains dominated by the banking sector. The banking Sector has been described as generally sound and well capitalized.

Food & Drink

Private consumption in Uganda is anticipated to have grown strongly over 2013; price growth (which is forecast at 5.3% for the year) has increased slightly,

Infrastructure
BMI View: 2012 was a tough year for the Ugandan construction market, which was badly affected by high interest rates, limiting real GDP growth to an estimated 2.8%. http://www.pwc.com/ug/en/industries/financial-services.jhtml

Gross Domestic Product of the country.

http://databank.worldbank.org/data/views/reports/chart.aspx GDP of the country is rising, so its good sign for the business.

This page summarizes Doing Business 2014 data for Uganda. Table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic.

TOPICS

DB 2014 Rank

DB 2013 Rank

Change in Rank

Starting a Business

132

126

-6

TOPICS

DB 2014 Rank

DB 2013 Rank

Change in Rank

Dealing with Construction Permits

143

130

-13

Getting Electricity

178

177

-1

Registering Property

126

128

Getting Credit

42

40

-2

Protecting Investors

115

113

-2

Paying Taxes Trading Across Borders

98 164

96 164 No change

-2

Enforcing Contracts

117

114

-3

Resolving Insolvency

79

68

-11

http://www.doingbusiness.org/data/exploreeconomies/uganda

Business opportunities available in Uganda :

1. Food processing : Much of the food consumed in Uganda is imported. And the country spends several million of dollars annually on food importation alone. This creates huge opportunities for businesses that can produce and process foods locally. Making Soya Milk, Tofu and Yogurt Build your own Small Soya Processing Plant, produce and sell soy milk Tofu, Yogurt and Soya Food recipe... With less than US$10,000 of total investment, you build your own soya processing plant and make up to US$1,000 of monthly net profit!

Start a Flour or Maize Milling Plant Flour or Maize milling in Zambia, Malawi and other African countries present huge business opportunities.... In these countries, there is scope for establishing flour or maize mills in all important commercial centres in the rural or urban areas. Process maize, produce good quality flour and let people enjoy maize meal!

2. Tourism and hospitality :Uganda is one of the most visited vacation destinations in Africa. Because Uganda plays host to many visitors annually, there are opportunities for investors to make money off these visitors. 3. Transportation : Uganda face huge problems of transport not only because of bad roads but as well by limited means of transportation. This situation presents to you business opportunities in the transport sector. (http://www.africa-do-business.com/kampala.html)

Site selection for starting a business in Uganda.

It will be feasible to start the business kampala city. It is the capital of the country, with good infrastructure, market, power supply etc. kampala City, the capital of Uganda, is one of the fastest growing cities in Africa. The population is reaching 2 million and its economy is booming. Kampala is now characterised by a landscape of new infrastructures and buildings: roads, shopping malls, hotels, apartments, etc.

Business Which I Would Like To Start. Fruit processing

There are limited fruit processing industries in Uganda. There is demand for fruit juices for outstrip production. In order to meet this demand, a range of fruit juices are imported into the country. This is a strong indication of the existence of investment opportunity in fruit juice processing, for local and export markets.

Introduction

http://www.ugandainvest.go.ug/

Fruit Juice Canning is a method of preserving fruit juice sealed in an airtight container, which prevents microorganisms from entering and proliferating inside. The products may include: Canned fruit cocktail consisting of a mixture of fruits, such as; mangoes, tangerine, lemons, apples, and passion fruits. There is an increasing demand for canned fruits as they can be sold in both locals and foreign markets.

Production Capacity
It is projected that at least 100 Dozens of 300m liters (1,400 ltrs) of canned juice can be produced a day.

Production Technology & Process

The canning process involves placing fruit juice in jars or similar containers and heating them to a temperature that destroys microorganisms that cause food to spoil. During this heating process air is eliminated from the jar and as it cools a vacuum seal is formed. This seal prevents air from getting back into the product bringing with it contaminating micro-organisms.

Capital Investment Requirements and Equipment:

This project may be operated on both small and large scale depending on the size and nature of the market. The fixed capital investment required to start it is approximately 27,170 USD as shown in the table below: Raw Material Requirements for 12 Months: It is projected that in a month, at least 42,000 kgs of fruits, 36,000 jar cans & labels are required to meet the projected production capacity. The revenue per annum is USD 748,800, with an operating cost of USD 656,473 at a net profit of 12%. The payback period is 4 months.

Market Analysis
The demand for canned juice is very high in super markets, hotels and for export. Foreign markets will constitute about 80% of the total market size.

Project cost: Capital Investment Requirements in US$

Operating Costs in US$

General Costs (Over heads)

Profitability Analysis in US$

Sources of Supply of Raw Materials:

Raw materials will be locally supplied from Eastern, Western Kasese, North Eastern, and Central parts of Uganda, which are the leading and major fruit producing regions.

Competition
Although processing is still considered low due to limited extraction of juice and packing, the positive strides witnessed in the last two years signal improvement as both juice production and farmers involvement has grown. By the end of 2010, there were a few fruit juice producers and the market was dominated by House of Dawda (Britannia Allied Industries Limited) juice products Splash and Yojus. However, in 2011, two big companies; Sameer Agriculture Livestock Ltd (SALL) and Coca Cola joined the local market, each launching a multi-billion fruit juice plant. Sameer announced that it had invested Shs5.2 billion in a juice plant and would use locally grown fruits to produce a variety of high quality juices under the brand Diama juice. Jakana Foods LLC is a major scale commercial producer of all natural fruit juice in Uganda. The company has been processing and packaging juice since 1994.

Reason I choose these Opportunity:

News :Ugandas fruit juice consumption on the rise as dominant player battles for market.

A fast growing middle class and a more health conscious population is spearheading the increased consumption of fruit juices. More Ugandans are consuming fruit juices even though its price remains slightly higher compared to other soft drinks. The lowest prices for a fruit juice pack of less than 300mls is Shs1,000 compared to the Shs5,00 charged for some other soft drinks of the same quantity. Uganda is the number one fruit producing nation in Africa. The country is suitable and has abundant potential to produce mangoes, citrus, pineapples, tomatoes and a host of other vegetables. The fertile soils and conducive climate guarantee fruit and vegetable production for the greater part of the year. Despite this great production potential, the processing of fruits and vegetables is low and is mainly limited to extraction of juice, drying, bottling and labeling. So there will be continuous supply of raw material that to at a lower price. (http://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-rise)

References

http://www.safaribookings.com/uganda/climate http://www.forbes.com/places/uganda/ http://www.pwc.com/ug/en/industries/financial-services.jhtml http://databank.worldbank.org/data/views/reports/chart.aspx http://www.doingbusiness.org/data/exploreeconomies/uganda http://www.africa-do-business.com/kampala.html

http://www.ugandainvest.go.ug/ http://www.monitor.co.ug/Business/Prosper/Uganda-s-fruit-juice-consumption-on-the-rise