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MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN
PROJECT CONCEPT

This project is about regional trade in tropical hardwood timber as a
commercially lucrative business enterprise. The project’s conceptualization
was borne out of the ever-rising demand for hardwoods in Uganda mainly for
use in the construction and furniture industries. The construction industry
itself is a double-digit high growth area in the Ugandan economy due to the
great demand for housing and office space. This has invariably upped the
demand for mature tropical hardwood timber species that are best suited to
this purpose. Furniture and fittings are also highly demanded items of
consumption for the majority of people in Uganda with the financial means to
afford it. The demand for good quality tropical hardwoods to make vintage
furniture and fittings is always rising as population growth also moves up.
Practically, all countries in East Africa have put policies in place to regulate
the production of tropical timbers from their already diminished and underpressure tropical hardwood resources. However, the eastern neighbor of East
Africa – the Democratic Republic of Congo with its current tropical forest
stand of 156 million hectares within the Congo basin currently harvests
about 400,000 hectares of tropical hardwoods per annum which it exports to
the neighbouring markets of Burundi, Kenya, Rwanda, South Sudan, Uganda,
and with some of it being exported to mainland China.
It is from this vast natural forestry resource of the DR Congo that the tropical
hardwoods mentioned in this business plan are to be sourced and delivered
to the project’s timber buyers in Kampala. The consistently high double-digit
growth of the Uganda construction industry and Uganda’s constrained forest
resource base have been largely responsible for driving this high demand for
tropical hardwood timber from the DR Congo.
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TIMBER SOURCING

Tropical hardwood timber destined for sale in Uganda and Kenya is sourced
from the western Uganda border entry-points of Mpondwe (Kasese district),
Bunagana (Kisoro district), Busunga (Bundibugyo district), and Ntoroko
(Bundibugyo district) at the lower part of the Uganda-DR Congo border, and
Goli, Paidha, Vurra, Lia, Odramachako and Oraba on the West Nile portion of
the Uganda border with DR Congo. The tropical hardwood timber is logged
directly by small-scale timber lumbermen in the North Kivu region of eastern
DR Congo and transported by truck by these loggers to the above-mentioned
border posts for pick up by Ugandan timber traders who are stage from
there.
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000 payable to any one of the eastern DR Congo regional offices of the Ministry of Environment.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN Most of the logging is done using portable power-saws and the logs are sized into timber baulks which may be further split into smaller made-to-order timber panels for use in construction work and for the manufacture of household furniture and fittings. and sell on the market. – 18 ft. The trade and botanical names of these tree species are given in Table 1 below. White Nongo is a white “softwood” and is the main species traded into the South Sudan market. process. 3. and Chrysophyllum albidum) and small quantities of Mvule (Milicia excela). reasonably-sized forest logging concessions can be secured from the relevant environment and forestry authorities at negotiable concession lease rates. The mahogany accounts for about 70% of the trade and White Nongo accounts for about 15% with the other species making up the remaining 15%. Nature Conservation and Tourism can yield a stretch of about 40 square kilometers of forest logging land to a committed and serious timber dealer. an annual forest concession fee of US$ 5. this timber-trading business will confine its timbertrading operations to only about six (6) species of hardwood – which it can definitively source. The main species imported from DR Congo into Uganda are mahogany (Entandrophragma and Khaya spp). The timber baulks usually measuring about 14 ft. For practical purposes. Within the DR Congo itself. Table 1: Trade and Botanical Names of Tradable Tropical Hardwood Species 2 . transport. White Nongo (Albizzia spp) and Nkalati (Aningeria altissima. Nkalati is another that has become popular in the Kampala market for furniture making. (length) x 14 inches (width) x 14 inches (depth) can be purchased for slightly more than US$ 100 per cubic metre. This is a relatively modest price when compared with the purchase prices for smaller-sized machine-sized timber panels of the same tree species – which are obviously much higher-priced to account for the cost of machine-sizing. For instance.0 THE RANGE OF TREE SPECIES TRADED In contrast to industrial scale loggers who typically harvest a wide range of species. artisanal loggers harvest very few species.

The market practice is to quote panel dimensions first for length (in feet) and then width x depth (thickness) – in inches. Timber panels are usually of a standard length of 14 feet – 18 feet. 4” x 2” LENGTH (Feet) 14’ 14’ 14’ 14’ 14’ 14’ 14’ 14’ Splitting and sizing of the timber baulks (the larger timber pieces) must always be done prior to supply the tropical hardwood timber consignment to 3 . SIZE No.S. 4. 3. 12” x 1” 3. It so happens therefore. 1. 6. or can be carved into specific shapes which can easily fit and join with each other – such as in the furniture and fittings industry. 9” x 3” 6. 8” x 2” 7. 9” x 1” 5. that when timber end-users are placing their orders with the timber suppliers. Chrysophyllum albidum MARKETABLE SIZES Most end-users of timber require specifically-sized tropical hardwood timber panels that are relatively easy to work and transform into shapes and sizes that can readily be incorporated into other structures – like in the construction industry. 4. 7. 2. The sizes commonly required by tropical hardwood end-users / buyers are summarized in Table 2 below: Table 2: Commonly Used Timber Panel Sizes S.0 MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN Trade Name Botanical Name Mahogany Sapele Gedu Nohor / Tiama Muyovu /Kosipo Feather Sapele / Sipo Real African Mahogany / Kaya Iroko / Mvule / Kambala Nkalati Entadrophragma cylindricum Entadrophragma angolense Entadrophragma excelsum Entadrophragma utile Khaya anthotheca Chlorophora excelsa Aningeria altissima. 12” x 2” 2. 5. Width x Thickness (Inches) 1. No. 6” x 2” 8. they normally do so by indicating the desired specific panel sizes in the order. while width and thickness may have size variations depending on the user’s preferences. 10” x 2” 4.

300 m3.000 m 3.1 Timber Market Characteristics 5.1 Regional Timber Trade In contrast to western parts of DRC where logging is commercial scale dominated by industrial logging concessionaires.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN the market for it to be accepted and a fair price paid for it. The total volume amounts to just over 60. Rwanda 7. The best and most cost-effective way of doing this is by the application of machine-sawing using a band-saw mill. The main drivers of the trade are poverty and limited alternative economic opportunities in DRC. Only the largest trees are felled and harvesting operations are inefficient and wasteful. Mary Kakuranga will buy the tropical hardwood timber baulks at a lower price at the DR Congo – Uganda border and then transport it to a suitable milling plant in Kampala with good band-saw facilities for machine-sizing into the desired panel sizes. 5. For the case of this project. and Burundi about 1.1. or alternatively. combined with strong demand for quality hardwood timber in neighbouring countries. the business proprietor – Ms.000 m3. the tropical hardwood timber panels will be bought at the DR Congo – Uganda border when they are already machine-sized (at a higher purchase price). The timber harvested in Eastern DRC is destined mainly for markets within the East Africa region with relatively small quantities going to domestic markets within DRC or being exported to external markets outside the region.1.000 m 3 followed by South Sudan at 10.0 THE MARKET 5.700 m 3.2 Uganda Timber Market 4 . the timber trade in eastern DRC is dominated by small scale logging operators and artisans using chainsaws to fell trees and mill the round wood into planks. 5.000 m3 annually. Ugandan and Rwandan markets while the South Sudan market is dominated by softwoods such as White Nongo (Albizzia spp) and Nkalati (Aningeria and Chrysophyllum spp). By far the biggest market is Kenya with estimated imports of 32. Uganda imports 8. Mahogany (Entandrophragma and Khaya anthotheca) is the main species going to the Kenyan.

215 m3). it can be concluded that URA Customs is capturing the volume data accurately.300 m 3 per year and volume in transit to other countries of 42. 32. The official data provided by URA Customs shows slightly lower volumes imported and in transit in 2011 of 5. but in Uganda.000 m3 (of which 8. Table 4 below provides price indicators for mahogany timber planks delivered CNF Kampala in Uganda Shillings. timber prices are always quoted according to the dimensions of each timber plank/panel. The estimates based on field visits to border posts.e. timber prices are usually quoted by the cubic meter.400 m3 goes to South Sudan. The same Table 4 also provides equivalent prices per cubic meter in Uganda Shillings and US$ to compare with the prevailing average market prices of US$ 595 per cubic meter in Kampala and US$ 672 per cubic meter for Nairobi.802 m3) and quantity to other markets at 30. As the field estimate is not much different from the official URA Customs data. the quality of the wood 9such as its texture and grain). Construction is growing at a rate of 10% every year. On the international market. These are the same rates 5 .461 metric tons (equivalents to 7.000 m3 goes on external markets in China and elsewhere). whether hardwood or softwood).300 42.2 Pricing Timber prices in Uganda have been on the rise over the last five years.463 metric tons (equivalent to 35.000 URA Customs data 2011 7. the degree of seasoning of the wood (dry timber is preferred over green timber). Table 3: Comparison of Field Estimates and URA Customs Data on Imports and Transit Timber Source of Data 2011 2011 Imports Transit Estimates based on visits to border posts 8. of volumes imported to Uganda and in transit to other markets are compared with official date provided by URA Customs in Table 3. whether the wood is machine-sawn or hand-sawn.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN There is a high in Uganda for mahogany from DRC as indigenous hardwood timber resources are becoming scarcer.215 5.600 m3 goes to Kenya and 1. following increasing demand in the construction industry. The field assessment indicates imports at 8. and the level of market demand at any one given time.802 35. Timber pricing is usually determined by among other factorial determinants – the type of wood required (i.

600/= 530 8” x 2” x 14’ 60.000/= 1. Table 4: Prevailing Kampala Market Prices for Various Mahogany Timber Planks Plank Market Market Market Dimensions Price/Panel (In Price/Cubic Price/Cubic UShs) Metre (In UShs) Metre (In US$) 12” x 2” x 14’ 90. A single truck-load of tropical hardwood consists of 6. payments for the commodity are usually settled promptly in cash against delivery.000 pieces of timber cut to different sizes which is equivalent to about 270 cubic metres of machine-sawn timber (See Table 5 below). The feasible market delivery 6 .815.000/= 1.018. There are also different forms of payments across the market.362.000/= 2.700/= 400 12” x 1” x 14’ 60.0 MODE OF PAYMENTS Owing to the highly traded nature for timber. The project promoter in this business plan has been able to identify one good hardwood timber-based furniture manufacturer with an absorptive capacity of not less than 300 cubic metres per month of tropical hardwood timber raw material for use in the high-turnover manufacture of assorted furniture products. 7.361.000/= 1. to bank settlements using Documentary L/Cs or International Banker’s Drafts in favour of the timber supplier.0 SUPPLY QUANTITIES 7.000/= 400 9” x 1” x 14’ 50.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN that have been used in the Net Income Statement at the back of this business plan on pages 14-16. to Certified Cash Cheque payments. Also most of the payments for timber deliveries on the Uganda market are made out in the local currency – the Uganda Shilling.000/= 590 4” x 3” x 14’ 90.1 Market Analysis The average volumes of timber that can be bought by an average timber end-user on the Kampala timber market range anywhere between 200 cubic metres – 500 cubic metres per month depending on the buyer’s industrial output capacity and market share in the Uganda domestic wood products market. though the most commonly used modes of payment range from physical cash pay outs.000/= 1.361.700/= 400 6.

26 22.247 (6.000 pcs) In the Net Income Statement on pages 14-16.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN capacity of this enterprise is 1 truckload of machine-sawn timber per month that will be distributed amongst 3 or so buyers on the Kampala market depending on the sizes of their specific orders. Ms. semi-trailers (L x H).13 12” x 1” x 14’ 8” x 2” x 14’ 9” x 1” x 14’ 4” x 3” x 14’ Total 2016 2688 1512 2016 30. Mary Kakuranga has built a strong trading history with this furniture-making company that gives her confidence in its trading reputation as far as generation of repeat orders and payments on delivery are concerned.70 40. The list of the timber panel sizes and numbers on this particular order are indicated in the attached Buyer’s Proforma Invoice. document.000 pcs) 49.053 (1.57 (1. the hardwood timber is usually packaged in 20 ft x 8 ft (L x H) containers (towing trailers) or 40 ft.389 (500 pcs) 33. The hardwood timber baulks are usually stacked on top of each other 7 . This is considered to be a sufficient time frame in which to purchase. The current order that Ms.000 pcs) 271. 2 truckload delivery schedules are projected for each month. transport the timber from the Uganda-DRC border and deliver it to the Kampala market where it is urgently required.2 Supply Orders The project entrepreneur Ms.0 PACKING For long-distance movement. Mary Kakuranga has to execute is for 3. Table 5: Timber Volumes in 1 Truckload Plank Volume in Cubic No.000 pcs) 12.26 Cubic Metres / Truck Consignment 132.000 timber planks/panels to be delivered to the company’s workshop in various sizes after which another order of similar magnitude will be generated by the buyer. 8. of Pieces / Dimensions Inches Cubic Metre 12” x 2” x 14’ 4032 15.188 (2. Mary Kakuranga has secured firm market orders from a Kampala-based furniture-making firm by the name of ADAMS ENGINEERING SERVICES LTD.500 pcs) 44. x 8 ft. 7.047 (1.36 30.

c) The DRC Customs export-clearance documentation that cost about US$ 1. 9. However. the timber merchant pays the import duties for the consignment to the URA Customs office at the border post and then obtains all the necessary import clearance papers sanctioning the entry and subsequent movement of the hardwood timber merchandise from the Uganda-DRC border up the buyer’s stated destination point anywhere in Uganda. fork lift trucks for loading operations are barely available and therefore all the loading is done manually . the off-loading and loading of the machine-sawn hardwood timber panels is a much easier and faster task to accomplish using the manualloading method as they much lighter and therefore quite portable to move into and out of the trucks. leaving a headroom of approximately 1 (one) foot from the roof of the container to facilitate their off-loading at the destination point.though at quite an affordable and compelling cost – though it certainly takes much more time to load the timber manually than through the use of mechanical loading aids as the hardwood timber are quite heavy and bulky to load onto the trucks.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN length-wise.000 per truck-load of hardwood timber originating from the DRC. On the Uganda side of the border. The relevant documents that accompany any consignment of hardwood timber originating from the DRC and destined for the East African market include: a) A DRC Ministry of Environment.0 DOCUMENTATION Any of the hardwood timber consignments originating from the DRC into the Uganda market should always have complete trade documentation issued by the DRC authorities at the point of entry. Nature Conservation and Tourism Certificate authorizing the export of the timber out of the DRC. In instances where the hardwood timber consignment is being moved to Kenya. the timber merchant has to acquire the relevant in-transit documents 8 . The Ugandan hardwood timber will always be handed this set of documents from the DRC at the Uganda-DRC border as evidence of possession title to the timber merchandise and as a signal of conclusion of a bona fide transaction. The hardwood timber baulks can be loaded and packed mechanically at the point of loading using a fork-lift truck or hired manual labour. At the UgandaDRC border. b) An SGS Certificate of quality and quantity of the hardwood timber issued by the SGS representative office in the DRC.

This calculates to about US$ 4. The road from the DRCUganda border at Mpondwe in Kasese district is first-class all-weather tarmac surface.g. coffee. There are quite a number of active Ugandan and DRCregistered transport companies that ply the route between Beni-Uganda-DRC border-Kampala-Nairobi-Mombasa on a regular basis. Other externalities that may influence movement in transportation rates include governmentregulated adjustments in the prices of fuel. the seasonality of exportable commodities from the DRC that often compete with tropical hardwood timber for transportation out of the DRC and include mineral commodities (e. Generally speaking.500/= per hardwood timber plank (or UShs 15 million for a single truckload consignment of 6. papain. The current transportation fare that is charged by most truckers is UShs 2. however. coltan).0 TRANSPORTATION The movement of hardwood timber merchandise from the Eastern DRC is the business of middle and long-distance haulage multiple-axle vehicles that are specially built to perform in the transportation of heavy merchandise over African road surfaces. fuel expenses. the movement of the hardwood timber cargo can easily be accomplished within a single day with the only limiting factor being the condition of the truck in use rather than the road itself. tropical hardwood timber is a relatively easy commodity to transport as it does not require special handling and packaging arrangements like is usually the case with other agricultural commodities such coffee. or tea. 10. Moving a heavy truckload of timber from the Uganda-DRC border to Kampala will usually take about 6 – 8 hours using the Mpondwe-Kasese-Fort Portal-Kampala route. This Transit Bond must always be surrendered at the URA Customs exit point at the Uganda-Kenya border at Malaba or Busia. and papain.000 pieces).MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN allowing him/her to move the timber consignment to Kenya via Uganda. the driver’s and turn boy’s allowances. this is what is known as a Transit Bond and it costs about US$ 300 per hardwood timber truck-load. The Transit Bond specifically imposes a trade restriction on the timber merchant not to off-load his/her merchandise anywhere in Uganda while in the process of moving it to Kenya.400 per truckload and will cover a range of the trucker’s expenses including border fees. So. Essentially. as well as vehicle servicing and maintenance expenses. Road freight haulage companies specializing in the business of goods logistics in East Africa usually prefer payment in hard currency (especially the US Dollar). There is a general consensus amongst all tropical hardwood timber transporters that the business of transporting timber is a 9 .

Ms. diversifying her market connections. Sales prices are assumed to grow at a rate of 5% per annum.0 THE ENTERPRISE The enterprise that will operate the stated tropical hardwood timber trading business between the DRC and Uganda and is seeking the loan facility of UShs 200 million to capitalize the business is a sole trader by the name of Ms. and manufacturers within Uganda and Kenya that is at her beck and call 24/7 that she now seeks to exploit. The business proponent has got an extensive trading background in the East African timber industry spanning over 10 years besides building a well-coordinated market network of tropical hardwood timber dealers. 12. She has been working hard at upping her business know-how. exporters. commitment and dedication to the timber line of business that inspires her more than anything else to push this project to its limits and succeed beyond expectations in a field that she already knows too well while stopping at nothing to generate a robust financial return out of the input seed capital loan within the stipulated loan application time frame. 11.0 MARKETING & SALES ASSUMPTIONS     Tropical hardwood timber sales will be conducted on a cash-only basis and there will be no credit transaction throughout the enterprise’s business application period Sales of timber consignments will be done twice a month on the back of a strongly growing market for tropical hardwood timber species in Uganda that is bolstered by double-digit growth figures in the construction industry. and keeping close tabs on the evolution and growth of the East African timber market. Mary Kakuranga.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN straight-forward supply chain logistics operation as long as there is harmony and agreement between them and the concerned timber trader on freight rates. strengthening her skills and competencies in the dynamics of the timber trade. Mary Kakuranga is also an energetic and purpose-driven business personality with a single-minded determination and focus to succeed in the timber merchandising business. It’s also because of the fires of her passion. developing a good working rapport with timber suppliers on the DRC side of the border. Monthly sales revenues depicted in the Net Income Statement are the composite of monthly sales for the various tropical hardwood timber 10 .

Depreciation and Amortization) of the timber trading enterprise.000 6.        MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN planks that make up each truckload of 6.000 90.000 90.000 60. shrinkage.000 .000. Payments for the tropical hardwood timber consignments are made on a cash-on-delivery basis by the buyer upon receipt. Timber purchase costs are expected to increase at a rate of 5 per cent per annum.000 pieces and are summarized in Table 6 below. of Pieces (1 Truck) 2.000 445. There are no in-built sales commissions within the timber-trading enterprise’s operational expenses (opex).000 60. storage.000.000 50. cracks.000 90.000.000.000 1.000 11 Monthly Revenues (UShs) 180.000 60.000 25. Tax. handling or the actual sales process itself so as to upset the projected monthly or annual sales receipts in any appreciable way. There is no damage. Timber transportation and labour costs are also expected to increase at a rate of 5 per cent per annum. The tropical hardwood timber planks supplied to the buyers conform with the market standards and requirements and there are no unbought rejects upon delivery to the buyer’s warehouse/industrial premises. inspection and verification of each timber consignment. Table 6: Monthly Sales Revenue (1 Truckload) Panel Dimensions 12" x 2" x 14' 12" x 1" x 14' 8" x 2" x 14' 9" x 1" x 14' 4" x 3" x 14' TOTAL No. Corporate Tax (30 per cent) is assessed only once a year and is deducted from the annual aggregate EBITDA (Earnings Before Interest.000 Unit Price (UShs) 90.500 1.000. There is an assured supply source of tropical hardwood timber from the DRC where this enterprise will be exclusively sourcing its timber from.000 500 1. insect infestation on all the timber panels during transportation.000.

MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN EXPLANATORY NOTES TO NET INCOME STATEMENT 1. 4.Include business contingencies and incidentals such as accommodation. Labour: . Miscellaneous and Contingencies: . The unit labour cost per timber panel is calculated at UShs 100/panel = UShs 600. Purchase of Timber: . 2.Hardwood timber sales prices are indicated in the third column of Table 6 above. 5.34 billion in Year 1 alone. Assuming a tax rate of UShs 10. tips.000 per timber plank/panel. etc.000 to purchase at source. Transportation (Mpondwe – Kampala): . These amount to UShs 5.750.000 for the whole truckload.000. subsistence.000. Taxes: .500/panel or UShs 15. 6. its cost of sales UShs 333.000 – 10.The source cost of timber at the Uganda-DRC border is taken 75% of the Kampala market sales price. 12 .000 panels per truckload. VAT and Withholding Tax.Transporting the hardwood timber from Mpondwe to Kampala is by road.000 for the whole consignment of 6. These are shown to increase at a rate of 5 per cent per annum to take into account annual inflation-adjusted rates/prices.Importation taxes on timber into Uganda consist of Import Duty.000 per timber plank when compounded. the expected monthly revenues are UShs 445 million or UShs 5. The road freight rate is UShs 2. 3.000. It may also include any other cost that may overspill its cash budget allotment and then has to be offset from contingency funding allotment. For 1 truckload of timber that sells at UShs 445. Sales Revenue: . the total amount of tax paid on each truck works out UShs 60 million.Refers to the manual labour for loading the machine-sized timber planks at Mpondwe border. Basing on these prevailing Kampala timber market prices.

MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN ACCOUNTING POLICIES Loan Amount: The timber trading enterprise seeks a seed capital loan of UShs 200 million from the bank to capitalize the business. Insurance Charges: The loan attracts an insurance charge of UShs 500. Bank Charges: There is a bank charge of 1% on the loan. Repayment Period: The loan repayment period if for 3 years (36 months). Interest Rate: The loan attracts an interest rate of 26% per annum. 13 .000.

000.750.900.000 36.175.650.667 Cash Balance C/F 5.667 135.466.650.750.000.000.667 80. of timber panels 0 1 2 3 4 5 6 7 8 9 0 6.000.000.791.600.000 333.000 3.425.667 135.141.000 80.566.000 91.466.000 EBITDA* Loan Repayment 80.00 Taxes 60.00 0 333.825.966.00 0 580.6 Sales Revenue 0 Total Inflows 420.00 Total Opex 80.000 5.000.966.000 6.667 48.000 60.900.000.000 26.600.316.000.00 0 157.000 60.566.000.667 0 201.667 113.566.000.750.667 0 5.000 60.225.66 7 6.566.641.000 165.650.000 5.750.000.000.0 445.000 5.333 8.000 15.000 3.650.000 0 445.400.000.000.400.391.000 333.791.000.616.008.391.000 60.000 333.667 Earnings Before Interest.216.000 6.216.000.000 0 5.000 60.667 224.00 0 333.667 200.000 60.0 201. 5.750.000 15.667 113.000.000 6.000 5.000.000.000 91.667 0 445.216.000 600.000 0 157.750.66 7 179.000.333 4.600.175.000 91.000 60.000.667 0 445.000 116.566.000 60.216.66 7 187.316.000.667 4.041.750.333.667 113.300.667 *EBITDA: 135.925.000.000.000 600.000 9.66 201.333 3.000 5.141.000 600.000 60.000 80.141.000 624.175.66 7 0 471.000 5.000.175.316.000 80.000 5.667 181.000 4.400.00 0 536.000 0 0 0 0 0 0 0 0 220.667 135.216.000 15.66 Transport 15. Depreciation and Amortization 14 179.000 Gross Profit 86.141.391.000 6.000 5.000.000 202.000 26.575.667 69.000 143.600.216.566.000 600.00 0 Cost of Sales 333.000 6.000 157.000 26.667 113.000.000 5.000 445.175.00 0 0 514.667 48.667 100.000.650.667 69.00 445.667 9.667 69.667 69.00 0 80.000 80.00 0 333.225.000 5.667 48.000 15.000.6 5.000 INFLOWS: Cash B/F Seed Loan Promoter's Equity 179. Tax.000 57.683.600.925.000 5.466.000 6.000 138.000 5.000 5.000.000.900.683.000 600.000 15.000 5.000 0 445.00 209.141.000.000.00 600.000 333.116.000 91.0 .000 6.600.667 159.866.333 3.750.250.000 15.00 0 450.750.66 Total Loan Service 0 9.966.000.966.600.000 5.391.008.000 5.667 OUTFLOWS: 333.000.333 9.000.925.000 8.000.667 290.00 0 333.000.966.966.000.000 445.66 7 0 0 0 0 0 0 0 Net Profit 5.000.000 15.925.333 157.000 445.750.650. & Cont.575.116.000 600.175.791.000 600.000.000 80.391.600.00 0 493.000 600.000 5.000 122.667 79.667 8.6 602.575.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN TIMBER TRADING NET INCOME STATEMENT: YEAR 1 (IN UGX) ITEM/MONTH No.600.000 600.000.00 Loan Interest 0 4.000.000.391.000 268.000 8.0 Operating Expenses Labour Costs Misc.667 3.000.000 8.316.0 Net Profit Before Tax Corporate Tax (30%) 5.000.667 48.316.000 26.925.333.667 246.000.000 0 0 558.000.000 15.000 80.816.216.600.000 15.000.66 7 179.000.000.

83 3 350.333 98.460.25 0 307.750.000 5.000 6.401.000 6.000 5.972. & Cont.000 6.000 60.50 0 374.997.50 0 231.460.33 3 259.66 7 0 467.000.333 98.16 7 350.630.667 8.833 350.000 5.83 3 178. of timber panels 0 25 26 27 28 29 30 31 32 33 0 6. Tax.667 2.500 72.000. Depreciation and Amortization TIMBER TRADING NET INCOME STATEMENT: YEAR 3 (IN UGX) ITEM/MONTH No.900.000 Loan Interest 0 3.881.250.333 98.101.900.000 6.00 0 8.250.651.000 15.000 630.16 7 0 286.630.000 6.000 478.703.167 124.333 98.000 630.250.168.000 6.643.50 0 348.000 6.155.000 15.000.667 2.00 0 0 0 0 Net Profit 45.87 5 341.00 0 0 151.750.000 6.011.16 7 7.418.000 81.00 0 565.000 5.997.000 6.215.00 0 672.350.83 3 0 467.000 No.923.66 7 8.00 0 350.750.500 81.250.151.630.491.000 5.667 1.000 15.000 240.000 15.437.33 3 259.750.168.750.000 5.667 Total Loan Service 0 9.000 107.00 0 0 467.50 0 0 467.000 630.250.000.250.50 0 127.000 630.971.833 81.167 8.66 7 Transport 15.627.000 133.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN TIMBER TRADING NET INCOME STATEMENT: YEAR 2 (IN UGX) ITEM/MONTH 13 14 15 16 17 18 19 20 21 0 6.273.66 7 350.437.000.437.66 7 204.923.00 0 151.000 15.000 6.167 124.065.667 2.333 OUTFLOWS: Cost of Sales Gross Profit 350.33 3 0 467.83 3 8.011.750.250.964.334.250.000 6.000.972.000 15.000 630.437.491.00 0 151.000.00 0 188.247.667 204.000 267.151.621.222.215.000 6.751.50 0 0 231.900.33 3 350.50 0 81.66 7 0 204.500 72.50 0 215.361.900.150.469.180.000 Total Opex 81.972.630.66 7 0 6.50 0 268.630.16 7 286.125 INFLOWS: Cash B/F 15 .173.004.16 7 350.841.37 5 208.00 0 241.437.799.50 0 8.50 0 231.000 160.151.500 72.667 2.751.667 124.469.66 7 81.000 6.000 630.000 EBITDA* Loan Repayment 45.437.000 6.750.000.000.00 0 143.000 Misc.000 60.50 0 321.816.437.105.004.000 630.460.437.000 539.000 5.167 0 124.667 259.000 6.250.000 294.004.710.667 286.000.785.667 45.33 3 81.000.33 3 0 259.168.16 7 Seed Loan 0 0 0 0 0 0 0 0 0 0 Promoter's Equity 0 0 0 478.00 0 699.621.186.83 3 0 178.630.881.667 2.215.667 2.997.437.000 6.719.000 6.83 3 178.630.630.065.000.75 0 176. 5.000 6.667 2.000 6.026.000 60.980.667 151.000 5.000.500 Operating Expenses Labour Costs 630.168.000 5.000 60.250.810.000.000 15.000 630.997.33 3 8.250.250.50 0 350.750.500 72.667 231.000 6.101.667 178.000 81.000.000 6. 111. of timber panels 0 INFLOWS: Cash B/F Sales Revenue Total Inflows 467.000.00 0 513.00 0 Net Profit Before Tax Corporate Tax (30%) *EBITDA: Earnings Before Interest.00 0 45.50 0 350.000 60.735.923.460.000 15.83 3 81.004.254.000.281.00 0 618.469.193.000 60.997.923.250.900.00 0 0 467.630.383.000.250.000 6.000 213.50 0 294.62 5 274.000 6.250.50 0 162.00 0 Cash Balance C/F 45.250.250.00 0 726.170.50 0 0 467.361.000 186.231.971.231.66 7 204.00 561.736.000 60.000 Taxes 60.000.16 7 0 467.469.082.000 60.16 7 81.437.50 0 375.250.750.50 0 241.00 0 81.000 6.00 0 592.712.000 630.630.151.00 0 645.000 60.000 15.750.616.972.250.

365.455.500 16.500 16.782.170.711.500 216.585.000.000 60. Operating Expenses 60.841.37 5 0 490.75 0 0 490.12 5 0 490.500 16.500 5.959.50 0 765.026.383.869.37 5 364.105.900.37 5 430.500 661.000 60.000 274.87 5 0 341.75 0 7.50 0 601.87 5 82.87 5 367.235.000.00 0 367.25 0 367.5 Total Opex 82.125 0 143.000 307.703.612.512.612.616.37 5 0 208.50 0 831.841.37 5 463.512.500 380.412.00 0 7.389. .500 5.968.62 5 0 274.193.000 6.616.000 6.553.500 5.823.959.500 248.959.37 5 7.00 0 82.125 151.000.026. Tax. EBITDA* Loan Repayment 82.25 0 0 490.000 6.37 5 331.000.512.37 5 298.000 6.37 5 266.975.799.5 Taxes Sales Revenue Total Inflows 490.500 661.000.50 0 82.00 0 367.000 60.453.500 16.703.959.000 1.537.537.500 661.495.0 Total Loan Service 0 7.000 6.MARY KAKURANGA’S TIMBER TRADING BUSINESS PLAN Seed Loan Promoter's Equity 0 0 0 0 0 0 0 0 0 0 0 561.000.12 5 176.736.62 5 367.500 16.000.269.000 1.715.703.711.537.500 5.537.679.000 6.00 0 0 241.000 60.000.612.845.383.193.711.37 5 367.50 0 0 490.000.000 60.62 5 274.12 5 Net Profit Before Tax Corporate Tax (30%) 111.50 0 732.512.995.000.50 0 798.000.512.799.000.365.500 183.111.512.500 661.036.000.000. 864.50 0 367.711. & Cont.500 281.37 5 233.193.537.170.000 60.736.537.512.500 314.62 5 82.37 5 0 6.25 0 307.324.000 6.000 341.0 Labour Costs 661.000 585.500 16.846.349.87 5 341.711.500 111.37 5 208.741.000 374.50 0 666.750 82.000.512.512.612.537.50 0 699.537.5 Misc.12 5 6.000.0 Loan Interest 0 1.37 5 397.000 176.616. Transport 16.500 16.959.869.50 0 6.25 0 82.125 Net Profit 111.170.0 407.612.612.356.000 208.315.799.12 5 82.026.235.000 715.881.500 16. 0 176.678.736.805.50 0 374.87 5 0 490.900.229.000 975.711.75 0 367. OUTFLOWS: Cost of Sales Gross Profit 497.75 0 *EBITDA: 0 Earnings Before Interest.639.512.959.612.500 5.711.000 60.711.000 241.711.500 661.500 5. 407.000 455.000 60.000 60.644.500 16.00 0 241.135.125 143.62 5 6.959.000 6.50 0 0 374.00 0 0 490.000.12 5 367.500 347. 5.537.711.75 0 Cash Balance C/F 111. Depreciation and Amortization 16 407.959.500 5.900.50 0 634.959.37 5 193.869.383.62 5 367.537.25 0 6.500 661.000 845.62 5 0 490.87 5 6.105.000.500 5.959.500 661.495.512.612.500 661.000 143.170.000 1.500 82.500 5.5 414.558.612.500 661.25 0 0 307.000.