Report On Business Plan of Natural Uganda Ltd & Manufacture Of Charcoal Briquettes

The Business

Business model and value proposition

Biomass, an energy-producing source, is used principally in the form of firewood and charcoal briquettes. Currently, biomass provides about 93% of Uganda’s consumed energy source. Although Uganda is an agricultural country with vast amounts of forests and trees, at the present time, the majority of its agricultural waste is not being fully utilized for the production of energy.

In agriculture-based countries like Uganda, there is a vast natural biomass supply found in agro and forest residues. Often these residues are burned in the fields. This is not only an unfortunate waste of an energy source but also a cause of increased pollution in local regions.

Uganda’s failure to transform its natural agricultural wastes into charcoal briquettes has resulted in increased exploitation of Uganda’s primary forests. Uganda’s failure to plan for ways to sustain its logging industry has resulted in forests that are currently being depleted with no plans for replacement. This ravaging of our forests is causing an even greater shortage of the woody biomass necessary for making firewood and charcoal. This results in the rural population having to spend increased time and effort collecting biomass for their cooking energy needs.

Product

The briquettes will be made out of charcoal-dust, dry agricultural wastes, sugar cane trash, and maize trash from farmers. Trash is defined as “fibrous material left in the field after harvesting.”

The trash is burned in a carbonizing unit to form charcoal. The charcoal is then mixed, moulded, and dried. Finally, the charcoal briquettes are packaged in various quantities suitable for sale to both commercial and domestic buyers.

Market Structure and Analysis

Target Market and Customer Base

Uganda’s national development objective is accelerated, economic growth through increased productivity and enhanced agricultural and industrial production which will result in increasing employment opportunities, an equitable distribution of income, and a reduction of poverty. The realization of this objective requires, amongst others, that quality energy services be made available to people in a sustainable, cost-effective, and affordable manner.

In Uganda, wood charcoal is supplied by charcoal dealers from Nakasongola, Kayunga, Kamuli, Luweero and Masindi districts to semi-urban and urban centres of Kampala, Wakiso, Jinja and Mukono districts. 1 The charcoal is sold through vendors in semi-urban and urban centres who sell the charcoal to households, restaurants and hotels.

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