Entrepreneurs urged to invest in cashew processing factories

Dar es Salaam. Entrepreneurs stand a chance of making up to Sh40 million in annual profit if they invest in small-scale cashew nut processing factories, sectoral stakeholders were told at the weekend.

The Dar es Salaam-based Kamal Group is pioneering the establishment of small-scale cashew nut processing factories in an effort to raise the volume of the crop that is processed locally and simultaneously contribute to Tanzania’s industrialisation drive.

Speaking to students, lecturers and other entrepreneurs during a seminar that was held at the Business School of the University of Dar es Salaam (UDSM) at the weekend, the Kamal Group chairman, Mr Gagan Gupta, said his company will make it easy for at least 100 entrepreneurs to own small scale cashew processing factories.

“I came up with this idea after thinking deeply on what I could do to make Tanzanians successful. If I came all the way from India and became successful in Tanzania, why can’t I not make Tanzanians successful? Mr Gupta wondered he addressed about 100 participants at UDSM’s Business School.

In partnership with a commercial bank, Kamal Group will furnish up to 100 Tanzanian entrepreneurs with land, equipment, water and electricity for conducting the processing.

Each of them would only need Sh16.92 million as seed capital, he said - adding that seeking international markets for the processed cashews would be done by him.

“Kamal Group has all the responsibilities of introducing the processed cashew nuts to quality packaging. The entrepreneur has not any challenge in procurements and selling. It is an opportunity to learn and earn for entrepreneurs, as Kamal does all the other tasks,” he said.

The Sh16.92 million is 20 percent of the Sh84.6 million in machinery, land and building costs that each entrepreneur is required to have to start a small-scale processing plant.

The remaining Sh67.68 million would be financed through a bank loan.

In return, each of the entrepreneurs would be able to make up to Sh37.8 million each year in profit from the cashew nut processing business after deducting operation costs.

The amount in profits would go up to over Sh60 million a year after completion of payment of the bank loan in a period not exceeding five years!

Some participants hailed the initiative.

“Through this initiative, banks will no longer be thwarting our factory ownership dreams due to a lack of collaterals because Kamal will do that on our behalf,” said Ms Elizabeth Munisi, a second year student.

And Kusiluka Justis, who completed his studies last year, said, through the initiative, the company will also be responsible for the market needs of entrepreneurs. “It is really good and we need to grab the chance,” he said.