imhanya business model 7 feb 2016
TRANSCRIPT
Enabling Better Communit ies
S ocia lly F ranch ised Last Mile D is tr ibu tion S o lu tions
Imhanya improves the lifestyles of underserved African communities through the distribution of
critical & essential products and services.
We collaborate with large businesses, organizations and institutions to form channel partnerships
for the informal sector.
We implement through a socially franchised, pro poor business model using re-cycled shipping containers
as last mile distribution infrastructure.
Enabling Better Communities
Enabling Better Communities
A Last Mile Distribution Hub that includes a wholesale FMCG shop, a financial services pod ,a
utility services pod that distributes LPG gas and solar products and a lit covered area for street
vendors to trade from during the day and school children to study under at night.
Enabling Better Communities
Safe Secure LPG
Gas and Solar
Distribution Pod
embedded in the
Last Mile
Distribution Hub
Enabling Better Communities
A Financial Services Pod embedded
into the Last Mile Distribution Hub
that offers a customers a private and
dignified experience
Enabling Better Communities
The back of the unit hosts a covered
and lit area that serves as street
vendor infrastructure during the day
and a lit school child study area at
night
Despite the extraordinary growth rate African countries are
experiencing, little attention has been paid to the role of
the informal sector in fostering growth and creating jobs.
The Problem
Source : AfDB
70% of Africa’s informal trade is retail. Vendors have access to
minimal or no infrastructure and are often forced into trading
to sustain a livelihood.
Informal Sector Challenges
1. Financial inclusion
2. Proximity of essential
goods and services
3. Often threatened, bullied
and harassed by politicians
and barons
4. Susceptible to disease
outbreaks
5. Lack dignified and
respectable infrastructure
6. Operate in highly
competitive and
challenging environment
7. Lack of protective
legislation and paths to
organization
• The informal sector contributes about 55% of Sub-Saharan
Africa’s GDP and 80 % of the labour force.
• 90% of rural and urban workers have informal jobs and most
are women and youth.
• The informal sector is an opportunity for generating
reasonable incomes for many people. Source : ILO
The Market Size
Imhanya places last mile distribution hubs in underserved areas that are designed to sell products, dispense financial
services and distribute lpg gas. Each hub is capable of providing storage and trading infrastructure for up to 30
disadvantaged traders. The use of the hubs qualify the traders for financial inclusion as they meet basic KYC requirements
through having a legal business entity with an address. The Hubs also sell products at low costs to ensure the creation of a
sustainable business model. The hub is a social franchise run by a community member.
The Solution
Tafadzwa is an Imhanya Customer.
Imhanya has positively impacted his life.
Tafadzwa earned $98.50 more (381%) money last
month due to Imhanya. Tafadazwa is one of 300
customers that frequent the Fourth Street Imhanya
Last Mile Distribution Hub on daily basis.
Profit Contributing FactorPre
Imhanya
Post
Imhanya
Working Capital at Start of Day 10.00$ 10.00$
Hours Spent Purchasing Product 2 1
No. of Products Sold 2 3
Cost of Goods Sold 67% 60%
No. of Trading Hours Per Day 7 8
Average Sales Per Hour 2.00$ 2.25$
Total Sales Per Day 14.00$ 18.00$
Total Gross Profit 4.67$ 7.20$
Cost of Trading on Street 2.00$ 1.25$
Bus Fare 1.50$ 1.50$
Total Profit 1.17$ 4.45$
Average Daily Income
Mai Mutasa operates from Imhanya Infrastructure.
She is a cross border trader who purchases
products from neighbouring countries every
fortnight. She now pays less for infrastructure and
also makes an average of $5 per day supplying the
Imhanya Last Mile Distribution hub at the park.
She purchases product for the hub at the same
time she purchases product for her store.
Profit Contributing FactorPre
Imhanya
Post
Imhanya
Average Sales Per Day 35.00$ 35.00$
Trading Licence 3.00$ 1.00$
Tax Payments -$ 0.25$
Cost of Goods Sold 50% 40%
Goods Destroyed Due to Weather 5% 0
Total Gross Profit 17.50$ 21.00$
Rental Cost 5.00$ 5.25$
Storage Cost 1.00$ -$
Baron / Association Cost 1.00$ -$
Imhanya Supply Profit 5.00$
Total Costs 10.00$ 6.25$
Total Profit 7.50$ 19.75$
Average Daily Income
One year ago, Tendai was involved in a bus crash.
After attempting to sell towels on the streets,
Tendai was unable to make ends meet. Tendai was
given the opportunity to become an Imhanya
franchisee and has excelled. Tendai has a daily
turnover in excess of $1,000 earning $300 per
month in share of profits whilst assisting 250 other
vendors earn higher incomes through his low
prices. Tendai will soon be running a US$500,000
revenue business!!!
Tendai uses a Tablet loaded with a web based pos
system to record sales. Tendai is being trained by
Imhanya to run his business to a profit and loss
level using cutting edge applications. Tendai
purchases over $500 per day of product from the
informal sector!
We Sustainably Impact 500 Lives
With every $25,000 Of Investment
Why Imhanya?
We Sustainably Impact 500 Lives
With $20,000 Of Investment
We participate in 15 SD Goals
We Sustainably Impact 500 Lives
With $20,000 Of Investment
We participate in 15 SD Goals
We alleviate poverty by providing
opportunities for disadvantaged
communities.
Imhanya has developed depots that are
able to distribute agricultural inputs to
farmers in their areas
Imhanya brings critical & essential
goods & services closer to communities
including nutritious food and medications.
We Sustainably Impact 500 Lives
With $20,000 Of Investment
We participate in 15 SD Goals
Imhanya provides schools and teachers an
opportunity to earn revenue through its
community run business model.
Imhanya works closely with women
informal traders to empower them with
infrastructure and supply contracts.
Imhanya provides ablution facilities and
affordable water to the informal sector
and communities it operates in.
We participate in 15 SD Goals
Imhanya infrastructure uses solar energy to
remain off grid and is working on a model
to supply solar power to communities.
Imhanya has built dignified infrastructure
that houses 300 informal sector traders and
each new hub will house an additional 35.
Imhanya has developed an innovative
and sustainable infrastructure solution that
is scalable and affordable.
We participate in 15 SD Goals
Imhanya is a for Poor Model that
empowers underserved African
communities to lead better lifestyles.
Imhanya works with cities to develop
sustainable solutions to house informal
traders
Imhanya recycles shipping containers to
alleviate the problems of over burdened
city structures.
We participate in 15 SD Goals
Imhanya Uses 95% Less (400 Kwh) Energy To
Repurpose A Container Compared To
Recycling It.
Imhanya has worked with government to
create a sustainable framework to
legitimize informal sector traders.
Imhanya has created an Impact Investment Model
through a Social Enterprise that Works with Big Business
to Empower Disadvantaged and Underserved
Communities
The Business Model
Imhanya has achieved the following during its pilot phase: 1. Infrastructure to host 300 vendors at a cost of $250,000 with a 2.5 year payback
2. A Socially Franchised Trading Model at a cost of $10,000 that achieves a 1 year payback
3. A per square metre turnover at its pilot site in excess of $12,000 per year (The top US
retailer is Apple with $6,000 per square metre)
4. A per square metre operational cost at one tenth of a chain store!
5. Imhanya has impacted over 2,500 lives in its first year and has placed units at 6 locations
THE GO-TO-MARKET STRATEGY
1. Imhanya has secured agreements with 5 councils across the country to place units at Bus Stops and in underserved areas.
2. Imhanya has an agreement with government for the provision of land for placement of its infrastructure.
3. Imhanya is working with a partner to pilot in Rwanda.
4. Imhanya is collaborating with government, the private sector and the informal sector to create successful models.
The Team
K. Patel, Chief Impact Officer Retail, Strategy, Operations, Franchising, Intellectual Property
Retail Operations and Systems: Responsible for the creation of 9
different Operations Manuals for Pan African and Global Retail Brands
Business Development: Responsible for mapping growth strategies,
formulating and implementing acquisition, joint venture and franchised
business partnerships in diverse markets including Sub Saharan Africa,
The United States, Canada, Egypt, India, Korea, United Kingdom,
Jordan, Japan, Turkey, Syria, The Far East and China, Latin America
and Australia
Brand Management: Responsible for managing global restaurant, retail
and bakery brands including the introduction of a $6.5million dollar
Pastry Plant, 400,000 loaf per day automated Bread Plant facility and
1,000,000 unit per month Roll Plant.
Logistics Management: Managed planning, procurement and
operational processes for the launch of multi-branded outlets across 10
countries
Partnerships and Alliances: Formulated and implemented a 216 Counter
($69M) agreement to deploy fast-food and convenience retail operations
with ExxonMobil and Total across Africa
32 Countries International Business Development Experience. 9 Global Brands Franchising Experience. 400 + New Franchise Outlet Growth Experience. $80,000,000 + Total Projects Budgets.
B. Malloch-Brown, Chief Technical Officer Construction, Container Conversions ,QS, Design and Distribution
Expert
QS Experience on Reserve Bank of Zimbabwe Building Eastgate
Development and Southampton Life high rise buildings
Construction Team Support on the Battlefield and Thornhill Airbase
infrastructural expansion project
On site cost coordinator and planner on the Victoria Falls and Makasa
Sun Hotel to the Kingdom Hotel upgrade.
Botswana TV and Radio Station and NEC Pension Fund Tanzania Head
Office project manager.
Managing Partner responsible for the design fabrication and erection of
2,000 residential buildings for Zimplats.
Managing Partner responsible for the construction of the Selous
interchange sub station project, the largest sub station in Southern
Africa at the time,
Currently owner and manager of entity responsible for the roll out of the
United States Government PEPFAR project relating to the manufacture
deployment and installation of 96 prefabricated clinics throughout
Zimbabwe
2,000 Houses 96 Mobile Clinics 250+ Container Conversions 5,000,000 + Accident Free Man Hours $58,000,000 + Total Project Budget
The Team
The Ask
• Imhanya requires input from Social Entrepreneurs to increase the impact of its model
• Imhanya is looking for Solar solutions to distribute and power its containers
• Imhanya wants to collaborate with institutions that require their products to be distributed at the last mile in Africa
• Imhanya is searching for impact products and services to trial through its network
• Imhanya is searching for volunteers and expertise in the following positions:
• Board Advisory • Website and Social Media Development • IT and Application Development • Fund Raising • Story Telling • FMCG Retail Experience • Micro Finance
• Imhanya is searching for Impact Investors interested in scaling up its model across Africa
Website : WWW.IMHANYA.COM TELEPHONE : +263 772 165 758 PHYSICAL ADDRESS : 232 SAMORA MACHEL AVENUE HARARE, ZIMBABWE EMAIL ADDRESS : [email protected]
We Would Love To Hear From You