Group Assignment for Course: GCDP 515

Submitted to: Dr. Oberholster

Submitted by:

Name Marci Corea Prisca Chileya

ID # 446539 464968

Email Mcorea@southern.edu

priscachileya@southern.edu

Date of Submission: April 24, 2016

Title of Assignment: Project Assignment Part 1

CERTIFICATION OF AUTHORSHIP: We certify that we are the original authors of this paper and that any assistance we received in its preparation is fully acknowledged and disclosed in the paper. We have also cited any sources from which we used data, ideas or words, either quoted directly or paraphrased. We also certify that this paper was prepared by us specifically for this course.

Student's Signature: Marci Corea

Prisca Chileya

Professors Comments:

Good work. A few minor points to address. A more major area that would need attention is the financials as it does not detail enough to show that all your ideas are incorporated into the numbers.

Gardens in Zimbabwe - 1

Executive Summary

This business plan is for horticulture or market gardening project in Zimbabwe with an

emphasis in herbs and spices. The horticulture industry in Zimbabwe is dominated by imported

produce. The few entrepreneurs that are engaging in horticulture are focusing on vegetables,

hence the need to move to herbs and spices that have recently become a main ingredient in many

homes as well as the need for healthy lifestyles that has led to a demand in herbs and herbal

medicines. The venture will provide income and food to the families that will be engaged in the

entrepreneurial idea. In one section of the gardens they will grow produce for consumption while

the most of land will be used to grow produce for the market. Solar driers, made by the

community with simple materials will be used to dry the herbs and even preserve excess produce

in the consumption section. A borehole will be drilled to provide water in the event that the land

acquired does not have a sufficient water source. The business will be in the peri-urban area of

Ruwa, 25 kilometers from Harare the capital of Zimbabwe with a population of 150,000. This

will be a for-profit venture, fully managed and run by the community on an annual rotational

basis.

Introduction

This plan is based on the fact that unemployment has become a big challenge in

Zimbabwe. The venture will help the unemployed, who are interested in farming, earn a living

through growing herbs and spices. Farming in Zimbabwe has always been seen as a source of

food but this plan is to help farmers do farming as a business. Ruwa is a peri-urban area with a

lot of unemployed people as it was mainly a settlement born out of industries that were operating

in the area which have since shut down. Many people in the area survive on doing part time odd

jobs and street vending.

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In the Standard newspaper of February 2014, Masekesa and Chibaya state “Companies

are either downsizing or closing down, sending thousands of workers out of employment,

making it virtually impossible for school leavers to get jobs”. Employment rates have reached

80% according to independent economists while the government insists on 11% claiming that the

statistic is based on the fact that most people are employed in the informal sector (Masekesa and

Chibaya, 2014). Zimbabwe National Statistics Agency indicates that over 65% of Zimbabweans

live on less than a dollar a day. About 300,000 young people graduate from Zimbabwean

colleges and universities every year but cannot all be absorbed by the labour market leading to

brain drain as graduates leave the country in the hope of finding employment to support their

families (Masekesa and Chibaya, 2014).

Growing herbs and spices has not been done on a commercial scale in Zimbabwe but

there is a high demand for them. Most of the herbs and spices in the super markets are imported

from South Africa or India and are very expensive. The rise in cancer cases in the country have

led to awareness campaigns that include a lifestyle change leading to demand for herbs and

spices and natural remedies. In its June 28, 2015 article, News dze Zimbabwe cites a World

Health Organisation 2014 report on Zimbabwe stating cancer deaths at 10% making it the top

killer in the country (News dze Zimbabwe, n.d.).

The idea to choose farming came from the fact many Zimbabweans already engage in

subsistence farming. In recent years many farmers have turned to growing tobacco as a source of

income and this has been an indication that people are willing to grow crops they have never

grown before if they generate income as opposed to just growing for consumption. According to

the Zimbabwe Tobacco Association, there has been an increase in tobacco production by

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indigenous farmers since 1998 increasing tobacco cultivation from 57,000 hectares between

1980 to 1990 to 92,000 hectares in 1998 (Tobacco Association of Zimbabwe, n.d.)

Goals and Objectives

The goal of the venture is provide sustainable income to the unemployed who will be

directly engaged in the market gardening venture. The program will also provide opportunities

for contract labor from community member at various stages of the venture.

Social Goals

Social goals of the venture are to provide employment and steady income to the farmers

themselves as well as community members who will provide various goods and services. The

drying of the herbs and spices will require solar driers that will be supplied by local community

members. This requires community “buy-in”, a vital factor of a successful social venture. Soil

preparation and harvesting will also require labor from the community thereby providing income

to the local community members. The venture is also meant to help the farmers directly involved

to have a better quality of life through access to health care, education and social services due to

improved incomes.

An additional social goal to this venture includes increased social standing in the

community for the farmers. In local culture, farmers are believed to be the bottom of the social

ladder and perform a task that no one else in the community wants to do. Through the creation of

this social venture, community members will see the healthy income and respectable living

earned by local farmers. This will increase their respect and social standing in the community,

helping to create a more inclusive community atmosphere.

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Business Goals

The first business goal for this venture is to achieve sustainability within three years of

the enterprise’s start up. This means that the farmers will be paid a respectable, living wage, and

the business will be able to pay for expenses such as seeds, fertilizer, transportation, and wages

for employees. Initially, the venture will require some investment money; these will be in the

forms of grants and several small investments from local business people. This will also facilitate

the community “buy-in” mentioned above.

The second business goal is for the venture to be able to purchase additional land and

expand their farm by two hectares, by the third year of operation. This will expand the farm to

three hectares, allowing for more employees to be hired and will increase the amount of product

being produced exponentially.

A third business goal is for the business to transition from roadside vendors, to local

supermarkets and national grocery stores. With a steady rate of growth, the venture will be ever

expanding, creating more job opportunities as well as allowing for a much larger, long-term goal

for the business. Within ten years, the goal is for this business to begin exporting their products

to other countries.

Metrics for Growth Measurement

When it comes to measuring growth for this business venture, there are a couple of

different metrics that will be used. The first metric will be economic and business in nature. This

includes measuring the gross income and earned income after expenses. As stated previously, the

business aims to expand to a larger plot of land after the first three years, as well as hire more

employees.

A second way of measuring growth will be done through quarterly surveys of employees.

Employees will be asked which kind of products they are spending their income on, such as

Gardens in Zimbabwe - 5

school fees, food, electricity, etc. The farmers may not have an increased surplus of savings, but

if they are able to purchase products previously out of reach to them economically, then this is a

sign of successful social growth.

Business Model

The market garden will take a “growth first” approach to the business model. As

described by McGrath and Clifton, this approach was taken by Amazon.com founder Jeff Bezos

who convinced his investors not to gather a return until the business was well established. This

allowed for slow, but steady growth (McGrath & Clifton, 2009).

In the same way, the market garden will not attempt to gather large returns until at least

two years into business. This allows time for vital relationships to be established and growth to

occur. A long-term goal for this business (within 5-10 years of establishment) is to grow it to an

international business with major exports each year.

Business Model Canvass

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Marketing Plan

The marketing plan for the venture is two pronged. First, the venture will subscribe to

two organizations offering marketing service for horticultural produce (Zimbabwe Organic and

Natural Foods Association (ZONFA) and Peri-Urban Vegetable Producers Association - PVPA).

Endorsement from the two organizations will be part of the messaging on the packaging of the

herbs and spices supplied to super markets. These two organizations are trusted by consumers

and endorsement from them will assist with marketing as well as sells through their already

established networks. Second, the venture will enlist the services of the Ministry of Small and

Medium Enterprises - MSMES in linking them to buyers nationally initially and internationally

later on. The MSMES is keen on advertising for entrepreneurs starting up as it helps them with

numbers to report to the parent ministry of Economic Affairs. MSMES will help with linkages to

food producers utilizing herbs and spices as well as hotels and restaurants.

Market Analysis 

The target market for the herbs and spices are households, restaurants and hotels.

There is a surge in the demand of herbs and spiced as evidenced by shortages in the

supermarkets of paprika, turmeric, fenugreek and cayenne pepper in recent months. As earlier

stated there is a change in people’s lifestyles due to reported high cancer cases and deaths in

Zimbabwe in recent years. Most herbal medicine practitioners known as traditional healers use

turmeric and cayenne pepper as ingredients in cancer herbal medicines and this is part of the

market we are looking at targeting as well through super market distributions. Harare has

roughly a population of 1, 606, 000 and we are initially targeting at least half of that

population through OK, Bon Marche, SPAR and Pick n Pay supermarkets scattered across all

Harare suburbs.

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Evaluation Of Competition 

The herb and spice market has been dominated by importation and repackaging for

distribution. The target market of the imported herbs has been a super market shopper. The

herbs and spices are well packaged and labeled. There is no advertising whatsoever as the

supply does not meet the demand. Importing herbs and spices is costly as there is a customs

levy charged and transportation costs added on the products making them expensive. The

labeling is all in English as the exporters may not be in a position to translate to local

languages and those repackaging have also not made any translations. There is no information

of country of origin on some of them or how they grow the herbs and spices (if there are

chemical pesticides used or not).

Our Venture

We intend to begin with one or two lines of herbs and spices such as turmeric and

cayenne pepper as they are the most sought and later add other lines. The packaging will

simple biodegradable recycled 50g, 100g paper boxes with information (usage and

ingredients) written in at least three main languages used in Zimbabwe – English, Shona and

Ndebele. The packaging will also include “Proudly Organically Grown in Zimbabwean” in

bold colorful letters. This to inform the customer that the herbs and spices are organically

grown and are locally produced and will be translated in the local languages as well. The

ZONFA certification will be on the front of the box also clearly printed in an attractive font

(Certified Organic) with explanation on certification in a smaller font at the base of the box.

We will also include one liner fun facts about herbs and spices on the packages as the cost of

printing packaging is determined by number of colors not number of letters. Almost all the

herbs and spices in shops simply indicate what the herb or spice name is and ingredients

Gardens in Zimbabwe - 8

without any further information. Currently a 50g bottle of turmeric sells for $2.50, as new

entrants into the market the venture will begin with a $2.00 price so that its not too far below

market price but also to make serve as an incentive for the customer to choose our product and

hoping that economies of scale will work in our favor. The costs pertaining to the herbs and

spices will mainly be packaging and transportation as they are locally produced. Currently a

50g package costs $0.05 and the venture will begin with ten thousand packets.

Promotions and Advertising

Herbs and spices are self-advertising currently as they are in high demand, therefore

promotions and advertising will be considered in the future through in store adverts as well as

competitions to win vouchers in participating stores. Another future plan is to sponsor a cooking

program on national television that will utilize the venture’s herbs and spices. Cooking shows

will help customers and potential customers understand how to use the herbs and spices with

practical examples.

Financial Plan

Detailed Expenses:

Borehole drilling with Solar pump installation $15,000 for water provision and making

an allowance for a possible dry hole.

Irrigation Equipment $ 10,000

Soil preparation $5,000 stumping of trees, blasting of rocks (Ruwa area has a lot of

stones, in case the allocated area has boulders)

Seedlings $5,000 for a hectare

Seedlings for Nutrition Corner $500 @ $1 for 7 seedlings (Kale, Spinach, Eggplant,

Cabbage, tomatoes, onions, etc.)

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Trainings $10,000 Herb and Spice Cultivation, processing and Cultivation, Farming as a

business, Group dynamics, Natural Fertilizers and Pesticide making, Soil and plant

management, soil testing

Solar Driers $2000

Packaging materials $2000

Packaging Equipment $2000

Garden Shelter and Toilets $ 2000

Transportation of Produce $500

Farmer Exchange visits and farmer fairs $2,000

Security guard some months when produce is almost ready may (probably 6 months for

the year if dealing with 60 to 90-day maturity period at $60 per) month

Land registration with Ministry of Local government $200

Gardens in Zimbabwe - 10

Organizational Plan

The idea is to identify 15 unemployed individuals interested in agriculture with the help

of Nestle’s Creating Shared Value criteria and area visits to Ruwa. After identifying the

individual, a meeting will be held to hear what they would like to do pertaining to farming as a

business. The idea of herbs and spice cultivation will be shared with them if they are in

agreement a trial run will be conducted on 1 hectare. The individuals will identify land

availability for the venture and will follow all procedures to acquire the use of the land (its free

with a small fee paid to get a memorandum of understanding with the line ministry). After all

the land formalities, a borehole will be drilled and equipped for irrigation. Farmers will begin

their trainings and demonstration plots will be done on the land acquired as infrastructure

development takes place at the same time. A trial crop of the farmers’ choice will be planted

after the trainings so that the trainers can monitor knowledge gaps. In the mean time the nutrition

corner will already be running. Since this venture is meant to generate income, the trial run will

enable the farmers see where they need to cut costs and understand the time and energy needed

to invest in the business and provide a basis for the profit forecasts that are closer to reality. The

15 farmers will run the venture and share the profits with reinvestment being a priority while the

nutrition corner can be used for consumption and personal income from sell of excess to local

community. Most of the vegetables grown for consumption are inexpensive to manage and

require stem propagation therefore reducing costs in the nutrition corner. The initial investment

for the venture will be expensive but it is a once off activity that will last a long time and provide

income and food to the unemployed individuals for a long period of time. The initial plan is to

supply the local market and eventually venture into international markets with a possibility of

diversification into vegetable and fruit processing and packaging.

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Organizational Structure

A Leadership Committee comprising a chairperson, secretary, treasurer and 3 committee

members will be selected by farmers from among themselves. The three-committee member will

each be in charge of a committee with two other farmers in the venture. The three committees are

security and discipline, irrigation and maintenance, crop and soil management. Two farmers will

be tasked with marketing linkages and analysis for the venture. The positions will be held on an

annual rotational basis to enable all farmers a chance to understand how each office functions

and to avoid a few individuals taking over the venture.

Organizational Chart

Collaboration Plan

For the success of the venture there will be need to collaborate with various players in the

agriculture industry as well as key line government ministries for sustainability. Nestle will assist with a

criteria for identifying farmers for the venture as they are already experience in this area due to their

Creating Shared Value program. Zimbabwe Organic and Natural Foods Association is the main

organization for this venture as it provides trainings on cultivation, processing and packaging of herbs and

Chairperson

Secretary

Committee Member

(Security & Discipline)

Committee Member

(Soil & Crop Management)

Marketing Team

Treasurer

Committee Member

(Irrigation & Maintenance)

Gardens in Zimbabwe - 12

spices and is also a marketing platform. Foundations for Farming will assist with trainings in environment

management through manufacture and use of natural fertilizers and pesticides. This organization will also

provide training for seedling planting for various herbs the farmers will decide to grow. This due to the

need for the venture to be a triple bottom-line that is not only interested in profits, but the people and

environment as well. The Ministry of Small and Medium Enterprises will provide trainings in financial

management, Farming as a business and group dynamics and provide links to funders as well as local and

international market for the herbs and spices. Farmer’s Union of Zimbabwe will be a formidable partner

pertaining to issues of pricing, services, current information on crops of interest, and links to other

farmers engaged in herb and spice cultivation. Ministry of Agriculture provides extension officers who

provide trainings in plant and soil management, irrigation and constantly visit farmers to offer their

expertise in agricultural matters. The Peru-Urban Vegetable Producers Association will be a good

organization to belong to for market linkages and collective bargaining as they supply produce to super

markets. The association negotiates prices, payment terms and sources market for produce for farmers

and plans to offer produce transportation services to buyers.

SWOT Analysis

Strengths Growing spices is new and lucrative in Zimbabwe Desire for people to live healthy lifestyles provides a stable

customer base Agro based economy supports agricultural activities leading to

government providing free trainings for farmers People in Zimbabwe generally engage in farming activities

already, its just a matter of switching crops and plant management

Ministry of Small and Medium Enterprises provides linkages to funds and markets offering local produce first priority

Weaknesses Cultivation of herbs and spices is fairly new providing limited

first-hand information on crop managementOpportunities Ruwa has a lot of land which can be readily used for farming

Training manuals can be translated to local languages for clarity

Trainings are can be done in local language as the bulk of them are done by the ministry of small and medium enterprise

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Due to government support for agriculture land can be easily accessed with a possibility of a larger portion than needed providing room for scaling up

There is a possibility of replication of the venture in other peri-urban areas for a fee by the farmers involved

Export of herbs and spices is possible with the help of ministry of small and medium enterprises providing a wider and lucrative customer base.

Threats A possibility of dry holes or low yielding boreholes can be a threat to the venture as water is major requirement after land.

Theft of crop from the local community no part of the venture in the absence of strong security measures

Allocation of a piece of land requiring more work that budgeted for blasting granite rocks.

A risk of low literacy rates among those interested in agriculture making trainings difficult as manuals and trainings are in English

There is a possibility of oversupply of the herbs and spices as many individuals may decide to embark on the same venture as it is a lucrative business.

Conclusion

After looking at the financial plan and business model for the first three years of operation, it is

clear that the market garden will have very marginal growth at first. The “slow growth” model of Amazon

can exemplify this. It is through this model that the Market Garden Enterprise of Zimbabwe aims to

sustainably equip local farmers to pull themselves out of poverty through providing a job and steady

income. These gardens will first meet the needs of the local community, and over time transition into

meeting the needs of the larger surrounding communities, cities, and potentially become an international

enterprise. It is with these goals that the venture founders are hopeful that poverty and hopelessness will

be significantly decreased in the country of Zimbabwe.

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References

Masekesa, C. and Chibaya, M . 2014. Unemployment Turns Graduates into Vendors. The Standard Newspaper. February 9, 2014. http://www.thestandard.co.zw/2014/02/09/unemployment-turns-graduates-vendors/. Retrieved April 23, 2016.

McGrath, J., & Clifton, J. (2009, January 6). Top 10 influential business models. Retrieved May 1, 2016, from Money - How Stuff Works, http://money.howstuffworks.com/5-influential-business-models5.htm

News Dze Zimbabwe. 2015. Cancers Now Top Killers in Zimbabwe. http://www.newsdzezimbabwe.co.uk/2015/06/cancers-now-top-killer-in-zim.html. Retrieved April 23, 2016.

Slaper, T. F.  2011. The Triple Bottom Line: What is it and how does it work? Indiana Business Review, Spring, 4-8.

Tobacco Association of Zimbabwe. History of Flue Cured Tobacco. http://www.fctobacco.com/index.php/about/history-of-tobacco. Retrieved April 23, 2016.