PROJECT DESCRIPTION
This is a Malawian owned business that operates in the Manufacturing sector specifically
various types of solar water heaters for the following markets: Malawi, Zambia, and South Africa but also having the freedom to sell solar water heaters to all other Eastern/Southern African countries.
Business model
The project entails Carrying-out full manufacturing operations in Lilongwe, Malawi with sales and installation centers in Malawi, Zambia, and South Africa.
Installation on customer’s premises will be done by our trained and skilful technicians. We are the only company in Eastern/Southern Africa that provides consumers with a solar-heated hot-water temperature guarantee at approximately 140 degrees Fahrenheit, day and night offering a 5-year product warrantee on our installed equipment.
Objective of the Project:
The objective of the project is to enable consumers in Eastern/Southern Africa save their revenues and hard-earned cash by purchasing a much cheaper source of water heating technology using renewable energy which will allow them to get away from increasing rates of electricity costs. This will in turn lead to financial savings which will help them improve their living standards significantly.
On top of that, the reduced power demand on the electricity networks will enable countries to be able to supply power to the growing industrial areas of their economies, without having to invest further in new power generation capacity. It will reduce the current practice of charcoal and firewood consumption across the Southern African region hence mitigate the negative effects of global warming that is emerging as a result of deforestation.
Sector of Operation
Manufacturing – solar water heaters.
Business Activity
Our business activity is primarily focused on the manufacturing and sale of various solar water heater designs throughout Eastern and Southern Africa (including Malawi). We are the only company in Eastern/Southern Africa with the specialized technology of hot-water temperature retention and, as a result, we are the only company offering a hot-water temperature guarantee.
LOCATION
The location of our project is Njewa in Lilongwe, Malawi. Lilongwe is one of the fastest growing cities of Malawi, and boasts of a large rapidly growing urban population with new housing developments springing-up everywhere hence having a readily available market. Since we are located in the central region which has the main airport of Malawi, we are also within easy reach by customers from the Northern Region and Southern Region of the country, as well as exporting to our neighbouring countries Zambia, South Africa and Tanzania either through road or air.
BENEFITS OF THE PROJECT AND ITS ALIGNMENT TO MALAWI GOVERNMENT’S GOALS
Contribution to achieving national, regional or global economic, social, environmental and developmental goals
The project promises to uplift Malawi’s industrial production tremendously, as well as the industrialization of other Eastern/Southern African states, and increase renewable energy production and save investments in electrical power generation as well as reduce deforestation.
Export orientation/forex generation
Since we are the only company with this technology and expertise in this region of Africa, the country stands to benefit from our exports to other African countries and earn enormous foreign-exchange for the country.
Import Substitution
Malawi will save tremendously from its current foreign exchange usage through the imports of similar products from countries such as China, India, etc.
FINANCIAL REQUIREMENTS
Capital Expenditure Requirements
The project promoters have spent over US$175,000 in the technology sourcing and research for the past three (3) years. On top of that, over US$20,000 in development costs has been spent during the past 1.5 years.
New CAPEX required: US$500,000 to send technicians for training in the Caribbean and pay for technology supply agreement. This new funding will entail that the new investors will take up 30% equity in the project.
Working Capital Requirement
Required US$1,060,000 as a production 5–7-year loan from investors, or local Banks.
The funds will be used to purchase production machinery, raw materials, and start solar water heater manufacturing.
Proposed Investment Model
New investor(s) to sign Investment Agreement with existing shareholders of Nyika Solar Technologies Limited, and commit the US$500,000 thereafter, and legally take up 30% equity.
US$1,060,000 financing will be secured through local Banks, or can be a new investor loan repayable over a 7-year period.
PROJECT’S FEASIBILITY
Technical Feasibility
The technical Feasibility documents have been completed by the Project Developer/Promoter.
Feasibility Study
In 2019-2020, local feasibility studies were conducted successfully.
Environmental Impact Assessment
An environmental impact assessment was conducted by professional environmentalists, and a certificate of approval was granted by the Malawi Government’s Department of the Environment.
Technical Designs
All technical designs and production machines’ setup, process operation’s designs, etc. are proprietary to the company Nyika Solar Technologies Limited.
Licenses
All necessary project licenses have been granted by relevant authorities.
Market Feasibility Study
Extensive market feasibility studies have been carried out as shown in some data above.
Financial Feasibility
EBITDA = $1,865,742, Project’s NPV = $3,565,070, Project’s IRR = 52%, Annual Net-Worth of the Company = $2,753,265 per year on average (e) ROI or ROE = 78% annually. Growth Rate = 27% per year, RONA = 44%, Net Capital Ratio = 3, Current Ratio = 2 times and Acid Test Ration = 2 times
CONTACTS
Our Attorney & Secretary: Mr. Likhwa R. Mussa, K D Freeman & Associates, Area 14, Lilongwe Our Address: Lumbadzi ADMARC Buildings, Lilongwe. P. O. Box 31288, Capital City, Lilongwe 3, Republic of Malawi E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; Cell: + (265) 993-404-090; and + (265) 885-580-930
This is a Malawian owned business that operates in the Manufacturing sector specifically
various types of solar water heaters for the following markets: Malawi, Zambia, and South Africa but also having the freedom to sell solar water heaters to all other Eastern/Southern African countries.
Business model
The project entails Carrying-out full manufacturing operations in Lilongwe, Malawi with sales and installation centers in Malawi, Zambia, and South Africa.
Installation on customer’s premises will be done by our trained and skilful technicians. We are the only company in Eastern/Southern Africa that provides consumers with a solar-heated hot-water temperature guarantee at approximately 140 degrees Fahrenheit, day and night offering a 5-year product warrantee on our installed equipment.
Objective of the Project:
The objective of the project is to enable consumers in Eastern/Southern Africa save their revenues and hard-earned cash by purchasing a much cheaper source of water heating technology using renewable energy which will allow them to get away from increasing rates of electricity costs. This will in turn lead to financial savings which will help them improve their living standards significantly.
On top of that, the reduced power demand on the electricity networks will enable countries to be able to supply power to the growing industrial areas of their economies, without having to invest further in new power generation capacity. It will reduce the current practice of charcoal and firewood consumption across the Southern African region hence mitigate the negative effects of global warming that is emerging as a result of deforestation.
Sector of Operation
Manufacturing – solar water heaters.
Business Activity
Our business activity is primarily focused on the manufacturing and sale of various solar water heater designs throughout Eastern and Southern Africa (including Malawi). We are the only company in Eastern/Southern Africa with the specialized technology of hot-water temperature retention and, as a result, we are the only company offering a hot-water temperature guarantee.
LOCATION
The location of our project is Njewa in Lilongwe, Malawi. Lilongwe is one of the fastest growing cities of Malawi, and boasts of a large rapidly growing urban population with new housing developments springing-up everywhere hence having a readily available market. Since we are located in the central region which has the main airport of Malawi, we are also within easy reach by customers from the Northern Region and Southern Region of the country, as well as exporting to our neighbouring countries Zambia, South Africa and Tanzania either through road or air.
BENEFITS OF THE PROJECT AND ITS ALIGNMENT TO MALAWI GOVERNMENT’S GOALS
Contribution to achieving national, regional or global economic, social, environmental and developmental goals
The project promises to uplift Malawi’s industrial production tremendously, as well as the industrialization of other Eastern/Southern African states, and increase renewable energy production and save investments in electrical power generation as well as reduce deforestation.
Export orientation/forex generation
Since we are the only company with this technology and expertise in this region of Africa, the country stands to benefit from our exports to other African countries and earn enormous foreign-exchange for the country.
Import Substitution
Malawi will save tremendously from its current foreign exchange usage through the imports of similar products from countries such as China, India, etc.
FINANCIAL REQUIREMENTS
Capital Expenditure Requirements
The project promoters have spent over US$175,000 in the technology sourcing and research for the past three (3) years. On top of that, over US$20,000 in development costs has been spent during the past 1.5 years.
New CAPEX required: US$500,000 to send technicians for training in the Caribbean and pay for technology supply agreement. This new funding will entail that the new investors will take up 30% equity in the project.
Working Capital Requirement
Required US$1,060,000 as a production 5–7-year loan from investors, or local Banks.
The funds will be used to purchase production machinery, raw materials, and start solar water heater manufacturing.
Proposed Investment Model
New investor(s) to sign Investment Agreement with existing shareholders of Nyika Solar Technologies Limited, and commit the US$500,000 thereafter, and legally take up 30% equity.
US$1,060,000 financing will be secured through local Banks, or can be a new investor loan repayable over a 7-year period.
PROJECT’S FEASIBILITY
Technical Feasibility
The technical Feasibility documents have been completed by the Project Developer/Promoter.
Feasibility Study
In 2019-2020, local feasibility studies were conducted successfully.
Environmental Impact Assessment
An environmental impact assessment was conducted by professional environmentalists, and a certificate of approval was granted by the Malawi Government’s Department of the Environment.
Technical Designs
All technical designs and production machines’ setup, process operation’s designs, etc. are proprietary to the company Nyika Solar Technologies Limited.
Licenses
All necessary project licenses have been granted by relevant authorities.
Market Feasibility Study
Extensive market feasibility studies have been carried out as shown in some data above.
Financial Feasibility
EBITDA = $1,865,742, Project’s NPV = $3,565,070, Project’s IRR = 52%, Annual Net-Worth of the Company = $2,753,265 per year on average (e) ROI or ROE = 78% annually. Growth Rate = 27% per year, RONA = 44%, Net Capital Ratio = 3, Current Ratio = 2 times and Acid Test Ration = 2 times
CONTACTS
Our Attorney & Secretary: Mr. Likhwa R. Mussa, K D Freeman & Associates, Area 14, Lilongwe Our Address: Lumbadzi ADMARC Buildings, Lilongwe. P. O. Box 31288, Capital City, Lilongwe 3, Republic of Malawi E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; Cell: + (265) 993-404-090; and + (265) 885-580-930