In a bid to bolster its internal capacity to general sustainable income, General Wingate Polytechnic College (GWPTC) in Ethiopia with support from EASTRIP, commissioned Fortune Management Consultancy and Training Service PLC to identify feasible income-generating activities for the College.
The assessment prioritized selected business ideas based on the feasibility study including furniture making, urban agriculture, Automotive Technology, General Manufacturing, Hotel, Textile, Leather & Garment, and Construction Technology.
The findings of the study recognized that all departments have the potential to generate revenue for the college by filling its gaps and preparing business plans. However, due to limited resources, the college should give special attention to two income-generating sources: Furniture Manufacturing and Urban Agriculture. These two areas should be prioritized as initial businesses to increase the college’s income.
Dairy Production Business Plan
The Dairy Farm Business in Addis Ababa will provide immediate profits and increase sales and profits each year. The college land, currently designated for urban agriculture training, will be utilized for this business. The Dairy Farm Business aims to provide milk and milk products to Addis Ketema Sub-city, Asko, and its surrounding residents, in addition to training activities.
To achieve its dairy business objective, the college is seeking a start-up capital of at least birr 19,491,781.52 (USD351,035). This funding will be used to purchase necessary machines not available on the farm, six months of animal feed, office furniture, and additional milk cows and bulls for fattening. An estimated working capital of birr 2,456,454.52 (USD44,239) will also be set aside for the first six months and reimbursed from the revenues generated.
Investing in the furniture making business in Ethiopia is financially viable, with a high internal rate of return. There is a high demand for home and office furniture products in the country, especially in Addis Ababa. The furniture making business also has numerous economic and social benefits, such as increasing investment, tax revenue, and employment opportunities for young people. It is technically feasible, financially and commercially viable, and socially and economically acceptable.
The General Wingate Polytechnic College furniture making business is seeking a start-up capital of birr 3,370,410.00 (USD60,699). This funding will cover six months of expenses for raw materials, direct labor costs, administration costs, and the purchase of additional fixed assets to manufacture quality furniture products. The Furniture Making business is projected to make a profit starting from the first year of operation, allowing for expansion in the following years.
As part of their Annual Work Plan for FY 2023/2024, the college plans to prepare three business plans with the support of local consultants, based on the 2023 assessment identification results. The aim is to develop workable business plans that will enable the college to build an income-generating capacity, even after the phase-out of EASTRIP and during times when government funding is limited.
The college will collaborate with Addis Ababa Technical Vocational and Training Bureau and City Administration Office, following the approved Internal Income Generating guideline. This will provide the college with full institutional autonomy and a legal framework to generate its own income. By implementing these business plans, the college can enhance its income-generating capacity for long-term sustainability.
By Jemal Hansen, the EASTRIP Project Coordinator at General Wingate Polytechnic College
