African Sales Trading Agency LTD Feasibility Study

AFRICAN SALES TRADING AGENCY LTD
P LA N
ON
AGRICULTURAL COMMODITIES EXPORT AND IMPORT OF ASSORTED TEXTILE MATERIALS
PRESENTED TO:
TAJ BANK
Prepared by:
Strong Goals Generation Consults
(Financial & Management Consultants)
No. A22 Ummi Plaza, Behind Jifatu Store off Zaria Road, Kano
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October,2023 Page 1
CONFIDENTIALITY
The parties (Our Company and the Recipient) agree to the following terms and
conditions relating to the "Business Plan" provided to the Recipient:
1. The Confidential Business Plan, supporting revenue and financial projections, market
analysis and the business model Presentation (referred to in whole as the “Business
Plan”) of The company who intend to raise capital by using loan capital (referred to as
the “Company”) does not constitute an offer to sell, or a solicitation an offer to buy
securities.
2. Receipt and acceptance of the Business Plan shall constitute an agreement by the
Recipient that, among other things, the Business Plan shall not in any manner
whatsoever be copied, reproduced, modified, or distributed to any third party, either in
whole or in part, without the prior written consent of the Company.
3. All information contained herein shall be kept confidential by the Recipient, and that
the Recipient shall not reveal or disclose to any third party without written consent of the
Company the information that has been made available to the Recipient.
4. The Recipient shall return all copies of the Business Plan immediately upon request of
the Company.
5. This Business Plan contains proprietary and confidential information regarding the
Company and is based on information deemed by the Company to be reliable.
6. In furnishing the Business Plan, the Company undertakes no obligation to provide
Recipients of the Business Plan with access to any additional information or to update
this Business Plan or to correct any inaccuracies that may be contained herein.
7. In addition, certain estimates and projections prepared by the Company are presented
in this Business Plan. Such estimates and projections are subject to significant economic,
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October,2023 Page 2
business, and other uncertainties beyond the control of the Company. Although such
projections are believed to be realistic, no representations can be made as to their
attainability.
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October,2023 Page 3
CONTENTS
Executive Summary
Chapter One
1.0 Introduction
1.1 Company profile
1.2 Corporate goals
1.2.1 Short-term goals
1.2.2 Medium/long-term goal
1.3 Company Ownership and Capital Structure
1.3.1 Shareholding structure and authorised capital
1.42 Paid-up capital

1.4 Performance of the company
1.4.1 Operations/activities
1.4.2 Project related experience
1.5 Technical aspect
Chapter two
2.0 Commercial Aspect
2.1 Market analysis/marketing strategy
2.1.1 Global Grains Outlook
2.1.2 Nigerian Grain Market
2.1.3 Grain Production in Nigeria
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2.1.4 Grain Exports from Nigeria
2.1.5 Imports by Country
2.1.6 Marketing Plan and strategy

Chapter Three
3.0
3.1 Basic Assumptions
4.0 Risk Analysis
4.1 General risk assessment
4.2 Risk analysis
4.3 Title documents
4.4 Loan benefits and justification
5.0 Conclusion and Recommendations
5.1 Conclusion
5.2 Recommendations
Appendices
6.0 5-year Sales projections
1. 5-year Cash flow projections
2. 5-year Projected statement of comprehensive income
3. 5-year Projected statement of financial position

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4. 5-year Projected financial ratios
5. Loan repayment plan
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EXECUTIVE SUMMARY
Business Overview
The rising global demand for food and feed presents a compelling investment
opportunity, and the development of large-scale agri-businesses serving internal markets
in Nigeria and Africa in general is urgently required for domestic and global food
security. The negative impacts of non export of non oil products and now changing
climate on the oil sector only compound the gaps between supply and demand of
agricultural commodities. In Africa, the long-term self-interest of an agri-business
requires a commitment to encourage local investors, in order to earn the goodwill of the
local people by vesting them in the success of promoting the export of our agricultural
commodities, as well as a commitment to the import of locally needed goods.
AFRICAN SALES TRADING AGENCY LTD is a strong and strategically positioned

export logistic company with focus on exporting agricultural commodities with wide
array of highly demand, in return with the import of assorted textile materials into
Nigeria. We provide complete services including but not limited to purchase contract,
shipping, warehousing and delivery scheduling. The company concentrates on the export
of identifiable agricultural commodities to anywhere there is demand and business
opportunity globally. We are existing company that has garnered experience from
exporting assorted agricultural commodities and the import of assorted textile material.
A network of an agri-business based company with interest in agricultural production
and processing of rice, sesame, wheat, groundnut and soya beans both for export and
local consumption. The company’s vision is to become a major player in the sector by
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producing healthy and quality products in the North-Western region of Nigeria and
Africa in general.
AFRICAN SALES TRADING AGENCY LTD is an existing company seeking for

fund to finance its expansion project procurement of agricultural commodities for
export, which is as a response to the economic current market demand for agricultural
products depicted by call for enrollment in agri-business by the Federal Government of
Nigeria.
AFRICAN SALES TRADING AGENCY LTD is a limited liability private company

established to invest in agricultural commodity export, merchandise/marketing and
import of textile materials.. The company is led by Alhaji Abdulrahman El-Shiek
(CEO). This is further supported by the general market prospect that explains that from
2020 onwards, Nigeria has to supplement an additional internal grain production.
The company has implemented a comprehensive and rewarding marketing and quality
strategy that enables it to favourably compete in the market. Quality recruitment and
training is yielding the required results for the company and policy are in place that will
ensure prudence, effective delegation, team work and quality improvement at all times.
The company is requesting a term loan capital of one hundred and thirty million naira
(₦800,000,000) only to finance its intended expansion project.
This Business Plan describes the investment, cost and benefits for expanding a Bulk
Grains merchandising/marketing and export Business. AFRICAN SALES TRADING
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AGENCY LTD would concentrate on the merchandising of hibiscus flower (zobo),
soya beans, ridi (sesame), groundnut, Sorghum, cashew, and Millet which according to
the National Bureau of Statistics (NBS) accounts for 1.9 Trillion Naira of food
consumption in 2022 and the import of assorted textile materials.
Our company will procure farm gates stocks and or dried stocks/produce in bagged sizes
of 100kg and distribute Pan Nigeria. In the first year of our expansion, the company will
be proposing an annual stock purchase of over 100,000 tons of Grains and sells same to
the Nigerian Market and beyond.
Industry Analysis and competitiveness

Nigeria is a key regional player in West Africa, with a population of approximately 203
million, Nigeria accounts for about 47% of West Africa’s population. With an
abundance of resources, it is Africa’s biggest oil exporter, and also has the largest
natural gas reserves on the continent. Nigeria accounts for nearly 20% of continental
GDP and about 75% of the West Africa economy.
The farming sector employs about 70 percent of the entire country’s labour force.
Nigeria’s small farms produce 80 percent of the total food. This is the leading African
country in farming because it has the highest level of productivity and profitability in
this particular sector, which our company is going to leverage on,
ABUJA, NIGERIA — Nigeria is the largest economy in Africa and a major oil
producer. Its grain processing sector is highly concentrated, with some of the world’s
largest food sector players. The government is responding to the country’s dependence
on imported wheat, the disadvantages of which have been highlighted by the effects of
Russia’s invasion of Ukraine, by working to increase domestic production.
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its June 23rd grain market report, the International Grains Council (IGC) put Nigeria’s
total 2022-2023 grains production at 21.6 million tonnes, a figure revised up from the
previous month’s forecast of 21.1 million. It put 2021-22 production at 21.5 million.
The IGC put the country’s maize crop at 12.5 million tonnes, revised up from 12 million
forecast a month earlier, but down on the previous year’s 12.7 million. Production of
sorghum is put at 7 million tonnes, an unrevised estimate, with the previous year at 6.7
million.
Total grains imports in 2022-23 were forecast at 6 million tonnes, the same figure as in
the previous month’s report, up from the previous season’s 5.8 million. Imports of wheat
were forecast at 5.9 million tonnes, an unrevised figure, up from 5.7 million the year
before.
The International Grains Council (IGC) puts Nigeria’s total grains production in 2021-
2022 at 19.1 million tons, up from 18.9 million the year before. The figure includes an
unchanged 11 million tons of Maize and 6.5 million of sorghum, up from the previous
year’s 6.3-million-tonnage crop.
The 2022-23 rice crop is put at 5.4 million tonnes, unrevised from May, with the
previous year at 5.3 million. Nigeria is expected to import 2.1 million tonnes of rice, also
unrevised, up from 2 million the year before.
According to an annual attaché report on the grains sector dated April 7, Nigeria will
produce 160,000 tonnes of wheat in 2022-23, up from 90,000 in 2021-22.
“Rainfed wheat has been successfully grown in Nigeria’s three highlands — Gembu
(Taraba State), Jos (Plateau State) and Obudu (Cross River State),” the attaché said.
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“Wheat production in Nigeria is experiencing renewed attention from the government,
the African Development Bank, and researchers. These efforts are paving the way for
Nigeria to achieve self-sufficiency in wheat production.
In a June 24 report, the attaché forecast Nigeria’s soybean production in 2022-23 at 1.35
million tonnes, 20% up on the previous year.
“Soybean is a crop well suited to Nigeria’s topography and ecological conditions,” the
said. “Consumption is strong due to growing demand in the food processing and feed
use sectors. Food processors use soybeans to produce soy milk, soy cake, soy yogurt,
and to fortify local carbohydrate-based Nigerian food staples (e.g., garri and rice).”
The same report put palm kernel oilseed production in 2022-23 at 1 million tonnes, up
11% year-on-year. The attaché said that an increase in area was driven by increasing
domestic demand for palm kernel oil in food processing.
The growth of the animal feeds sector is the largest contributing factor to the huge and
increasing demand for grains especially maize.
In Nigeria, there are over 30 million hectares of farmland under cultivation season to
season, falling substantially short of the estimated 78.5 million hectares of land that is
required for farming to feed Nigeria’s growing population.
The importance of Grains to political stability and economic stability of Nigeria are
primarily the reason why Government in other to control prices and protect farmers
created strategic reserves for grains. The basis for these also is for the benefit of the
consumers which includes household and industries.
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Prevalence of Grain in Nigeria
Grains including wheat, millet, sorghum, zobo, groundnut, cashew, soya beans, maize,
oats, rye etc are largely grown in the northern part of Nigeria. Analysis puts this at 81%
of total cultivated. Kaduna State alone accounts for 22 % of total Maize cultivated in the
Country. States showing:
Overview Business Opportunities in Hibiscus Flower Export
Nigeria is a reasonably large player in the global market for dried hibiscus, a flower
which is used especially in herbals teas and other beverages. In contrast to some other
major Nigerian Agricultural exports, data on the trade of dried hibiscus flowers is
opaque. First, dried hibiscus is a sub-category that is not widely publicly available from
UN Comtrade, the key source for global trade data. We therefore need to use the broader
category of dried flowers, which includes hibiscus, as a proxy (HS Code 121190).
Second, there is a major discrepancy between Nigeria’s reported exports of dried flowers
(which largely comprises hibiscus), at just $4.2mn in 2019, and the imports of dried
flowers from Nigeria reported globally, at $34.5mn.
The Federal Government said on 12 th October, being Thursday that Nigeria was
targeting over $600m from its resumed export of Hibiscus flowers (Zoborodo) to
Mexico.
Mohammed Abubakar, minister of agriculture and rural development, while speaking at

a presidential media briefing in Abuja, said 15 containers of the natural product valued
at $35m were already on their way to Mexico.
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Nigeria’s $100m Hibiscus Export Market Opens Opportunity
Hibiscus sabdariffa, generally known as hibiscus or roselle, is a tropical flowering plant

regarded by agronomists and market dealers as one of the highest volume specialty
botanic products in international commerce.
The plant which is traded in the international market as dried shifting and dried flower,
has a market value estimated at over $113 million in 2019 and is expected to expand at a
compounded annual growth rate (CAGR) of 7.2 per cent in the next five years, a market
report by market research organisation, Grand View Research, showed.
According to medical experts, the product possesses anti-inflammatory and exfoliating

properties, while its cholesterol levels aids weight loss, prevents liver damage and
lowers blood pressure, making it an essential raw material for organic and natural
cosmetics. Moreso, growing product demand for soaps, shampoos and conditioners,
masks, lotions, and creams is expected to drive the market for the product.
In Nigeria, the flower is mostly grown in the northern region, with Bauchi, Borno,
Gombe, Jigawa, Kano and Katsina States recognised as major hibiscus farming states.
The plant is regarded by agronomists as drought tolerant, relatively easy to grow, not
suitable for mechanised harvest, and can be grown as part of a multi-cropping system.
Nigerian export markets for dry hibiscus flower export include Belgium, Germany, and
Mexico, the Netherlands, U.S and some other parts of Europe, Asia and America.
In the local market, the flower is recognised as a key component in the production of the
indigenous tea variety locally known as ‘zobo’ and is also used in the poultry industry
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for producing animal feed. The Association of Hibiscus Flower Exporters of Nigeria
(AHFEN) noted that in 2017, Nigeria recorded revenue worth $35 million exporting
1,983 containers of hibiscus to Mexico, its largest hibiscus trade partner. The significant
market relevance and prospects however suffered a setback in 2018 with an estimated 80
percent loss in export income when the South American country banned importation
from Nigeria following complaints about impurities, infestation from a pest called
khapra beetle, and poor quality production.
The Mexican authorities thereafter issued a work plan to the Nigerian government to
facilitate resumption of hibiscus trade between both countries. Nigeria was finally
granted permission to export hibiscus into Mexico in 2021, with the country recording a
total of 1,114 metric tonnes of hibiscus export in the first half of 2021, according to
Vincent Isegbe, director general of the Nigeria Agricultural Quarantine Services
(NAQS).
Considering the economic significance of the plant,the Association of Hibiscus Flower

Exporters of Nigeria (AHFEN) estimated the value of the country’s hibiscus industry to
be worth about $100million, noting that the flower holds great potential for revenue
generation in the export market if effectively sustained.
Hitting on this, Victor Iyama, president of the Federation of Agricultural Commodities

Association of Nigeria (FACAN) describes hibiscus as one of the most important crops
capable of boosting Nigeria’s non-oil export as a result of its huge market.
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“Hibiscus flower farming is a business on the rise and the demand for it is increasing
yearly. It can become a money-spinner when we address some of the issues limiting
Nigeria from fully harnessing its potential,” he said.
To address the challenges and boost revenue capacity, Iyama called for the
establishment of standard sanitary and phytosanitary labs, as well as an increased focus
on value addition rather than merely exporting the product in its raw form.
1 CHAPTER ONE
11.0 INTRODUCTION
11.1 Company Profile
AFRICAN SALES TRADING AGENCY LTD is a limited liability company
1registered on the 28 day of April, 2003 under par ‘A’ of the Companies and Allied
th
Maters Act 1990 (as amended). The company is strategically located at the historical
town of Kano, at No. 27, Fagge Takudu, Fagge Local Government Area of Kano State.
The company has a reliable road network, source of electricity and an abundant space
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and equipments for present and future expansion needs. The company’s business
objectives includes, but not limited to; carrying on the business of agricultural
commodity merchandise/marketing, export, storage, transportation and distribution of
grains and associated products.
The company’s current capital structure is in the ratio of 100:0 between equity and debt
capital, and that the equity is contributed by the registered shareholders.
The Chairman/CEO of the company is Alhaji Abdulrahman El-Shiek; he is a seasoned

and successful businessman with more than three decades of vast experience operating
in different value chains including merchandise/marketing and the storage,
distribution/export of grains to international markets. Abdulrahman El-Shiek is
successful in nurturing AFRICAN SALES TRADING AGENCY LTD to the extent of
posting profits even within the first four years of its existence.
1.2 Corporate Goals

AFRICAN SALES TRADING AGENCY LTD is conceived with a set of goals in the
minds of its promoters and these goals are the primary drivers of all company key
decision issues and will continue to influence such decisions into the future.
1.2.1 Short-term goals:

The company’s short-term goals include the following;
i. To expand and successfully manage a modern and quality centred grain
merchandise/marketing company in Kano with the expectation of serving majority of the
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immediate consumption needs of the Nigerian population, some West African states and
beyond.
ii. To create a source of income to the shareholders through participation in

active service/value addition.
1.2.2 Medium/long-term goals:
i. To create and promote a premium quality brand of grains merchandise/marketing

service centre in the entire North-East, North-Central, Northwest and further compete
with major distributors in the West African sub-region.
ii. To achieve rapid and strategic expansion; horizontally by expanding our target
grain producers/warehouse facilities to other parts of North-East, North- West and the
North-Central in the medium term
iii. To achieve rapid and strategic expansion; vertically by investing in other value
chain and development in the industry and large scale storage and distribution of grains
and associated produce.
iv. To transform into a public limited liability company and seek listing on the floors
of Nigerian Stock Exchange (NSE).
1.2 Grains Merchandise/Marketing Project

The initial/primary motivation guiding this project is to establish an entity that deal in
one of the basic commodities that will operate over the long-run with some high degree
of continuity in rise in demands of its assorted grains. The promoters eventually agreed
to expand invest in Grains export business after collecting the report from a
commissioned business plan in 2022, and also after understanding the large volume of
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foreign merchandisers/marketers (The Indians, Chinese and Lebanese) that squeezed
Nigeria’s forex every year over the last decade (to the tune of approximately 0.7 million
MTs).
1.2.2 Object/ Activities of the Company
The company is into the exporting of agricultural commodities with special emphasis to
hibiscus flower and the import of assorted textile materials. The company’s existing
capacity is at high demand of its export products due to the war between Russia and
Ukraine. The company is increasing the capacity by requesting for additional capital.
This will boost its purchasing and export capacity from 10,000tons/pa, to
100,000tons/pa.
1.3 Mission
“Our mission is to facilitate the growth of investment and ensure a stable export in
agricultural commodities and reduce the dependent on oil. We also aspire to facilitate
investment in Nigeria and West Africa b y delivering intelligent, reliable and seamless
export and import solution in a professional manner.
1.4 Vision
“Our vision is to become the foremost exporter of agricultural commodity in Nigeria and
in turn to develop an Agric-business that is a reference point for qualitative, sustainable
and cost effective practices in the industry….further delivering the best quality product
in the market to our customers in all, becoming a dominant player by exporting more
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and better than anyone else in Africa. The firm will also expand its import of assorted
textile materials.
1.4.1 Company ownership and capital structure

The company is a privately owned entity registered with two first Directors/Shareholders
at inception with no plan of accepting new equity contributors in the future especially to
avoid ownership dilution.
1.4.2 Shareholding Structure

The shareholding structure of the company is as provided below:
Shareholders Names No. of shares

% of holding
holding
ABDULRAHMAN EL-SHIEK 62,500,000 50%
MAHMOUD U. EL-TAYEB 62,500,000 50%
Total Authorised Share Capital 125,000,000 100%
1.4.1 Paid-up capital

The company’s registered share capital at present is ₦125,000,000 divided into
125,000,000 ordinary shares of ₦1.00 each. The shareholders have so far fully paid-up
the entire 125,000,000 units of shares. In addition, a further investment into the company
is to be made by obtaining credit facility of eight hundred million naira (₦800,000,000)
only from the TAJ Bank at a profit margin of 24%.
1.5 Performance of the company
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The company is presently in operations for a period of over twenty-three (23) years and
has established a sound operational system that enables it to identify optimum sources
and export of assorted agricultural commodities, human resources and demand outlets.
The company is successfully in expansion at a very pivotal period well after the Federal
Government have introduced outlets in the agri-business Sustainability demand for
assorted grains and associated agricultural produce for industries, human consumption
and export.
Over the period from commencement to date, our company is able to reach a valuable
80% of its export and import capacity. Yet with this volume, the company sees the
opportunity in expansion looking at the volume of requests/order placements, advance
payments by customers before off taking, and the broader market outside the company’s
1.5.1 Management structure

The company is managed by its Chairman/CEO and supported by the Managing
Director/Chief Operating Officer (COO). The duo serve as the apex operational
activities control team with the COO taking charge of all daily operational and technical
issues on the field, agents in our source markets in our warehouses.
The next line of management is that consisting of the functional management positions.
They include the flowing;
i. Executive Director (Business Development)
ii. Warehouse Manager
iii. Accountant/Cashier
iv. Human Resource and Admin Manager
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v. Marketing & Business Development Manager
vi. Procurement Manager
vii. Store Manager
viii. Truck Drivers
ix. Security Guard
Each department is staffed with the appropriate skilled and number of personnel with
some roles merged at the onset pending when capacity grows to the level when all roles
will be independently handled by dedicated personnel.
1.5.2 Operations/activities
The company’s primary areas of operations are presently the business of procurement,
storage, preserving, packaging and sales and export of assorted grains (sesame seed,
cashew, hibiscus flower, paddy rice, soya beans and associated agricultural produce and
import of assorted textile materials). The company is designed to envisage both vertical
and horizontal integration and diversification to enable it professionally manage risks in
the market.
1.5.3 Project related experience

The chief executive of the company is a seasoned business person with decades of
experience in relevant sectors of Nigerian economy. In addition, the company has an
established over twenty-three (23) years experience operating the existing agricultural
commodity export and import of assorted textile materials business. The company has
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significantly leveraged on the capacity of its various consultants and advisors in
breaking through to this level.
1.6 Technical Aspects

Technical issues relating to agricultural commodity export/marketing operations are
those that have to do with acceptable and optimum process flow as well as the quality of
the products/technology required to manage the process efficiently and effectively.
1.6.1 Stages in commodity export, merchandise/marketing
A commodity marketing system encompasses all the participants in the production,

processing and marketing of an undifferentiated or unbranded farm produce (such as
hibiscus flower, cereals and other agricultural commodities), including farm input
suppliers, farmers, storage operators, quality assurance team, wholesalers and retailers
involved in the flow of the commodity from initial inputs to the final consumer and
export. The commodity marketing system also includes all the institutions and
arrangements that effect and coordinate the successive stages of a commodity flow such
as the government and its Parastatals and the wider private sector entities, trade
associations, cooperatives, financial partners (banks and other financial institutions,
transport groups and educational organisations related to the commodity. The
commodity system framework includes the major linkages that hold the system together
such as transportation, contractual coordination, vertical integration, joint ventures,
tripartite marketing arrangements, and financial arrangements. The systems approach
emphasises the interdependence and inter relatedness of all aspects of agribusiness,
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namely: from farm input supply to the growing, assembling, storage, processing,
distribution and ultimate consumption of the product.
The marketing systems differ widely according to the commodity, the systems of
production, the culture and traditions of the producers and the level of development of
both the particular country and the particular sector within that country. This being the
case, the overview of the structure of the selected major commodities marketed, which
follows, is both broad and general term. The major commodities whose marketing
systems we shall discussed in this business plan are, large and small grains, identifies the
main stages of agricultural marketing and this provides a loose framework around which
to structure the description of the merchandising/marketing of these commodities.
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2 CHAPTER TWO
2.0 COMMERCIAL ASPECT
2.1 Market analysis/market strategy

Nigeria’s grains market is a large one going by the fact that a large number of people
living in West Africa have an established dependable relationship with Nigeria’s
ability to supply and export grains and other assorted farm produce.
2.1.2 Nigerian Grain Market
Grain Market Size in Nigeria in 2021, after five years of growth, there was decline in the
Nigerien grain market, when its value decreased by -4.3% to $X. Over the period under
review, consumption, however, continues to indicate resilient growth. Over the period
under review, the market reached the maximum level at $X in 2020, and then shrank in
the following year.
2.1.3 Grain Production in Nigeria
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In value terms, grain production contracted slightly to $X in 2021 estimated in export
price. Overall, production recorded resilient growth. The most prominent rate of growth
was recorded in 2019 when the production volume increased by 47%. Over the period
under review, production reached the maximum level at $X in 2020, and then contracted
slightly in the following year.
In 2021, the average yield of grain in Nigeria shrank slightly to X tons per ha, with a
decrease of -1.8% on 2020. The yield figure increased at an average annual rate of
+1.8% over the period from 2012 to 2021; the trend pattern remained relatively stable,
with only minor fluctuations throughout the analyzed period. The most prominent rate of
growth was recorded in 2014 when the yield increased by 26% against the previous year.
The grain yield peaked at X tons per ha in 2016; however, from 2017 to 2021, the yield
remained at a lower figure. Despite the increased use of modern agricultural techniques
and methods, future yield figures may still be impacted by adverse weather conditions.
In 2021, approx. X ha of grain were harvested in Nigeria; rising by 4.3% against 2020
figures. The harvested area increased at an average annual rate of +2.0% from 2012 to
2021; the trend pattern remained relatively stable, with somewhat noticeable fluctuations
being recorded throughout the analyzed period. The most prominent rate of growth was
recorded in 2017 when the harvested area increased by 7%. As a result, the harvested
area attained the peak level of X ha. From 2018 to 2021, the growth of the grain
harvested area remained at a lower figure.
2.1.3 Marketing plan and strategy
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AFRICAN SALES TRADING AGENCY LTD is positioned to attract a very
significant portion of the consumption market in the North-Eastern and North-Western
parts of the world. The company will leverage on the high grain production capacities of
Nigeria and Kano, Dawanau international grains markets to channel its outputs.
Marketing Plan
Over the next 12 months after expansion, we projected a significant improvement in our
sales and cash flow as compared with our most immediate past year financial results.
Our SWOT Analysis

Strengths: We presently have identified strengths in quality management of our systems,
effective organizational management, sound financial planning and effective marketing
innovations. The current market demographics where our products are prime in selling
include those countries affected by Ukraine/Russian war. In addition, market
opportunities are providing us the opportunity to leverage on customer advances to
enhance our working capital.
Weaknesses: Our primary weakness is inability to internally finance all our intended
expansion projects and also our lack of capacity to own our independent warehouse fleet
trucks that will handle distribution both from farms to warehouse and warehouse to other
outlets.
Opportunities: We have the potential opportunity of further increasing our existing

capacity and eventually our output level looking at the large production surplus Nigeria
has and the need to make-up over the next few years. We also have the advantage of
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being located in one of key trade hubs of the North-Western part of Nigeria where the
international grains market is located.
Threats: We may likely be faced with the adverse effects of continuing negative
government policy on boarder closure.
Our Unique Selling Proposition (USP)

Our USP is the provision of qualitative and trusted products and services embedded with
contractual integrity in all our dealings. Our company policy strongly encourages
continuous and meticulous quality assurance processes and where errors do occur from
our angle we take full responsibility for them and make amendments.
Since our establishment, we have grown to accept premium prices that are quite
commensurate to the quality we provide. In essence our prices are fair and competitive
which gives us the leverage of getting repeated orders from our customers and clients. In
summary, we are selling quality and integrity to all our customers, clients, and partners.
Innovative marketing Approaches and tools

In order to enable us get wider coverage, penetration and patronage in the market place,
we plan to be actively innovative in reaching and converting potential customers and
clients. Some of the approaches we accept to implement are;
i. Creative Offerings: We will make every single business offer a unique and
valuable one with our partners (buyers and sellers) so as to make it enticing for them to
do business with us at all times. We have already started yielding results from the effort
of our Business Development specialists.
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ii. Distribution of Reliable Product: We have implemented the distribution
of our grain produce with a mutual agreement of selling to the immediate target
customers. This has really promoted not only our supply chain of quality and non
hazardous produce but shall improve in the nearest future.
iii. Sponsored Radio Awareness: We have engaged in sponsoring continuous
radio programmes centered on educating the consumers of our grain products on both
quality and hygienic importance of our produce.
iv. Social Media Marketing: Our website is currently undergoing
reconstructions which will rebirth it into a competitively interactive and sales generative
site that is full of functionalities that will support Enterprise Resource Planning (ERP)
capabilities we are deploying. In addition, social media pages are opened and
professionally managed with up-to-date contents by our professional associates. This
will give us global presence and will eventually attract more sales and business
relationships for us.
v. Information Gatherings and Research: We believe that without
appropriate and current data and information it will be difficult to understand the market
and create offerings that will continue to address the needs of our customers and clients.
We have positioned all our media platforms to enable us gather sufficient and quality
information for processing and decision making especially as we plan to deploy robust
Customer Relationship Management (CRM) software.
Promotional Plan
In order to reach our existing and potential customers and clients we deploy a good
number of channels, amongst which are;
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i. Information flyers
ii. Company profiles
iii. Website and social media handles
iv. Exhibition stands at agricultural functions and conferences
v. Presentations at conferences and seminars
vi. Business development efforts by our business development team
vii. Radio awareness programme.
3 CHAPTER THREE
3.1 Basic assumptions

The set of 5-year financial projections presented in this plan are developed based on
some basic assumptions established at conservative levels of estimates and which are
based on real market scenarios.
The following are established assumptions guiding the financial projections;
Loan Amount: ₦800,000,000
i. Company Contribution:
ii. Profit margin: 24%
iii. Loan Tenor: Three (3) years
iv. Moratorium: Three (3) months
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v. Sales: 95% of all sales as cash sales whereas 5% to be on credit receivable
the following month. This is only a conservative estimate as the current market practice
is for customers to deposit/make advance payments at least two weeks before production
and supply.
vi. Depreciation: Furniture and fittings and motor vehicles are depreciated at 15%
per annum and Machineries at 5% (all using the straight line method). Land and
buildings are not depreciated.
vii. Loan Repayment:Repayment of loans is assumed to be made at the end of each

month. Mainly profits and savings of depreciation amounts will be utilized for making
repayments.
viii. Sales Time: A total of 22 hour sales /day is assumed giving 2 hours lag time (8.33% of total
time), Total of 26 sales days per month are assumed.
ix. Capacity Utilisation: A 90% capacity utilization is assumed for the project at all times during
the first three years
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4 CHAPTER FOUR
4.0 RISK ANALYSIS
4.1 General risk assessment

Risk is perceived by the company in four different categories:
i. Avoidable/removable risks – those that may call for change of course of action to eliminate the
risk
ii. Reduceable risks – those that may only require minimizing the adversity of the risk
iii. Inherent risks – those that could neither be eliminated nor minimized. These are controlled by
external factor outside the boundary of control through company’s decisions.
4.2 Risk analysis

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The following are the possible risks associated with this investment:
Risk associated with marketing failure: This risk pops in where the company’s marketing function
fails to meet expectations in promoting the brand and raking up required sales.
Remedy: A strong marketing team is put on the ground which involved the marketing manager,
procurement manager and sales officer. The company policy requires the marketing team to hold
monthly marketing plan and review meetings in order to address possible challenges right on time.
Risks associated with quality control: Loss in the level of quality is great risk which significantly
affect both short and long term sales and brand image.
Remedy: A dedicated quality control officer is employed who is supported by a quality control
assistant. This is meant to strengthen the quality level of the company’s output. Future growth will also
witness adoption of more sophisticated and technology based strategies for measuring and improving
quality.
Financial Risks: These are risks associated with fraud, inability to meet short term loan obligations
and poor financial planning.
Remedy: To cater for these risks, the management has instituted a continuous audit policy whereby its
accounts will be audited by internal auditors on daily basis. Also, competent accounting software is
deployed to provide reliable information for effective financial decisions.
Government Regulation Risks: There is the risk related to inconsistency in government policies such
as those instituted on grain import drive. In the event that future governments decide to grain on its
import list, domestic merchandisers may face unfavourable competition with the importers.
Remedy: As this is one of the inherent risks on which the company has no control, the only remedy is
for the company to ensure effective diversification and deep market penetration so as to lessen the
negative effect such a policy change may have on it.
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5 CHAPTER FIVE
5.0 SECURITY/COLLATERAL
5.1 Security type and description
The company plans to pledge its property at Nos. C-2, C-4 & C-5 along old Gwarzo road, Kano, as the security
for intended loan facility.
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6
CHAPTER SIX
6.0 CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion
Based on the foregoing discussions in this plan, especially looking at the financial projections and its
appending assumptions, it is enough to conclude as follows;
i. The company has on the job experience in expanding a grain merchandising/marketing and
managing it with some level of profitability even at expansion stage.
ii. The company has instituted required systems to support the going concern of the company.
iii. The profitability of about 21% (average) is considered premium and within the industry
averages
iv. The company presents the potential to manage the loan over the projected 3-year term
7.2 Recommendations
To ensure successful operation of the expansion of our project, it is strongly recommended that;
i. Capital inflow should be made within the projected time frame.
ii. Procurement, preservation, storage and quality management should be executed with the six
months from the commencement of the loan period.
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Appendices
1. Audited Financial Statements
2. Financial projections
3. Cash Flow Projections
4. Company Profile
5. Resume of the Managing Director of the Company
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AFRICAN SALES TRADING AGENCY LTD

1.1 Company profile

1.2 Corporate goals

1.2.1 Short-term goals

1.2.2 Medium/long-term goal

1.3 Company Ownership and Capital Structure

1.3.1 Shareholding structure and authorised capital

1.42 Paid-up capital

1.4.2 Project related experience

1.5 Technical aspect

2.1 Market analysis/marketing strategy

2.1.1 Global Grains Outlook

2.1.2 Nigerian Grain Market

2.1.3 Grain Production in Nigeria

2.1.5 Imports by Country

2.1.6 Marketing Plan and strategy

3.1 Basic Assumptions

4.0 Risk Analysis

4.1 General risk assessment

4.2 Risk analysis

4.3 Title documents

4.4 Loan benefits and justification

5.0 Conclusion and Recommendations

1. 5-year Cash flow projections

2. 5-year Projected statement of comprehensive income

3. 5-year Projected statement of financial position

5. Loan repayment plan

AFRICAN SALES TRADING AGENCY LTD is a strong and strategically positioned

AFRICAN SALES TRADING AGENCY LTD is an existing company seeking for

AFRICAN SALES TRADING AGENCY LTD is a limited liability private company

Industry Analysis and competitiveness

Overview Business Opportunities in Hibiscus Flower Export

Mohammed Abubakar, minister of agriculture and rural development, while speaking at

Hibiscus sabdariffa, generally known as hibiscus or roselle, is a tropical flowering plant

According to medical experts, the product possesses anti-inflammatory and exfoliating

Considering the economic significance of the plant,the Association of Hibiscus Flower

Hitting on this, Victor Iyama, president of the Federation of Agricultural Commodities

The Chairman/CEO of the company is Alhaji Abdulrahman El-Shiek; he is a seasoned

1.2 Corporate Goals

1.2.1 Short-term goals:

ii. To create a source of income to the shareholders through participation in

1.2.2 Medium/long-term goals:

i. To create and promote a premium quality brand of grains merchandise/marketing

1.2 Grains Merchandise/Marketing Project

1.2.2 Object/ Activities of the Company

1.4.1 Company ownership and capital structure

1.4.2 Shareholding Structure

Shareholders Names No. of shares

1.4.1 Paid-up capital

1.5 Performance of the company

1.5.1 Management structure

ii. Warehouse Manager

iv. Human Resource and Admin Manager

vi. Procurement Manager

vii. Store Manager

viii. Truck Drivers

ix. Security Guard

1.5.3 Project related experience

1.6 Technical Aspects