1.

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

PROJECT CONCEPT

This project is about regional trade in tropical hardwood timber as a

commercially lucrative business enterprise. The projects conceptualization
was borne out of the ever-rising demand for hardwoods in Uganda mainly for
use in the construction and furniture industries. The construction industry
itself is a double-digit high growth area in the Ugandan economy due to the
great demand for housing and office space. This has invariably upped the
demand for mature tropical hardwood timber species that are best suited to
this purpose. Furniture and fittings are also highly demanded items of
consumption for the majority of people in Uganda with the financial means to
afford it. The demand for good quality tropical hardwoods to make vintage
furniture and fittings is always rising as population growth also moves up.
Practically, all countries in East Africa have put policies in place to regulate
the production of tropical timbers from their already diminished and underpressure tropical hardwood resources. However, the eastern neighbor of East
Africa the Democratic Republic of Congo with its current tropical forest
stand of 156 million hectares within the Congo basin currently harvests
about 400,000 hectares of tropical hardwoods per annum which it exports to
the neighbouring markets of Burundi, Kenya, Rwanda, South Sudan, Uganda,
and with some of it being exported to mainland China.
It is from this vast natural forestry resource of the DR Congo that the tropical
hardwoods mentioned in this business plan are to be sourced and delivered
to the projects timber buyers in Kampala. The consistently high double-digit
growth of the Uganda construction industry and Ugandas constrained forest
resource base have been largely responsible for driving this high demand for
tropical hardwood timber from the DR Congo.
2.0

TIMBER SOURCING

Tropical hardwood timber destined for sale in Uganda and Kenya is sourced
from the western Uganda border entry-points of Mpondwe (Kasese district),
Bunagana (Kisoro district), Busunga (Bundibugyo district), and Ntoroko
(Bundibugyo district) at the lower part of the Uganda-DR Congo border, and
Goli, Paidha, Vurra, Lia, Odramachako and Oraba on the West Nile portion of
the Uganda border with DR Congo. The tropical hardwood timber is logged
directly by small-scale timber lumbermen in the North Kivu region of eastern
DR Congo and transported by truck by these loggers to the above-mentioned
border posts for pick up by Ugandan timber traders who are stage from
there.
1

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

Most of the logging is done using portable power-saws and the logs are sized
into timber baulks which may be further split into smaller made-to-order
timber panels for use in construction work and for the manufacture of
household furniture and fittings. The timber baulks usually measuring about
14 ft. 18 ft. (length) x 14 inches (width) x 14 inches (depth) can be
purchased for slightly more than US$ 100 per cubic metre. This is a relatively
modest price when compared with the purchase prices for smaller-sized
machine-sized timber panels of the same tree species which are obviously
much higher-priced to account for the cost of machine-sizing.
Within the DR Congo itself, reasonably-sized forest logging concessions can
be secured from the relevant environment and forestry authorities at
negotiable concession lease rates. For instance, an annual forest concession
fee of US$ 5,000 payable to any one of the eastern DR Congo regional offices
of the Ministry of Environment, Nature Conservation and Tourism can yield a
stretch of about 40 square kilometers of forest logging land to a committed
and serious timber dealer.
3.0

THE RANGE OF TREE SPECIES TRADED

In contrast to industrial scale loggers who typically harvest a wide range of

species, artisanal loggers harvest very few species. The main species
imported from DR Congo into Uganda are mahogany (Entandrophragma and
Khaya spp), White Nongo (Albizzia spp) and Nkalati (Aningeria altissima, and
Chrysophyllum albidum) and small quantities of Mvule (Milicia excela). White
Nongo is a white softwood and is the main species traded into the South
Sudan market. Nkalati is another that has become popular in the Kampala
market for furniture making. The mahogany accounts for about 70% of the
trade and White Nongo accounts for about 15% with the other species
making up the remaining 15%.
For practical purposes, this timber-trading business will confine its timbertrading operations to only about six (6) species of hardwood which it can
definitively source, process, transport, and sell on the market. The trade and
botanical names of these tree species are given in Table 1 below.

Table 1: Trade and Botanical Names of Tradable Tropical Hardwood

Species
2

S.
No.
1.
2.
3.
4.
5.
6.
7.

4.0

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

Trade Name
Botanical Name
Mahogany Sapele
Gedu Nohor / Tiama
Muyovu /Kosipo
Feather Sapele / Sipo
Real African Mahogany / Kaya
Iroko / Mvule / Kambala
Nkalati

Entadrophragma cylindricum
Entadrophragma angolense
Entadrophragma excelsum
Entadrophragma utile
Khaya anthotheca
Chlorophora excelsa
Aningeria altissima, Chrysophyllum
albidum

MARKETABLE SIZES

Most end-users of timber require specifically-sized tropical hardwood timber

panels that are relatively easy to work and transform into shapes and sizes
that can readily be incorporated into other structures like in the
construction industry, or can be carved into specific shapes which can easily
fit and join with each other such as in the furniture and fittings industry. It
so happens therefore, that when timber end-users are placing their orders
with the timber suppliers, they normally do so by indicating the desired
specific panel sizes in the order. The market practice is to quote panel
dimensions first for length (in feet) and then width x depth (thickness) in
inches. Timber panels are usually of a standard length of 14 feet 18 feet,
while width and thickness may have size variations depending on the users
preferences. The sizes commonly required by tropical hardwood end-users /
buyers are summarized in Table 2 below: Table 2: Commonly Used Timber Panel Sizes
S.
SIZE
No.
Width x Thickness
(Inches)
1.
12 x 2
2.
12 x 1
3.
10 x 2
4.
9 x 1
5.
9 x 3
6.
8 x 2
7.
6 x 2
8.
4 x 2

LENGTH
(Feet)
14
14
14
14
14
14
14
14

Splitting and sizing of the timber baulks (the larger timber pieces) must
always be done prior to supply the tropical hardwood timber consignment to
3

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

the market for it to be accepted and a fair price paid for it. The best and
most cost-effective way of doing this is by the application of machine-sawing
using a band-saw mill. For the case of this project, the tropical hardwood
timber panels will be bought at the DR Congo Uganda border when they
are already machine-sized (at a higher purchase price), or alternatively, the
business proprietor Ms. Mary Kakuranga will buy the tropical hardwood
timber baulks at a lower price at the DR Congo Uganda border and then
transport it to a suitable milling plant in Kampala with good band-saw
facilities for machine-sizing into the desired panel sizes.
5.0

THE MARKET
5.1

Timber Market Characteristics

5.1.1 Regional Timber Trade

In contrast to western parts of DRC where logging is commercial scale

dominated by industrial logging concessionaires, the timber trade in eastern
DRC is dominated by small scale logging operators and artisans using
chainsaws to fell trees and mill the round wood into planks. Only the largest
trees are felled and harvesting operations are inefficient and wasteful.
The timber harvested in Eastern DRC is destined mainly for markets within
the East Africa region with relatively small quantities going to domestic
markets within DRC or being exported to external markets outside the
region.
By far the biggest market is Kenya with estimated imports of 32,000 m 3
followed by South Sudan at 10,700 m 3. Uganda imports 8,300 m3, Rwanda
7,000 m3, and Burundi about 1,000 m 3. The total volume amounts to just
over 60,000 m3 annually.
Mahogany (Entandrophragma and Khaya anthotheca) is the main species
going to the Kenyan, Ugandan and Rwandan markets while the South Sudan
market is dominated by softwoods such as White Nongo (Albizzia spp) and
Nkalati (Aningeria and Chrysophyllum spp).
The main drivers of the trade are poverty and limited alternative economic
opportunities in DRC, combined with strong demand for quality hardwood
timber in neighbouring countries.
5.1.2 Uganda Timber Market
4

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

There is a high in Uganda for mahogany from DRC as indigenous hardwood
timber resources are becoming scarcer. The estimates based on field visits to
border posts, of volumes imported to Uganda and in transit to other markets
are compared with official date provided by URA Customs in Table 3. The
field assessment indicates imports at 8,300 m 3 per year and volume in
transit to other countries of 42,000 m3 (of which 8,400 m3 goes to South
Sudan, 32,600 m3 goes to Kenya and 1,000 m3 goes on external markets in
China and elsewhere). The official data provided by URA Customs shows
slightly lower volumes imported and in transit in 2011 of 5,461 metric tons
(equivalents to 7,802 m3) and quantity to other markets at 30,463 metric
tons (equivalent to 35,215 m3). As the field estimate is not much different
from the official URA Customs data, it can be concluded that URA Customs is
capturing the volume data accurately.
Table 3: Comparison of Field Estimates and URA Customs Data on
Imports and Transit Timber
Source of Data
2011
2011
Imports
Transit
Estimates based on visits to border posts
8,300
42,000
URA Customs data 2011
7,802
35,215
5.2

Pricing

Timber prices in Uganda have been on the rise over the last five years,
following increasing demand in the construction industry. Construction is
growing at a rate of 10% every year.
Timber pricing is usually determined by among other factorial determinants
the type of wood required (i.e. whether hardwood or softwood), the degree of
seasoning of the wood (dry timber is preferred over green timber), the
quality of the wood 9such as its texture and grain), whether the wood is
machine-sawn or hand-sawn, and the level of market demand at any one
given time. On the international market, timber prices are usually quoted by
the cubic meter, but in Uganda, timber prices are always quoted according to
the dimensions of each timber plank/panel.
Table 4 below provides price indicators for mahogany timber planks
delivered CNF Kampala in Uganda Shillings. The same Table 4 also provides
equivalent prices per cubic meter in Uganda Shillings and US$ to compare
with the prevailing average market prices of US$ 595 per cubic meter in
Kampala and US$ 672 per cubic meter for Nairobi. These are the same rates
5

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

that have been used in the Net Income Statement at the back of this
business plan on pages 14-16.
Table 4: Prevailing Kampala Market Prices for Various Mahogany
Timber Planks
Plank
Market
Market
Market
Dimensions
Price/Panel (In
Price/Cubic
Price/Cubic
UShs)
Metre (In UShs) Metre (In US$)
12 x 2 x 14
90,000/=
1,361,700/=
400
12 x 1 x 14
60,000/=
1,815,600/=
530
8 x 2 x 14
60,000/=
1,362,000/=
400
9 x 1 x 14
50,000/=
2,018,000/=
590
4 x 3 x 14
90,000/=
1,361,700/=
400
6.0

MODE OF PAYMENTS

Owing to the highly traded nature for timber, payments for the commodity
are usually settled promptly in cash against delivery. There are also different
forms of payments across the market, though the most commonly used
modes of payment range from physical cash pay outs, to Certified Cash
Cheque payments, to bank settlements using Documentary L/Cs or
International Bankers Drafts in favour of the timber supplier. Also most of
the payments for timber deliveries on the Uganda market are made out in
the local currency the Uganda Shilling.
7.0

SUPPLY QUANTITIES
7.1

Market Analysis

The average volumes of timber that can be bought by an average timber

end-user on the Kampala timber market range anywhere between 200 cubic
metres 500 cubic metres per month depending on the buyers industrial
output capacity and market share in the Uganda domestic wood products
market. The project promoter in this business plan has been able to identify
one good hardwood timber-based furniture manufacturer with an absorptive
capacity of not less than 300 cubic metres per month of tropical hardwood
timber raw material for use in the high-turnover manufacture of assorted
furniture products.
A single truck-load of tropical hardwood consists of 6,000 pieces of timber
cut to different sizes which is equivalent to about 270 cubic metres of
machine-sawn timber (See Table 5 below). The feasible market delivery
6

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

capacity of this enterprise is 1 truckload of machine-sawn timber per month
that will be distributed amongst 3 or so buyers on the Kampala market
depending on the sizes of their specific orders.
Table 5: Timber Volumes in 1 Truckload
Plank
Volume in Cubic No. of Pieces /
Dimensions
Inches
Cubic Metre
12 x 2 x 14

4032

15.13

12 x 1 x 14
8 x 2 x 14
9 x 1 x 14
4 x 3 x 14
Total

2016
2688
1512
2016

30.26
22.70
40.36
30.26

Cubic Metres /
Truck
Consignment
132.188 (2,000
pcs)
49.57 (1,500 pcs)
44.053 (1,000 pcs)
12.389 (500 pcs)
33.047 (1,000 pcs)
271.247 (6,000
pcs)

In the Net Income Statement on pages 14-16, 2 truckload delivery schedules

are projected for each month. This is considered to be a sufficient time frame
in which to purchase, document, transport the timber from the Uganda-DRC
border and deliver it to the Kampala market where it is urgently required.
7.2

Supply Orders

The project entrepreneur Ms. Mary Kakuranga has secured firm market
orders from a Kampala-based furniture-making firm by the name of ADAMS
ENGINEERING SERVICES LTD. Ms. Mary Kakuranga has built a strong
trading history with this furniture-making company that gives her confidence
in its trading reputation as far as generation of repeat orders and payments
on delivery are concerned. The current order that Ms. Mary Kakuranga has
to execute is for 3,000 timber planks/panels to be delivered to the
companys workshop in various sizes after which another order of similar
magnitude will be generated by the buyer. The list of the timber panel sizes
and numbers on this particular order are indicated in the attached Buyers
Proforma Invoice.
8.0

PACKING

For long-distance movement, the hardwood timber is usually packaged in 20

ft x 8 ft (L x H) containers (towing trailers) or 40 ft. x 8 ft. semi-trailers (L x
H). The hardwood timber baulks are usually stacked on top of each other
7

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

length-wise, leaving a headroom of approximately 1 (one) foot from the roof
of the container to facilitate their off-loading at the destination point.
The hardwood timber baulks can be loaded and packed mechanically at the
point of loading using a fork-lift truck or hired manual labour. At the UgandaDRC border, fork lift trucks for loading operations are barely available and
therefore all the loading is done manually - though at quite an affordable and
compelling cost though it certainly takes much more time to load the
timber manually than through the use of mechanical loading aids as the
hardwood timber are quite heavy and bulky to load onto the trucks.
However, the off-loading and loading of the machine-sawn hardwood timber
panels is a much easier and faster task to accomplish using the manualloading method as they much lighter and therefore quite portable to move
into and out of the trucks.
9.0

DOCUMENTATION

Any of the hardwood timber consignments originating from the DRC into the
Uganda market should always have complete trade documentation issued by
the DRC authorities at the point of entry. The relevant documents that
accompany any consignment of hardwood timber originating from the DRC
and destined for the East African market include:
a) A DRC Ministry of Environment, Nature Conservation and Tourism
Certificate authorizing the export of the timber out of the DRC.
b) An SGS Certificate of quality and quantity of the hardwood timber
issued by the SGS representative office in the DRC.
c) The DRC Customs export-clearance documentation that cost about US$
1,000 per truck-load of hardwood timber originating from the DRC.
The Ugandan hardwood timber will always be handed this set of documents
from the DRC at the Uganda-DRC border as evidence of possession title to
the timber merchandise and as a signal of conclusion of a bona fide
transaction. On the Uganda side of the border, the timber merchant pays the
import duties for the consignment to the URA Customs office at the border
post and then obtains all the necessary import clearance papers sanctioning
the entry and subsequent movement of the hardwood timber merchandise
from the Uganda-DRC border up the buyers stated destination point
anywhere in Uganda.
In instances where the hardwood timber consignment is being moved to
Kenya, the timber merchant has to acquire the relevant in-transit documents
8

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

allowing him/her to move the timber consignment to Kenya via Uganda.
Essentially, this is what is known as a Transit Bond and it costs about US$
300 per hardwood timber truck-load. The Transit Bond specifically imposes
a trade restriction on the timber merchant not to off-load his/her
merchandise anywhere in Uganda while in the process of moving it to Kenya.
This Transit Bond must always be surrendered at the URA Customs exit
point at the Uganda-Kenya border at Malaba or Busia.
10.0 TRANSPORTATION
The movement of hardwood timber merchandise from the Eastern DRC is the
business of middle and long-distance haulage multiple-axle vehicles that are
specially built to perform in the transportation of heavy merchandise over
African road surfaces. There are quite a number of active Ugandan and DRCregistered transport companies that ply the route between Beni-Uganda-DRC
border-Kampala-Nairobi-Mombasa on a regular basis. The road from the DRCUganda border at Mpondwe in Kasese district is first-class all-weather tarmac
surface. Moving a heavy truckload of timber from the Uganda-DRC border to
Kampala will usually take about 6 8 hours using the Mpondwe-Kasese-Fort
Portal-Kampala route. So, the movement of the hardwood timber cargo can
easily be accomplished within a single day with the only limiting factor being
the condition of the truck in use rather than the road itself.
Road freight haulage companies specializing in the business of goods
logistics in East Africa usually prefer payment in hard currency (especially
the US Dollar). The current transportation fare that is charged by most
truckers is UShs 2,500/= per hardwood timber plank (or UShs 15 million for a
single truckload consignment of 6,000 pieces). This calculates to about US$
4,400 per truckload and will cover a range of the truckers expenses
including border fees, fuel expenses, the drivers and turn boys allowances,
as well as vehicle servicing and maintenance expenses. Other externalities
that may influence movement in transportation rates include governmentregulated adjustments in the prices of fuel, the seasonality of exportable
commodities from the DRC that often compete with tropical hardwood timber
for transportation out of the DRC and include mineral commodities (e.g.
coltan), coffee, and papain.
Generally speaking, however, tropical hardwood timber is a relatively easy
commodity to transport as it does not require special handling and packaging
arrangements like is usually the case with other agricultural commodities
such coffee, papain, or tea. There is a general consensus amongst all tropical
hardwood timber transporters that the business of transporting timber is a
9

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

straight-forward supply chain logistics operation as long as there is harmony
and agreement between them and the concerned timber trader on freight
rates.

11.0 THE ENTERPRISE

The enterprise that will operate the stated tropical hardwood timber trading
business between the DRC and Uganda and is seeking the loan facility of
UShs 200 million to capitalize the business is a sole trader by the name of
Ms. Mary Kakuranga. The business proponent has got an extensive trading
background in the East African timber industry spanning over 10 years
besides building a well-coordinated market network of tropical hardwood
timber dealers, exporters, and manufacturers within Uganda and Kenya that
is at her beck and call 24/7 that she now seeks to exploit.
Ms. Mary Kakuranga is also an energetic and purpose-driven business
personality with a single-minded determination and focus to succeed in the
timber merchandising business. She has been working hard at upping her
business know-how, diversifying her market connections, developing a good
working rapport with timber suppliers on the DRC side of the border,
strengthening her skills and competencies in the dynamics of the timber
trade, and keeping close tabs on the evolution and growth of the East African
timber market. Its also because of the fires of her passion, commitment and
dedication to the timber line of business that inspires her more than anything
else to push this project to its limits and succeed beyond expectations in a
field that she already knows too well while stopping at nothing to generate a
robust financial return out of the input seed capital loan within the stipulated
loan application time frame.
12.0 MARKETING & SALES ASSUMPTIONS

Tropical hardwood timber sales will be conducted on a cash-only basis

and there will be no credit transaction throughout the enterprises
business application period
Sales of timber consignments will be done twice a month on the back
of a strongly growing market for tropical hardwood timber species in
Uganda that is bolstered by double-digit growth figures in the
construction industry.
Sales prices are assumed to grow at a rate of 5% per annum.
Monthly sales revenues depicted in the Net Income Statement are the
composite of monthly sales for the various tropical hardwood timber
10

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

planks that make up each truckload of 6,000 pieces and are
summarized in Table 6 below.
The tropical hardwood timber planks supplied to the buyers conform
with the market standards and requirements and there are no
unbought rejects upon delivery to the buyers warehouse/industrial
premises.
Payments for the tropical hardwood timber consignments are made on
a cash-on-delivery basis by the buyer upon receipt, inspection and
verification of each timber consignment.
There is an assured supply source of tropical hardwood timber from the
DRC where this enterprise will be exclusively sourcing its timber from.
There is no damage, cracks, shrinkage, insect infestation on all the
timber panels during transportation, storage, handling or the actual
sales process itself so as to upset the projected monthly or annual
sales receipts in any appreciable way.
There are no in-built sales commissions within the timber-trading
enterprises operational expenses (opex).
Corporate Tax (30 per cent) is assessed only once a year and is
deducted from the annual aggregate EBITDA (Earnings Before Interest,
Tax, Depreciation and Amortization) of the timber trading enterprise.
Timber purchase costs are expected to increase at a rate of 5 per cent
per annum.
Timber transportation and labour costs are also expected to increase at
a rate of 5 per cent per annum.

Table 6: Monthly Sales Revenue (1 Truckload)

Panel
Dimensions
12" x 2" x 14'
12" x 1" x 14'
8" x 2" x 14'
9" x 1" x 14'
4" x 3" x 14'
TOTAL

No. of
Pieces (1
Truck)
2,000
1,500
1,000
500
1,000
6,000

Unit
Price
(UShs)
90,000
60,000
60,000
50,000
90,000

11

Monthly
Revenues
(UShs)
180,000,000
90,000,000
60,000,000
25,000,000
90,000,000
445,000,000

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

EXPLANATORY NOTES TO NET INCOME STATEMENT

1. Purchase of Timber: - The source cost of timber at the Uganda-DRC
border is taken 75% of the Kampala market sales price. For 1 truckload
of timber that sells at UShs 445,000,000, its cost of sales UShs
333,750,000 to purchase at source.
2. Transportation (Mpondwe Kampala): - Transporting the
hardwood timber from Mpondwe to Kampala is by road. The road
freight rate is UShs 2,500/panel or UShs 15,000,000 for the whole
consignment of 6,000 panels per truckload.
3. Taxes: - Importation taxes on timber into Uganda consist of Import
Duty, VAT and Withholding Tax. These amount to UShs 5,000 10,000
per timber plank when compounded. Assuming a tax rate of UShs
10,000 per timber plank/panel, the total amount of tax paid on each
truck works out UShs 60 million.
4. Labour: - Refers to the manual labour for loading the machine-sized
timber planks at Mpondwe border. The unit labour cost per timber
panel is calculated at UShs 100/panel = UShs 600,000 for the whole
truckload.
5. Miscellaneous and Contingencies: - Include business contingencies
and incidentals such as accommodation, subsistence, tips, etc. It may
also include any other cost that may overspill its cash budget allotment
and then has to be offset from contingency funding allotment.
6. Sales Revenue: - Hardwood timber sales prices are indicated in the
third column of Table 6 above. Basing on these prevailing Kampala
timber market prices, the expected monthly revenues are UShs 445
million or UShs 5.34 billion in Year 1 alone. These are shown to
increase at a rate of 5 per cent per annum to take into account annual
inflation-adjusted rates/prices.

12

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

ACCOUNTING POLICIES
Loan Amount: The timber trading enterprise seeks a seed capital loan of
UShs 200 million from the bank to capitalize the business.
Repayment Period: The loan repayment period if for 3 years (36 months).
Interest Rate: The loan attracts an interest rate of 26% per annum.
Bank Charges: There is a bank charge of 1% on the loan.
Insurance Charges: The loan attracts an insurance charge of UShs
500,000.

13

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

TIMBER TRADING NET INCOME STATEMENT: YEAR 1 (IN UGX)

ITEM/MONTH
No. of timber
panels

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

5,650,000

26,966,667

48,391,667

69,925,000

91,566,667

113,316,667

135,175,00
0

157,141,667

200,000,000

220,000,000

558,316,667

0
445,000,00
0
580,175,00
0

514,925,000

0
445,000,00
0
536,566,66
7

471,966,667

0
445,000,00
0
493,391,66
7

6,000

INFLOWS:
Cash B/F
Seed Loan
Promoter's
Equity

179,216,6

Sales Revenue

Total Inflows

420,000,000

0
445,000,00
0
450,650,00
0

Cost of Sales

333,750,000

333,750,00
0

333,750,000

333,750,00
0

333,750,000

333,750,00
0

333,750,000

333,750,00
0

333,750,000

Gross Profit

86,250,000

116,900,000

138,216,667

159,641,667

181,175,000

202,816,667

224,566,667

246,425,000

268,391,667

290,466,66

Transport

15,000,000

15,000,000

15,000,000

15,000,000

15,000,000

15,000,000

15,000,000

15,000,000

15,000,000

15,000,00

Taxes

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,00

600,000

600,000

600,000

600,000

600,000

600,000

600,000

600,000

600,000

600,00

445,000,000

445,000,000

445,000,000

445,000,0
445,000,000

624,216,6
602,141,667

OUTFLOWS:

333,750,0

Operating
Expenses

Labour Costs
Misc. & Cont.

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,00

Total Opex

80,600,000

80,600,000

80,600,000

80,600,000

80,600,000

80,600,000

80,600,00
209,866,6

5,650,000

36,300,000

57,616,667

79,041,667

100,575,000

143,966,667

80,600,000
165,825,00
0

80,600,000

EBITDA*
Loan
Repayment

80,600,000
122,216,66
7

187,791,667

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,000

5,000,00

Loan Interest

4,333,333

4,225,000

4,116,667

4,008,333

3,900,000

3,791,667

3,683,333

3,575,000

3,466,66

Total Loan
Service

9,333,333

9,225,000

9,116,667

9,008,333

8,900,000

8,791,667

8,575,000

8,466,66
201,400,0

Net Profit Before Tax

Corporate Tax
(30%)

5,650,000

26,966,667

48,391,667

69,925,000

91,566,667

113,316,667

135,175,000

8,683,333
157,141,66
7

Net Profit

5,650,000

26,966,667

48,391,667

69,925,000

91,566,667

113,316,667

Cash Balance
C/F

5,650,000

26,966,667

48,391,667

69,925,000

91,566,667

113,316,667

*EBITDA:

135,175,000

0
157,141,66
7

179,216,667

135,175,000

157,141,66
7

179,216,667

Earnings Before Interest, Tax, Depreciation and Amortization

14

179,216,667
0

201,400,0

201,400,0

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

TIMBER TRADING NET INCOME STATEMENT: YEAR 2 (IN UGX)
ITEM/MONTH

13

14

15

16

17

18

19

20

21

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

478,065,00
0

45,997,500

72,168,333

98,469,167

124,900,00
0

151,460,83
3

178,151,66
7

204,972,50
0

231,923,33
3

259,004,16
7

Seed Loan

Promoter's
Equity

0
478,065,00
0

0
467,250,00
0
513,247,50
0

0
467,250,00
0
565,719,16
7

0
467,250,00
0
592,150,00
0

0
467,250,00
0
618,710,83
3

0
467,250,00
0
645,401,66
7

0
467,250,00
0
672,222,50
0

0
467,250,00
0
699,173,33
3

0
467,250,00
0
726,254,16
7

350,437,50
0
127,627,50
0

350,437,50
0
162,810,00
0

188,980,833

350,437,50
0
215,281,66
7

350,437,50
0
241,712,50
0

350,437,50
0
268,273,33
3

350,437,50
0
294,964,16
7

350,437,50
0
321,785,00
0

350,437,50
0
348,735,83
3

350,437,50
0
375,816,66
7

Transport

15,750,000

15,750,000

15,750,000

15,750,000

15,750,000

15,750,000

15,750,000

15,750,000

15,750,000

15,750,000

Taxes

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

No. of timber panels

INFLOWS:
Cash B/F

Sales Revenue
Total Inflows

467,250,000
539,418,333

OUTFLOWS:
Cost of Sales
Gross Profit

350,437,500

Operating Expenses

Labour Costs

630,000

630,000

630,000

630,000

630,000

630,000

630,000

630,000

630,000

630,000

Misc. & Cont.

5,250,000

5,250,000

5,250,000

5,250,000

5,250,000

5,250,000

5,250,000

5,250,000

5,250,000

5,250,000

Total Opex

81,630,000

81,630,000

81,630,000

EBITDA*
Loan
Repayment

45,997,500

81,180,000

107,350,833

81,630,000
133,651,66
7

81,630,000
160,082,50
0

81,630,000
186,643,33
3

81,630,000
213,334,16
7

81,630,000
240,155,00
0

81,630,000
267,105,83
3

81,630,000
294,186,66
7

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

Loan Interest

3,011,667

2,881,667

2,751,667

2,621,667

2,491,667

2,361,667

2,231,667

2,101,667

1,971,667

Total Loan
Service

9,011,667

8,881,667

45,997,500

72,168,333

98,469,167

8,751,667
124,900,00
0

8,621,667
151,460,83
3

8,491,667
178,151,66
7

8,361,667
204,972,50
0

8,231,667
231,923,33
3

8,101,667
259,004,16
7

7,971,667
286,215,00
0

Net Profit

45,997,500

72,168,333

98,469,167

0
124,900,00
0

0
151,460,83
3

0
178,151,66
7

0
204,972,50
0

0
231,923,33
3

0
259,004,16
7

0
286,215,00
0

Cash Balance
C/F

45,997,500

72,168,333

98,469,167

124,900,00
0

151,460,83
3

178,151,66
7

204,972,50
0

231,923,33
3

259,004,16
7

286,215,00
0

Net Profit Before Tax

Corporate Tax (30%)

*EBITDA:

Earnings Before Interest, Tax, Depreciation and Amortization

TIMBER TRADING NET INCOME STATEMENT: YEAR 3 (IN UGX)

ITEM/MONTH
No. of timber
panels

25

26

27

28

29

30

31

32

33

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,00

561,841,00
0

143,616,75
0

176,193,37
5

208,900,00
0

241,736,62
5

274,703,25
0

307,799,87
5

341,026,50
0

374,383,

111,170,125

INFLOWS:
Cash B/F

15

MARY KAKURANGAS TIMBER TRADING BUSINESS PLAN

Seed Loan
Promoter's
Equity

0
0
561,841,00
0

0
490,612,50
0
601,782,62
5

0
490,612,50
0
634,229,25
0

0
490,612,50
0
666,805,87
5

0
490,612,50
0
699,512,50
0

0
490,612,50
0
732,349,12
5

0
490,612,50
0
765,315,75
0

0
490,612,50
0
798,412,37
5

0
490,612,50
0
831,639,00
0

367,959,37
5
193,881,62
5

367,959,37
5
233,823,25
0

367,959,37
5
266,269,87
5

367,959,37
5
298,846,50
0

367,959,37
5
331,553,12
5

367,959,37
5
364,389,75
0

367,959,37
5
397,356,37
5

367,959,37
5
430,453,00
0

367,959,37
5
463,679,62
5

367,959,

Transport

16,537,500

16,537,500

16,537,500

16,537,500

16,537,500

16,537,500

16,537,500

16,537,500

16,537,500

16,537,5

Taxes

Sales Revenue
Total Inflows

490,612,

864,995,

OUTFLOWS:
Cost of Sales
Gross Profit

497,036,

Operating
Expenses
60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,000

60,000,0

Labour Costs

661,500

661,500

661,500

661,500

661,500

661,500

661,500

661,500

661,500

661,5

Misc. & Cont.

5,512,500

5,512,500

5,512,500

5,512,500

5,512,500

5,512,500

5,512,500

5,512,500

5,512,500

5,512,5

Total Opex

82,711,500

82,711,500

111,170,125

151,111,750

82,711,500
216,135,00
0

82,711,500
248,841,62
5

82,711,500
281,678,25
0

82,711,500
314,644,87
5

82,711,500
347,741,50
0

82,711,500
380,968,12
5

82,711,5
414,324,

EBITDA*
Loan
Repayment

82,711,500
183,558,37
5

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,000

6,000,0

Loan Interest

1,495,000

1,365,000

1,235,000

1,105,000

975,000

845,000

715,000

585,000

455,0

Total Loan
Service

7,495,000
143,616,75
0

7,365,000
176,193,37
5

7,235,000
208,900,00
0

7,105,000
241,736,62
5

6,975,000
274,703,25
0

6,845,000
307,799,87
5

6,715,000
341,026,50
0

6,585,000
374,383,12
5

6,455,0
407,869,

0
176,193,37
5

0
208,900,00
0

0
241,736,62
5

0
274,703,25
0

0
307,799,87
5

0
341,026,50
0

0
374,383,12
5

176,193,37
5

208,900,00
0

241,736,62
5

274,703,25
0

307,799,87
5

341,026,50
0

374,383,12
5

Net Profit Before Tax

Corporate Tax
(30%)

111,170,125

Net Profit

111,170,125

0
143,616,75
0

Cash Balance
C/F

111,170,125

143,616,75
0

*EBITDA:

Earnings Before Interest, Tax, Depreciation and Amortization

16

407,869,

407,869,