Kamal Group’s Chairman, Gagan Gupta said in Dar es Salaam on Friday that its cashew-nut processing project which will see hundreds of Tanzanians owning small scale cashew nut processing units, is model that seeks young graduates to join.
Gupta told the students and other entrepreneurs who attended the lecture that Kamal’s project is built on a system that is largely employed in India. Kamal Group will make it easy for at least 100 entrepreneurs to own small scale cashew processing plants.
“I came up with this idea after thinking deeply on what I can do to make Tanzanians successful. If I came all the way from India and became successful in Tanzania, why can I not make Tanzanians successful?” enquired Gupta.
He further noted that his group of companies wants to equip the students with the practical knowledge of running businesses. “Tanzania has lots of opportunities and the business climate is good. Entrepreneurship has been the only missing link which we are now here to offer,” he charged.
The project is developed in such a way that Kamal Group strikes a partnership deal with a commercial bank whereby the company will furnish up to 100 Tanzanian entrepreneurs with all that they need to start 100 small scale cashew nut processing units. The entrepreneurs will be furnished with land, equipment, water and electricity for conducting the processing. All one will need to have as seed capital is 16.92m/-.
He said the task of looking for an international market for the processed cashew nuts will be taken by Kamal Group. “Kamal has all the responsibilities of introducing the processed cashew-nuts to international markets. The entrepreneur has no obligation for procurement and selling,” he assured.
The 16.92m/- will be equal to 20 percent of the 84.6m/- in machinery, land and building costs that each entrepreneur is required to have to set up a small scale processing factory.
The remaining 67.68m/-, which is equivalent to 80 percent of the factory costs, will be financed through a bank loan. “This was deliberately designed to ensure that an entrepreneur gets the pain and the desire to yield return on that investment. It is designed in such a way that instead of coming to my company to look for a job, it is you who actually creates jobs because through this project, each of you can employ between 20 and 25 people,” he added.
In return, each of the entrepreneurs will be able to make up to 37.8m/- each year in profit from the cashew nut processing business after deducting for all the operation costs. The amount will go up to over 60m/- per year after completion of payment of the bank loan in a period in not more than three years.
Some participants hailed the initiative, saying it was a sure response to Tanzania’s industrialisation needs.
“This can surely help us to own factories. Through this initiative, banks will no longer be thwarting our factory ownership dreams to a lack of collaterals because Kamal will do that on our behalf,” said Elizabeth Munisi, a second year student at UDBS.
Another student, Kusiluka Justis backed her saying through the initiative, the company will also be responsible for the market needs of entrepreneurs. “It is really good and we need to grab this opportunity,” he said.