Compedium of Diaspora opportunities

21/05/2018

STARTING A SHOE REPAIRING BUSINESS IN UGANDA

Introduction

Shoes are important accessories put on by all categories of people, from babies, children and adults. Sered with. Find a perfect shoe, find out how and what to do when something goes wrong and you need to repair it. This can be a viable venture because nobody wants to move with worn-out, torn, cut, or broken shoes. This project cost US$ 1030 working on about 436800 repairs annually and yielding annual revenues estimated at US $ 13104.

Process, Capacity and Technology

Item Units Qty cost Total
Leather stitching machine No 2 425 850
stitching needles No 10 3 25
foot frames No 5 5 25
Boards No 3 5 15
Shelves and Racks No 2 15 30
Tables No 2 25 50
Other Cutting instruments No 10 3 30
Brushes No 4 1 4
Hammers No 4 2 8
TC of Machinery & Tools       1,030

The process of repairing shoes is not out straight because depending on the extent of damage on the shoes. These could be broken heels and worn out soles, stitching, faded leather, loose straps or buttons or buckles or fasteners etc.

These determine what to be followed when doing repairs. The capacity 300 shoes per month and the technology involved is locally invented and therefore very affordable.

Capital Investment Requirement in $

  1. Production costs assumed 312 days per year with daily capacity of 300 repairs
  2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
  3. Direct costs include materials, supplies and all other costs that directly go into production of a product.
  4. A production month is assumed to have 26 days.
  5. Currency used is US Dollars.

Production and Operating costs in US$

Direct materials, supplies and costs

Cost Item Units @ Qty/day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs          
Fabric Mtrs 3 0.96 2.88 74.88 89
Synthetic Mtrs 1.2 0.32 0.384 9.984 120
Leather Mtrs 7 1.28 8.96 232.96 2,796
Threads Rolls 10 0.2 2 52 625
Nails kgs 2.6 0.01 0.026 0.676 8.112
Glue ltrs 6 0.01 0.06 1.56 18.72
Sub-total       14.31 372.06 4,465.7

General Costs (Overheads)

Labour 350 4,200
Selling & distribution 50 600
Utilities (Water, power) 35 420
Rent 150 1,800
Miscellaneous expenses 75 900
Depreciation 21.4 257.5
Sub-total 681 8,178
Total Operating Costs 10534 12,6434

Project product costs and Price structure in US$

Item Qty/day Qty /yr @ Pdn cost/yr UPx TR
Repairs 1400 436,800 0.1 43,680 0.3 13,104

Profitability Analysis in US $

Profitability Item Per day Per month Per year
Revenue 42 1,092 13,104
Less: Production and operating costs 41 1053.6 12,644
Profit 1 38 460

Market Analysis

New Shoes are quite expensive and with our terrain and broken walk ways, shoes get damaged quite often and thus need to repair them. These clinics therefore are often jammed with customers.

Source of Machinery:

Locally fabricated by Tonet Ltd Kanyanya Gayaza Rd, Tree Shade Ltd, Mwanga II Road Kisenyi Kampala and can also be sourced from China and India. Raw materials are locally available.

Government Incentives:

U.I.A provides guidelines on investment, government incentives, taxes and security matters.

 






 
 

 

Central Scotland’s First Rum Distillery to Launch Crowdfunding Campaign in Response to Demand

Following overwhelming response to the launch of Central Scotland’s first rum distillery, Matugga Distillers is launching a £30K crowdfunding campaign.   Since the opening of the distillery in October, husband and wife ...
by wmutenza
0

 
 

THE IMPORTANCE AND RELEVANCE OF FRUGAL INNOVATION IN UGANDA

, Lecturer in Marketing School of Business, University of Leicester Exploring the nature and prospects of frugal innovation in Uganda and what are the opportunities that exist to foster frugal innovations in Uganda.   Dr W...
by wmutenza
0

 
 

Hon. Amongi Betty Ongom (MP), Minister of Lands on policies, legal frame work…

The Minister gave an overview of the housing sector in Uganda. She appreciated the fact that this year’s convention attracted a number of development companies from Uganda including Jakana heights, Roofings Ltd Uganda, Comfor...
by wmutenza
0

 

 

Lessons learned from the Uganda-UK Convention | Ade Daramy

By Ade Daramy, Writer, Broadcaster and Press Officer Is one question I will always get asked at least one question: “You’re not a Ugandan, and yet, you are here every year, why is that?”.   Ove the years, my answers ...
by wmutenza
0

 
 

Message from Vice Chairman, Uganda-UK Convention – Bernard R. Magulu

By Bernard R. Magulu, Executive Director, Bank of Africa (Uganda), (Vice Chairman, Uganda Convention UK) “Uganda the Land of Opportunities, Landlocked but Road Linked” the 360% Geographical Orientation for Investors providi...
by wmutenza
0

 

 

Examining free trade agreements (FTAs) and boosting intra-regional trade

Examining free trade agreements (FTAs) and boosting intra-regional trade Nicholas Tate, Managing Director, Tate Freight Forms Ltd. www.just-trade.co.uk In considering the positives and negatives of key agreements, are trade blo...
by wmutenza
0

 
 

Harnessing the potential of the youth to accelerate economic growth.

Presentation: Dennis Aguma, Lecturer, Kingston University, London Doctoral Student (PhD Entrepreneurship) Birmingham City University. In light of Uganda’s demographics, Dennis Aguma’s presentation was intended to challenge...
by wmutenza
0

 

 

Untapped investment opportunities Manufacturing | Agri-Business Health and Service industry

Panel discussion: untapped investment opportunities Manufacturing | Agri-Business | Health and Service industry Discussed points What are Africa’s Export Opportunities and Challenges to European and North American markets? Ho...
by wmutenza
0

 
 

INVESTMENT OPPORTUNITIES IN CONSTRUCTION, INFRASTRUCTURE AND REAL ESTATE

INVESTMENT OPPORTUNITIES IN CONSTRUCTION, INFRASTRUCTURE AND REAL ESTATE Panel discussion: 3-4 industry lead speakers from UK and Uganda HOUSING: Understanding market demand, and addressing the disconnection between the price o...
by wmutenza
0

 
 

Outlining the UK’s export growth strategy – Lord Dolar Popat

PRESENTATION: UK TRADE AND FDI – Outlining the UK’s export growth strategy By Lord Dolar Popat, UK Prime Minister’s Trade Envoy to Uganda and Rwanda   How can investment by the United Kingdom help improve skills in U...
by wmutenza
0

 

 

2018 | Welcome remarks: H.E Amb. Julius Peter Moto Uganda’s High Commissioner to the UK

H.E Amb Julius Peter Moto welcomed everybody to the 8th Annual Uganda – United Kingdom Trade and Investment Convention. He stressed that Uganda High Commission and Government of Uganda is happy to associate with Uganda UK Con...
by wmutenza
0

 
 

Thank you for supporting the 8th Ugandan Convention-15th Sept2018!

The Uganda UK Convention wishes to express its deepest thanks to Hon Betty Amongi Ongom, Minister of Lands Housing and Urban Development, Uganda and Lord Dolar Popat, UK Prime Minister’s Trade Envoy to Uganda and Rwanda. The ...
by wmutenza
0

 

 

UK suppliers sought for Uganda airport works

  UK suppliers are being sought for works on Uganda’s international airport. SBC (Uganda), a UK-incorporated joint venture between Colas and SBI International Holdings AG, are looking for UK contractors to work on the UK...
by wmutenza
0

 
 

UK company to construct New Ugandan Hoima International Airport | Uganda 8th Convention UK

Colas UK is a UK subsidiary of French civil engineering firm, Colas Group, and local construction company SBI. This   project, a Transport infrastructure firm will be supporting the construction of a new airport in Kabaale f...
by wmutenza
0

 

 

Universal Multi-purpose Entreprise group takes affordable housing investment to Ugandans in UK.

Affordable Housing is the leading real estate in Uganda managed by Universal Multi-purpose Entreprise group will be showcasing over twelve affordable housing projects in Uganda at the 8th Investment Convention scheduled for 15 ...
by wmutenza
0

 



0 Comments


Be the first to comment!


You must be logged in to post a comment.


 
WP Facebook Auto Publish Powered By : XYZScripts.com