Running a project in Africa, carries perhaps more risk than in other continents, though the rewards can be higher, as a result.  Some of our projects carries little risk.  We will educate our young social entrepreneurs and we will build a long-term school for developing young changemakers.  The business side needs closer examination and so this section raises some of the issues which investors might be considering:

TRUST

This project relies on the goodwill of the participants in the project and their families.  That’s why we tested the concept with ten farms last year.  In each case the families were prepared to work on the project for free.  This year we will pay them for their labour.  Social Enterprise Africa is a Community Interest Company, which means we need to account for the work we do for the community, or we lose our special status.  Intergrity is what we teach the young people and so we adhere strongly to our own principles for business ethics.

EXPERTISE

Melons are not straightforward to grow and we learnt a lot last year about sowing, harvest, spraying and transportation.  Our results were mixed, but, in each area, water melons were able to be harvested.  This year, we are going to employ an international expert to ensure the growing and harvesting process is trained in professionally.  In addition, we will employ four full-time staff to watch over the development of each of the crops and provide advice and labour to growers.  For transportation we clearly need our own vehicles and so two transportation vehicles will be purchased for this year.

CORRUPTION

The Butterfly Project trains in ethics and corruption-avoidance techniques into its members.  Also, our staff will receive this training.  In Uganda, poverty is extremely prevalent and this can occasionally cause unexpected problems.  Every member of our project will have something to gain at the end of the year by working with us, not against us and we believe this is a way of valuing our staff team, which will mean that they work more efficiently and with good purpose.

WEATHER

Weather caused a problem in our first year, delaying harvest and water logging some of the melon crop.  In other areas there was drought and germination was either delayed or did not occur.  This year, we will employ methods to raise the melons out of standing water and employ effective irrigation techniques if there is insufficient rain.  Uganda’s climate is very temperate compared to surrounding regions and our farms are spread all across the country, which means that if there are weather problems, then they will be localised and affect only a small portion of the crop.  The weather for Uganda will be posted on this site during this year.

PESTS AND FUNGUS

Melons are very prone to pests and sometimes fungus and thus it will be crucial to provide sprays and fungicides to all farmers.  We intend to use Tafgor as the insecticide, as it has very little long-term impact on the fruit and the environment itself and is readily available in Uganda.  Growers will wear protective equipment, when utilising the spray.

LAND SUITABILITY

Melons require a good soil full of nutrients.  Our experience this year, though, was that only one crop failed to grow at all.  Since we are in 60 separate sites around Uganda, we will not be successful everywhere, but this does spread the risk.  In addition to this, Social Enterprise Africa will acquire some ten acres of agricultural land, which is selected for appropriateness for the melon crop and will seed this acreage, as a backup to the project, should we be below target.

NO MARKET

Market for melons in Uganda is quite good.  There are many people, though the price of a melon is not within every person’s capability.  Good markets are mostly in the larger cities – Kampala, Mbarara, Gulu and others.  Also, we have researched buyers in Kenya and Sudan, who have offered good prices per melon.  It is unlikely that this year market prices will be impacted.  There is also a ready market for melon slices in the centre of the cities in Uganda and we hope to tap into this.

NATIONAL STABILITY

Uganda has had the same government for over 20 years now and has been relatively stable.  One can rarely predict insurrection problems.  Western Uganda has seen absolute stability for a very long period of time.

CURRENCY FLUCTUATION

This is a risk, as the Ugandan shilling depressed substantially after this year’s general election.  However, at the moment it is relatively stable and all forecasts are based on current exchange rates.

CRIME

There is a high level of crime in Uganda and so significant precautions need to be taken to ensure that the transport driver is accompanied by another adult, when transporting the melons.  Our farming operatives will be able to take this role.  He may also choose to take a conductor on passenger runs.

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