Project Proposal

for
Solar Items (Solar panels, Plastic Solar home
systems; Solar LED Lamps; Glasses and
Solar Batteries) Manufacturing

Owner: Mohammed Dawid

Umer

Presented to: Dire Dawa Administration

Investment Bureau

October 2024
Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Contents
0. Executive Summary .......................................................................................... 2

1. Introduction ....................................................................................................... 3

1.1. Purpose of the plan .................................................................................... 4

1.2. Product or service and its advantages ....................................................... 4

2. Market Analysis................................................................................................. 5

2.1. Target Market ............................................................................................. 6

2.2. Competitive Advantage .............................................................................. 7

2.3. Profile of Competitors ................................................................................. 7

3. Benefits and Features ....................................................................................... 8

4. Unique selling points ......................................................................................... 8

5. Advantages to customers ................................................................................. 9

6. Technical Aspects ........................................................................................... 10

6.1. Manufacturing lines .................................................................................. 10

6.2. Plant capacity per annum ......................................................................... 10

7. Financial Analysis ........................................................................................... 10

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

0. Executive Summary

Photovoltaic solar panels have limited distribution and use in Ethiopia due to high
import tariffs, lack of widespread financing arrangements, mismatch between PV-
panel design and Ethiopian architectural design, the failure of available devices
to target the essential needs and financial capabilities of rural and urban
Ethiopians, and the absence of a local technical support network and coordinated
sales team to maintain installed PV devices and expand the PV market to
Ethiopian consumers.

This proposal is therefore prepared with the aim of establishing new solar items
manufacturing project on a 10,000 hectare land located at a convenient Industrial
location of Dire Dawa Administration.

The products to be manufactured by the company include: Solar panels, Plastic

Solar home systems; Solar LED Lamps; Glasses and Solar Batteries. Our market
Study shows that there seems to be a huge market for our products in the rural
and urban areas of the country.

The total investment cost of the project is estimated to be Birr 102,022,826.85, of

which birr 30,606,848.05 will be covered by the owner's equity and the remaining
birr 71,415,978.79 will be financed by bank loan.

The calculated net present value of the project appears to be Birr 115,753,052 at
10% discount rate when the 10 years assumed life of the project is considered.
Correspondingly the estimated financial internal rate of return (FIRR) of the
project is 62%.

The project will create job opportunities for 102 employees and among the total
job positions will be management & administrative professional and technical
workers and the remaining will be service workers.

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

1. Introduction
The neighboring sites of Dire Dawa Administration provide uniquely suitable
environments for the indigenous manufacturing and assembly of Ethiopian PV
panels. The city is located approximately at the midpoint between the Red Sea
port of Djibouti and the population center of Addis Ababa. Dire Dawa is a
manufacturing center having been founded to support the construction of the
Ethio-Djibouti Railway at the turn of the century.

Dire Dawa is the second largest city in Ethiopia. The Administration settings
offer secure locations with reliable grid electricity and water supply. The rail and
highway link to Djibouti on the Red Sea offers direct access to PV components
from Asia through the Arabian Sea and Europe/North America through the Suez
Canal.

The promoter has three goals:

1) Manufacture of PV panels targeting the rural and urban Ethiopian
consumers at an affordable price with viable financing arrangements.
2) Training of a new generation of entrepreneurial technologists and
businessmen who will expand the market for PV’s in Ethiopia as well as
support indigenously manufactured and locally installed equipment.
3) Enhance the economic situation through an Ethiopian adaptation of new
technology.

The space required for the initial assembly facility is estimated to be around 10
hectares. The initial market for Ethiopian PV panels in the first few years of
operation will be the city of Dire Dawa, and small-scale foreign aid projects in the
Hararghe/Oromo regions targeting rural development such as the Haraghe
Catholic Secretariate and projects funded by activities of NGOs in these areas.

The Ethiopian Ministry of Water & Energy has informally committed to purchase
on the order of 1M such panels over a three-year period for installation in rural

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

communities across Ethiopia if capacity and quality can be demonstrated.

Supply to these larger-scale government funded activities will support
intermediate-term goals of return on the initial investment.

Longer-term strategies involve working with non-government organizations

targeting the marketing and support of PV technology in Ethiopia, particularly, the
Solar Energy Foundation (Stiftung Solarenergie) which operates for the most part
in northern Ethiopia.

Efforts will be made to design PV systems compatible with rural and urban
endemic architecture and lifestyles taking advantage of world leading design
expertis.

In the long term the project also plans to develop assembly of deep-cycle
batteries for use in off-grid solar and wind power applications. Similar to PV
assembly, the assembly of conventional deep-cycle batteries is essentially a low-
technology labor-intensive manufacturing process adaptable to the conditions
that exist at the Administration with similarities in the need for supply lines to Asia
and Europe for component parts.

1.1. Purpose of the plan

The purpose of this business plan is to explore the potential for solar items
manufacturing and assembly on Dire Dawa Administration coupling education,
training, marketing, manufacturing and business development that target the
Ethiopian rural and urban markets for renewable energy.

1.2. Product or service and its advantages

The products for this business are indigenously manufactured photovoltaic solar
panels, plastic solar home systems; solar LED lamps; glasses and solar
batteries, designed for use in rural and or urban settings in Ethiopia.

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

2. Market Analysis
The potential market for off-grid power in Ethiopia is enormous. Ethiopia is a
country of 95 million people with population expected to reach 160 million by
2060. Of the current 95 million people approximately 90 million live in a rural
setting with limited potential to ever have access to grid power. Even in urban
Ethiopia grid power is unreliable.

Frequent blackouts lead to a large market for security and street lighting based
on off-grid sources. Solar power lighting can meet this need and also provide a
new level of security and safety to rural villages where the only light at night
typically comes from fires made with brush firewood.

PV panels are almost completely absent from Ethiopia, with the exception of cell
phone towers, despite Ethiopia being one of the most opportune locations for the
use of photovoltaics with the highest solar irradiance on earth, location near the
equator with 12 hours of sunlight throughout the year, moderate temperatures
and a highly dispersed population that does not have any real potential for grid
electrification, and a highly unreliable grid power system where it is available.

Several groups have found the potential for a large market for PVs in Ethiopia
such as Stiftung Solarenergie from Germany, which is an organization with
operations in the north of Ethiopia that develops rural technicians to market and
support chiefly Chinese polycrystalline photovoltaics for small scale lighting and
to power some electronics such as cell phone charging and radios. SS has had
significant success in bringing PVs to rural Ethiopia through an innovative
marketing mechanism involving time payment and a team of local franchised
experts in business to support the expansion of solar energy. A similar model is
used in Uganda by Solar Energy for Africa as well as by other groups in SSA. A
key element for a sustainable market among the rural poor is financing through
time payments collected by local technical experts. Organization of these
franchised business units is a key element in the delivery of solar energy to rural

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Ethiopia in the long term. SS has shown this business model to be viable in
Ethiopia even when the equipment costs are 2.5 times that in the developed
world.

In the short term there exist several large niche markets that can support the
development of including federal and local government purchases, NGO
purchases, and support of the telecommunications industry. In many cases there
is a strong political will to purchase indigenously manufactured PVs. In all cases
it is possible to under sell imported PVs by price while offering a higher quality
product designed for the Ethiopian market with local technical support.

Currently the Ministry of Water & Energy has plans to purchase and install 2M
PV panels in the next few years, a purchase that could support the initial stages
of business development. The current situation is excellent for both short-term
markets for PV panels in the Hararghe/Oromo regions as well as for expansion to
a national market when manufacturing capabilities permit. The Administration
sites offer a unique incubator for the growth of the project.

The initial small-scale, startup market in the first year of operation involving
Administration sales, sales to local communities and NGOs is estimated at 100
PV panels per month. This level of production will allow for the development of a
high standard of quality control over the first two years of production. A 150W
peak, polycrystalline panel will sell for approximately $500 in Addis Ababa or Dire
Dawa. Components for this panel can be imported in Ethiopia for about $340 on
a small scale with approximately 8 hours labor to assemble a panel mostly
involving soldering of PV chips and checking connections as indicated in Table 1.

2.1. Target Market

This solar panel manufacturing plant is meant for a profit which can sustain the
plant by its own. It is basically a centre for training science and engineering
Administration student education and also serves as youth employment
beginning from production to distribution, installation and maintenance.

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

However, the main market of our solar products primarily will be the farmers in
the rural area of Eastern and Western Hararghe zones of Oromia Regions.

2.2. Competitive Advantage

Currently, there is no single company, in Ethiopia, manufacturing the solar panels

locally. Therefore, there will be an ample opportunity of creating solar trade
market in the country if there is a possibility of establishing solar products
manufacturing company locally. As it goes now, it was learnt from the ministry,
the task of rural electrification is supported by various development partners like
World Bank, African Development Bank, Mashe, and Light Africa etc. Besides
German own nongovernmental organization and local private companies are also
taking part to support the efforts.

These organizations provide financial support to the ministry. The ministry, after
raising the fund, signed memorandum of understanding with a NGOs and private
companies so that they can import the solar power systems (the panel, battery
and accessories) from abroad mainly from India and China and sell to the user at
the subsidized cost of 280 – 800 birr per system.

However after the systems were installed and transferred to the users, it was
learnt that in some situations there were malfunction of the systems due to
battery failure. To secure consumers’ confidence on the product, they are now
being replaced by genuine batteries. The level of acceptance of the solar panel
system by the rural community is promising as testified by the growing demand
of the systems.

2.3. Profile of Competitors

There is no single competitor from the panel production point of view. Though
there are NGOs and private companies working in the trade of the solar panel
system, the cost is unbearable by the majority rural customers since they are

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

importing from abroad. In our case the system will be assembled and
manufactured locally where there is a relatively cheaper labour cost that will
make the product affordable by the customers.

3. Benefits and Features

1) The implementation of solar energy means a fundamental improvement
in a day-to-day life for the people in rural areas.
2) Solar energy will enable the application possibilities of light, (in roads &
rooms), medicine refrigeration, solar computers, water pumps & water
disinfection in the rural areas.
3) The promoter creates job for technicians involved in installing, maintaining
and servicing the system. This may lead to the establishment of micro-
technicians who can do the work in organized manner.
4) The project will provide opportunity for faculty and students at HU and
DDU to put their skills and knowledge to work for the development of
Ethiopia, creation of jobs and improvement of living conditions.

4. Unique selling points

The project has several advantages over competitive proposals for photovoltaic
assembly plants in sub-Saharan Africa.
 Market protection provided by extremely high import duties on
manufactured solar panels and the lack of any import duty on
assembly components.
 Initial market provided by the Administration and city of Dire Dawa as
well as early stage market provided by the Ministry of Water and
Energy.
 Expansion of transportation through a nearly built interstate-style
highway and modern rail link from Djibouti to Addis Ababa through Dire
Dawa that expands the potential market to the entire population of 95
million Ethiopians.

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

 The location of the plant on the newly renovated transportation paths

and the link to the port of Djibouti as well as local demand in the
Hararghe/Oromoian regions and the strong local work force provided
by the city of Dire Dawa make this location ideal for a solar panel
assembly plant.

5. Advantages to customers

The rural community, in Ethiopia, uses kerosene for lighting while fire woods and
excrement of animals for cooking. Thus with the introduction of alternative energy
sources like solar, it will have the following advantages

1) Improve the health status of the community

2) Prolonged the study time of children of rural community therefore their
academic performance can get improved.
3) Reduce carbon emission
4) It serves as a means of income by contracting the system for lighting,
cooking, TV & printer operation and mobile charging etc to the rural
community.
5) Rural Schools lighting, powering computers and accessories and pump
water from well.
6) The project will provide higher quality PVs compared to imported Chinese
solar panels.
7) The project will provide solar panels at a lower cost compared to imported
solar panels that are subject to a large import duty and transportation
costs.
8) The project will provide solare panels supported by local technical experts
and a local assembly plant that can support trained service technicians.
9) The project will design new solar panels that are accommodated to the
local Ethiopian architecture and customs. Our solar panels are designed
by Ethiopians for the Ethiopoian market.

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

10) The project will develop time payment and microfinance schemes to grow
PV markets in the rural and urban settings.
11) The project will work closely with the Ethiopian government and with
NGOs to provide PVs for targeted development markets.
12) The project solar cells will be one of the first technical devices
manufactured in Ethiopia. This involves a significant national achievement
and enhancement of Ethiopia’s national pride.

6. Technical Aspects
6.1. Manufacturing lines
As there are five items are intended to be manufactured by the project, different
segments/components are used for manufacturing as mentioned bellow:-

 Solar panels manufacturing line

 Plastic Solar home systems manufacturing line
 Solar LED Lamps manufacturing line
 Glasses manufacturing line
 Solar Batteries manufacturing line
 Assembly line

6.2. Plant capacity per annum

1) Solar panels: 3,000 Pcs per annum

2) Plastic Solar home systems: 3,000 Sets. per annum
3) Solar LED Lamps: 1200 nos. per annum
4) Glasses: 6,000 Nos. per annum
5) Solar Batteries: 3,000 Pcs per annum

7. Financial Analysis
Table: Machineries requirement
No Items Value (Birr)
1 Solar panels 5,349,240.00

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

2 Plastic Solar home systems 9,136,092.60

3 Solar LED Lamps 6,961,462.80
4 Glasses 13,704,138.90
5 Solar Batteries 27,408,277.80
6 Assembly 18,272,185.20
Total 80,831,397.30

Table: Cost of Building & construction

Description Value (Birr)
Office and Store: 1,100,000.00
Production sheds 5,600,000.00
Lab.& Packaging: 3,200,000.00
Total 9,900,000.00

Table: Fixed Assets

No. items value (Birr)
1 Machinery 80,831,397.30
2 Cost for construction and Building 9,900,000.00
3 Vehicles 4,500,000.00
Total 95,231,397.30

Table: Depreciation
Depreciation Original value Annual Dep.
Description rate (Birr) (Birr)
Machineries 0.10 80,831,397.30 8,083,139.73
Buildings 0.10 9,900,000.00 990,000.00
Vehicles 0.10 4,500,000.00 450,000.00
Total Fixed Asset 95,231,397.30 9,523,139.73

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 Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Table: Repair and maintenance costs based on the standard rate

Description Percentage Total Repair & maintenance
investment costs
Machineries 0.03 80,831,397.30 2,424,941.92
Buildings 0.05 9,900,000.00 495,000.00
Vehicles 0.10 4,500,000.00 450,000.00
Total Fixed Asset 95,231,397.30 3,369,941.92

Table: personnel plan

S.N Description No. Qualification Experience Salary Monthly Annual
(Birr)
I Administrative staffs
1 Manager 1 Economist 3years 10,000.00 120,000.00
2 Executive secretary 1 Secretary 2years 2,000.00 24,000.00
3 Finance & 1 Accounting 2years 4,000.00 48,000.00
administration head
4 Accountant 2 Accounting 2years 1,500.00 36,000.00
5 Cashier 1 High school 2years 800.00 9,600.00
Graduate
6 Clerk 2 High school 0 years 700.00 16,800.00
Graduate
9 Quality control head 3 Food science 2years 1,500.00 54,000.00
10 Chemist 1 chemistry 2years 2,000.00 24,000.00
11 Production & technical 1 Plant science 2years 2,500.00 30,000.00
head
12 Commercial head 1 Marketing 3years 1,800.00 21,600.00
13 Personnel of direct 3 Management 2years 1,500.00 54,000.00
labor
14 Store keeper 2 12 graduate 2years 850.00 20,400.00
15 Purchaser 1 Procurement 2years 800.00 9,600.00
16 Salesperson 3 High school 2years 800.00 28,800.00
Graduate
17 Production shift leader 3 High school 2years 950.00 34,200.00
Graduate
18 Operator 16 TVT Graduate 2years 800.00 153,600.00
19 Laborer 32 - 0years 600.00 230,400.00
20 Janitors 3 - 0years 700.00 25,200.00
21 Mechanical Engineer 1 Degree in 2years 6,000.00 72,000.00
Engineering
22 Electrical Engineer 1 Degree in 2years 6,000.00 72,000.00
Engineering
23 Mechanic 8 TVT Graduate 2years 1,000.00 96,000.00
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 Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

24 Electrician 8 TVT Graduate 2years 1,000.00 96,000.00

25 Grease & oil man 2 TVT Graduate 2years 500.00 12,000.00
Drivers 2 TVT Graduate 0 year 1,000.00 24,000.00
Guard 3 - 0 year 500.00 18,000.00
Total 102 1,330,200.00
Employees benefit - 332,550.00
(25% BS)
Grand Total 1,662,750.00

Table: Raw Material required (per year)

Description
Solar LED Lantern
Cabinets
Led with heat sink
Switch, fuse, wire misc. items
Circuit board
Battery
Circuit Board
Switch, wire, fuse
Total Costs = 24,760,163.30 ETB

Table: Cost of sales

Description Value (Birr)
Raw material 24,760,163.30
Packing materials 742,804.90
Total Costs of
products sold 25,502,968.20

Table: Costs of sales forecast

Costs of sales
forecast Year 1 Year 2 Year 3 Year 4 Year 5
Capacity utilization 0.70 0.80 0.90 100.00 332,550.00
Total costs of
sales 17,852,077.74 20,402,374.56 25,502,968.20 26,778,116.61 28,117,022.44

Table: operating expenses

Items Value (Birr)
Distribution Expenses 243,945.17
Fuel Expenses 197,693.57
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 Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Depreciation 9,523,139.73
Maintenance and Repair 3,369,941.92

Salary Expense 1,662,750.00

Total Operating Costs 14,997,470.40

Table: Annual service production cost

Description Year 1 Year 2 Year 3 Year 4 Year 5
Capacity utilization 0.70 0.80 0.90 1.00 1.00
Total Operating Costs 10,498,229.28 11,997,976.32 13,497,723.36 13,902,655.06 14,319,734.71

Table: Working Capital Determination

Direct costs Days of coverage Required working capital
Raw material 120 6,190,040.82
Packing materials 120 185,701.22
Wage and Salaries 120 415,687.50
Total working capital required 6,791,429.55

Table: Planned Investment for the whole project

Description Costs (Birr)
Machineries 80,831,397
Buildings 9,900,000
Vehicles 4,500,000
Total Fixed Asset 95,231,397
Total working capital 6,791,429.55
required
Total Investment Costs 102,022,827

Table: Sources of finance

No. Description Total Costs Amount % Amount %
1 Machineries 80,831,397.30 24,249,419.19 30.00 56,581,978.11 70.00
2 Buildings 9,900,000.00 2,970,000.00 30.00 6,930,000.00 70.00

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

3 Vehicles 4,500,000.00 1,350,000.00 30.00 3,150,000.00 70.00

6 Total Basic Costs 95,231,397.30 28,569,419.19 30.00 66,661,978.11 70.00

7 Working Capital 6,791,429.55 2,037,428.86 30.00 4,754,000.68 70.00
Grand Total
102,022,826.85 30,606,848.05 30.00 71,415,978.79 70.00

Table: Loan Repayment Schedule

Year Loan Outstanding
Interest (9.5%)
Repayment Balance
1 71,415,979
2 7,141,598 6,784,518 64,274,381
3 7,141,598 6,106,066 57,132,783
4 7,141,598 5,427,614 49,991,185
5 7,141,598 4,749,163 42,849,587
6 7,141,598 4,070,711 35,707,989
7 7,141,598 3,392,259 28,566,392
8 7,141,598 2,713,807 21,424,794
9 7,141,598 2,035,355 14,283,196
10 7,141,598 1,356,904 7,141,598
7,141,598 678,452 0

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 Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Table: Profit and Loss Statement

Description Project Years
1 2 3 4 5 6 7 8 9 10
Sales 44,890,044 49,379,048 54,316,953 54,316,953 54,316,953 59,748,648 65,723,513 72,295,864 79,525,451 87,477,996
Direct cost of 17,852,078 20,402,375 25,502,968 26,778,117 28,117,022 29,522,874 30,999,017 32,548,968 34,176,417 35,885,237
sales
Gross Profit 27,037,966 28,976,674 28,813,985 27,538,836 26,199,931 30,225,775 34,724,496 39,746,896 45,349,034 51,592,759
Operational 10,498,229 11,997,976 13,497,723 13,902,655 14,319,735 15,035,721 15,787,508 16,576,883 17,405,727 18,276,013
expense
Profit before tax 16,539,737 16,978,697 15,316,261 13,636,181 11,880,196 15,190,053 18,936,988 23,170,013 27,943,307 33,316,745
and interest
Depreciation 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140
EBITDA 26,062,877 26,501,837 24,839,401 23,159,321 21,403,336 24,713,193 28,460,128 32,693,153 37,466,447 42,839,885
(Earning befor
tax, interest
and
depreciation)
Interest 6,106,066 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598
expense
Profit tax (35%) 0 0 2,861,132 2,273,104 1,658,509 2,816,959 4,128,387 5,609,945 7,280,598 9,161,302
Net profit 10,433,671 9,837,099 5,313,531 4,221,479 3,080,089 5,231,496 7,667,004 10,418,470 13,521,111 17,013,846
net profit 23 20 10 8 6 9 12 14 17 19
margin ratio

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Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Table: Cash Flow Statement

Production Year
Cash in flow 0 1 2 3 4 5 6 7 8 9
Owners' equity 30,606,848
Existing Bank
Loan
Additional Bank 71,415,979
Loan
Net Profit 0 10,433,671 9,837,099 5,313,531 4,221,479 3,080,089 5,231,496 7,667,004 10,418,470 13,521,111
Depreciation 0 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140 9,523,140
Total Cash in 102,022,827 10,433,671 19,360,239 14,836,671 13,744,619 12,603,228 14,754,636 17,190,144 19,941,610 23,044,251
flow
Cash out flow
Replacement 0 0 0 0 0 0 0 0 0
loan repayment 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598
Capital 95,231,397 - - - - - -
Expenditure - - -
Working capital 6,791,430 - - - - - - - - -
Existing Working
capital
Pre-operating 0
expenses and
interest
Total Cash out 102,022,827 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598 7,141,598
flow
Net Cash Flow 0 3,292,073 12,218,641 7,695,073 6,603,021 5,461,631 7,613,038 10,048,546 12,800,012 15,902,653
Cash balance 10,083,502 22,302,144 29,997,217 36,600,238 42,061,868 49,674,906 59,723,452 72,523,464 88,426,117

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Table: Balance Sheet Statement

Description Investment Production
Year

ASSETS 0 1 2 3 4 5 6 7 8 9
Current
Assets
Cash 6,791,430 10,083,502 22,302,144 29,997,217 36,600,238 42,061,868 49,674,906 59,723,452 72,523,464 88,426,117
Other Current 0 0 0 0 0 0 0 0 0
Assets
Total Current 6,791,430 10,083,502 22,302,144 29,997,217 36,600,238 42,061,868 49,674,906 59,723,452 72,523,464 88,426,117
Assets
Fixed Asset
Machineries 80,831,397.30 72,748,258 64,665,118 56,581,978 48,498,838 40,415,699 32,332,559 24,249,419 16,166,279 8,083,140
Buildings 9,900,000.00 8,910,000 7,920,000 6,930,000 5,940,000 4,950,000 3,960,000 2,970,000 1,980,000 990,000
Vehicles 4,500,000.00 4,050,000 3,600,000 3,150,000 2,700,000 2,250,000 1,800,000 1,350,000 900,000 450,000.00
Total Fixed 95,231,397 95,231,397 85,708,258 76,185,118 66,661,978 57,138,838 47,615,699 38,092,559 28,569,419 19,046,279
Asset
Pre-operating 0 0 0 0 0 0 0 0 0 0
Costs
Total Asset 102,022,827 105,314,900 108,010,401 106,182,335 103,262,216 99,200,707 97,290,605 97,816,011 101,092,883 107,472,396
LIABILITIES
Short term - - - - - - - - - -
liability
Long term 71,415,979 64,274,381 57,132,783 49,991,185 42,849,587 35,707,989 28,566,392 21,424,794 14,283,196 7,141,598
liability (Bank
Loan)
Sub Total 71,415,979 64,274,381 57,132,783 49,991,185 42,849,587 35,707,989 28,566,392 21,424,794 14,283,196 7,141,598
CAPITAL
Owner's 30,606,848 30,606,848 30,606,848 30,606,848 30,606,848 30,606,848 30,606,848 30,606,848 30,606,848 30,606,848
Equity
Retained 0 10,433,671 20,270,770 25,584,301 29,805,781 32,885,869 38,117,365 45,784,369 56,202,839 69,723,950

By: Mr. Mohammed Dawid Umer 18 | P a g e

 Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

Earnings
Earnings 10,433,671 9,837,099 5,313,531 4,221,479 3,080,089 5,231,496 7,667,004 10,418,470 13,521,111
Sub Total 30,606,848 41,040,519 50,877,618 56,191,149 60,412,629 63,492,717 68,724,213 76,391,217 86,809,687 100,330,799
Total Liability 102,022,827 105,314,900 108,010,401 106,182,335 103,262,216 99,200,707 97,290,605 97,816,011 101,092,883 107,472,396
& Capital
Net Worth 30,606,848 41,040,519 50,877,618 56,191,149 60,412,629 63,492,717 68,724,213 76,391,217 86,809,687 100,330,799

By: Mr. Mohammed Dawid Umer 19 | P a g e

Project Proposal for Solar Items Manufacturing Dire Dawa, 2024

By: Mr. Mohammed Dawid Umer 20 | P a g e