Briquettes have existed in Uganda for over 10 years but many producers and traders have collapsed due to lack of market. Our idea is based on creating our own niche market. We want to invest in free renovation of wood stoves to our institutional briquette stove technology in institutional kitchens like in Schools, Universities, Hospitals and Prisons in exchange for a 3 year contract as sole suppliers of there briquettes. With our stove technology and our briquettes, the customers save up to 35% on cost of cooking fuel, 50% on cooking time and their cooking staff are no longer exposed to any toxic smoke while cooking. The business model above and the niche market ( institutional kitchens) makes us unique from competitors who target household markets. Our only roadblock is the upfront investment of $400 per stove. Currently, the briquette industry is considered high risk making it had for us to access credit facilities so we intend to get around this using the 5x5 night prize money.
Since our briquettes are produced from carbonized agricultural waste, over 40 farmers will earn up to $100 in additional income selling the agricultural waste.
We will be able to employ 5 more workers providing household income to 5 families.
Environmentally, over 1080 trees will be saved that would have been cut down to provide firewood to cook in the institutional kitchens we will change.
Over 20 cooking staff in our target kitchens will no longer be exposed to toxic smoke while cooking.
What I Will Do With $5,000
We intend to invest the $5000 in renovation of 12 wood stoves to our briquette stove technology in 4 schools ( 3 stoves per school). Each stove costing $400 making total investment of $4800 and $200 will cater for costs such as transport of material and labour to the target sights during renovations. With these 4 school, our demand for briquettes will increase by 72000kgs sold at $0.2 per kg resulting into additional annual income of $14400 with 28% profit margin and payback of roughly 5 months.