Poverty EradicationGuidelines

Implementation of Packages2012

Republic of Botswana

Contacts:

Office of the President: 3950805Ministry of Agriculture: 3689339

Ministry of Labour and Home Affairs: 3912290Ministry of Local Government: 3971916

Copyright, Government of Botswana Poverty Eradication Guidelines Ist Issue 2012

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It is now 45 years since Botswana attained independence. At the time of

Independence, Botswana was classified as one of the ten poorest countries in the world, and is now classified as one of the middle income countries. We have also over the years managed to reduce the level of poverty in the country. Statistics show that people in the country living below the poverty datum line have reduced from 59 percent in 1985/86 to 30 percent in 2002/03. Based on the statistics of 2010/11 statistics, 20.7 percent of people are living below the poverty datum line.

In his Inaugural Address of 2009, His Excellency the President of Botswana identified Poverty Eradication as one of his Flagship Programmes. The coordination of poverty eradication is now in the Office of the President headed by me and assisted by the Minister for Presidential Affairs and Public Administration, Hon. M.E.K Masisi. Following the successful launch of the poverty eradication roadmap during the Pitso in Mahalapye, more consultation have been held with the nation through regional Dipitso, kgotla meetings, full council meetings, radio and television talk shows. At the same time phase one on the roll out of the Poverty Eradication Programme was accelerated. Data synthesised from the consultations and from practice has culminated in these guidelines which I deem as timely and appropriate.

The objectives of launching the guidelines are to:• Aid all stakeholders to understand the underlying principles of the poverty

eradication programme;• Ensure that there is a common platform for implementers across the country;• Provide valuable information to the beneficiaries for them to make informed

decisions in selection and management of the projects;• Provide valuable knowledge transfer to the rest of the nation which they can

use to kick start their own projects at various scales; and• Ensure that the core principles of transparency and objectivity are inbuilt into

the programme.

Owing to the dynamic environment and the underlying principle of continuous improvement within which the Poverty Eradication Progamme operates, I expect these guidelines to be updated every two years.

His Honour the Vice President of BotswanaLt. Gen. Mompati Sebogodi Merafhe

Foreword

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Governance of the Poverty Eradication Programme

Setting up effective governance structures is imperative owing to the fact that they are the key to efficient, effective, and efficacious development, implementation, review, and continuous improvement of the Poverty Eradication Programme. It also enables all stakeholders to know how to contribute to the initiative, access information, and seek aid. It is owing to this that I hereby briefly state the governance structures of the programme.

The head of the Poverty Eradication Programme is His Honour the Vice President, Lt. Gen. M.S. Merafhe, assisted by myself, the Honorable Minister for Presidential Affairs and Public Administration. We report to His Excellency the President every two months on progress during the Special Cabinet Meetings. I also chair the Poverty Eradication Cabinet Subcommittee which meets ones a month and is comprised of the following: Assistant Minister of Finance and Development Planning, Hon. G. Somolekae, Assistant Minister of Local Government, Hon. B. Tshireletso; Assistant Minister of Trade and Industry, Honourable V.T. Seretse; Assistant Minister of Education, Honourable K. Rakhudu; and Assistant Minister of Agriculture, Honourable O. Molebatsi.

Supporting our work is the Poverty Eradication Task Team comprised of professionals from implementing ministries which meets once a week and is chaired by the Permanent Secretary for Poverty Eradication. The technical work done by the task team, through the support of the Poverty Eradication Unit at the Office of the President, is vetted by the above structures and is used to direct operations of implementing ministries.

The Department of Social Services through its social workers is the key access point to all those who seek information about the programme or are interested in any of the poverty eradication projects.

As His Honour the Vice President and I always say, our doors are open to anyone who wants to positively contribute to the eradication of poverty. Poverty eradication is a challenge we can conquer if we are united in effort as Botswana and our development partners.

Minister for Presidential Affairs and Public AdministrationHonourable M.E.K. Masisi

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Table Of Contents1. BACKGROUND 6

2. OBJECTIVES OF THE IMPLEMENTATION GUIDELINES 6

3. EXPECTED OUTCOMES 7

4. COMPONENTS OF THE PROGRAMME 7

4.1 The Packages 74.2 Financial Models 84.3 Group Projects 8

5. ELIGIBILITY CRITERIA 8

6. SKILLS TRANSFER 9

7. PROGRAMME IMPLEMENTATION 9

8. ISSUES FOR CONSIDERATION IN IMPLEMENTING THE PACAKAGES 10

8.1 Community Mobilization 108.2 Needs Profiling 108.3 Identification of the Project 108.4 Training 108.5 Development of a Project Plan 108.6 Resource Mobilisation 118.7 Marketing 118.8 Gender 118.9 People with Disability 118.10 Psychosocial Support 118.11 Confidentiality 11

9. MONITORING AND EVALUATION 12

10. REVIEW OF THE GUIDELINES 12

11. ANNEXURES 12

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Acronyms and Abbreviations

MOESD - Ministry of Education and Skills Development

MLG - Ministry of Local Government

MLHA - Ministry of Labour and Home Affairs

MoA - Ministry of Agriculture

MEWT - Ministry of Environment, Wildlife and Tourism

MTI: Ministry of Trade & Industry: DIA - Department of Industrial Affairs

DTCA - Department of Trade & Consumer

Affairs

DoCD - Department of Cooperative

Development

DETs - District Extension Teams,

CBOs - Community Based Organizations

NGOs - Non Government Organizations

FBOs - Faith Based Organizations

MOA - Memorandum of Agreement

BOBS - Botswana Bureau of Standards

RADP - Remote Area Development Programme

BNYC - Botswana National Youth Council

DPEC - District Poverty Eradication Committee

LEA - Local Enterprise Authority.

CEDA - Citizen Entrepreneurial Development Agency

LIMID - Livestock Management and Infrastructure Development

OP - Office of the President

WAD - Women's Affairs Department

DET - District Extension Team

DSS - Department of Social services

M&E - Monitoring and Evaluation

S&CD - Social and Community Development

SSN - Social Safety Net

VDC - Village Development Committee

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LEGAL FRAMEWORK GUIDING THE POVERTY ERADICATION INITIATIVE

The Poverty Eradication Initiative operates within an environment where there are legal instruments, acts and policies implemented as a matter of control of various small businesses. The expectation is that businesses set up under the Poverty Eradication Programme operate within the current legal framework. Table 1 outlines policies, Acts and guidelines that have informed the preparation of these guidelines. The list is not exhaustive.

Table 1: Policies, Acts and GuidelinesPolicy/Act/Guideline Implemented By Responsible Officers1. Guidelines for registration of micro and small businesses exempt from licensing requirements, March 2011SMMEs Policy 1999, Industrial Development Act 2006Trade Act 2003

MTI Through all District Councils

Commercial officers in Councils Department of Industrial Affairs and Department of Trade and Consumer Affairs} MTI

2. Local Authorities Procurement and Asset Disposal Act 2008

MLG and District Councils

Council Secretaries/Adjudication Secretaries

3. Public Health Act 1981 MOH,MLG and Local Authorities

Environmental Health Officers, Health Inspectors and Home Economics Officers in all councils

4. Food Control Act 1993 MOH,MLG and Local Authorities

Environmental Health Officers and Home Economics Officers in all councils

5. Waste Management Act 1998

MEWT, MLG and Local Authorities

Environmental Health Officers

6. Smoking Control Act 2004 MOH, MLG and Local Authorities

Environmental Health Officers

7. Factories Act 1992 MLHA, MTI Commercial officers in Councils Department of Industrial Affairs and Department of Trade and Consumer Affairs} MTI

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8. Building Control Act 1962 MLH, MLG and Local Authorities

Physical Planners in councils and land boards

9. Early Childhood Care and Education Policy - 2001

MOE&SD, MLG and Local Authorities

Social Workers, Home Economics Officers and Community Development Officers

Policy/Act/Guideline Implemented By Responsible Officers10. Economic Diversification Drive guidelines

MTI and Local Authorities

Economic Planners,

11. Botswana Bureau of Standard. (BOBS) Act No 16 of 1995

Ministries,MLG and Local Authorities

Home Economics Officers in Councils

12. Strategic Framework for Community Development in Botswana - 2010

MLG and Local Authorities

Community Development officers, Home Economics Officers and RADP Officers.

13. Revised National Youth Policy - 2010

MYSC, All Ministries, Local Authorities and BNYC

Youth Officers in all Ministries and Local Authorities

14. Revised National Policy on Destitute Persons - 2002

MLG and Local Authorities

Social Workers, Home Economics Officers and Community Development Officers

15. Guidelines for Implementation of the Rehabilitation Programme for the Destitute Persons-2002

MLG and Local Authorities

Social Workers, Home Economics Officers and Community Development Officers

16. Revised Remote Area Development Programme (RADP) Guidelines -2009

MLG, other ministries and Local Authorities

Community Development officers (RADP)

17. Poverty Eradication Road Map - 2010

Ministry of State President and the relevant Stakeholders

Poverty Eradication Coordination Unit, Poverty Eradication Task Team

18. Bee Keeping Act 1910 MOA MOA Officers

19. Natinal Policy for Agriculture Development 1991

MOA MOA Officers

20. Town and Country Planning Act, CAP 32:09

MLH, Local Authorities Physical Planners in councils and land boards

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Policy/Act/Guideline Implemented By Responsible Officers

21. Legislation on Pre-packaging of Food, 2002

MoH Public Health Officers

22. Forest Policy, 2011 MEWT Department of Forestry and Range Resources

23. Forest Act, 1968 MEWT Department of Forestry and Range Resources

24. Tourism Act, 1992 MEWT Department of Tourism

25. Agricultural Resources Conservation Act, 1974 MEWT

Department of Forestry and Range Resources; National Conservation Committee

26. Herbage Preservation Act, 1978 MEWT Department of Forestry

and Range Resources

27. National Policy on Vocational Education and Training, 1997

BOTA Training Institutions

28. Vocational Training Act, 1998 BOTA Training Institutions

29. Revised National Food Strategy, 2000

MFDP, MoA Food Security Officers

30. BOBS Standards (relevant standards)

Botswana Bureau of Standards (BOBS)

Relevant Sectors

31. Gaborone City Council General Bye-Laws, 1966

Councils Enforcement Officers

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1.0 BACKGROUND

Botswana was classified as one of the ten poorest countries at the time of independence in 1966 and currently it is classified as a middle income country. Though Botswana has achieved such economic growth, the country still faces socio economic challenges such as poverty. The spread of poverty is geographical with some areas heavily affected than others. Botswana has introduced several initiatives to combat poverty and these include programs for orphans and destitute persons, subsidized Self Help Housing Agency (SHHA) and agricultural schemes. Despite these efforts, results from the Botswana Core Welfare Indicator Survey (BCWIS) 2009/10, reveal that the poverty headcount rate stands at 20.7%, which is relatively high for a middle income country.

Botswana’s goal is to surpass the Millennium Development Goal target of reducing extreme poverty by half by 2015. Therefore; Botswana has taken a bold step to shift from poverty reduction to poverty eradication. This has prompted the Government to come up with a Poverty Eradication Programme which is aimed at improving the livelihoods of Batswana by addressing all aspects of poverty including among others; the policy environment, the institutional framework and the establishment of sustainable economic empowerment projects. The Poverty Eradication Programme will aid in attaining food security, and at a minimum sustainable livelihoods amongst disadvantaged individuals and/or families.

The Guidelines for Implementing Poverty Eradication Packages are therefore developed to provide all-embracing guidance in the implementation of empowerment projects in support of the overall Poverty Eradication Programme.

2.0 OBJECTIVES OF THE IMPLEMENTATION GUIDELINES

The objectives of the implementation guidelines are to:• Provide an environment for smooth and transparent implementation and coordination of sustainable poverty eradication projects.• Harmonize procedures for implementation of poverty eradication projects with a view to ensuring efficient utilization of resources.• Provide a coordinated platform for all stakeholders in the implementation of poverty eradication projects.

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3.0 EXPECTED OUTCOMES

The expected outcomes of the programme will be as follows:• Economically empowered individuals and families• Enhanced self-esteem amongst beneficiaries• Prosperous , productive and innovative individuals

4.0 COMPONENTS OF THE PROGRAMME

4.1 The PackagesTable 2 provides an indicative list of assistance packages to be covered under the programme. The financial Plans and Cash Flow Projections are presented in the Section for Annexures.

Table 2 Food items Non Food ItemsJam KioskPickles Home Based LaundryFood catering Leather WorksFood Packaging TextilesBackyard garden Tent HireBakery LandscapingSmall Stock Hair SalonPoultry Backyard Tree NurseryBee Keeping Upholstery

Handy Crafts( basketry , wood carving, pottery )Arts, Craft and Traditional Songs

The list is non-exhaustive and will be updated as and when packages have been appraised and approved. It must also be noted that beneficiaries will not be allowed to engage in businesses that are deemed illegal and hazardous to human life and the environment.

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4.2 Financial ModelsFinancial models have been prepared for each package. The models have been validated based on worst case scenario business environments and as such, actual performances can surpass the projections. It is also true that if there is extreme negligence in managing the operations, the business may collapse. It is expected that the beneficiaries will use the grant to start their entrepreneurial journey and grow their business through the years.

4.3 Group ProjectsFor packages with starting costs of more than P10, 000, group projects are necessary and encouraged. Groups should have a constitution or a standard guiding document stipulating how they operate; and where they do not have such a document, they should be assisted to develop one.

5.0 ELIGIBILITY CRITERIA

The following eligibility criteria will be used as a guide

• Beneficiaries should be able bodied Batswana citizens aged 18 years and above and should demonstrate ability, interest and commitment to undertake the project.• Eligible persons will be identified through the assistance of the Ministry of Local Government.• Beneficiaries should include amongst others registered destitute persons, potential destitute persons, those engaged in the Ipelegeng program, people with disability and other vulnerable groups. Other community members who are not included in these categories will be given technical advice.• People who previously benefited from Government schemes may be considered upon assessment for possible assistance.• An individual can only benefit once from the program and priority will be given to first applicants.• At the commencement of the project, beneficiaries will be required to enter into a Memorandum of Agreement (MOA) which will also stipulate the location of the project. • In the event that the beneficiary is deceased or incapacitated another member of the household will be assessed for possible takeover of the project and will be expected to sign a new Memorandum of Agreement (MOA).

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6.0 SKILLS TRANSFER

Beneficiaries shall be trained in all aspects relating to their project components. Additional aspects of training will be outsourced to relevant stakeholders. The training will also include life skills so that beneficiaries develop into more competitive entrepreneurs.

7.0 PROGRAMME IMPLEMENTATIONMinistry of State President will be responsible for overall coordination of the programme. A National Task Team has been established to oversee the program

operations, provide strategic direction and come up with operational guidelines for poverty eradication packages. For effective implementation, respective ministries have been assigned to coordinate various projects or activities comprising:

• Ministry of Environment, Wildlife and Tourism (MEWT) – Backyard tree nurseries, landscaping and fisheries

• Ministry of Agriculture (MoA) – Small stock, Bee keeping, Backyard gardens and poultry

• Ministry of Local Government (MLG)/ Ministry of Labour and Home Affairs (MLHA) – Bakery, Textiles, Food Catering, Hair Salon, Kiosk, Laundry, Leather products, Jam and pickle products, Packaging of grains, Tent hire, Upholstery, Handy crafts, Pottery, Indigenous knowledge

• Ministry of Trade and Industry (MTI) - business training and management, licensing, financing and quality control

• Ministry of Education and Skills Development (MOESD) - literacy skills and Business skills training

The success of this program will require full participation of the District/ Urban Development Committees, District Extension Teams, Village Extension Teams (VETs), private sector and parastals, Community Based Organisations (CBOs), Non-Government Organizations (NGOs), Faith Based Organizations (FBOs), media and the business community. This will ensure involvement of all the relevant stakeholders and optimal utilisation of resources at District and village levels.

Local Contact Point for the Programme: The Social and Community Development Offices (Social Workers and Community Development Officers) will serve as the main contact points.

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8.1 Community Mobilisation The concept of community mobilization involves public education about the program, identification of projects and their goals, and activities to be undertaken. This will involve facilitating the efforts of individual beneficiaries, and groups to appreciate the importance of the program and participate in all decision-making processes. This process will enhance ownership of the end product.

There will be need to involve community leaders (e.g. District Extension Teams, Member of Parliament, Kgosi, Councilor and Village Development Committees, Ward Development Committees, Village Health Committees, Village Youth Committees, Village Farmers Committees, Faith Based Committees, Village Extension Teams, etc.) who can assist in realising the desired change. Individual and group counseling needs to be an integral part of this phase.

8.2 Needs ProfilingThe purpose of needs profiling is to identify the needs, capabilities and capacities of the clients to inform project selection, possible training and services required. In this instance, the purpose will be to determine the needs of the people and the relevance of the project to be embarked on.

8.3 Identification of the ProjectThere are numerous projects that the beneficiary can choose from, and a list of some of the suggested projects is provided in Table 2. The list is not exhaustive. The selection of the project by the client will be based on the client’s identified needs, interest as well as availability of resources after validation of the project. The project will have to be suitable to the area.

8.4 TrainingThe beneficiaries will be trained in entrepreneurial skills on the project they have chosen. The professionals therefore, have to identify training needs and design relevant training. The trainers will use multi disciplinary approaches in designing training programs and are expected to coordinate their activities for effective service delivery.

8.5 Development of a Project PlanA plan in any undertaking is an important tool because it provides guidance on what is to be done and how that task is to be carried out. The beneficiary should be in a position to understand what needs to be done for the success of the project. Implementers and beneficiaries should be sensitized to appreciate the importance of developing and owning a Project Plan.

8.0 Issues for Consideration in Implementing the Poverty

Eradication Packages

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8.6 Resource MobilisationThis part sensitises implementers and beneficiaries that resources have to be mobilized and these include land, finances, transport machinery and human resources. Implementers should work within the recommended budget line for the project. As much as possible, it is critical to use locally available raw materials.

8.7 Marketing Beneficiaries will be expected to market their products within their local communities. Available possible avenues include among others, door to door, market days, Women’s Expo, shows, exhibitions.

8.8 GenderGender considerations are an integral part of any programme. These would include taking into account the needs of a multiplicity of vulnerable groups.

8.9 People with DisabilityThe projects selected should take into account the interests and needs of people with disabilities. People with Disabilities (PWDs) are people within the community who are disadvantaged due to physical or mental impairment that has occurred due to illness, accident or genetic condition. The Poverty Eradication Programme (PEP) is aimed at empowerment of Women, Youth, PWDs and other disadvantaged sections of the society thereby allowing them to overcome poverty, and end inequality.

Providing sustainable and formal employment for PWDs through PEP initiatives will in turn allow them a degree of independence, financial security and bring them closer to mainstream into society. It is therefore incumbent upon the Government to take affirmative action for PWDs to ensure that they are included in any programme designed to elevate the status and well-being of the disadvantaged in the community and by doing so, raise them from a position of government-dependency to that of financial independence, self-reliance and dignity.

8.10 Psycho-social Support Each beneficiary must be recognized as an individual with his/her own strengths and weaknesses. Therefore each person must be treated with respect and dignity, recognizing that he/she is unique. Psycho-social support will be provided to enhance self-esteem of the beneficiaries.

8.11 Confidentiality Issues discussed between the beneficiary and the appraisers should remain confidential.

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9.0 MONITORING AND EVALUATION

District Extension Teams will monitor projects on a continuous basis and report to the relevant structures. A standard monitoring tool will be used. The Village Extension Team will form part of the monitoring team and give feedback to the relevant structures on a monthly basis. Such an arrangement is crucial to ensure individual household performance tracking.

10. REVIEW OF THE GUIDELINES

The guidelines will be reviewed every two (2) years.

ANNEXURES:

A1: Kiosk

Financial Plan

Item QUANTITY Unit Cost (P) Total Cost

Container 1 4,400.00 4,400.00Fridge 1 1,200.00 1,200.00

48kg gas cylinder for fridge 1 780.00 780.00

Shelving material 1 1,500.00 1,500.00Stock 5,000.00 5,000.00Contingency @ 5% 644.00 644.00TOTAL 13,524.00 13,524.00

Assumptions

A mark-up of 35% is assumedProfit and Loss Account

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Projections (P)Year 1 Year 2 Year 3

Turnover 81 000.00 89 100.00 98 010.00Cost of Goods Sold 52 650.00 57 915.00 63 707.00Gross Profit 28 350.00 31 185.00 34 303.00Bank Charges 240.00 264.00 290.00Transport Charges 1 800.00 1 980.00 2 178.00Rent - - -Wages 6 000.00 6 600.00 7 260.00Net Profit 20 550.00 22 605.00 24 865.00

A2: Home Based LaundryFinancial Plan

Item Quantity Unit Cost Total CostWashing machine 1 3 000.00 3 000.002x Iron industrial 2 375.00 750.00

Detergents (Washing powder, Fabric softer) 1 000.00 1 000.00

Water Per month 600.00 600.00Ironing board 2 150.00 300.00Generator 1 4 000.00 4000.00Drying line 1 300.00 300.00Pegs 4 25.00 100.00Petrol 1500.00Total 11 550.00

Key Assumptions: It is assumed that the laundry will be dealing mainly with washing and ironing garments.

Item Monthly demand Pricing (P) Total Monthly turnoverBasket 40 75.00 3000.00Blankets 10 60.00 600.00Ironing 50 items 5.00/ item 250.00TOTAL 3850.00

Cost of GoodsWater P 200.00Detergents P 600.00Total P800.00

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Profit and Loss ProjectionsYear 1 Year 2 Year 3

Turnover 46 200 50 820 66 902Cost of Goods Sold 9 600 10 560 11 616Gross Profit 36 600 40 260 44 286Fuel 6000 6600 7260Wages 12 000 13200 14520Total expenses 18 000 19 800 21 780Net Profit 18 600 20 460 22 506

A3: LEATHER WORKS

Financial planItem CostCutting table P3 000.00Cutters P 500.00Sewing machines P5 000.00Patterns P 500.00Needles P 500.00Glue P 100.00Processed Leather P10 000.00Unprocessed leather P10 000.00Tanning Polish P 200.00Soles P1 000.00Threads P 200.00Buckles P 500.00Working Capital P5 000.00

P36 500.005% contingency P 1 825.00

P38 325.00

Key Assumption

Annual Turnover of P310 500.00

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Cost of Goods Sold

Monthly Expenditure/Cost of goods sold

Items CostLeather x 10 meters P10 000.00(Glue, soles, threads, polish,buckets) P2 500.00Annual Costs 12 500 x 12 P12 500.00TOTAL P150 000.0

Monthly Demand Pricing SalesWall Hangings 10 35 P3 500.00Shoes 50 100 P5 000.00Belts 50 100 P5 000.00Cushions 10 150 P1 500.00Bags 15 250 P3 750.00Mats 5 500 P2 500.00Hats 20 150 P3 000.00Wallets 25 65 P1 625.00

P25 875.00

Profit and Loss Account

YEAR 1 YEAR 2 YEAR 3Turnover 310 500.00 341 550.00 375 705.00Cost of goods sold 150 000.00Gross profit 160 500.00 176 550.00 194 205.00Transport 12 000.00 13 200.00 14 520.00Wages 30 000.00 33 000.00 36 300.00Bank charges 1 200.00 1 320.00 1 452.00Net Profit 117 300.00 129 030.00 141 933.00

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A4. JAM AND VEGETABLE PICKLESFinancial Plan

Item Cost (P)Burner gas Rim Stove 1,500. 002x48kg gas cylinders 1,560.00Retail scale (15 Kg) 2,000.00Stainless steel table 2,500.002 x 30L Stainless steel pots 3,700.00Assorted utensils 2,500.00Working capital (Stock) 15,000.00Contingencies 5% 1,288.00 TOTAL 30,198.00

Raw materials suppliesThe main sources of the raw materials (and packaging inputs) are local horticultural farmers (including backyard garden beneficiaries) and food industry suppliers.

Key Assumptions Monthly demand Pricing (P)

Assorted jams 500 3.50Vegetable Atchar 600 10.00Pickled beetroots 300 3.00Tomato purée 500 10.00

SalesItem Sales per month (P)Assorted jams 500x P3.50=P1,700.00Vegetable atchar 600 x P10.00=P6,000.00Pickled beetroots 300 x P10.00=P900.00Tomato purée 500x P2.50= P5,000.00Total P13,650.00

Annual turnover=P163, 800.00

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Cost of Goods SoldThe monthly input costs

Ingredient Quantity Price (P) Melons and Fruits 100 kg 600.00 Sugar 50 kg 1000.00 Vegetables 200 kg 3166.00Vegetable oil 20L 335.00Various additives - 200.00

P5301.00 per month

Annual Cost P 5,301.00 X 12 = P63, 612.00.

Financial Plan

Item Cost (P)2 Burner gas boiling table 1,500. 002x48kg gas cylinders 1,560.00Retail scale (15 Kg) 2,000.00Stainless steel table 2,500.002 x 30L Stainless steel pots 3,700.00Assorted utensils 2,500.00Working capital 15,000.00Contingencies 5% 1,288.00 TOTAL 30,198.00

Raw Material SuppliesThe main sources of the raw materials (and packaging inputs) are local horticultural farmers (including backyard garden beneficiaries) and food industry suppliers.

Key Assumptions Monthly demand Pricing (P)

Assorted jams 500 3.50Vegetable Atchar 600 10.00Pickled beetroots 300 3.00Tomato purée 500 10.00

Products sold at 30 – 50% below current supermarket price

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Profit and Loss Account

Projections (P) Year 1 Year 2 Year 3

Turnover 163 800.00 180 180.00 198198.00 Costof Goods Sold 63 612.00 69 973.20 76 970.52 Gross Profit 100 188.00 110 206.80 121 227.48 Bank Charges 240.00 264.00 290.00 Transport Charges 3 600.00 960.00 4 356.00 Wages 18 000.00 19 800.00 21 780.00 Total charges 21840.00 24 024.00 26 426.00 Net Profit 78 588.00 86 446.80 95 091.48

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A6. BAKERY

Financial Plan

Item Cost (P)4 Burner Gas stove 1,400. 002x48kg gas cylinders 1,560.00Confectionery fridge (small) 1,500 .00Dumping table (small) 750,00Bakery Scale 500.00Assorted baking pans 2,000.00Working capital 12,000.00Contingencies 5% 985.50TOTAL 20,695.50

Raw Material Supplies

The main sources of the raw materials are local wholesalers and supermarkets.

Key Assumptions

Monthly demand Pricing (P)Diphaphatha 700 2.50Mapakiwa 500 2.50Fat cakes 1500 2.50Queen cakes 450Cake 4 25.00

SalesItem Sales per month (P)Fat cakes 1500x P2.00 = P3, 000.00Phaphatha 700 x P2.50 = P1, 750.00Buns 500 x P2.50 = P1, 250.00Queen cakes 450x P2.50 = P1,125.00Cakes 4 x P25.00=P100.00Total P7, 225.00

Annual turnover=P86, 700.00

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Cost of goods sold

Ingredient Quantity Unit price (P)Flour 50kg 244.00Bread pre mix 10kg 205.00Oil 10 litres 380.00Baking powder /yeast - 150.00

P979.00 per month

Management Team and Employment LevelsThe promoter needs to attend the following business workshops; Basic record keeping, Basic book keeping, and home economics. Profit and Loss Account

Projections (P)

Year 1 Year 2 Year 3Turnover 86 700.00 95 370.00 104 907.00 Cost of Goods Sold 11 748.00 12 923.00 14 215.00 Gross Profit 74 952.00 82 447.00 90 692.00 Bank Charges 240.00 264.00 290.00 Transport Charges 3 600.00 3 960.00 4 356.00 Wages 18 000.00 19 800.00 21 780.00 Total Expenses 21 840.00 24 024.00 26 426.00 Net Profit 53 352.00 58 687.00 6 756.00

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A7: TEXTILES

Financial plan

Item Cost (P)Domestic overlocker 1,800.001 straight machine 3,000.00 Zig zag domestic machine 1,200.00Cutting table, 4 chairs 1,100.00Industrial ironing board 150.00Generator (5KVA) 6,000.00Accessories 1,000.00Sewing material 10,000.00Working capital 5,000.00Contingencies 5% 1,462.50TOTAL 30,712.50

SalesItem Quantity per month Turnover (P)Alterations 50 850.00German print 3 1,200.00Uniform 6 different sizes 900,00Pillows 10 350.00Curtains 5 750.00Patched throws 8 600.00Total 4,650.00

Annual turnover = P55, 800

Profit and loss account

Projections(P)Year 1 Year 2 Year 3

Turnover 55 800.00 61 380.00 67 518.00 Cost of Goods Sold 11 748.00 12 923.00 14 215.00 Gross Profit 44 052.00 48 457.00 53 303.00 Bank Charges 180.00 198.00 218.00 Transport Charges 1 236.00 1 360.00 1 496.00 Wages 7 200.00 7 920.00 8 712.00 Total expenses 8 616.00 9 478.00 10 426.00 Net Profit 35 436.00 38 979.00 42 877.00

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A8: FOOD CATERING

Financial PlanItem Cost (P)Three burner industrial gas stove x 2 2,900.00Food warmers x 4 1,556.00Pots 380.00Catering tables x 2 2,200.0048kg gas cylinders x 2 1,560.00Serving spoons x 6 100.00Disposable dishes 250.00Deep frying pan 178.00Bowls x 4 160.00Cutlery 120.00Groceries 3,000.00Plastic serving tables x 4 + chairs 1,390.00Shade 600.00Contingency @ 5% 720.00 TOTAL 15,113.00

Key AssumptionsWe assume that the food vendor will be supported by at least 20 customers depending on the location of the business. Meals are charged between P16 to P19 per plate. We assume that on average the promoter will be able to serve at least 20 customers per day.

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A9: TENT HIRE

Financial PlanItem Cost (P)2 x Tents @ 7,500 each 15,000.00Tables x 6 1,800.00Chairs x 50 2,250.00Overlays 1, 500.00 Seat covers 2,250.00Cutlery 1,500.00Plates x 100 500.00Glasses x 100 250.00Flowers 780.00Vase x 6 210.00Contingency @ 5% 260.40TOTAL 26,300.00

Year 1 Year 2 Year 3Turnover 50000 55000 60500Cost of Goods Sold 3600 3960 4356Gross Profit 46400 51040 56144Operational ExpensesTransport Charges 8400 9240 10164Fuel 2100 2100 2100Wages 18000 19800 21780Total expenses 28500 31140 34044Net Profit 17900 19900 22100

The Table above is constructed under worst case scenario whereby the tent is hired only six times in a year.

Key AssumptionsHiring of the above mentioned items is not done on a daily basis as the business caters for special events such as weddings, parties and funerals sometimes. In a month the items will be hired 4 times, during weekends. These are taken as a package.

TurnoverSince small tents will be used, the package will be P8, 500 per session.Monthly income = P8, 500 x 4 = P34, 000 (possible during peak months only)Annual turnover = P204, 000 (normal trading)

CostsCosts here will involve transportation of the goods and labour.

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A10: LANDSCAPING

Financial PlanGarden tools (wheel barrow, horse pipe, rake, scissors, spade, digging fork, watering can, Lawn mower)

Item Cost Garden Tools P1 000.00 Lawn mower P3 000.00Working Capital Seeds/seedling,Stones, Soil, Manure, Transport

P900.00

P2 300.00Contingency 5% P 360.00TOTAL COST P7560.00

Working capital for three months

Key AssumptionsWe assume that the landscape will do 11 jobs per month, 1 major landscaping job at P3 500.00 per project, and 10 maintenance projects at P300.00 per project.

Sales Assumptions Job Quantity Cost Landscaping development 1 P3500.00Maintenance 10 P 3000.00Total Cost P6500.00

Annual Turnover – P6500.00 X 12 = P78 000 and P50, 000.00 for normal trading

Costs of goods sold Plants Price Qantity TotalGrass P50.00 1 50.00

Landscaping: Transportsoil, stones, manure, seedlings/seeds,

P200.00P300.00P200.00

Maintenance - transport P300.00Total P1000.00

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Operational expenses

Profit and loss accountProjections (P)

Year 1 Year 2 Year 3Turnover 50000 55000 60500Cost of Goods Sold 3600 3960 4356Gross Profit 46400 51040 56144Operational ExpensesTransport Charges 8400 9240 10164Fuel 2100 2100 2100Wages 18000 19800 21780Total expenses 28500 31140 34044Net Profit 17900 19900 22100

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A11.00 BACKYARD TREE NURSERY

Financial plan

Item Cost (P)Shade net 60% (10 x 5 x3 x2 m) 5000.00Treated gum poles 1830.00U-nails 100.00Cement 140.00Various nursery tools 874.00Twin roll 30,00Nursery inputs 3600.00Water connection 1000.00Water tank 600.00Sub total 13 468.00Contingencies 10 % 1346.80Grand total 14 814.80

Sales AssumptionsItem Sales per month (P)Assorted tree seedlings 500 x P25.00 = P12 500.00Potted plants for hiring 3 x P200.00 = P600.00Total P13 100.00

Annual turnover P13 100.00 X 12 = P157 200.00

11.3 Raw Material SuppliesThe main sources of raw materials are locally collected for free, sold in the supermarkets and commercial tree nurseries (Leaf mould, sand, cuttings, seeds, kraal manure and used containers)

11.4 Operation costs per month Labour P500.00Water bill P200.00Transport to the market P400.00Total P1100.00

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11.5 Costs of goods sold per monthSeeds/seedling P500.00Polythene bags/flower pots P500.00Pesticides P300.00Total P1300.00

11.6 Profit and Loss AccountProjections (P)

Year 1 Year 2 Year 3

Turnover P157 200.00 P172 920.00 P190 212.00Cost of Goods Sold P15 600.00 P17 160.00 P18 876.00Gross Profit P141 600.00 P155 760.00 P171 336.00Operational ExpensesTransport Charges P4800,00 P5280.00 P5808.00Water bills P2400.00 P2640.00 P2904.00Wages 6 000.00 6 600.00 7 260.00Total expenses P13 200.00 P14 520.00 P15 972.00Net Profit P128 200.00 P141 040.00 P155 144.00

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A12.00 HAIR SALON

12.1 Financial plan

Item CostHair Relaxers P100Dryers P150Steamers P1500Mirrors P300Tint P50Braids P10Combs P10Water bill P100Electricity bill P150Shampoo P50TOTAL P9 300.00

12.2 Raw materials suppliesThe main sources of raw materials are local wholesalers and hard wares.

12.3 Key assumptionsMonthly demand Pricing (p)

Singles (plaiting) 10 150Carrot 12 70French 15 21Retouch 15 50Shampooing 15 20Haircut 20 20

The services provided will be mainly confined to hair plating and hair cuts

12.4 Sales Items Sales per month TotalSingles (plaiting) 10xP150 1500Carrot 12xP70 840French 15xP21 315Re-touch 15xP50 750Shampooing 15xP20 300Haircut 20xP20 400Total 4105

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Annual Turnover P49 260.00 12.5 Cost of goods soldItem Quantity Unit Price (p) TotalHair relaxer 5 100 500tint 5 20 250Braids 10 100 1000Shampoos 5 50 250Total 2000.00

12.6 Profit and loss account

Year 1 Year 2 Year 3Turnover 49260 54186 59604.6Cost of goods sold 24000 26400 29040Gross Profit 25260 27786 30564.6Wages 18000 19800 21780Total expenses 18000 19800 21780Net Profit 7260 7986 8784.6

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A14 BACKYARD GARDENING

Table1: Budget for Vegetables enterprise (with drip irrigation system) for the general Population

Item Quantity Unit Price (BWP)

Total Cost(BWP)

Capital itemsPlot 1 Part NilShade net 1 2000.00 2000.00Water tank (5000L) 1 3470.00 3470.00Tank stand 1 500.00 500.00Family drip 1 670.00 670.00gutter 3 (3.6x100x75) 62.00 186.00outlet 1 30.00 30.00Garden tools Wheel barrow, rake, and spade Set 500.00 500.00

Poles 9(3x75x100) 35.65 558.00Fence (diamond mesh) 2 rolls 245.00 490.008 Gauge wire 5kg 65.00 65.00Water pipes(black) 20m roll of 25mm 2.00 20.00Saddle 1 50.00 50.00Tap 1 60.00 60.00Water connection(Water Utilities Cooperation) 1100.00

Sub-total 9669.0010% Contingency 967.00Total 10676.00

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Table 2: Budget for vegetables enterprise (with drip irrigation system) for People

with Visual impairment using sense of touch.

Item Quantity Unit Price (BWP)

Total Cost (BWP)

Capital itemsPlot 1 Part NilShade net 1 2000.00 2000.00Water tank (5000L) 1 3470.00 3470.00Tank stand 1 500.00 500.00Family drip 1 670.00 670.00

Gutter 3 (3.6x100x75) 62.00 186.00

Out let 1 30.00 30.00Garden tools – wheelbarrow, rake and spade Set 500.00 500.00

Poles 9 35.65 558.00Fence 2 245.00 490.008 Gauge wire 5 kg 65.00 65.00Water pipes (black) 20m roll of 25mm 2.00 20.00Saddle 1 50.00 50.00Tap 1 60.00 60.00Water connection (Water Utilities Corporation) 1 100

A network of ropes – materials – Thin dropper poles, ropes for interconnection from garden to house.

838.40

Sub total 9699.0010% contingency 969.00Total 10668.90

Materials for the network of ropes are as follows: 28(25x50x1.8) treated poles and 8(30x10mm) braided plastic ropes. The construction of the rope network assumes that the house and the tap is 20m away from the net shade house hence 8 poles and 2 ropes will be used for the network from the net shading to the tap and house. The rest of the poles and rope will form a network on the plots with one pole at the end of each plot.

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Table 3: Budget for vegetables enterprise (with drip irrigation system) for People

with Physical disabilities using wheel chairs, crushes

Item Quantity Unit Price (BWP)

Total Cost (BWP)

Capital itemsPlot 1 Part NilShade net 1 2000.00 2000.00Water tank (5000L) 1 3470.00 3470.00Tank stand 1 500.00 500.00Family drip 1 670.00 670.00Gutter 3 (3.6x100x75) 62.00 186.00Out let 1 30.00 30.00Garden tools – wheelbarrow, rake and spade Set 500.00 500.00

Poles 9(3.6x75x100) 35.65 558.00Fence 2 (Diamond mesh 245.00 490.008 Gauge wire 5 kg 65.00 65.00Water pipes (black) 20m roll of 25mm 2.00 20.00Saddle 1 50.00 50.00Tap 1 60.00 60.00Water connection (Water Utilities Corporation) 1 100

Raised timber plots – (materials-treated timber poles, 8 gauge wire ) and organic bags-(DPC sheets, bags, topsoil, organic manure

P4400.00

Sub total 14099.0010% contingency 1409.9Total 15508.9

NB. Materials for the raised timber plots are as follows: 20(50x75x5.4) treated poles, 25(50x75x2.1) treated poles, 30(75x100x1.8) treated poles, 100 x 1.2m treated droppers, 100 empty bags (50kg capacity).

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References1. Ministry of Local Government, Department of Social Services: Guidelines for implementation of the rehabilitation programme for the destitute persons, 2002. 2. Poverty Eradication Roadmap, 2010. Ministry of State President.3. Department of Extension Services Coordination and Department of Social Services, 2011. Manual for the Poverty Eradication Backyard Garden Initiative.

4. Ministry of Local Government: National Policy on Destitute Persons, 2002

Chairperson: Dr. J. MothibiOffice Of The PresidentMolefe Keaja

Ministry of Local GovernmentSarah George

Ministry of Agriculture

Kebabonye MolefhiOffice Of The President

Rebecca KgosiPoverty Eradication - MOA

Pauline MonareEconomic Divesification Drive

Valencia MogegehDept. of Women's Affairs

Dr. Martin kebakileNAFTRC

Chada KoketsoOffice Of The President

Kutlwano SebolaaphutiOffice Of The President

Queen TurnerBee Keeping

Kemoabe O. DiteduPoverty Eradication - MOA

Agnes SetlhogileDept of Industrial Affairs

Anthony MokobiLEA

Mophuthuludi MolatudiDCEC

Bakane S. BakaneDept. of Women's Affairs

Lebani NthoyiwaLIMID Office - MOA

Peter OlekantseDept. of Forestry & Range Res.

Delic SehunweDept. of Social Services

Ranakedi MoyoRIPCO

Boemo KeikotlhaeDept. of Social Services

Ompelege MokimePoverty Eradication - MOA

Tiroyamodimo KayaweCEDA

Gomolemeo TselakgopoDept. of Social Services

David ManenyeOffice Of The President -IT

John PhatshweBNPC

Antoinette MotikiDOSET

Thibogang J. MalibalaDOSET

Poverty Eradication Task Team