Shambani: BiD Network paved us the way to finance and business development
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Shambani Graduates Diary started off in 2003 with one milk supplier and a processing capacity of 30 litres. Today the plant receives milk from over 200 suppliers, has a capacity to process 750 litres of milk daily and produces up to three different products. Growth came with challenges...
Shambani graduate enterprise (SGE), a mini dairy co-owned by three university graduates, won Euros.15.000 in the BiD Challenge 2007
Shambani Graduates Diary started off in 2003 with one milk supplier and a processing capacity of 30 litres. Today the plant receives milk from over 200 suppliers, has a capacity to process 750 litres of milk daily and produces up to three different products. The company now boasts 200 sales outlets as opposed to the initial 50. Growth came with challenges. One of the most influential happenings has been the rising cost of fuel, which pushed Shambani to capitalise on bicycles for wholesale distribution and reserve motorbikes for long distance outlets, in order not to raise the price of the products.
Mr. Mfinanga entered the SGE in the BiD Challenge with a lot of scepticism as the diary sector in the country receives less attention than it requires. After winning in the Tanzania's BiD Challenge, Mfinanga represented Tanzania in the BiD satellite award 2007 in Netherlands. The business plan emerged top among fourteen other fine business plans. According to Mr. Mfinanga, the awards have exposed Shambani Company to investors and banks are now giving attention to it. This will facilitate access to finance and expand the business.
Tanzania Gatby Trust as well as Oiko Credit are willing to extend a significant loan to SGE. Also, the company is receiving interests in partnerships in its milk business from Dutch and Tanzanian firms
"The process has given us access to business development services that we were not able to access earlier. Thus managing Shambani Dairy Business will be more professional. We are making changes in our investment plans to keep up with new developments in business brought by success from the competitions. The expansion will give more Masai cattle keepers, reliable market for their milk and thus income to their families. Graduates in Tanzania will see that entrepreneurship in agricultural sector is possible and can be done", said the SGE managing director.