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  • The full business plan documents have been submitted for assessment.

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Business established

3

Appfrica Labs Ltd.

Appfrica builds and launches successful software businesses and builds custom solutions on a work-for-hire basis.

  • Appfrica Labs Uganda

    Appfrica Labs Uganda -

    Emma Oluka (Localization) and Barbara Birungi (Admin Assistant) at the old Appfrica Offices.

Appfrica Labs hires qualified software engineers, develops their skills as programmers by putting them to work on contract software development projects for NGOs, local enterprise, and social enterprises at attractive rates, and then provides intensive entrepreneurship support via an incubation model for their developers to build and launch their own companies.

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast): 100,000
Year 2 (forecast): 250,000
Year 3 (forecast): 500,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 50,000
Year 2 (forecast): 100,000
Year 3 (forecast): 300,000
Total number of Employees
Two years ago:
Last year: 0
This year (forecast): 13
Year 2 (forecast): 15
Year 3 (forecast): 20

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 25,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 25,000
Total finance needed (US$) 50,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 0
Loans (debt) 0
Share capital that you seek from investors (equity) 50,000
Other sources 0
Total finance needed (US$) 50,000

The Business

What is your product/service?

Appfrica has a 2-prong business model:
1. We provide high-quality custom software development for NGOs and other local and/or social enterprises in a fee-for-service model.

2. This is a platform to develop other businesses through raising the soft and hard skill levels of the engineers we employ

What customer need/problem do your products/services satisfy?

The is a surplus of computer science talent here in Uganda and a lack of job opportunity. Appfrica exists to create jobs, support and launch Ugandan-owned IT startups.

How will you make the product/service?

n/a

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We operate as a software company with world-class talent that is competitive on price. This makes us an ideal firm for western companies interested in outsourcing software development.

We also offer social value add to NGOs who traditionally hire western companies, when the more socially responsible thing to do is to hire local, to build capacity through job creation.

To whom are you selling, what is your market?

On the development side, we target any company with software development needs.

On the Incubation side, Appfrica looks for talented programmers who otherwise would not find employment in their field of training. Approx. 10-20% of ICT graduates from top universities in Africa find employment in their field; Appfrica finds the top talent amongst the other 80%, gives them jobs, and enables them to be innovative and entrepreneurial.

Describe your competitors?

There are a number of ICT development shops in the bigger markets in sub-Saharan Africa—in Accra, Lagos, Nairobi, Cape Town, and Johannesburg. These shops mostly focus on international and local for-profit clients, and as they are in the top markets seeking top talent, they have higher operational costs.

What makes your business different/better than your competitors (competitive advantage)?

Appfrica works on many levels. Long-term we're incubating Uganda's startups of tomorrow. Short-term we offer low-cost software development with high margins while saving clients money.

What makes your business, your product or service innovative?

No one we are aware of is using a business incubation model in smaller markets in sub-Saharan Africa (not including the RSA). Similar companies in the US and western Europe exist, including for-profits like Y-Kombinator, pure nonprofits like the Apache Incubation project, and university-linked blended value models like ISIS of Oxford University. Appfrica is bringing full-on business incubation to East Africa and later, the rest of the region.

How will you ensure the growth of your business?

As a software company, we watch the trends of the industry and capitalize on them. For African clients the emphasis is on mobile applications and services, for American and European clients, we offer web application development. Our goal is to stay relevant by offering a low-cost alternative for cutting edge technology development. This is a model that has worked well in India, China, Singapore and other developing markets.

The Entrepreneur & Management

Describe the entrepreneur & management

Jon Gosier cut his teeth at very successful startups in the United States working alongside and learning from very successful entrepreneurs. One was a large ISP, the other was a highly profitable start-up film studio. Ivan Kavuma, our Chief of Operations is a former employee of Microsoft and mentor to the staff.

What specifically makes you and (if relevant) your management team most qualified to build this business?

As the brain behind the popular African tech blog, Appfrica.net, Jon Gosier is well known throughout the region for his work. This alone doesn't qualify him and on paper he may not even sound like the right person for the job. But if we let current successes, personal track record and accomplishments in African tech act as evidence, I think it's evidence that we have a very strong, reliable team.

How much time do/will you expect to spend per week in the business?

I'm almost always working. I also have the backing and assistance of an active board, Glen Mehn (founding partner of London-based Boot Partners) and Hervé Cuviliez, founding partner of Kuv Capital.

Development

How does your business improve the local living standards (social and environmental)?

Appfrica adds employment to the region, bringing its developers from the theoretical development frameworks seen in University to fully-skilled, team players familiar with the latest software development technologies. Further, Appfrica aims to make examples of these entrepreneurs, helping to find the Bill Gates or Mark Zuckerbergs of sub-Saharan Africa, encouraging entrepreneurship in the region.

3 comments

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 16:22 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 16:22

funding contact

A need for an investor for funding/investment in your country
Please contact me for further details:
jonmaguire.9090@gmail.com
Jon Maguire

26 July 10, 17:59 Jon Maguire - - DISABLED SPAMMER, 26 July 10, 17:59

I take interest...

I take interest in your business request. Can you contact me by email for further correspondence. Present further information on your business proposal to enable me have a better understanding of your idea

Yours
Ghali Marnwan,
ghali2invest@gmail.com

22 Nov 10, 18:32 Ghali Marnwan, 22 Nov 10, 18:32