Retail sales of local Ghanaian rice

Entrepreneur

About Me

I am Foster Amuzu Korto from Mepe Agortigagorme, one of the underdeveloped towns in the Volta Region. Both my father and mother were/are uneducated but they cherished education so much. Consequently, they tried their best and sent me to school amidst financial challenges as the eldest son.

Despite all these struggles to make it, one of the major challenges then was the lack of electricity for studies at night. As a result of this, I was using a lantern to study by, "freely giving myself to mosquitoes" that refused to grant me a peaceful atmosphere in which to study. It was so bad that I fell sick several times until the mosquitoes became my friends. In addition to farming and fishing, my father taught me how to tap palm wine and use it for local gin (Akpetechie) distillation. He also taught me how to use sugar and mango for local gin distillation.
Hmmmmm....tears roll down my face any time I remember the hardships I went through. Things were so difficult in such a way that the proceeds from the farming, fishing and local gin distillations were "from hand to mouth." So, at class or stage three, I started looking after myself by weaving and selling baskets, searching for snails in thick forests for sale, and working on people's farms.

The story was different when I went to my Tertiary institution (Ho Polytechnic). At Ho Polytechnic, because I left my hometown, I depended on friends and student loans to be able to survive. God being so good, I graduated from Polytechnic and was posted to the Ghana Armed Forces (GAF) to do my National Service. The kind of training and coaching I had from the military environment really reshaped my life.

Summarily, these are the phases of my life so far. Thank you.

My Business

As indicated in the later part of my story, I was able to save GHS 2,000.00 from my National Service allowances after I have rented a single room in Accra where I did the service. In October 2015, I visited a friend in the Northern part of Ghana, Tamale to be precise. On the second day in Tamale, he (my friend ) asked me to accompany him to market which I happily granted. In the market, I saw different kinds of farm produce (an example is local brown rice) that are not common in Accra. I was like, gosh!, this is a business I must venture into.
Having observed the market, I informed my friend about buying the local brown rice from Tamale and selling it in Accra. He then took me to the local rice processing center (Lolandi Rice Processing Center). I quickly placed an order for 20 bags of 2.5kg brown rice and 20 bags of 2.5kg white rice at a cost of GHS 10.00 each just to test the market and see how consumers in Accra would respond. To my amazement, the consumers responded positively and all 40 bags of rice which I sold at GHS 15.00 each got finished within a week.
Having been convinced how lucrative this business would be, I called my suppliers and placed an order for 100 bags of rice comprising 50 bags of 2.5kg of brown and white rice apiece. The second order (100 bags ) got finished within two weeks. With this, I went and advertised on a radio station so more consumers called me and placed orders.
Based on the requests of my clients, I went and bought 100 bags of 2.5kg, 20 bags of 25kg and 10 bags of 50kg each of brown rice and white rice which I distributed to them. The major cost involved in the business is transportation and/or carriages.
Furthermore, I gave my parents GHS 2,500.00 from the proceeds or profits I have accrued to rent a store room so as to run a legal business that is stress-free. I am currently doing my first degree top-up in Accounting at Open University, Malaysia (OUM) on Accra Institute of Technology (AIT) campus. The remaining profits are being invested in Treasury Bills.

Loan Proposal

At the moment, because I am doing my first degree top-up and due to high cost of education in Ghana, I have not been able to meet the demands of my clients.
However, I went and explained things to my supplier, Lolandi Rice Processing Centre and the manager agreed to assist me only on the condition that, when I buy 100 bags of rice and pay cash, she will add 50 bags which I will pay for later and the profit for the 50bags, I will share it equally with her. I tried this twice but it did not favour so I have stopped because, she doesn't allow me to deduct expenses I have incurred on those extra 50 bags of the rice before we share the profit.
Moreover, I am planning of hiring a store in Accra to serve as my warehouse so that goods will be available for my cherished customers all the time. So if Zidisha approves this loan for me,
it will help me to buy additional 10 bags of 2.5kg Brown Rice at USD 2.54 or GH¢ 10.00 each and also pay for store that I will be renting.
Furthermore, this will help reduce the pressure as a result of the high demands of my clients and this will also result in appreciation in my profit Margin. For instance, the cost price per 1 bag of 2.5kg rice is GH¢10.00 which is equivalent to USD2.54 and the selling price of 1 bag per 2.5kg is GH¢15.00. With this, it is clear that, I make 50% on every 2.5kg bag of rice before deductible expenses and tax.
Estimable lenders, I am humbly counting on your swift humane approval to enable me stay in business so as to employ business minded individuals by reducing the unemployment rate in Ghana.
Thank you.

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