INFORMATION REQUIRED IN FEASIBILITY REPORTS OR BUSINESS PLANS FOR AGRICULTURAL PROJECTS

The following summarizes the principal components to be incorporated in the feasibility reports or business plans. Loan applicants may, however, incorporate other relevant information to support their proposals depending on the type of project.

1. Project description:
1. Explain what agricultural business the project wishes to undertake and what the project involves.
2. Provide brief history of the agricultural activity.
3. Describe the relevant economy and industry factors surrounding the business.
2. Sponsorship, governance and technical assistance:
1. Provide history and business track record of sponsors,/shareholders/directors including their financial information.
2. Describe governance structures and assurance systems.
3. Describe technical arrangements and other external assistances (management, production, marketing, finance, etc.).
3. Management and Management Information Systems
1. Attach a detailed organisation chart.
2. Provide the proposed management arrangements, including names and curricula vitae of managers.
3. Provide information on the key personnel, lines of operations and posts held, present positions and descriptions of duties & responsibilities.
4. Provide details of the planning, controlling, monitoring & systems, existing and those to be put in place.
4. Technical feasibility, manpower, raw material resources, and environment:
1. Brief description of production process and cycles.
2. Comments on special technical complexities and need for know-how and special skills.
3. Describe the technical know –how of equipment/machinery/ implements etc.
4. Possible suppliers of equipment/ farm implements.
5. Availability of infrastructure facilities (storage, transport and communications, power, water/irrigation, etc.).
6. Requirements for and availability of skilled and unskilled manpower.
7. Breakdown of projected operating costs by major categories of expenditures.
8. Source, cost, quantity, quality and reliability/sustainability of farm inputs /raw material supply and relations with support industries.
9. Import restrictions on required raw materials.
10. Proposed business/farm location in relation to suppliers, markets, infrastructure and manpower.
11. Proposed plant /factory size in comparison with other known plants of similar type.
12. Present any potential environmental issues and how these issues are addressed.
13. Describe the climate and soil suitability for agriculture products.
5. Investment requirements, project financing, and expected returns:
1. Estimate of total project cost, broken down into land, inputs, manpower, weeding, extension services, mechanisation, transportation, etc.
2. Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing.
3. Types and timing of financing required and amounts.
4. Projected financial statements, sensitivity, profitability, and return on investment.
5. Critical factors determining viability and profitability.

Tabulate the proposed project costs as follows:

Estimated Project Costs (TZS or USD or EUR)
Item*	Existing		Proposed/Additional		Total
	Equity	Loan	Equity	Loan	Equity	Loan
Land and Buildings
Plant and Equipment
Ancillary Vehicles
Commercial Vehicles
Office equipment
Total Fixed Assets
Working Capital
Total Project Cost

   Total Fixed Assets Working Capital Total Project Cost * include other relevant items Tabulate the proposed financing plan as follows: Financing Plan (TZS or USD or EUR) Source Existing New Funding Total Gearing Local Foreign Promoter's Equity Other Bank loan** Other Bank O/D** TIB Loan TIB O/D Total Finance ** Attach details
1. Markets and sales:
1. Indicate the basic market orientation: local, national, regional, or international.
2. Provide the projected production volumes/crop yield, unit prices, sales objectives, and market share of proposed venture.
3. Describe the potential users of the products and distribution channels to be used. Indicate present and anticipated sources of supply of similar/competing products.
4. Analyse future competition and possibility that substitute products may satisfy market.
5. Discuss tariff protection or import restrictions affecting products.
6. Analyse critical factors that determine market potential.
2. Industry Dynamics Highlight key industry players and benchmark project performance and standing in the industry compared with competitors. Show market shares of the various key industry players. Include the following:
1. The project’s competitive advantages vis-à-vis other players, giving details of the critical success factors.
2. List of major competitors and their market shares.
3. Market share of the applicant company, present and future.
4. List of major buyers with details of their selling terms.
5. List of major suppliers with details of their terms of purchase.
6. Key industry risks and how the proposal mitigates them.
7. Description of the trade cycle of the business.
8. Seasonality of the operation giving details of peak and slack seasons.
3. Government/donor support and regulations:
1. Describe the project in the context of government economic development and investment facilitation programs.
2. Indicate specific government incentives and support available to project.
3. Show expected contribution of project to economic development.
4. Outline government regulations on exchange controls, conditions of capital entry and repatriation, etc; and their impact on the project.
5. Indicate nature and extent of any donor support.
4. Security and risk mitigation.
1. Describe the proposed security arrangements.
2. Analyse the major risks involved in the business and indicate specific risk mitigation measures to be adopted.
5. Timetable envisaged for project implementation and completion. Provide detailed implementation plan and financing sequence.
6. Economic Benefits and Environmental Issues