UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION INVESTMENT AND TECHNOLOGY PROMOTION BRANCH INDUSTRIAL INVESTMENT AND TECHNOLOGY PROJECT PROFILE

Transcription

1 UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Center P.O. Box 300, A-1400 Vienna, AUSTRIA INVESTMENT AND TECHNOLOGY PROMOTION BRANCH Tel: (43-1) Fax: (43-1) INDUSTRIAL INVESTMENT AND TECHNOLOGY PROJECT PROFILE Invest forum: GHANA 2003 Country: GHANA Project No.: GHA/035/V/07-03 ISIC: Date of Submission: 7/17/03 Project title: IT services and computer training - SILICONPRO LTD. Project summary: The project is proposed by one of the most successful computer training and service companies in Ghana. The project seeks to expand the existing training, software development and Internet service facilities to enable the company to cope with the increasing demand. In addition, the project seeks to provide complimentary facilities to enhance product delivery to customers. As a part of expanded activities the company wants also to develop a scheme of supplying Ghanaian schools with affordable computer equipment and Internet connections. Project type: Expansion, modernization Foreign collaboration sought: JV, L, EP Total investment: US$ 500,000 (additional investment only) Foreign contribution: US$ 500,000 This profile is divided into the following parts: PART I: PART II: Information on company proposing project (current activities) Information on proposed project (new activities)

2 PART I: INFORMATION ON COMPANY PROPOSING PROJECT (THE NATIONAL INVESTOR) I.1 of Company: Address: SiliconPro Company Limited 357 Salem Street, Kuku Hill, Osu. P. O. Box 6502, Accra-North Telephone: Facsimile: Web-Page: Telex: Contact Person(s): +(233-21) , , (233-21) Position: Position: Kingsley A. Bainn Managing Director Frank Benton Director Please attach as annex 1 brief background of person (entrepreneur) proposing the project, providing information on business experience, education and languages I.2 CURRENT LINE OF BUSINESS A. Background and history: SiliconPro Company Limited was established in year 2000 with an initial investment of 3000 USD and at the end of the year with a turnover approximately 200,000 USD. Presently, the company has a staff of 18, with a turnover of approximately 300,000 USD. Additional investment in computers, office accommodation, training facilities and human resource development amount to approximately 100,000 USD. B. Company description (including information on affiliates, subsidiaries, parent companies, etc.): If relevant to project proposed please attach description of plant equipment and other assets of technology currently in use and the related production process: SiliconPro is presently a Microsoft Certified Partner, Microsoft Certified Technical Education Center (CTEC), Virtual University Enterprises (VUE) Authorized Testing Center, International Council of E-Commerce Consultants (EC-Council) Authorized Training Provider, Certified Internet Webmaster (CIW) Authorized Training Provider, gtslearning Partner, and the sole Authorized Reseller of Ghana-Link Internet Services based in Germany. C. Describe technical problems faced in current operation: Capacity limitation is a major constraint to sustaining the current growth achievement.

3 D. Product(s) currently produced (estimated quantities and installed capacities): If currently producing more than one broad category of products, please list Estimated quantity Installed capacity Software development $20,000 US $200,000 US IT Training 500 Students 500 students Network maintenance & support $30,000 US $150,000 US Internet service provider 20 clients 2000 clients Computer sales 50 computers 1500 computers (installed capacity relates to potential demand) E. Employees 21 Permanent: Seasonal: 15 6 F. Indicate if company staff has had recent training related to technology application: SiliconPro has the highest number of certified professionals in a single company in Ghana. Staff are constantly being trained on technologies from our partners as they are being released. G. Specify if additional training is required Communications technology I.3 ANNUAL TURNOVER A. Sales: (US$ equivalent) $300,000 US B. Export: (in % of sales) 16% I.4 I.5 OWNERSHIP: (local/foreign, private/public) Private, limited liability CURRENT MARKETS A. LOCAL MARKET (i) Estimated size of local market for company's products: If necessary qualify market segments served No statistical data available. There are over 100 computer related companies in Ghana and 12 operational ISPs. (ii) Estimated market share of the company: SiliconPro is one of 6 main computer training centres in Accra, however its market share in other services is difficult to establish as no reliable data for comparison exists. (iii) If end users are a few major buyers please describe and indicate number: Numerous buyers: Software development- 50 Training-300 Networking, maintenance, support-20 Internet service-1200 Sales of Computers-200

4 (iv) Marketing instruments (distribution channels, agents,...) None (v) Does company have a separate marketing / sales department: No (vi) Trade marks: Siliconpro B. EPORT MARKETS (i) Annual exports: Software Development - 50,000 USD Training -70,000 USD (ii) Characteristics of main customers (countries, types of buyers): Corporate customers and individuals (iii) Marketing instruments (local agents, foreign trade companies, direct approach, etc.): Referrals from Partner web sites, SiliconPro web site, Local News Papers (iv) Special trade conditions (commercial agreements, quotas, subsidies, privileges and barriers, etc.) which directly affect your exports: n/a I.6 BANK REFERENCES: Please specify bank name, address, contact person Address: CAL Merchant Bank 45 Independence Ave. : Contact Persons: PO Box Accra - Ghana tel: Peter Derry Position: Address: Barclays Bank Private Mail Bag Osu, Accra tel: / / : Contact Persons: Position: Kojo Ohene-Kyei

5 I.7 MAIN TRADING PARTNER REFERENCES: Address: Numerous partners : Position: list available form SiliconPro I.8 What do you consider special strength of your company: Please indicate specific competetive advantages and factors such as R & D facilities and their objectives, patents, quality control systems, etc.) Please elaborate on each box checked. Technical expertise Exports Managerial expertise Marketing Technology Financial resources Quality control R & D Other: Technical expertise: Quality control: R & D: SiliconPro enjoys a good reputation with Microsoft international, as the only training center recommended by Microsoft in Ghana Professional staff has been certified in many fields of the company activities Development of software and network solutions.

6 PART II: INFORMATION ON PROPOSED PROJECT II.1 II.2 II.3 II.4 PURPOSE OF THE PROJECT: E.g. expand production of current facilities, improve quality of current products, introduce new products, establish new facilities, etc. The project seeks to expand the existing training, software development and Internet service facilities to enable the company to cope with the increasing demand. In addition, the project seeks to provide complimentary facilities to enhance product delivery to customers. DESCRIPTION OF PRODUCTS TO BE PRODUCED AND THEIR QUANTITIES: Please put clear description of each product Capacity Software development 200, USD Computer/software training students Internet Services 2, clients Network, maintenance and support services 150, USD Computers & Accessories 1, computers RATIONALE BEHIND THE PROJECT: What are the main reasons to expect success; what are competitive advantages (such as special access to raw materials, specific markets, unique technology etc.) that the project seeks to exploit? The market for the company's products is rapidly expanding and opportunities to introduce new products and service lines on the market. TARGET MARKETS A. LOCAL MARKET (i) Characteristics of potential customers: Individuals and corporate clients. (ii) Potential size of the market and expected growth rate: Indicate sources for estimates, e.g. market surveys, government statistics, inference from related studies, etc. Software development Computer/software training Internet Services Potential size Expected growth Network, maintenance and support services Computers & Accessories The African Project Development Facility has indicated that the potential size of the Training and Certification market is estimated at 40,000 students per annum in Ghana and over 300,000 in the West African sub region in general. Internet access demand is very high. (iii) Anticipated advantages of the proposed project in comparison to the competition: SiliconPro is reputed to be the only company with the highest concentration of high caliber IT professionals. The key players and directors have played significant roles with some the current competitors. The company's network, maintenance and support services team are well known in corporate environments like Ghana Stock Exchange, Guinness Ghana Limited, Western Telesystems Limited - a US Telecommunications company, and many more. Unit

7 (iv) Expected market share to be achieved: Software development Computer/software training Internet Services Network, maintenance and support services Computers & Accessories Expected market share (v) Current local prices of the products: Price Price unit Software development 1, USD Computer/software training USD/ course Internet Services 0.00 Network, maintenance and support services USD/hr Computers & Accessories USD B. EPORT MARKETS (i) Export target (in % of total sales): Export target Software development 40.00% Computer/software training 30.00% Internet Services 10.00% Network, maintenance and support services 20.00% Computers & Accessories 20.00% (ii) Is there any already secured market (if yes, please explain): Currently entering into Benin, Gambia, Sierra Leone, Liberia (iii) Other potential markets: Gabon, Burkina Faso, Togo, Central African Republic and Congo II.5 ESTIMATED TOTAL INVESTMENT COSTS (in US $): Amount: 500, Additional investment only, estimated collateral of local partner is US$ II.6 INPUTS TO BE PROVIDED BY LOCAL PARTNER A. In-kind inputs (plant, machinery, equipment): give details as annex Value (US $) Computers 50, B. Cash: Value (US $) Working capital 100, C. Land: Size, location, quality Value (US $)

8 D. Other: Specify in detail Value (US $) Human resource training packages 50, F. Local Credit access: Value (US $) II.7 II.8 INPUTS NEEDED FROM A FOREIGN PARTNER: $500,000 for expansion of training facilities and new equipment. WHAT FORM OF COLLABORATION IS SOUGHT: Please elaborate on each box checked Joint-venture (equity) Loan Market access Sub contracting Buy-back arrangement Equipment purchase Other: Management expertise Technical expertise Marketing expertise Technology transfer Joint R&D Joint-venture (equity): Loan: Sub contracting: Buy-back arrangement: Equipment purchase: Optional, financial structure to be negotiated. For financing of the expansion costs Software development and other computer services, training programs Software development and other computer services Possibly on credit terms II.9 PRODUCTION INPUTS LOCALLY AVAILABLE: A. Machinery and equipment to be purchased locally: (suppliers, prices) Machine Supplier Price Currency B. Technical know how: Operations and maintenance of computer systems and networks C. Labour: (skill level, wage rates) SkillLevel Unskilled Skilled Technical Administrative Managerial Wage Currency US$ / month US$ / month US$ / month US$ / month US$ / month D. Raw materials: Material Price Currency Quantity Needed

9 E. Infrastructure available at proposed site: (provide unit costs where applicable) (i) Transport facilities: Road Road Air Sea Sea Sea UnitCost Currency 1t / km, long dist US$ 1t / km, short dist US$ 1kg / perishable export 0.05 US$ Tema - Europe 20 ft.c. 1, US$ Tema - China 20 ft.c. 1, US$ Tema - USA East 20 ft.c. 2, US$ (ii) Telecommunications: UnitCost Currency Telecommunication 3 min. GT fixed line 0.02 US$ Telecommunication 1 min GSM 0.30 US$ Telecommunication 10 min Internet 0.06 US$ Telecommunication 1 min int US$ (iii) Electricity: Grid Grid (iv) Fuel: Diesel Other Natural gas UnitCost Currency 1 kwh, 0.11 US$ 1 kwh, heavy industry 0.05 US$ UnitCost Currency 1 liter 0.46 US$ 1 liter petrol 0.52 US$ LPG per 1 kg 0.45 US$ (v) Water: UnitCost Currency Municipal lines 1000 litres 0.65 US$ (vi) Waste disposal: Municipal sewage Other UnitCost Currency 1000 litres 0.23 US$ Contractor per cont./month US$ (vii) Indicate if project is to be placed in a special zone or park: II.10 MATERIALS TO BE IMPORTED: A. Machinery and equipment to be imported: (suppliers, prices) Machine Supplier Price Currency II.11 B. Raw materials: Material Price Currency Quantity Needed Computers 1, USD Servers 10, USD 4.00 Electric Generator 45, USD 1.00 Vehicles 15, USD 5.00 Office, classrooms 100, USD WHAT STUDIES ARE AVAILABLE FOR THE PROJECT: (Please list and give date when they were carried out and by whom, including studies under preparation, or studies which require updating). If please summary is available please attach: Feasibility study for expansion programme prepared by The Africa Project Development Facility in September 2002, partially related to the proposed project.

10 II.12 WHAT SPECIAL CONDITIONS OR INCENTIVES WILL/COULD APPLY TO THE PROPOSED PROJECT: E.g.: tax rates, tax holidays, loss carried forward, subsidies, profit repatriation and ownership laws, export/import restrictions or incentives, etc. For information on investment conditions and incentives for foreign investors in Ghana please contact: Chief Executive Ghana Investment Promotion Centre, GIPC P.O.Box M193, Accra, GHANA Tel. : Fax. : info@gipc.org.gh Website:

11 INDUSTRIAL INVESTMENT AND TECHNOLOGY PROJECT PROFIL - SUMMARY SHEET Country, Investment forum: Project title: GHANA GHANA 2003 IT services and computer training - SILICONPRO LTD. ISIC: Date: 7/17/03 Project No.: GHA/035/V/ Project summary: The project is proposed by one of the most successful computer training and service companies in Ghana. The project seeks to expand the existing training, software development and Internet service facilities to enable the company to cope with the increasing demand. In addition, the project seeks to provide complimentary facilities to enhance product delivery to customers. As a part of expanded activities the company wants also to develop a scheme of supplying Ghanaian schools with affordable computer equipment and Internet connections. Project type: Expansion, modernization Foreign collaboration sought: JV, L, EP Total investment: US$ 500,000 (additional investment only) Foreign contribution: US$ 500,000 Products to be produced: Planned % % Capacity Unit sales (US$) Local Export Software development 200, USD Computer/software training students Internet Services 2, clients Network, maintenance and support services 150, USD Computers & Accessories 1, computers Total: 0,00 Site location: Accra, Ghana Estimated total investment costs (in US$): Amount: 500, Additional investment only, estimated collateral of local partner is US$ Project classification: New project Expansion/rehabilitation 6. Local enterpreneur: Private sector Public sector Other: Annual turnover: Sales (US$ equivalent) / Export (in % of sales): $300,000 US 16% Current line of business: Computer training and services

12 7. What form of collaboration is sought: Joint-venture (equity) Loan Management expertise Technical expertise Market access Marketing expertise Sub contracting Technology transfer Buy-back arrangement Joint R & D Equipment purchase Other: 8. Studies available: Feasibility study for expansion programme prepared by The Africa Project Development Facility in September 2002, partially related to the proposed project.