Start an instant coffee business
A teaspoonful of instant coffee. Milling coffee beans into instant coffee powder can be a viable business. PHOTO BY RACHEL MABALA
What you need to know:
- Investing in an instant coffee powder business can guarantee some good returns considering that the growing middle class consumes coffee. Dorothy Nakaweesi shares the basics required to start.
Coffee, a household crop in Uganda and major foreign exchange earner, is a cherished drink world over.
Since demand for coffee as a beverage is on the rise locally, any venture in its production and distribution that involves adding value to the coffee beans is viable.
This project involves milling coffee beans into desired powder that is sold over the counter to a customer.
According to Mr John Musajjakaawa, Uganda Investment Authority senior investment officer: “Investing in this project requires an estimated fixed capital of $5,300 (Shs18 million).”
The investor should have operating costs of $64,841 (Shs222 million) which will generate revenue of about $116,064 (Shs400 million) in the first year of operation. This means when you invest in making instant coffee, the payback period is within five-months of operation.
Production process
Mr Musajjakawa says producing instant coffee requires roasting coffee beans using a coffee roaster and blending them.
The demand for instant coffee is on the rise, especially among urban based affluent people from the middle class..
“The revival of coffee shops of the seventies would go a long way to tap the market and popularise the product,” he shares.
222 million
Amount of money (in shillings) an investor requires for operating costs in an instant coffee business
Incentive
A kilo of instant coffee powder would fetch a lot more than the raw coffee beans. There are no taxes imposed on exports and any Value Added Tax input is claimed and reimbursed by the tax body to encourage and facilitate exporters.
