LIØNSBERG Africa 2022.08.25

From last meeting

Swahili words Jordan needs to learn

  • Uko Sawa - You are doing well

Nairobi Prototype

  • Location in flux - still an issue to resolve...
    • End of last year (second year on site) - fell behind on rent payments... had to close the school 2 weeks early. There is an outstanding balance (1.7M starting in september).
      • If we pay (800,000KS) we can use the facility (existing facility)
      • Agreement on how to settle remaining fee of (900,000)...
    • September 5 - School Starts (1.5 weeks out)
    • Monthly Rent - 150,000 KS...
  • Adjustments
    • Going forward - buld the school from the bottom up...
    • Starting playschool / kindergarten to grade 6 elementary school.
    • Start phasing off the high schoolers - not extendng expenses into high school.
    • School grow stage by stage...
  • Approximately 25 students... approx 4 new students want to join...
    • 65,000 Fee per term per child x 3 terms = 195,000 KS
    • x 25 students
    • Total Revenue $4,875,000 KS
    • x 29 students
    • 5,655,000 KS
  • Expense Side
    • Rent: 150,000 KS x 12 months = 1,800,000 KS
    • Teachers and Staff = 275,000 KS / month x 9 = 2,475,000
      • December Holiday
      • April Holiday
      • July and August Holiday
    • Food, Supplies, etc. = 70k to 120k / month - estimate 100k / month = 800,000 KS
    • Total = 5,075
    • Deficit at 25 students = 200,000 KS ~ $1,700 dollars
    • Surplus at 29 students = 580,000 KS ~ 4,833 dollars
  • Debt Repayment
    • At 29 students, with fiscal discipline, we should be able to repay 580k of 1.7M KS - which leaves us 1.12M KS short...
  • Extracurriculars
    • Football, dance, swimming - paid separately
    • Run at a reasonable profit that works for the parents...
  • Transportation
    • Look at as a separate business operation, with its own income and expenses...
      • Issue 1: Transporation to and from school - students and teachers
      • Issue 2: Transportaton to and from Pokot is exhorbitant... because of road, etc...
    • 29 students... of which 24
      • 7,800 / student / month
    • Look at it on a per van basis
    • Van - that can get around Nairobi, and get around Kenya to places like Pokot.
      • Revenue Stream 1: We can cover the base cost for the van by transporting full capacity of students to school each day
        • Revenue from Mt. Zion school(s)
        • Revenue from Other Schools
      • Revenue Stream 2: We can also use the van to handle outreach missions to surrounding villages, schools, etc.
        • Revenue from Mt. Zion churches
        • Revenue from Other churches
    • For example - 40 students...
      • Research
        • What does 1 4o to 50 seat bus cost, and what are its capabilities/ pros / cons...?
        • What does 2 20 seat vans/ busses cost, and what would capabilities, pros, cons be?
        • What does 3 or 4 14 seater
      • Hypothesis:
        • Sub divide Nairobi into 4 parts
        • Get 4 14 seater vans with removable seats so that they can haul people or supplies...
        • Make sure that at least one of teh 4 has 4WD...
  • Price of 33 seater 4.5 million
  • Price of a van - 1 million
  • Homework for estelle and Jacque
    • Figure out costs and finance for 4 vans
    • Figure out revenue per student per van
    • Figure our revenue / savings from trips to Pokot
  • If any of the 4 regions of Nairobi are not running at capacity (the vans are full every day) - figure out what other schools or churches or parents you could partners so that each van runs 100% full each day.
  • See if there is an affordable price, that creates a surplus / profit, that is enough to pay down the 1.7M in debt over the course of the school year
    • 1.7M / 8 months
    • So - if you could run the transporation business at 220k / profit per month x 8 months = 1.76 M KS profit = debt repaid.

Is This Possible?

  • 1M KS Van...
  • 13.5% - that is terrible extortion...
  • Down Payment: 200k
  • Loan = 800k x 13.9% for 36 months = 27,303 / month...
  • Revenue
    • Seat 1 Driver
    • Seat 2 Minder
    • 7,800 / month per student x 12 seats = 93,600 KS / month
  • Expenses
    • Loan 27,303
    • Driver (Or volunteer) - 18,000 KS
    • Minder - Teacher - salary paid elsewhere.
    • Fuel - 1 tank per week, 7,500 x 4 weeks = 30,000
    • If we are paying the driver monthly, what are they doing the rest of the day?
    • Total Expenses: 75 KS / Month
  • Profit per Van
    • Approx 20k x 4 vans = 80k KS / month
    • Savings from Trips to Pokot
      • Usually cost per van is 12k / day... 10 days there... 120,000...
  • What else can van do to earn revenue...
    • Cannot do any work other than school work
  • What can be done to increase the profitability...
    • Jacque - missions exclusive transport for network of churches...
    • Tour style vans are 14k / day... to 18k / day...

Pokot Prototype

  • The materials are available on the ground
  • Interlocking bricks, locally avaialable soil...
  • Inexpensive walls - only need cement.
  • 130 bags of cement get 10 bricks, which is enough for 3 classrooms
  • 1 brick 20 shillings inclusive of labor - 5 bricks 1 dollar.
  • Roof - iron sheets and timber, wires - 380,000 - $3,200
  • Quotation for standard buildng in that place - was going to be 1.2 million.
  • If we can use interlocking blocks, cost will come down to 600k shillings for 3 classrooms...
  • vs. 3.6 million...
  • labor is 230,000
  • materials 380,000
  • total 610,000 - needed from now... ($5,100)
    • Initially spent 227,000 including cost of transportaiton and brick machines..
    • Total for proejct 840,000 shillings.
    • Up to about 1,000,000 - transport is costly - have to hire 4wd to take us there...
    • $8,333 USD.
  • $5,100 for 3 classrooms and two toilets..
    • $1,000
    • Pledge of 50 shillings, last week raised 60,000
  • Then county pays for the teachers...

Measurement and Story Telling

  • How do we tell the story of what is possible?