Mt. Kilimanjaro, TZ – Competition increases as store become cash flow positive – 26 Jul 2016

June marked the second consecutive month of positive net income for Lishe Bora’s agriculture supply store. The store brought revenues of 677,300 TZS (US $322) against expenses of 485,200 TZS ($231). The shop expected June to be a busy month because farmers would be buying seeds and other inputs for the June/July planting season on Mt. Kilimanjaro.

The shop’s success is good news for local farmers. They are able to get farming inputs and equipment closer to home and for a lower price than ever before. However, the success of the store has not gone unnoticed.

Previously, no stores in Mkyashi sold corn seeds, fertilizers, or rice & corn bran (used in livestock feeds). Now, four other local shops are carrying these products. Lishe Bora manager Mary Shayo explains that this is a typical cycle for local businesses who can’t afford to purchase risky inventory.

“People don’t want to sell anything which hasn’t been sold before,” she explains, “because maybe no one will buy it. That’s the reason that every shop used to sell only household items like cooking oil, soap, salt, and sugar. Once we started selling seeds and bran other shopkeepers saw there was a good market so they started selling the same products. I think this will be good for farmers locally. It creates a challenge for Lishe Bora because we have to think of something new which is not available but which will have a market.”

To identify new opportunities, Lishe Bora is going back out to speak with families and learn what else they need that is not available. When they identify a list of possible products or services they will try to get advanced orders from customers. This is the process they used when originally stocking their store.