Modern fishing hooks are used in fishing of large fish such as Nile perch, fishing in ponds and wells etc. The investment in this project requires a certain big amount of capital, but the payback period is short. An estimated fixed capital of US$53,023 and operating costs of US$ 123,094, when invested can generate estimated revenue of US$ 283,920, in the first year of operation. The net profit margin for this project is 57%. And the pay pack period is estimated at 1 year 8 month.

Production Capacity, Technology and Process

The production technology involves heating a hook material to exact temperature that is perfect for that particular style and then molded depending on the size, and design. The hot hook is then cooled in oil. After cooling, then sharpening of the finished hook is done using sharpening fabricating machines. Investment Scale, Capital Requirements and Equipment The investment scale depends on the set goals and objectives of the project.

The capital requirements and equipment needed is as indicated in the table below.
Capital Investment Requirements in US$
Capital Investment Item Units Qty @ Total
Supermax TCM-V56T No 1 37,904 37,904
Fabrication tools No 3,000
Furniture and Fittings No 3,600
Delivery Van No 1 6,019 6,019
Other Tools No 2,500
Total       53,023

Production and Operating Costs (a)Direct Materials, Supplies and Costs in

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/ yr
Direct Costs            
Carbon Steel Kgs 15.5 7 108.5 2,821 33,852
Bronze Kgs 6 9 54 1,404 16,848
Aluminum Kgs 4.7 5 23.5 611 7,332
Other materials Kgs 2 4 8 208 2.496
Packaging materials Pcs 0.07 260 18.2 473 5,678
Sub-total       212.2 5,517 66,830

General Costs(Overheads)

Labour costs 1,021 12,252
Utilities 1,113 13,356
Administration expenses 300 3,600
Selling & distribution 125 1,500
Rent 750 9,000
Fuel 150 1,800
Miscellaneous expenses 125 1,500
Depreciation 1,105 13,256
Sub-total 4,689 56,264
Total Operating Costs 10,206 123,094
  1. Production costs assumed are for 312 days per year with daily capacity of producing 260 pieces of fishing hooks.
  2.  Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into production of the product.
  4. Total monthly days assumed are 26-days.
  5.  The valuation currency used is United States Dollars

Market Analysis

The market for fishing hooks widely exists since the fishing industry in Uganda is a vibrant one contributing to about 10% of the GDP.

Project Product Costs and Price Structure

Item Qty/ day Qty/yr @ Pdn cost/ yr UPx T/rev
Modern Fishing Hooks 260 81,120 1.5 123,094 3.5 283,920

Profitability Analysis Table

Profitability Item Per Day Per Month Per Year
Revenue 910 23,660 283,920
Less: Production & Operating Costs 394 10,258 123,094
Profit 515 13,402 160,826

Government Facilities and Incentives

The government is trying to modernize the fishing industry and any investment targeted towards that direction can be funded using the “Bonna Bagagawale” program and the European Investment Fund

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