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Business Plan for Boaz Trading PLC: Russian Oil Deal

Addis Ababa, Ethiopia

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### Executive Summary

Boaz Trading PLC proposes a strategic investment in a Russian oil import and distribution project to address Ethiopia’s growing energy demands. With a total project cost of ETB 22 million ($400,000 USD equivalent), the venture aims to secure a 150% ROI within 24 months by capitalizing on Ethiopia’s underpenetrated fuel market. The project includes a unique African photo safari marketing campaign (ETB 5.5 million) to attract high-net-worth investors and partners. This initiative is foundational for scaling Boaz Trading’s operations in Ethiopia, leveraging Addis Ababa’s strategic position as a regional trade hub.

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### Mission and Vision Statement

- Mission: Deliver affordable, high-quality oil products to Ethiopian industries and households while fostering sustainable economic growth.

- Vision: Become Ethiopia’s leading energy solutions provider by 2030, bridging global supply chains with local purchasing power.

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### Company Description

Boaz Trading PLC, headquartered in Addis Ababa, specializes in energy logistics and commodity trading. The Russian Oil Deal will import refined oil products (e.g., diesel, gasoline) from Russia and distribute them through partnerships with Ethiopian fuel stations and industrial clients.

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### Market Analysis

- Ethiopia’s Energy Demand: Fuel consumption grows at 6% annually due to industrialization and urbanization.

- Purchasing Power: Average monthly income is ETB 3,800; pricing must align with affordability while ensuring profitability.

- Gap: Limited local refining capacity creates reliance on imports (95% of fuel is imported).

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### Competitive Analysis

- Key Competitors: National Oil Ethiopia (NOC), TotalEnergies.

- Boaz Advantage: Competitive pricing (Russian oil discounts due to geopolitical shifts), agile logistics, and hyperlocal marketing.

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### SWOT Analysis

| Strengths | Weaknesses |

|-------------------------------|----------------------------|

| Strategic Russian partnerships| Regulatory complexity |

| Local distribution network | High upfront capital |

| Opportunities | Threats |

| Ethiopia’s energy deficit | Currency volatility (ETB/USD)|

| Gov’t tax incentives for fuel | Political instability risks|

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### Target Market & Customer Segmentation

1. B2B: Manufacturing plants, transport companies (50% of revenue).

2. B2C: Urban households and fuel stations in Addis Ababa (30%).

3. Government: Contracts for public infrastructure projects (20%).

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### Product Line

- Imported refined oil products (diesel, gasoline, jet fuel).

- Packaging: Bulk for industries; retail-ready volumes for households.

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### Pricing Strategy

- Cost-Plus Pricing: 10% margin over import costs (ETB 45/liter for diesel vs. competitors’ ETB 50/liter).

- Tiered Discounts: For bulk industrial buyers (5–10% off).

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### Marketing & Sales Strategy

- African Photo Safari Campaign:

- Budget: ETB 5.5 million (photography, events, influencer partnerships).

- Goal: Position Boaz as a bridge between global resources (Russian oil) and Ethiopian growth.

- Sales Channels: Direct sales teams, partnerships with fuel stations.

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### Distribution & Supply Chain

- Import Logistics: Shipments via Djibouti Port, stored in Addis Ababa warehouses.

- Last-Mile Delivery: Partner with local trucking companies.

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### Financial Projections

| Year 1 | Year 2 |

|----------------------|---------------------|

| Revenue: ETB 33M | Revenue: ETB 55M |

| Net Profit: ETB 8.25M| Net Profit: ETB 16.5M|

| ROI: 150% by Year 2 | |

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### Funding Request

- Total Required: ETB 22 million.

- Use of Funds:

- Oil imports (60%).

- Marketing (25%).

- Logistics (15%).

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### Risk Assessment & Mitigation

- Currency Risk: Hedge ETB/USD fluctuations via forward contracts.

- Regulatory Risk: Partner with local legal advisors.

- Supply Chain Risk: Diversify suppliers across Russia and Central Asia.

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### Sustainability & Social Responsibility

- Allocate 2% of profits to clean cooking fuel initiatives for rural communities.

- Reduce carbon footprint via energy-efficient logistics.

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### Implementation Plan

- Month 1–3: Secure import licenses, finalize Russian contracts.

- Month 4–6: Launch safari marketing campaign.

- Month 7–12: Begin distribution; target 10% market share in Addis Ababa.

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### Exit Strategy

- Sell equity to regional energy conglomerates or execute an IPO on the Ethiopian Securities Exchange.

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Appendix: Import contracts, feasibility study, ETB/USD exchange rate analysis.

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This plan leverages Ethiopia’s purchasing power, strategic location, and Boaz’s partnerships to deliver investor-ready returns while addressing a critical energy gap. Let me know if you need deeper dives into specific sections! 🚀

Hallel 8mo ago

Implementation Plan

- Month 1–3: Secure import licenses, finalize Russian contracts.

- Month 4–6: Launch safari marketing campaign.

- Month 7–12: Begin distribution; target 10% market share in Addis Ababa.

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Discussion

Boaz 8mo ago

**Expanded Implementation Plan for Boaz Trading PLC**

*Objective: Execute the Russian Oil Deal to capture 10% market share in Addis Ababa within 12 months.*

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### **Phase 1: Foundation & Licensing (Months 1–3)**

**Goal**: Secure regulatory approvals, finalize supplier contracts, and establish operational infrastructure.

#### **Key Activities**:

1. **Regulatory Compliance (Month 1)**:

- Engage *DLA Piper Ethiopia* to file import licenses with the *Ethiopian Petroleum & Energy Authority (PEA)*.

- Submit ESA (Ethiopian Standards Agency) certifications for Russian fuels (ULSD, Euro V gasoline).

- **KPI**: Obtain 100% of required permits by Month 3.

2. **Supplier Negotiations (Month 2)**:

- Finalize 12-month contracts with *Rosneft* (Russia) for 70% of supply and *KazMunayGas* (Kazakhstan) for 30%.

- Negotiate barter terms: 20% of payments in Ethiopian coffee/flowers.

- **KPI**: Secure 50,000 barrels/month at ≤$70/barrel.

3. **Infrastructure Setup (Month 3)**:

- Lease 10,000 sqm of bonded storage at Djibouti Port and Kaliti (Addis Ababa).

- Hire 15 logistics staff and train on IoT tracking systems.

- **KPI**: Operational readiness for 500,000 liters/month capacity.

**Risk Mitigation**:

- Retain $50,000 contingency fund for license delays.

- Pre-qualify backup suppliers in UAE.

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### **Phase 2: Marketing & Brand Launch (Months 4–6)**

**Goal**: Position Boaz as Ethiopia’s energy disruptor and attract B2B/B2C clients.

#### **Key Activities**:

1. **Safari Campaign Rollout (Month 4)**:

- Partner with *CGTN Africa* and *Addis Fortune* for media coverage.

- Curate 3 investor tours: GERD dam, Bole Lemi Industrial Park, and rural energy hubs.

2. **Digital & Community Activation (Month 5)**:

- Launch influencer campaigns (10+ macro-influencers) showcasing Boaz’s impact.

- Distribute 5,000 micro-fuel packs in Mercato market (Addis) with *TeleBirr* mobile payments.

3. **B2B Partnerships (Month 6)**:

- Sign pre-contracts with 10 industrial clients (e.g., Derba MIDROC Cement, East Africa Group).

- Host “Fueling Ethiopia’s Future” summit at Skylight Hotel for 200+ stakeholders.

**KPIs**:

- Generate 50M+ social media impressions.

- Secure $5M in pre-orders.

**Risk Mitigation**:

- Allocate 15% of marketing budget to performance-based influencer contracts.

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### **Phase 3: Distribution & Market Penetration (Months 7–12)**

**Goal**: Achieve 10% market share in Addis Ababa (7.5M liters/month) and expand regionally.

#### **Key Activities**:

1. **Logistics Scale-Up (Months 7–9)**:

- Deploy 30 IoT-tracked tankers for urban/rural routes.

- Partner with *Selam Trucking* for last-mile delivery in conflict zones (e.g., Tigray).

2. **Retail & B2C Expansion (Months 10–11)**:

- Launch 20 co-branded fuel stations in Addis (e.g., *Salaam Petroleum* partnership).

- Roll out “Pay-As-You-Go” LPG cylinders via *Ethio-Telecom* agents.

3. **Performance Review & Adjustment (Month 12)**:

- Audit market share via Ethiopian Customs Commission data.

- Pivot strategies for underperforming regions (e.g., Dire Dawa).

**KPIs**:

- 10% market share in Addis Ababa (7.5M liters/month).

- 200+ fuel stations onboarded.

**Risk Mitigation**:

- Maintain 45-day fuel reserves to buffer supply chain shocks.

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### **Accountability & Roles**

| **Role** | **Responsibilities** |

|-------------------------|---------------------------------------------------|

| **Legal Team** | License acquisition, contract compliance. |

| **Supply Chain Manager**| Supplier relations, inventory management. |

| **Marketing Director** | Campaign execution, influencer partnerships. |

| **Sales Lead** | B2B/B2C client acquisition, fuel station onboarding.|

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### **Budget Allocation**

| **Phase** | **Budget (ETB)** |

|-------------------------|------------------|

| **Licensing & Contracts**| 4.4M |

| **Marketing** | 5.5M |

| **Logistics** | 3.3M |

| **Contingency** | 1.1M |

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### **Conclusion**

This phased plan ensures Boaz Trading systematically transitions from regulatory groundwork to market dominance. By aligning supplier partnerships, high-impact marketing, and agile distribution, Boaz is poised to disrupt Ethiopia’s energy sector while delivering investor returns.

**Next Steps**:

1. Finalize Rosneft/KazMunayGas contracts by Month 2.

2. Launch Safari Campaign media blitz in Month 4.

3. Monitor Addis Ababa market share weekly from Month 7.

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This plan balances ambition with operational pragmatism, positioning Boaz as Ethiopia’s energy partner of choice.

Boaz 8mo ago

### **Expanded Implementation Plan for Boaz Trading PLC**

#### **Phase 1: Months 1–3 – Foundation & Compliance**

**Objective**: Secure operational licenses and finalize supplier contracts to enable oil imports.

**Key Actions**:

1. **Regulatory Compliance**:

- Engage local legal advisors (e.g., *DMLF Law Firm*) to expedite:

- **Import License**: Submit applications to the Ethiopian Energy Authority (EEA) and Ministry of Trade.

- **Tax Identification**: Register with the Ethiopian Revenue and Customs Authority (ERCA) for VAT and duty exemptions under industrial incentives.

- **Sanctions Due Diligence**: Screen Russian partners (Rosneft, Lukoil) against OFAC/SDN lists to avoid sanctions exposure.

2. **Supplier Contracts**:

- Negotiate 12-month supply agreements with Russian firms for **15,000 barrels/month** of diesel and gasoline.

- Include clauses for **ETB/USD hedging** (70% of costs locked via forward contracts).

3. **Logistics Setup**:

- Lease **10,000 cubic meters** of storage at Djibouti Port and Addis Ababa warehouses.

- Partner with *Ethio-Djibouti Railway* for priority cargo slots.

**KPIs**:

- Licenses approved by Day 60.

- Contracts signed with 2 Russian suppliers.

**Risks & Mitigation**:

- **License Delays**: Pre-submit applications with contingency fees for expedited processing.

- **Supplier Default**: Secure backup term sheets with UAE’s ADNOC.

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#### **Phase 2: Months 4–6 – Brand Building & Investor Outreach**

**Objective**: Launch the *African Photo Safari Campaign* to attract investors and build consumer trust.

**Key Actions**:

1. **Campaign Execution**:

- **Photography/Video Production**:

- Shoot in key locations: GERD dam, Hawassa Industrial Park, rural Oromia.

- Highlight Boaz’s role in “powering Ethiopian progress.”

- **Addis Ababa Launch Event**:

- Host 200+ stakeholders at Skylight Hotel, featuring VR exhibits of Russian refineries and Ethiopian growth sites.

- Distribute branded merchandise (e.g., solar-powered lanterns).

2. **Influencer & Media Strategy**:

- Partner with Ethiopian pop star *Betty G* and travel vlogger *Addis Globe* for social media campaigns.

- Run prime-time TV ads on *Fana Broadcasting* and LinkedIn ads targeting energy investors.

3. **Investor Engagement**:

- Pitch to 50+ high-net-worth individuals (HNIs) via curated safari content and ROI projections.

**KPIs**:

- 1M+ social media impressions.

- 30+ qualified investor leads.

**Risks & Mitigation**:

- **Low Engagement**: Allocate ETB 500,000 for boosted social media ads.

- **Cultural Missteps**: Pre-test campaign content with local focus groups.

---

#### **Phase 3: Months 7–12 – Market Penetration & Scaling**

**Objective**: Capture **10% market share** in Addis Ababa through strategic distribution.

**Key Actions**:

1. **B2B Sales**:

- Deploy direct sales teams to sign contracts with:

- **Hawassa Industrial Park**: 5 textile factories (avg. 50,000 liters/month).

- **GERD Project**: Bid for diesel tenders (10,000 liters/day).

2. **B2C Distribution**:

- Partner with 30 independent fuel stations in Addis Ababa, offering:

- Co-branded signage (“Powered by Boaz”).

- **Volume Incentives**: 2% cashback for sales >20,000 liters/month.

- Launch mobile fuel trucks for households in *Bole Bulbula* and *Saris*.

3. **Technology Integration**:

- Implement IoT sensors for real-time inventory tracking.

- Develop a retailer app for automated reorders and payments via *Telebirr*.

**KPIs**:

- 10% market share (≈3.3M liters sold monthly).

- 50+ fuel station partnerships.

**Risks & Mitigation**:

- **Competitor Retaliation**: Counter NOC’s subsidies with loyalty programs (e.g., free maintenance checks).

- **Supply Shortages**: Maintain a 30-day buffer stock at Djibouti Port.

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### **Cross-Phase Alignment**

|----------------|-----------------------|----------------------------|-----------------------------------|

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### **Sustainability Integration**

- **Month 9**: Launch clean cooking fuel pilot in Bahir Dar (500 LPG cylinders distributed).

- **Month 12**: Begin carbon offset partnerships with *Green Ethiopia* (5,000 trees planted).

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### **Conclusion**

This phased plan ensures Boaz Trading PLC transitions smoothly from setup to scale, leveraging strategic partnerships, hyperlocal marketing, and operational agility. By aligning regulatory compliance, brand storytelling, and targeted sales execution, the company is positioned to dominate Ethiopia’s fuel market while embedding sustainability into its growth trajectory.

Boaz 8mo ago

**Expanded Implementation Plan**

Boaz Trading PLC’s 12-month implementation plan is structured to balance speed, compliance, and market penetration. Below is a phased breakdown with actionable steps, ownership, and success metrics.

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### **Phase 1: Months 1–3 – Licensing, Contracts & Setup**

**Objective**: Secure regulatory approvals, finalize Russian partnerships, and establish supply chain infrastructure.

|-----------------------------------|---------------------------------------------------------------------------------|----------------------------|--------------|

| **2. Russian Contracts** | - Negotiate terms with Rosneft/Lukoil (50,000 barrels/month at $70/barrel).
- Sign 24-month supply agreement with penalty clauses for delays. | CEO & Procurement Team | Month 2 |

| **3. Logistics Partnerships** | - Finalize rail contracts with Ethio-Djibouti Railway.
- Lease Addis Ababa warehouses (15M-liter capacity). | COO & Logistics Manager | Month 3 |

**Success Metrics**:

- Licenses approved by Month 2.

- Russian contracts signed with 10% penalty for delays.

- Warehouses operational by Month 3.

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### **Phase 2: Months 4–6 – Marketing & Pre-Launch**

**Objective**: Build brand awareness and secure pre-orders through high-impact campaigns.

|-----------------------------------|---------------------------------------------------------------------------------|----------------------------|--------------|

| **1. Photo Safari Campaign** | - Host 3 luxury safaris in Simien Mountains for 50+ HNWIs/investors.
- Produce content: “From Siberia to Ethiopia” video series. | CMO & Marketing Team | Month 4–5 |

**Success Metrics**:

- 30 investor leads from safaris.

- 5,000 prepaid card sign-ups.

- 10 B2B contracts (ETB 8.25M committed revenue).

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### **Phase 3: Months 7–12 – Distribution & Market Capture**

**Objective**: Achieve 10% market share in Addis Ababa and scale operations.

|-----------------------------------|---------------------------------------------------------------------------------|----------------------------|--------------|

| **3. Government Tenders** | - Bid for GERD diesel contract (50M liters/year).
- Submit ESG compliance reports to Ministry of Energy. | Government Relations Team | Month 10–11 |

**Success Metrics**:

- 10% Addis Ababa diesel market share (2.4M liters/month).

- 200+ rural vendors operational.

- GERD contract shortlisted.

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### **Risk Mitigation by Phase**

| **Phase** | **Risk** | **Mitigation** |

|-----------|-------------------------------|----------------------------------------------------|

| **1** | License delays | Lobby via Ethiopian Chamber of Commerce. |

| **2** | Low investor turnout | Hybrid virtual/physical safari events. |

| **3** | Distribution bottlenecks | Pre-position 3M liters in Djibouti buffer storage. |

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### **Budget Allocation Across Phases**

| **Phase** | **Budget (ETB)** | **Key Spend Areas** |

|-----------|------------------|-------------------------------------------------|

| **1** | 10M | Licenses, contracts, warehouse leases. |

| **2** | 7M | Safari events, digital ads, prepaid cards. |

| **3** | 5M | Rural distribution, IoT tech, tender bids. |

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**Conclusion**

This phased plan ensures Boaz Trading PLC transitions seamlessly from setup to scale, balancing regulatory compliance, investor engagement, and aggressive market capture. By Month 12, the company will be positioned as Ethiopia’s most agile fuel importer, laying the groundwork for regional expansion and sustainable returns.