**Expanded Funding Request & Use of Funds for Boaz Trading PLC**
Boaz Trading PLC seeks **ETB 22 million** ($400,000) to execute its Russian Oil Deal, addressing Ethiopia’s energy deficit while delivering a 150% ROI within 24 months. Below is a detailed breakdown of the capital allocation, risk-adjusted rationale, and strategic alignment with market opportunities:
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### **1. Total Funding Required: ETB 22 Million**
| **Category** | **Amount (ETB)** | **Percentage** | **Key Activities** |
|-----------------------|-------------------|----------------|-----------------------------------------------------------------------------------|
| **Oil Imports** | 13,200,000 | 60% | Purchase of diesel, gasoline, and jet fuel from Russian suppliers. |
| **Marketing** | 5,500,000 | 25% | African Photo Safari campaign, influencer partnerships, and B2B/B2C activations. |
| **Logistics** | 3,300,000 | 15% | Djibouti Port fees, warehousing, last-mile delivery, and technology integration. |
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### **2. Oil Imports (ETB 13.2M | 60%)**
#### **Breakdown**:
- **Product Mix**:
- **Diesel (70%)**: 840,000 liters @ ETB 40.9/liter (CIF Djibouti) = **ETB 9,240,000**.
- **Gasoline (20%)**: 120,000 liters @ ETB 58.5/liter = **ETB 2,340,000**.
- **Jet Fuel (10%)**: 60,000 liters @ ETB 76.5/liter = **ETB 1,620,000**.
- **Supplier Contracts**:
- **Rosneft**: 50,000 barrels of Urals crude (discounted 25% due to sanctions).
- **Lukoil**: Backup agreement for 10,000 barrels/month.
- **Risk Mitigation**:
- 30% of imports hedged via forward contracts to lock in prices.
- Barter 15% of payments using Ethiopian coffee exports to Russia.
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### **3. Marketing (ETB 5.5M | 25%)**
#### **Breakdown**:
| **Component** | **Amount (ETB)** | **Details** |
|------------------------------|-------------------|-----------------------------------------------------------------------------|
| **African Photo Safari** | 2,200,000 | 3 curated tours for investors, diplomats, and media at GERD dam, Bole Lemi Industrial Park, and rural energy hubs. |
| **Influencer Campaigns** | 1,650,000 | Partnerships with 10 macro-influencers (e.g., *CGTN Africa*, *Addis Fortune*) for documentaries and social media. |
| **Digital & Traditional Ads** | 990,000 | Radio spots, billboards in Addis Ababa, and Google Ads targeting SMEs. |
| **PR & Events** | 660,000 | Launch event at Skylight Hotel, press releases, and op-eds in *The Reporter*. |
#### **ROI Justification**:
- **Investor Attraction**: Secure ETB 10M+ in follow-on funding via safari tours.
- **Brand Equity**: Position Boaz as Ethiopia’s energy disruptor, driving B2B contract sign-ups.
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### **4. Logistics (ETB 3.3M | 15%)**
#### **Breakdown**:
| **Component** | **Amount (ETB)** | **Details** |
|------------------------------|-------------------|-----------------------------------------------------------------------------|
| **Djibouti Port Fees** | 1,320,000 | Priority berthing, customs clearance, and 30-day bonded storage. |
| **Warehousing** | 990,000 | Lease 10,000 sqm in Kaliti (Addis Ababa) and Adama. |
| **Last-Mile Delivery** | 660,000 | Partnerships with *Selam Trucking* and fuel ATMs for rural distribution. |
| **Technology** | 330,000 | IoT sensors, route optimization software, and blockchain traceability. |
#### **Efficiency Gains**:
- Reduce port-to-warehouse time from 7 days to 3 days.
- Cut delivery costs by 18% via AI route planning.
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### **5. Contingency Planning**
- **Forex Volatility**: Allocate 5% (ETB 1.1M) of the total budget to hedge ETB/USD exposure.
- **Supply Chain Disruptions**: Reserve ETB 2.2M for emergency purchases from Kazakhstan’s Tengiz Field.
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### **6. Strategic Alignment**
- **Government Priorities**: Supports Ethiopia’s 10-Year Plan to reduce energy costs and diversify imports.
- **Investor Appeal**: Combines high-growth markets (6% annual fuel demand) with geopolitical arbitrage (Russian discounts).
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### **7. ROI Pathway**
| **Metric** | **Year 1** | **Year 2** | **Total** |
|---------------------|------------------|------------------|-------------------|
| **Revenue** | ETB 33M | ETB 55M | ETB 88M |
| **Net Profit** | ETB 8.25M | ETB 16.5M | ETB 24.75M |
| **ROI** | 37.5% | 112.5% | **150%** |
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### **Conclusion**
This funding request is meticulously structured to capitalize on Ethiopia’s energy import gap, Russian geopolitical tailwinds, and Boaz’s hyperlocal distribution network. By allocating 60% to high-margin oil imports, 25% to brand-building, and 15% to agile logistics, Boaz ensures rapid market penetration and sustainable returns.
**Next Steps**:
1. Finalize Russian supply contracts with *Rosneft* and *Lukoil*.
2. Launch influencer campaigns to pre-market the safari tours.
3. Secure Djibouti Port storage leases to avoid Q1 bottlenecks.
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This strategic allocation balances risk and reward, positioning Boaz as Ethiopia’s energy partner of choice while delivering outsized investor returns.