### **Compressed Executive Summary with Ranges**

**Boaz Trading PLC** proposes a **Russian oil import project** to address Ethiopia’s energy crisis, targeting **100–150% ROI in 18–24 months** with a **ETB 22M ($380K–$420K USD)** investment.

---

#### **Market Opportunity & Strategy**

- **Demand Surge**: Ethiopia imports **90–95%** of its fuel, with demand growing **5–7% annually** due to industrialization and urbanization.

- **Cost Advantage**: Leverage Russian oil discounts (**15–30% below global benchmarks**) to price fuel **5–10% below competitors** (e.g., diesel at **ETB 45–48/liter** vs. market rate of ETB 50–55).

- **Revenue Streams**:

- **B2B (40–50% revenue)**: Bulk sales to manufacturing/logistics firms.

- **B2C (25–30%)**: Retail partnerships with 50–100 fuel stations in Addis Ababa.

- **Government (15–20%)**: Contracts for infrastructure projects (e.g., GERD dam).

#### **Execution Highlights**

- **Marketing**: **ETB 5–6M** African photo safari campaign targeting HNWIs, blending investor pitches with cultural storytelling.

- **Logistics**: Utilize Djibouti Port (handling **80–90%** of Ethiopia’s imports) and Addis Ababa’s warehousing for cost-efficient distribution.

- **Risk Mitigation**:

- **Forex Hedging**: Hedge **40–60%** of USD exposure via Ethiopian banks.

- **Supplier Diversification**: Backup contracts with Kazakh/UAE suppliers for **20–30%** of volumes.

#### **Financial Projections**

- **Revenue**: **ETB 30–35M (Year 1)**; **ETB 50–60M (Year 2)**.

- **Net Profit**: **ETB 7–9M (Year 1)**; **ETB 14–18M (Year 2)**.

- **ROI**: **120–150%** by Month 24, driven by **5–10% market penetration** in Addis Ababa.

#### **Long-Term Vision**

- **Scalability**: Expand to **2–3 neighboring markets** (e.g., Kenya, Sudan) by 2025–2026.

- **Social Impact**: Allocate **1–2%** of profits to rural clean energy initiatives, targeting **10,000–20,000 households** by 2025.

---

### **Why Invest?**

- **Problem-Solution Fit**: Addresses Ethiopia’s **$3–6B annual fuel import gap** with discounted Russian oil.

- **Strategic Synergy**: Combines geopolitical pricing shifts, Ethiopia’s growth agenda, and Boaz’s logistics expertise.

- **Risk-Adjusted Returns**: Conservative forex hedging, pre-negotiated contracts, and diversified suppliers ensure resilience.

---

**Key Adjustments**:

- Ranges reflect variability in fuel demand, pricing, forex rates, and market penetration.

- Simplified financials to show best/worst-case scenarios.

- Condensed marketing and scalability details while retaining core metrics.

- Emphasized flexibility in risk mitigation (e.g., hedging ranges).

This compressed summary maintains strategic clarity while incorporating realistic ranges to manage investor expectations.

Reply to this note

Please Login to reply.

Discussion

No replies yet.