By David Rupiny
View the video here: https://youtu.be/__pIDHq8sq0
Over 90 percent of engine oils in Uganda are expensively imported, increasing the country’s import bill.
In 2017, young Zaitun Namuwonge and friends got concerned that while most of the engine oils used in Uganda are imported, there was also careless disposal of the used oil, which ended up contaminating the environment and poisoning land and water resources, hence endangering human, animal and plant health.
Zaitun says they saw an opportunity to make money while addressing the problem of reckless disposal of expensively imported engine oils. They then set up the Afro-Oil plant that recycles used engine oils into new, quality, and affordable oils, hence protecting the environment, reducing engine oil import bills, and creating jobs, especially for young people.
They source the used engine oils from garages across Greater Kampala and take them to their plant where the oils are recycled, blended with additives, tested, packaged, and then off to market. They have a chain of wholesalers, retailers, as well as direct customers (mainly through referrals).
They have three products on the market: petrol for cars, diesel for cars, and 2T oil for motorcycles. Their target market comprises low and middle-income earners looking for quality and affordable engine oils. They use social media and referrals to market their products.
Zaitum says their business model hinges on sustainability, affordability, and a circular economy. (She emphasizes that engine oil does not wear out, but rather gets dirty or impure, changing the colour from golden to black. So, they remove the impurities, and add additives.) Afro-Oil is also keen on adhering to sustainable development goals as well as other protocols.
Zaitun says they are seeking funding to scale up production and add more products, like gearbox oil. They plan to set up a training centre to skill, especially young ladies, with repairing motor vehicles and motorcycles, and enable them open repair workshops that would be used as collection points for used engine oils and sales points for their products, respectively.
The Domestic Investment Division of Uganda Investment Authority is offering Afrikado investment and business support services and is enrolling it onto the National SME Portal www.mybusiness.go.ug
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Do you have an investor success story, or know one with a beautiful investor success story? Please do not hesitate to contact us: David Rupiny, 0785291625, drupiny@ugandainvest.go.ug
