Eastgate Packaging produces raw materials used in the production of plastic sheeting used in various applications, including, mainly the creation of shelters. It also produces printed and plain plastic bags, clear tubing and various plastic bags for foodstuffs. Its raw material input is scrap plastic collected by poor and destitute people in and around the city of Harare. The business has been operating for a number of years and demand is brisk, particularly for its plastic pellets raw material product used in the production of plastic sheeting. Current monthly demand for its plastic pellets, verified by written orders from viable customers, is almost twice its current capacity. Assuming that an additional production machine could be procured to fulfil this under-supply, and it produced a similar monthly tonnage as the existing machine, sales would immediately increase by over 100% and profit by 30% just with existing orders. Assuming that the additional production capacity became fully utilised sales would increase by another 35% and profit by another 30%.
The cost of a new production machine would be US$25,000 installed. The additional sales generated by this machine based only on already confirmed but partially unfulfilled orders would cover the cost of the machine in one month.

Why invest:

• Confirmed orders from viable, long term customers is sector with strong ongoing demand
• Strong environmental impact given waste plastic is the raw material input
• Creation of employment and income for the poor