Kunthembwe Nsinjiro Group, Blantyre The groundnuts from this group is well graded and packed. The group also makes groundnut flour of good quality and is of high nutritional value.

Our Main Products

Group Information

[Support from OVOP/JICA]
MK200,000 loan for start-up capital (OVOP secretariat), by which the group bought raw materials, packaging materials, etc.
[Support from Other Organizations]
IRAD (Institut de recherche agricole pour le developpement) granted MK420,000 for oil processing machinery, but since the amount was not sufficient, the Group is trying to save money up to MK869,000.
[Contribution by members]
The Group members are constructing a small factory through the contribution of all members. The material cost will be approx. 200,000. Each member contributes MK 50 per month to finance the transport of the products.
[Support by District Assembly]
The Group occasionally invites agricultural extension worker to consult businesses.
[Background]
Group members learned about OVOP through radio and consult a Member of Parliament, who introduced the Group to OVOP Secretariat. All activities from material procurement to sale are conducted as a group. Labor is not paid, and all profits are saved for future investment.

Strength and Opportunities

[Human Resources]
The leader of the Group exercises leadership in all activities. The unity of the group is very high, and all work is divided equally among members.
[Materials]
Materials - shelled groundnuts - are always available at the local market in Lunzu. The Group has a saving (MK 77,000), which is sufficient to purchase raw materials. The Group always store 10 bags of groundnuts (10 x 50kg) at the treasurer's house in order to be able to quickly respond to orders.
[Production]
The production capacity is 150 kg/month.
[Market]
Most groundnut flour is not sold at supermarket but at open markets, without any package. Therefore, there are no competitors against Group's product at supermarkets.
[Infrastructure]
Once the Group has become able to buy a machine, it will need to install electricity (100m away).
[Transport]
The Group is located relatively close to Blantyre: 2 persons can carry 500 packs of 500g flour, costing MK 1,500 for a roundtrip to the city.
[Administration]
The account book is properly maintained by the treasurer.
[Quality Control]
Although there is no manual for production, three members in charge of monitoring of production always make sure of standardized production.
[Sanitary]
The work place is always kept clean.

Challenges

[Materials]
Lunzu is located at 30 minutes by buy or by bicycle from Kunthenbwe. It is costly when the Group uses a minibus to go there.
[Market]
Supermarkets usually make a payment one month after the purchase. It does not make sense to visit Blantyre just to collect money (transport cost to Blantyre is MK150).
[Production]
Since crushing groundnuts is conducted only manually and thus, the production capacity is limited. As a result, the Group sometimes fails to fulfill the deadline given by customers.
[Administration]
The Group does not have sufficient capability to conduct proper cost accounting.