Zulaiha High School - Main Report

BUSINESS PLAN CORPORATE DOCUMENT
1.0
BUSINESS PROFILE
1.1
Opportunity Rationale
The importance of education for human resource development does not need any
elucidation. Globally, it has been observed that countries attached the highest priority
to education since the development of other sectors like health, agriculture and industry
is dependent on the development of education in the country. The Government of
Uganda [GoU] accepts education as a fundamental right for its citizens as well as its
commitment to provide access to education to every citizen. But the Government faces
constraints due to limited financial resources to spend on education sector. Therefore,
private sector investment is being encouraged with various incentives to lower the
burden of the Government.
Although, traditionally, private schools have been a luxury only the rich can afford, this
is not necessarily the case in the current re-emergence of the private sector in Uganda's
education system.
Education Strategic Investment Plan (ESIP)
The Education Strategic Investment Plan (ESIP) 1997 2003, Strategic and Programme
Framework (ESIP Framework) is the foundation on which the development of
education in Uganda over the medium term has been formulated. The ESIP Framework
is founded upon the 1992 Government White Paper on the Education Policy Review
Commission Report. It presents targets and implementation strategies together with an
outline of investment programmes, which fulfill Governments policy directions.
The ESIP Framework prioritizes the following key strategic policy objectives: a) Expanding Access through achieving universal enrollment of primary schoolaged children by the year 2003, ensuring that post-primary vocational
opportunities are in place for primary school leavers and achieving and
maintaining higher transition rates from primary to secondary schools.
b) Quality Enhancement through enhancing the quality and relevance of
instruction through procurement of relevant instructional materials and training
to teachers.
c) Increasing Equity by continuing the shift in public expenditure allocation in
favour of broader access to basic educational opportunities and directing special
incentives to the disadvantaged groups to attract them to school.
1

d) Public-Private Sector Partnership through creating a financial framework for
sustained and equitable educational provision with appropriate levels of
contribution from public sector private sector and household community
partnerships at post-primary level.
e) The Role of Central Government by strengthening the capacity of Central
Government to formulate sectoral policy and broadly direct financial resources
in response to evolving priorities and needs.
f) Enhancing the Capacity of the Districts and Local Government - through
promotion of greater participation of and responsibility by local authorities and
communities in the development of education at all levels.
Keeping in view the significant and emerging role of the private sector in the promotion
of education at various levels, the Government has also introduced the concept of
Public-Private Partnership. The suggested incentives to private sector educational
institutions are:
Provision of free land, or land on concessional rates in rural/urban areas.

Property tax exemption on school buildings.
Exemption of 50% income tax to private sector institutions for their faculty,
management and support staff.
Utilities availability on non-commercial rates.
Exemption of custom duties on import of educational equipment.
Undertaking necessary legislation to give Charter to private sector institutions
and facilitating their day to day affairs.
In 1997 the Ugandan Government introduced Universal Primary Education (UPE) as a

measure to reduce illiteracy rates and poverty levels throughout the rural country. The
enrollment of pupils increased from 5.3 to 7.6 million by 2005. The teacher/pupil ratio
also rose to 70:1. This rapid expansion of primary education has therefore increased the
need for post-primary institutions. But most districts have no infrastructure to meet
this need. Private Schools have attempted to address the situation, however they are
much more expensive and few families are able to afford them. Statistics reveal that less
than half of the current students in Uganda will have the opportunity to attend
secondary schools with Wakiso district being no exception in spite of its closeness and
proximity to Kampala city.
Wakiso District is formed in 2000 adjoining Kampala where many of the habitant work
or study in Kampala. The population of Wakiso is about 1.05 million (2007) but is still
increasing correspond to the expansion of that of the capital. There are 249 government
2

aided primary schools among 1,221 primary schools in Wakiso. When government
introduced UPE in 1997, more pupils enrolled in primary schools which led to increased
demand for more secondary schools. There are twenty three (23) government-aided
secondary schools and more than 150 private secondary schools in the district hence the
number secondary schools have increased due to increase in private stakeholders
engagement. However, secondary school accessibility indicators for the district [Gross
Intake Rate of 51.6%; Net Intake Rate of 17%; Gross Enrollment Rate of 55.2%; and Net
Intake Rate of 46.5%] for 2007 indicate that there are still huge gaps to fill in satisfying
demand for secondary education schooling in the district. This has provided lots of
incentive and momentum to private sector education services entrepreneurs to vie for a
stake in this market to such an extent that the district now hosts the largest number of
private secondary schools in Uganda.
1.2
Business Descriptions
Zulaiha High School has been incorporated to provide educational services to children
between the ages of 13 18 years. Responsibility for educational institutions in Uganda
is shared between government, missionary (religious) institutions, communities and
private organizations. Zulaiha High School as a private entity will be a profit operating
organization whose exclusive purpose is to provide sound education to corroborate the
effort of government in building manpower, raising future leaders and ensuring growth
and development of the nation.
1.3
Service Descriptions
According to the constitutional provisions, the main responsibilities of the Government

of Uganda in basic education are in the realm of policy formulation, coordination and
monitoring. The National Policy on Education stipulates a 7-4-2-3 structure offering
seven years of primary, four years of lower secondary, two years of higher secondary
and three years of tertiary education. The category in which Zulaiha High School falls
into is lower and higher secondary school which means it will be operating a six-year
programme for the children that fall into the aforementioned age bracket. The education
that is offered at this level has two purposes, one is to prepare pupils to exit school with
necessary skills to find employment, and the other is to prepare them to continue with
academic careers in higher institutions
The establishment of Zulaiha High School aims at producing children with sound
education, good behaviour-patterns, abilities and skills necessary for effective
citizenship in the community. In addition we expect that any child that will pass
3

through our education system would develop latent physical skills, character, and
intellectual skills and inculcate respect for elders and those in position of authority.
Other tasks to be performed by Zulaiha High School include developing in students a
sense of belonging and to participate actively in family and community affairs and to
understand, appreciate and promote the cultural heritage of the community at large.
1.4
Target Market and Customers
Our target market shall be children within the age bracket of 13 18 years of age as
earlier mentioned. The community in which Zulaiha High School will be established
has a great amount of this age bracket. For instance out of average population of 22,575
pupils who completed from primary school from Wakiso district in 2011, slightly over
21,000 proceeded to secondary school. After researching the population facts and
statistics of Wakiso district community in which the Zulaiha High School will be
launched, it is apparent that Zulaiha High School has a very suitable demographic for
this particular industry. Since it completely surrounds Kampala city, Wakiso district is
one of the most densely populated and economically prosperous districts in Uganda.
Most inhabitants of this district are middle to upper-middle class who are elites and
value formal education. The average combined family income per month was given as
UShs. 4,000,000 [US$ 1,600]. The result of our research carried out that each household
will be willing to pay a reasonable sum of money as school fees for their wards as they
want quality education that will make their children acquire necessary skills to compete
internationally. Knowing the average size of family income as well as potential
estimates of students that will participate in this school provides valuable insight on a
projected target market.
1.5
Need for Private Secondary School
Provision of excellent and quality education as compared to what is obtainable abroad

is basically the motive for the establishment of Zulaiha High School. In order to
determine the necessity of the establishment of Zulaiha High School, we had to collect
data and sample the opinion of people living in Wakiso district. From the survey, we
were able to discover that the populace value good education and are ready to pay for
it. However, it was gathered that there was much emphasis on reasonable fee. Private
secondary schools have a more recent history than private primary schools and are
beginning to attract more investors. The growth in popularity of private schools derives
from the loss of confidence by parents in public schools due to the pervasive decline in
quality of performance and obvious depreciation in existing facilities.

1.6
Project Concept
This study describes the efforts by the project promoter of Zulaiha High School to
expand its service offering of secondary education infrastructure and other teaching
facilities so as to offer a vintage quality secondary school education that is competitive
and cost-effective to its target market population. The school project as proposed is
meant to beget a two-way advantage in this respect, but with the biggest beneficiary
being the student community at Zulaiha High School that will be situated at Kigo
Village, Busabala Parish, Ssabagabo-makindye Sub-County of Wakiso District that is
located in Central Uganda on the northern shores of Lake Victoria.
The background to conception of Zulaiha High School is rooted in the strong
foundation laid by its promoter Mr. ------------------------ through the establishment and
success of the first secondary school Hope Boarding Secondary School that he
founded in 2003 at Lutembe in Wakiso district. Ever since its establishment in 2003,
Hope Boarding Secondary School has been steadily growing in its academic reputation
and educational competitiveness that it has now reached a peak level of 700 students
with a potential to take on even more students as the demand for quality secondary
education in this area of Central Uganda has been rising in direct proportion to the fastgrowing population that has one of the highest proportions of children under the age 15
of around 50 per cent.
However, due to space limitations at its present location at Lutembe near the Kampala
Entebbe highway, it has meant that Hope Boarding Secondary School cannot be able to
expand its facilities and infrastructure beyond the present size and this has compelled
its project promoter to consider the proposal of opening up a new sister secondary
school a few kilometers away at Kigo so as to cope with the high demand growth for
secondary education schooling prevalent in the area while also capitalizing on the
academic success and performance reputation of the Hope Boarding Secondary School
brand image in starting and scaling up the proposed Zulaiha High School.
Historically, the Government of Uganda has been responsible for providing education
to its citizens [especially through the provision of capitation grants to governmentaided secondary schools and the recently introduced Universal Secondary Education
USE programme that was only established in 2007]. However, increased population,
limited resources and the low quality facilities and poor administration in most of these
USE-schools have led to a strong demand for private schools as an alternative to the
government-aided schools. The few well-performing government-aided secondary
schools on the other hand always subsidize their government capitation grants with
5

prohibitively high fees in order to cover the school running costs and retain quality
teaching staff that most parents cannot easily afford. In order to plug this gap,
Government encourages private schools and institutions to be set up.
The current promoter of the project [principally Mr. -----------------------] is dedicated to
uplifting the standards of education through the establishment and development of
Zulaiha High School using his well-grounded experience in both the education and
business aspects of the project. Mr. ----------------------- business development skills and
networking competencies are of particular relevance to the needs of this project. The
unique geographical location, demographics and socio-economic status of the schools
surrounding locality offer a reliable source for enrolment of secondary school going age
children.
The immediate development objective of Zulaiha High School is to start-up and
systematically scale-up its facilities and infrastructure, offer an appropriate curriculum
that is tailor-made to the requirements of higher education and the Uganda job market,
and recruit and retain quality teachers so that it can offer quality education within a
modern and attractive setting. By offering quality education, Zulaiha High School is
expected to earn early recognition and the parents trust and preference.
Other salient features that work in favour of the future success and growth of Zulaiha
High School will be:
Geographical Location. The fact that Zulaiha High School is located in a high
population density area strongly underlines the critical need for quality
secondary education schooling to serve the growing socio-economic
development needs of the inhabitant population. Though Wakiso district hosts
the highest number of private secondary schools in Uganda, it is also true that
quite a good number of them are struggling as they lack the essential facilities
and inputs necessary for attainment of a top quality secondary schooling
standard of the type offered by urban-based primary schools. So, there is still a
large gap for qualitative secondary schooling within the Ssabagabo-makindye
Sub-County area that needs to be immediately filled. By stepping up to the
challenge, Zulaiha High School will be able to attract quite a sizeable population
of school going age children not only from the Ssabagabo-makindye SubCounty area, but also from the entire Wakiso District at large.
Demand. There is a strong and increasing demand for quality secondary

schooling throughout Uganda at the moment owing to the steady increase in
6

population [estimated at 3.2% per annum] and the realization of the social rate of
return in the education of children as a key human capital development tool.
Socio-economic indicators of the area. This area [Ssabagabo-makindye SubCounty] is a peri-urban residential area and the residents have strong and stable
incomes accruing out revenues generated from small-medium scale businesses
and agricultural/fishing activities. The residents of this area thus generally enjoy
comparatively higher standards of living than those in other less endowed
primarily arable-farming communities of Uganda. This means that such a
population can easily afford the cost of a good quality primary school education
for its children given the opportunity. In any case, taking into consideration the
facilities that Zulaiha High School will offer, the fees set will be similar to those
of identical competitive primary schools elsewhere in Uganda.
Promoters Reputation. Mr. ----------------------- one of the principal project

promoters of Zulaiha High School has already gained a good local reputation
within the area as a leading education service provider/entrepreneur. The
people here do recognize Mr. ----------------------- commitment to excellence in
providing a good foundational education for their children and his ambition to
do to more for their cause.
Spiritual ethics and values. Parents in Ssabagabo-makindye Sub-County are

strongly inclined to seek out schools like Zulaiha High School that give their
children not only the benefit of a good basic education but also a solid
foundation in Islamic and Christian ethics, morals and values to supplement
what they offer their children at home.
1.7
Project Cost
The total capital development budget for the proposed Zulaiha High School expansion
programme is US$ 1,000,000 of which US$ 290,000 [29%] is the project promoters
equity commitment and US$ 710,000 [71%] is to be raised from development institution
finacining sources.
1.8
Project Returns
The project seems to be viable with 30.62% internal rate of return and a payback period
of 2.27 years. The net present value [after tax] of the project is US$ 63,731.43. Discount
rate used for NPV is 28%.
7

1.9
Viable Economic Size
Since, it is a service sector project, there is no hard and fast criterion for viable economic
size, rather it depends upon many factors like faculties needed, infrastructure
requirements, schools fixed overhead, etc.
1.10
Proposed Capacity
For the purpose of this proposal, strength of 1,900 students has been proposed. The
distribution is 400 pupils per class [Senior 1 to Senior 4] with each class having eight
streams of 50 students each, and 150 students per class [Senior 5 to Senior 6] with each
class having three streams of 50 students each.
Table 1: Year-wise Number of Students
Year 1 Year 2 Year 3
Students/Year
S1
400
400
400
S2
400
400
400
S3
400
400
400
S4
400
400
400
S5
150
150
150
S6
150
150
150
Total Students
1,900 1,900 1,900
1.11
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
400
400
400
400
150
150
1,900
400
400
400
400
150
150
1,900
400
400
400
400
150
150
1,900
400
400
400
400
150
150
1,900
400
400
400
400
150
150
1,900
400
400
400
400
150
150
1,900
Business Legal Status
Zulaiha High School Limited is registered as a limited liability company in the

Republic of Uganda and is the legally recognized enterprise running Zulaiha High
School. The secondary school is also registered with the Ministry of Education and
Sports [MoES] under Registration No. PPS/S/247.

2.0
GOVERNMENT POLICY ON SECONDARY EDUCATION

2.1
Overview Ugandas Formal Education System
Education is a fundamental human right as well as a catalyst for economic growth and
human development (World Bank, 1993). The constitution of the republic of Uganda
articles 30 makes education for Ugandan Children a human right, and in article 34
children are entitled to basic education by the state and the parents.
Ugandas formal education system starts with seven years of primary school (ages 612), which is compulsory (supposedly) and free according to the current Universal
Primary Education (UPE) policy. This is followed by six years of secondary education
(ages 13-18), which is optional though plans are under way to make it universal too.
This level is succeeded by three to five years of University or tertiary education
depending on the profession selected by the individual. Figure 1 shows the education
and training trajectories in Uganda.
Figure 1: The Ugandan education and training system
Teacher
Training
University
Uganda
Poly
Technic
NTCs
(Degrees)
(Diploma)
PTCs
Technical
& Business
Colleges
Specialist
Training
Colleges
(Diploma)
Vocational
Training
Centres
(Certificate)
(Certificate)
Upper Secondary
(UACE)
Technical & Vocational

Schools
Lower Secondary (UCE)
UPE/Primary Education (PLE)
Technical
Institutes
(Diploma)
+
(Certificate)

2.2
Government Policy on Education
Education is one of Governments key sectors and has continued to receive priority in
resource allocation. Today 33% of total government discretionary recurrent budget is
allocated to the education sector, with primary education, including the primary
teacher-training budget, receiving more than 62% of this allocation. Secondary
education currently receives 15% of the sector recurrent budget allocation, (also
including secondary teacher training).
Education policy in Uganda has evolved over the years resulting in several documents,
one of which is the White Paper on Education Policy of 1992. The document covers all
levels of education from pre-primary to higher education, and all types of formal
education such as general, technical, vocational, teacher training as well as non-formal
education. The Ministry of Education has developed a sectoral approach to education in
partnership with funding agencies. The Education Strategic Investment Plan (ESIP)
1998 2003 was a medium term vehicle that embodies this approach and other key
aspects of the Education White Paper.
Current national priorities, as stipulated in policy documents issued by the Ministry of
Education and Sports, include: i)
Provision of Universal Primary Education (UPE);
ii) Sensitization of the population about UPE in order that communities fully
participate in its implementation;
iii) Provision of construction materials for primary and secondary schools and
tertiary institutions in a progressive manner;
iv) Improvement of Teacher Training Programmes and rehabilitation of Teachers
Colleges;
v) Making the Teacher central in our education system by creating a well trained,
facilitated and disciplined teacher;
vi) Improving the teaching of science, mathematics, technical and technology
education at all levels;
vii)Vocationalization of the curriculum through a systematic introduction at all
levels through staff development programmes;
viii) Review and reform of the examination in order to incorporate continuous
assessment; and
ix) Implementation of strategies that will redress the existing imbalances i.e. gender,
geographical, social, or otherwise as well as the disparities in education
10

standards and performance throughout the education system in general and
primary and secondary education in particular.
2.3
Specific Aims and Objectives of Secondary Education
The Government of Uganda [GoU] is convinced about the need to re-define the aims
and objectives of secondary education in order to bring them in line with the newlydefined broad aims of education and prevailing national aspirations. Government,
therefore, endorses the following aims and objectives defined by the Commission for
secondary education:
i.
Instilling and promoting national unity, an understanding of the civic and social
responsibilities, strong love and care for others and respect for public property,
as well as an appreciation of international relations and beneficial international
co-operation;
ii.
Promoting an appreciation and understanding of the cultural heritage of Uganda

including its languages;
iii.
Imparting and promoting a sense of self-discipline, ethical and spiritual values,

personal and collective responsibility and initiative;
iv.
Enabling individuals to acquire and develop knowledge and an understanding

of emerging needs of society and the economy;
v.
Providing up-to-date and comprehensive knowledge in theoretical and practical

aspects of innovative production, modern management methods in the field of
commerce and industry and their application in the context of socio-economic
development of Uganda;
vi.
Enabling individuals to develop basic scientific, technological, technical,

agricultural and commercial skills required for self-employment;
vii.
Enabling individuals to develop personal skills of problem-solving, information

gathering and interpretation, independent reading and writing, selfimprovement through learning and development of social, physical and
leadership skills such as are obtained through games, sports, societies and clubs;
viii.
Laying the foundation for further education;

11

ix.
Enabling the individual to apply acquired skills in solving problems of the

community, and to develop in him a strong sense of constructive and beneficial
belonging to that community; and
x.
Instilling positive attitudes towards productive work and strong respect for the
dignity of labour and those who engage in productive labour activities.
2.4
Implementation Strategy
The aims and objectives of secondary education in Uganda are implemented through
their reflection in the new secondary school curriculum that has been developed by the
National Curriculum Development Centre [NCDC].
12

3.0
GUIDING PHILOSOPHY & CORE VALUES OF THE SCHOOL

3.1
Mission Statement
The mission of Zulaiha High School is to provide a safe and nurturing environment
where all children can excel in Islamic learning, academic achievement, and socially
responsible citizenship. Leadership and integration opportunities are also provided
toward preparation for future success.
3.2
Vision Statement
Zulaiha High School provides a safe and nurturing environment that fosters exemplary
secondary school education and strong academic achievement.
Provision of a high calibre secular education includes excellence in academics. Children
are motivated to attain their potential through curiosity and a desire for learning. We
strive to meet the needs of all children and support ALL learners in an equitable
environment.
Our role includes teaching social responsibility and creating global social awareness.
We prepare students to excel in moral values and demonstrate exceptional character.
We strive to provide leadership experiences and integration opportunities both within
and outside our immediate community. We believe that leadership roles offer the
students a chance to give back to the community. Integration opportunities increase the
learning realm and allow for a successful future after Zulaiha High School and in the
larger Ugandan society. Provision of extra-curricular programs complements our
childrens personal growth.
The chief responsibility of the school is to prepare independent thinkers who have a
good sense of right from wrong, through both solid secondary school education.
Zulaiha High School prepares children to become caring and contributing citizens of
distinction.
3.3
Our Core Values
Theme 1: Foster Academic Excellence

Maintain medium class sizes
Create a love for schooling and a want for learning
Encourage independent thinking and inculcate value of knowledge
Develop childrens potential based on their inherent abilities
13

Equip students with the skills, experiences, knowledge, and attitude needed for
success
Theme 2: Nurture Socially Responsible Citizens

Provide a safe and caring environment for learning
Provide an environment that is welcoming to ALL children, parents, and staff
Instill moral values, character, and respectful language
Teach stewardship of the school and the environment, and create global social
awareness and responsibility
Recognize socially responsible behaviours through regular assemblies
Theme 3: Provide Leadership Experiences
Instill self-esteem, confidence, and motivation in the students
Provide students with outreach and volunteering opportunities both with and
outside the community
Create opportunities for the students to give back to the community and society
Prepare future leaders
Major Directives
Theme 4: Develop Integration Opportunities
Promote programs that allow for integration in Canadian society
Promote programs that allow for religious integration
Promote involvement in projects outside the community
Prepare students to be an integral part of the larger community
Prepare students through integration for life after Zulaiha High School
Theme 5: Provide Diverse Extra-Curricular Programs
Provide a wide array of activities to meet different interests and to develop the
whole child
Provide a well rounded athletic and sports program
14

4.0
THE COMPANY AND SPONSORS

4.1
The Company
The legal entity that owns and runs Zulaiha High School is -------------------- Limited.
This company was incorporated in the Republic of Uganda way back in ----------(Month) 20--- (Year) and has the following ownership structure:
Shareholder
%age of Shares held
---------------------------------------------------------------------------------
---%
---%
---%
---%
100%
All are directors/shareholders of the company are Ugandan nationals.

The school was licensed by the relevant licensing authority, the Ministry of Education
and Sports on the ---- (Day) -------- (Month) ------- (Year).
4.2
The Sponsors
INSERT BRIEF CVs OF DIRECTORS HERE
15

4.3
Past Performance School Results
Present Operations
It is not possible to provide past performance of the proposed Zulaiha High School
here since this is a new school development without any financial or academic records
to speak of.
However, an indication of the past financial and academic performance of the
associated Hope Boarding Secondary School Lutembe which was founded and is run
by the same proprietor/project promoter Mr. -------------------------- provides a measure
of his management capabilities and stewardship that he is ready to transfer to the
proposed Zulaiha High School.
The summarized financial statements for Hope Boarding Secondary School Lutembe
are thus shown below:
Table 2: Hope Boarding Secondary School Summarized Financial Statements
Year/Financial Indicator
2010
2011
2012
Income
Net Profits
Net Assets
Financed By:
Share Capital
Accumulated Fund
Directors Loan
Profit and Loss
Total Financing
The financial performance data displayed above shows that school operations have
been satisfactory. It has made net profits, which have been increasing every year. The
assets have also been increasing. Presently, the school has no debt encumbrances.
16

Academic Results
Uganda Certificate of Education (UCE)
The school academic results for Hope Boarding Secondary School Lutembe have also
been good as shown by last years [2013] performance results below.
Table 3: 2013 U.C.E. Results
Year
2013
No. of Candidates
57
Examination Results per Division

DIV 1
DIV 2
DIV 3
DIV 4
24
25
5
3
According to last years results, the pass rate for Hope Boarding Secondary School
Lutembe was therefore 42%.
Uganda Advanced Certificate of Education (UACE)
Hope Boarding Secondary School Lutembe has also performed well at the UACE level
as shown in the table below.
Table 4: 2013 U.A.C.E. Results
Year
No. of Candidates
2013
48
Examination Results per No. of Principal Passes

3 Ps
2 Ps + 1
2 Ps
1P
Sub
30
13
2
2
According to the same results, 37 out of the 48 candidates [77%] who sat for UACE at
this school in 2013 scored 10 points and above and therefore have a high prospect of
getting admitted to tertiary institutions of learning in Uganda.
17

5.0
CURRENT INDUSTRY STRUCTURE

5.1
Secondary Schools in Uganda by Ownership and Founding Body
By end of December 2010, the Ministry of Education and Sports indicated that private
investment was highest in secondary education as shown in the Figure 2. The private
sector owned about 58% of the secondary schools in 2009 compared to 47% in 2006.
Over time, it is likely that the increase in the number of schools will be largely propelled
by the enlistment of the private sector investment in the education sector.
Although government owns about 30% of the secondary schools, it founded one of the
least numbers of schools which stood at 5%.
Figure 2: Secondary Schools by Ownership Type, 2010
Community
12%
Government
30%
Private
58%
Source: Education Statistical Abstract 2010, Ministry of Education & Sports

Annually, data is collected to ascertain the founding bodies of schools and it is predetermined that founding bodies of schools in Uganda fall under the following
categories: Faith based organizations (i.e. Catholic, Church of Uganda, Islamic & SDA),
Government, Community and Entrepreneurs. Figure 3 gives the outcome of the census
on this variable.
Figure 3 indicates that majority of the schools in the sub-sector are owned by
Entrepreneurs (35.3%), followed by the Catholic (18.5%) and the COU (17.7%). SDA has
the list number of schools.
18

Figure 3: Secondary Schools by Founding Body, 2010
Indeterminate
1%
Islamic
5%
Government
5%
Church of Uganda
16%
Unknown
9%
Entrepreneurs
32%
Catholic
17%
Sevent Day
Adventist
1%
Parents
14%
Figure 3 indicates that entrepreneurs founded the highest number of school at 32% as at
end of 2010 compared to 28.6% in 2006 followed by the Catholic Church and Church of
Uganda (COU). The Parents also ranked high (i.e. 14%) in founding secondary schools
in the country whose figure stood at 16% in 2010.
The proportion of schools founded by the entrepreneurs increased from 29% in 2006 to
32% in 2010 while those founded by the Catholic Church and Church of Uganda
respectively reduced by 1% and 1.8% respectively. Figure 3 depicts that more and more
categories other than government continue to found more secondary schools as they
view these ventures as profitable business cases for investment in the education system.
The entrepreneurs will continue to dominate this sector for the foreseeable future as
long as the policies continue to encourage private sector investment.
19

5.2
Secondary Schools by Location
As compared to 2010, the biggest percentage of schools still falls in the rural areas (i.e.
55%), followed by the Peri-Urban with 29% and Urban with 16% respectively, see
Figure 4.
Figure 4: Secondary Schools by Location
Urban
16%
PeriUrban
29%
Rural
55%
5.3
Secondary Schools by Boarding Type
Majority of the schools operate as Day schools (60%). 8% of the schools are Full
boarding schools, while 32% have boarding facilities (i.e. they are Partly boarding) for a
few students, probably for candidate classes or students who come from far and those
who can afford. See Figure 5 below
20

Figure 5: Secondary Schools by Boarding Type
Partly Boarding
32%
Day School
60%
Full Boarding
8%
5.4
Secondary Schools by Funding Body
The number of schools receiving government funding increased from 30.8% in 2010 to
56.2% in 2011. This is as a result of governments continued partnership with the private
sector in the implementation of USE.
According to Table 5 however, majority of the schools in the sub-sector do not receive
any funding from government. This is because the Sub-sector is largely dominated by
the private sector.
21

Table 5: Secondary Schools by Funding Body
Region
Govt Aided
Not Govt Aided
Central
313
727
East
338
511
North East
15
9
North
216
218
South West
236
269
West
149
233
TOTAL
1,267
1,967
22
Total
1,040
849
24
434
505
382
3,234

6.0
MARKET ANALYSIS
There is stiff competition amongst the private secondary schools running in the market.
Parents are anxious about the future of their children so they think extensively before
seeking places of admission their children in any school. Following are the main factors
(not conclusive) on the basis of which parents make choice of secondary schools.
1. Distance from home
2. School administration especially the remuneration and welfare of its
teachers
3. School track record/history
4. General reputation
5. Fees
6. Qualification and experience of the head of school and other faculty.
7. Instruction facilities and equipment (especially for science/technical subjects)
8. Courses offered (educational curriculum) and medium of instruction.
Besides the above, there are some other subjective, social and status considerations
which also play an important role in making decision.
6.1
Demand
Several factors have created a strong demand for private primary schools in Uganda.
The government has been unable to maintain adequate teaching standards and
educational facilities due to limited resources. As a result of this, the quality of
education in government-aided primary schools has declined.
The increased population has led to overcrowding in government schools,

further reducing the quality of education.
The government started Universal Primary Education [UPE]. This is free primary
education to four children per family. There will be many more students who
will want to enroll in government-aided primary schools that the available
places.
The existing high quality private schools are filled to capacity and the administrators of
these schools confirm that they receive more applications that they can accommodate.
23

Secondary Education
This level has witnessed unprecedented growth rates by over 19% over the last 9 years
in the enrolment of students, but yet to attain the necessary capacity to cope with the
large numbers of primary school leavers. The Table 6 shows the key indicators at
secondary education level where the enrolment increased from 728,393 in 2005 to
1,194,454 at end of 2009. The tremendous increase is attributable to the introduction of
the universal secondary education in 2007. As of 2010, a total of 264,635 candidates sat
the Uganda Certificate of Education Examinations, with 104,000 of them registering
under the Universal Secondary Education scheme. However, it is still seen that during
the academic year 2010, there were 519,246 pupils who sat primary seven leaving
examinations vying for about 300,000 places available at senior one. This indicates that
if all candidates sitting their primary leaving examinations manage to qualify for the
next level of education, then only 57% of them can be absorbed for secondary education
which calls for additional investments at this level by both government and the private
sector.
Table 6: Trend of Key Secondary Education Indicators in Uganda: 2005-2010
Year
2005
2006
2007
2008
2009
Net Enrolment
728,393
814,087
954,328
1,088,744
1,194,454
No. of Teachers
37,607
42,673
50,767
57,007
65,045
No. of Secondary
Schools
1,961
2,286
2,644
2,908
3,149
Gross
Enrolment
Rate
18.6
22.1
25
27.6
28
Student
Teacher
ratio
19
19
19
19
18
Net Enrolment Rate
15.4
18.6
21.3
23.5
24
Source: Statistical Abstract 2010, Uganda Bureau of Statistics
2010
1,225,692
62,921
3,234
28
19
25
Of the 3,149 secondary schools registered by the Ministry of Education as of December

2009, 69% were owned by others (i.e. by the private sector and the community).
24

Figure 6: Secondary Schools by Funding Source
Indeterminate
0%
Government
13%
Unknown
13%
Partly
Government
17%
Not
Government
57%
Source: Statistical Abstract, 2010 (UBOS)

Government is only owning about 31% but in terms of funding, 24% of the schools were
wholly supported by government, see Figure 6. This is an indication that the private
sector is increasingly taking over the operations and running of the affairs of secondary
education. The introduction of Universal Secondary Education (USE), has not changed
this picture either, since the role of the other actors who are not government is still seen
to be bigger.
In 2010, there were about 3,234 secondary schools, an increase by 41.5% over a period of
four years (2006-2010) which is an indication that there enormous opportunities for
expansion at this level. The absorption capacity in secondary schools at the moment is
less than 200,000 students, which is less than half the number of pupils leaving primary
school. The same thing applies to the advanced level where the number that graduates
at senior four is more than what the senior five in-takes can handle. All these demand
supply gaps call for investments which the private sector can take advantage of.
25

Of the over 1.21 million students enrolled in secondary school in 2011, about 48% were
in private schools and the trend has been rising since the mid-2000s owing to decline in
the standards of most USE Government-aided secondary schools. As the quality of
Government-aided primary schools continues to stagnate or decline and the number of
students grows, demand for private schools is expected to rise, especially among the
middle and upper income families that can afford an alternative to the government
aided primary schools. Administrators of the main private schools in Kampala for
instance state that demand for their services is growing as indicated by the increase in
student enrolment in these schools during recent years. To accommodate the growing
demand, more private schools are required.
6.2
Supply
The government-aided schools are highly selective and take a small percentage of
primary school students based on their performance in the Uganda Primary Leaving
Examinations.
Private secondary schools operate in parallel with the government aided schools. They
are generally more expensive than the government aided schools. The higher quality
private schools are considered to offer education only comparable to the top
government aided schools. The top private schools are segmented primarily according
to fees. All private schools charge fees, which are affordable by middle and upper
income Ugandans. There are lower cost private primary schools as well, but they do not
offer the highest standard of education and so do not compete in the market segment
targeted by Zulaiha High School.
With the Government of Uganda continually still facing key challenges in the provision
of sustained access to secondary education with quality education being preserved and
the persistent high student classroom ratios in spite of the recent construction of a large
number of seed secondary schools (especially in the rural areas), there is need for
private sector education providers to step up by filling in this gap in secondary
education schooling through the construction and development of their own secondary
school projects and also through the forging of partnerships with GoU through public
private partnerships (PPP).
6.3
Competition and Comparative Advantages
There are several competitors to the proposed Zulaiha High School within the
Ssabagabo-makindye Sub-County area. Some of these private secondary schools may
charge lower fees than Zulaiha High School but would not be able to compete
26

favourably with Zulaiha High School in the sense that they may not be able to offer the
kind of educational curriculum, nor provide the quality of facilities that Zulaiha High
School will be able to offer.
Zulaiha High School will have several competitive advantages relative to other schools
in the area as follows:
A favourable location within a socio-economically prosperous setting [the

Ssabagabo-makindye Sub-County area lies on the Kampala-Entebbe urban axis
that is one of the fastest-growing areas in Uganda in terms of socio-economics
and average per-capita income levels for the last 10 20 years]. Also, the fact that
the primary school is very near to the Entebbe Kampala main road [only 2 kms
away] accords it a distinct advantage insofar as being able to attract a sizeable
student population from the rapidly-growing population within the locality;
Boarding option equipped with all facilities a student requires, which are not
offered by many other local area competitors;
A principal promoter with a strong background in both education and business;
Students will be provided with all manner of scholastic materials as well as

beddings [beds, mattresses and bed linen and uniform];
The curricula offered will be for a comprehensive secondary school. The

curricula offers traditional academic subjects with relevant practical skills and
vocational subjects;
Excellent athletic and sports facilities.

6.4
Fees
Fees for the school have been set taking into consideration the facilities being provided
and the expected quality of education. No increase of fees is assumed in the financial
projections. Zulaiha High School will quote fees in Uganda Shillings. The Uganda
Shilling has been relatively stable against major international currencies like the British
Pound and the US Dollar and is expected to remain so. The facilities being provided by
Zulaiha High School will be much superior to those available at the other schools
operating in Wakiso District. Hence the quoted fees [for boarders] of UShs.
500,000/Head/Term [US Dollars 200/Head/Term] will be very competitive.
27

Furthermore, there will be room for upward adjustment should this be deemed
necessary.
6.5
Marketing Strategy
The school will be marketed through direct contact with selected individuals and
institutions.
A brochure about the school will be produced. It will be distributed to individuals in
major institutions in Uganda such as banks, large corporations, as well as personal
contacts of the project promoter mostly within Kampala and the main urban centers,
as well as education-oriented Charity organizations outside Uganda.
The project promoters will organize media coverage of the school. Articles in
newspapers and television interviews will be used to reach the target market while still
maintaining the schools image. Given the high for a good private primary school and
the promoters extensive personal and professional contacts, reaching the maximum
capacity of 2,000 pupils within the very first year of operation [after reconstructive
extension] is not expected to pose a problem. Once the school is fully operational, its
performance and reputation will be a satisfactory marketing tool as is the case for other
top private primary schools in the country.
28

7.0
TECHNICAL ASPECTS
7.1
Curriculum
After extensive research of the Uganda secondary school educational needs and
structure, Zulaiha High School will offer a Comprehensive Secondary School
curriculum that combines the general secondary school curriculum subjects and
practical Vocational training subjects. This has been decided upon after realizing that
parents in the community have expressed the need for a good secondary school. Since
many students come from economically disadvantaged families with little prospect of
continuing with further tertiary education and coupled with the evolved nature of the
Ugandan job market nowadays that puts much emphasis on technical skills acquisition
at the secondary education level, there is a need to provide students with a
comprehensive secondary schooling curriculum early on at the O-level stage that would
adequately equip them with the requisite skills and knowledge for the job market.
The fact that less than 20 percent of students who complete O levels continue to the
A level program owing to the prohibitive cost of educating children in Uganda
nowadays for many poor rural families has compelled the proposed Zulaiha High
School to provide a well-balanced and structured secondary school curriculum that will
not only enable them to find meaningful employment on completion of their formal
education system but also to provide an alternative path so these students unable to
continue to A level can undertake vocational training at acquire practical skills in
various trades.
The proposed school curriculum can therefore be summarized as aiming at achieving
the following goals and objectives:
Provide a well-rounded quality practical education

Provide a solid foundation in both the arts and science preparing students to be
successful at Universities and other high institutions of learning both in Uganda
and abroad.
The proposed school curriculum will therefore includes courses in Mathematics,

English Language, Physics, Chemistry, Biology, English Literature, French, History,
Geography, Religious studies (Islamic and Christian), Health science, Computer
studies, Political education, and Commerce. Additional languages offered may include
Swahili, and Luganda. The school will engage students in extra-curricular activities
such as soccer, netball and other sports and cultural activities such as school plays and
29

concerts. Home economics, Art, Agriculture, Wood and metal fabrication, Business
Entrepreneurship, and other vocational subjects will be introduced to meet the
demands of a labour market that must absorb over half of all Form IV graduates who
do not advance to A levels. General education courses will be taken during the first
two years and in the third year students will begin to specialize in their subjects of core
competence during the third year and the fourth year.
7.2
Licensing and Registration Regulations & Procedures
Outlined below are the existing approval procedures and regulations for licensing and
registration of a new private school or institution.
a) The intending proprietor makes known his or her intention to start a School to
the Commissioner for Education and seeks his or her permission to do so in
writing.
b) The Commissioner for Education writes back acknowledging receipt and
granting or disallowing permission.
c) The Proprietor receives application forms for license from the District Education
Office.
d) The District Inspector of Schools and the District Health Inspector inspect the
intended School and attach detailed reports.
e) The District Education Officer forwards three copies of the application forms to
the Commissioner for Education (Inspectorate) Ministry of Education and Sports.
f) The Commissioner for Education Inspectorate basing on either reports or
recommendations from the district or a report following a physical inspection by
the Central Inspectorate recommends to the Commissioner for Education who
approves or rejects the application for license.
g) The Commissioner for Education approves and awards a license to last one year,
copied to the Commissioner for Education (Inspectorate), District Education
Officer, District Inspector of School and the Head-teacher.
h) About one or two months to the expiry of the one year license, the proprietor
collects forms for registration providing details showing that the School is now
fully established and meets the minimum requirements.
i) The District Inspector of Schools re-inspects the said school for registration.
j) The District Education Officer recommends to the Commissioner for Education
(Inspectorate) the School for Registration.
k) The Commissioner for Education (Inspectorate) using information and
documents attached on to the application form, or a report based on physical
inspection of the School by the Central Inspectorate, may reject the application
30

and give reasons for doing so to the proprietor, or recommend to the
Commissioner for Education the award of a Registration and Classification
number.
l) All licenses and registration certificates are entered in the relevant registers kept
by the Commissioner for Education. Applications for license will be dealt with
between June - December preceding the year of operation.
m) A School may be de-licensed or de-registered in cases of non-compliance with
the regulations governing the operations of private schools in accordance with
the Education Act (1970) by the Commissioner for Education.
7.3
Admissions and Classes
Admissions to Zulaiha High School will be done by interview with the Headmaster.
Class size [per stream] will be limited to 50 students generally. This size allows
individual attention for students and helps ensure the highest standard of education.
All students admitted to the school are expected to be boarders.
7.4
Management and Staffing
The school will have a Board of Trustees consisting of all the shareholders as founder
members of the school. The responsibility of the council is to ensure that the school is
managed in accordance with the aims and objectives for which it was established.
There is a Board of Governors as mandated by the government. It is the supreme policy
making body responsible for ensuring efficient and effective management of the school.
It is charged with the responsibility of making decisions relating to staff recruitment,
discipline of staff and students and general development of the school. It consists of
nine members including the headmaster, parents representative, students
representative, teachers representative, Ministry of Education representatives [2], a
local dignitary, the main sponsor and the school bursar.
The Headmaster will be responsible for the day-to-day operations of the school,
recruiting and recommending staff, liaising with parents, education officers, and
admitting students. The Headmaster is assisted by two Deputy Headmasters, one
responsible for academics and the other in charge of general administration. The
Deputy Headmaster/academics is responsible for planning, controlling and
coordinating all the academic activities. The Deputy Headmaster/administration is
responsible for planning and controlling all the activities of non-teaching staff and
employees.
31

The school will have a dedicated team of teachers and instructors with relevant
qualifications to cater for both standard secondary subjects and vocational skills. All
staff will be selected from certified institutions who are capable of the positions
responsibilities, with a real interest and understanding in the subjects they teach, and a
love for students - to build them as the next generation of leaders. All the teachers will
be locally recruited. Good qualified and experienced teachers are available. The
remuneration offered will be good enough to attract and retain quality teachers. At full
operation there will be a total of 40 teaching staff. The complete staffing requirements
for both academic and non-academic staff are shown in Table 7 and the Organization
Chart in Figure 6 below.
Table 7: School Manpower and Emoluments [Year 1]
Positions
Faculty Members:
Director of Students
Teachers
Computer Instructors
Administrative Staff
Director
Headmaster
Deputy Headmaster
Administrator
School Bursar
Secretary
Matrons
Copy Typist
Maintenance Staff:
Office Attendant
Driver
Turn boy
Caterer
Cooks
Waiters/Dining Staff
Classroom Cleaners
Compound Cleaners
Security Guards
TOTAL
Number
Salary/Head/Month
[USD]
Total
Monthly
Salary
[USD]
Total Annual
Salary [USD]
1
40
4
1,200
400
400
1,200
16,000
1,600
14,400
192,000
19,200
1
1
2
1
1
1
2
1
1,820
1,000
800
400
400
200
200
100
1,820
1,000
1,600
400
400
200
400
100
21,840
12,000
19,200
4,800
4,800
2,400
4,800
1,200
1
1
1
1
4
3
6
6
2
80
100
150
100
250
150
150
100
100
100
100
150
100
250
600
450
600
600
200
1,200
1,800
1,200
3,000
7,200
5,400
7,200
7,200
2,400
333,240
32

Figure 7: Zulaiha High School Organization Chart
BOARD OF
TRUSTEES/SHAREHOLDERS
BOARD OF GOVERNORS
DIRECTOR
HEADMASTER
POOL SECRETARY
STENOGRAPHER
DEPUTY HEADMASTER
DEPUTY HEADMASTER
BURSAR
DIRECTOR OF STUDENTS
TEACHERS
[40]
ADMINISTRATOR
COMPUTER
INSTRUCTORS
[4]
NURSES
[2]
CLEANERS
[12]
33
SECURITY
[2]
DRIVER [1]
CATERER
WAITERS
[3]
MATRONS
[2]
COOKS
[4]

7.5
Location and Infrastructure
The school is located on a ----- ha. [------ Acres] site at Kigo Village, Busabala
Parish, Ssabagabo-Makindye Sub-County. The school is situated on the MpalaBubuli road off the KampalaEntebbe main road at Mpala near Seventh Day
[SDA] Church. The school is exactly located on the village road to Bubuli and
a few metres from Mpala Trading Centre towards Kampala and opposite the
road to Lyamutundwe village.
The plot on which the school sits is registered as a District Lease in the names of
Zulaiha High School. The land title is unencumbered and is available as
collateral. The size and topography of the site are suitable for the project. The site
is spacious enough to accommodate the new structures and building extensions
that are being proposed in this plan.
The area has adequate water supply, but being a rural location in Uganda it lacks
an electricity grid network. The immediate plan is to connect the proposed
school development to the Umeme electricity supply grid that is not too far off
from the proposed school site. An additional power supply contingency measure
will also be to purchase and install an appropriately-sized solar power unit and
an electricity generator to function as a back up and standby power supply
source. Sewage treatment will be to a septic tank.
7.6
Buildings and Other Infrastructure
Table 8 below provides a summary on the planned building infrastructure at

Zulaiha High School.
The construction of all buildings will be the same, comprising of reinforced
concrete frames with concrete block work walling rendered and plastered.
Roofing will be of corrugated iron sheets on wooden trusses. Windows will be of
plain louvers in timber sub-frames fitted with burglar proofing. Doors will be of
paneled timber shutters.
34

Table 8: Planned Building Infrastructure at Zulaiha High School
PLANNED/PROPOSED
4 Classroom of 8 Classes each [O Level] Blocks + 2 Classroom of 3 Classes each
[A Level] Blocks
6 Dormitory Blocks
1 Library
1 Computer Lab
4 Science Labs
1 Headmasters Office
1 Staff Room
1 Kitchen + Dining Hall
40 Staff Accommodation Units
1 Main Hall
1 Recreation Hall
1 School Clinic/Domiciliary
1 Underground Water Tank
1 Tools/Spares Store
1 Gate House
1 Sports Field/Playground
1 Sanitary Facilities structure

7.7
Sports Facilities
A Playground [100 x 150 metres] will be leveled. Various games including

athletics will be held on this ground.
The school will be constructed in such a manner as to offer a beautiful pleasant
environment while controlling construction costs.
7.8
Equipment, Furniture, Fixtures
Standard classroom and dormitory equipment and furniture will be purchased.

Textbooks, scholastic materials, computers, kitchen equipment, sports
equipment, dining cutlery and office equipment will also be purchased. Most of
the items will be purchased locally.
35

7.9
Vehicles
Zulaiha High School requires an 8 MT Fuso Truck for the day-today transport
needs of the school and other general purposes.
36

8.0
PROJECT TIMETABLE
The proposed new school development site at Kigo is deemed as having space
large enough for development of the new Zulaiha High School as is being
proposed in this business plan. This plot of land is sizeable and spacious enough
to easily accommodate building infrastructure for approximately 2,000 students
on a permanent boarding basis.
The project implementation schedule is as shown in Figure 8 below. For the
project to be fully implemented and completed, financing must be firmed up by
January 2015, and all equipment must be procured and delivered by April 2015.
Building construction work is expected to take 8 months to complete [i.e.
February September 2015]. The various activities are expected to proceed as
follows:
Activity
Timing
Negotiate for finance

Financing documentation
Order equipment
Delivery of equipment
Installation
Building Construction
June 2014 August 2014

September October 2014
November 2014
December 2014 January 2015
November 2015
January 2015 December 2016
37

Figure 8: Project Implementation Plan
ACTIVITY/TIMESCALE
June
2014
Jul
2014
Aug
2014
Sept
2014
Oct
2014
Negotiate for finance

Financing documentation
Order equipment
Delivery of equipment
Installation
Building Construction
38
Nov
2014
Dec
2014
Jan
Mar
2015
Apr
Jun
2015
Jul
Sept
2015
Oct
Dec
2015

9.0
ENVIRONMENTAL CONSIDERATIONS
The construction of the proposed secondary school will be subjected to environmental

review as it has a Category B classification according to the World Banks guidelines on
educational establishments.
Planning approvals to proceed with the plans
implementation will be sought from the relevant authorities in Uganda (NEMA) and
the project promoter expects an affirmative clearance for the schools construction as
schools do not any negative environmental impacts and instead have many positive
social development benefits to offer to the local communities. So far, there are no
objections to this development from the neighbouring communities. The principal
environmental aspects of the project are as follows:
Land Clearing
Since the school will be actively using the Kigo site, it will have to be cleared and
levelled at first. The bushes covering the site have however already been cleared prior
to construction of the exiting buildings. Lawn grasses will have to be planted in the
school compound and various tree species will also have to be planted.
Water and Sewage Treatment
The school will invest in an electrically-operated water pump to draw water from the
nearby Lake Victoria (Murchison Bay) plus the accessory water purification system,
storage tanks and reservoirs, and water reticulation system (pipes) for distribution to
the various buildings and infrastructure on site. An emergency borehole will also be set
up to provide safe and clean potable water as an additional back up. For sewage
treatment, septic tanks [VIP Stance latrines] will be constructed. These facilities will be
adequate for the school. These are however interim measures as the school management
will seek to connect the school to the national urban water supply and sewerage
disposal grid serving the nearby Kampala city in a period of 1 2 years from the date of
school commencement.
Garbage Disposal
Garbage generated by this development will be classified and divided into general
domestic garbage and kitchen waste. These will be stored in designated areas, within
waterproof bins and disposed off as effectively as possible to the land fill site.
39

Hazardous Substances and CFCs
All refrigeration units to be bought will be free of CFC gases. No hazardous waste
products or emissions are expected to be associated with this development.
Power Supply
Power supply to the proposed school development site at Kigo is not satisfactory at the
moment since it is basically a rural location in Wakiso District. To overcome this power
supply constraint, the project promoter proposes to connect it to the nearby Umeme
electricity supply grid network that is not too far along the Kampala Entebbe highway
axis. The power supply back up plan will be to also include the purchase and
installation of stand-by electricity generator (50 kVA power-rating) and solar power
system at the school.
Fire Protection
The development will put in place an adequate fire protection system. Portable fire
extinguishers as well as fire hoses connected to the main water supply will be installed.
The extinguishers will be regularly inspected.
Health and Safety
The management of the school is well aware of the need for international standards of
health and safety. Fortunately, the school is only just about 10 15 kms away from
Kampala and will therefore be well-connected to and served by the many health
facilities and centers that currently exist within the Kampala Entebbe axis.. The school
will however set up and equip its own on-site domiciliary and staff it with a resident
doctor and support health staff who will always be on hand to provide emergency
services whenever required.
40

10.0
PROJECT COST AND FINANCIAL PLAN

10.1
Estimated Project Cost
The total project cost (including the existing Hope Boarding Secondary School
Lutembe infrastructure) is estimated at US$ 1,287,730 [UShs. 3,222,075,000]. The
breakdown is shown in Table 9 below.
Table 9: Breakdown of Project Costs
Existing
[US$]
Land
46,512
Buildings, infrastructure
69,767
Equipment facilities
1,395
Furniture, fixtures. Fittings
20,000
Vehicles
0
Books
+
Scholastic
materials
2,326
Pre-operational expenses
0
Working Capital
0
TOTAL PROJECT COST
140,000
Additional
[US$]
0
237,098
19,442
21,060
11,628
Total Project
Cost [US$]
46,512
306,865
20,837
41,060
11,628
Total Project Cost

[UShs]
100,000,000
659,759,750
44,800,000
88,279,000
25,000,000
10,773
37,209
14,884
13,099
37,209
14,884
28,162,850
80,000,000
32,000,000
352,094
492,094
1,058,001,600
The total cost of the additional development of the new school (Zulaiha High School)
project is US$ 1,000,000. The cost of building construction is based on a recent
valuation. Costs of equipment, furniture and other goods are based on supplies
quotations. Copies of relevant documents are included in the Appendices.
Contingencies are included in the cost estimates.
10.2
Proposed Financing Plan
The proposed financing plan for the new school development is provided in Table 10
below.
Table 10: Proposed Financing Plan
Existing
[US$]
Promoters Equity
287,730
Long Term Facility
0
TOTAL FINANCING
287,730
Additional
[US$]
290,000
710,000
Total Project
Cost [US$]
577,730
710,000
% Total Cost
1,000,000
1,287,730
100
41
44.86
55.14

The project promoter has already contributed US$ 577,730 in the form of existing assets
such as land, land development, existing school structures, some equipment, furniture
and various pre-operational costs. A long-term loan of US$ 710,000 [UShs. 1,775
million] is sought from the development financial institutions. The project promoter
has undertaken to provide some additional cash to cover possible cost overruns or other
charges.
42

11.0
PROFITABILITY AND FINANCIAL CONDITION
Financial projections for Zulaiha High School have been prepared and are summarized
in Table 11 below. [Details of the financial projections and assumptions made are
shown in Annexes 1-7].
Table 11: Summary of Financial Projections
As at year ending December 31
2016
2017
2018
2019
2019
2020
US$ 000s
Income
1,140
1,197
1,292
1,387
1,482
1,577
Gross Profit
401.51
421.59
477.82
532.11
584.36
634.48
Operating
Profit
343.06
364.29
417.65
468.93
518.03
564.83
Net
Profit
[Loss]
136.59
154.59
201.44
247.38
285.93
336.36
Gross
Margin
35.22% 35.22% 36.98% 38.36% 39.43% 40.23%
Operating
Margin
30.09% 30.43% 32.33% 33.81% 34.95% 35.82%
Net Margin
11.98% 12.91% 15.59% 17.84% 19.29% 21.33%
Current
Ratio [:1]
Net
LT
debt/equity
ratio [:1]
LT
DSCR
[:1]
2021
2022
2023
1,672
682.35
1,767
727.87
1,862
770.91
609.22
651.08
690.29
377.69
416.90
453.96
40.81%
41.19%
41.40%
36.44%
22.59%
36.85%
23.59%
37.07%
24.38%
1.43
1.46
1.61
1.78
1.99
2.21
2.46
2.74
3.05
1.45
1.14
0.83
0.6
0.4
0.26
16
0.07
3.22
1.74
1.94
2.28
2.68
3.16
3.66
3.74
4.5
11.1
Profitability
Company Profitability. The company is expected to be profitable from year one.

Thereafter, net profits will increase.
Expected Rate of Return on Total Project Investment. The expected internal rate of
return [IRR] after tax, on total project investment is approximately 31% per year.
Expected Rate of Return on Equity Investment [ROE]. The proposed equity
investments are expected to earn a return of approximately 24% per year in real terms,
assuming all excess cash is distributed to shareholders.
43

The rates of return are acceptable and adequate in the educational sector. Other projects
in the sector have registered the same rates.
11.2
Company Financial Condition
The company is expected to show a strong financial position throughout the projected
period. Cash flows will be adequate to cover both short and long term liability
commitments, and the long-term debt service coverage ratio will be greater than 1.5
throughout the repayment period. The company is expected to pay dividends from the
first year of operation.
11.3
Sensitivity Analysis
The assumptions on which the financial projections are based reflect current conditions.
A sensitivity analysis of the project has, however, been carried out to examine the
impact of possible changes in critical variables on the companys performance. A
summary of the sensitivity analysis is shown in Table 12 below and the full details are
presented in Annex 7H.
Table 12: Sensitivity Analysis
Change
Sensitivity Case
Base case
Operating Costs
Fees/revenues
Enrollment build-up
Up by 10%
-10%
-5%
IRR
30.62%
24.06%
20.61%
25.75%
ROE
23.64%
13.99%
9.83%
16.74%
2016
3.22
2.57
2.29
2.75
DSCR
2017
1.74
1.39
1.24
1.49
2018
1.94
1.57
1.39
1.67
2019
2.28
1.86
1.65
1.97
The sensitivity analysis shows that the project is most sensitive to changes in school
fees, enrollment and costs. Enrollment will be achieved since the school already has 200
students. Under most conditions the project will remain viable, meet its financial
commitments and continue to provide an acceptable return to the investors.
44

12.0
KEY SUCCESS FACTORS & SUSTAINABILITY

12.1
Key Success Factors
Zulaiha High Schools success will depend on its ability to manage seven major risk
factors:
1) Organizational capability: building the systems, infrastructure and staffing of the
proposed school, as required to support the schools organizational objectives;
2) Program quality: consistently executing high-quality, personalized, schoolpreparatory learning experiences that lead to exceptional academic results;
3) Facilities development and financing: acquiring and developing suitable and
affordable school facilities;
4) District relations: managing the relationship with local school districts, including
acquiring and renewing charters and preparing for the possibility of hostility
from districts;
5) Human resource management: attracting, developing and retaining high quality
educators and administrators who are able to implement the Zulaiha High
School education design at the school site;
6) Development institutional funding: securing the necessary development
institutional funding to ensure that the proposed school development is
financially feasible and sustainable; and
7) Philanthropic funding: securing any gifts and grants from donors and well-wishers
required to start and scale up the proposed school development project.
12.2
Sustainability
There are basically three strategies that will be employed by the project promoter and
management of the proposed Zulaiha High School to build its own financial strength
and independence that will wean it off from dependence on institutional debt-financing
and guarantee its operational and management sustainability in the medium to longterm term. These are outlined as below:
1) The efficient management and use of income streams from boarding school fees
and school farms will mean that within two years, the school itself will generate
enough revenue to cover its running costs, including teacher salaries,
indefinitely;
2) The schools proprietor/promoter aims to increase access to quality and
affordable secondary schooling at Zulaiha High School by creating
45

approximately 2,000 permanent places by 2017. Over the next 20 years this will
make a difference to the lives of up to 40,000 Ugandan children. The project
promoter/proprietor wants to achieve this in a manner that isnt dependent on
loan funding, and this is why Zulaiha High School aims to be fully sustainable
by 20121;
3) Zulaiha High School will be built to last. However, general wear and tear means
that within 25-30 years, buildings and compounds will need refurbishing,
repairing or in some cases expanding. To ensure that generations of students can
continue to enjoy a quality secondary education, the school will build up
reserves, largely through efficient school financial management, and profitable
income generating activities. This means that Zulaiha High School will be able
to educate not just todays children, but in twenty years time, their children, and
their childrens children.;
46

13.0
DEVELOPMENT AND SOCIAL IMPACT CONSIDERATIONS
The project will:
Provide top quality secondary school education to approximately 1,900 students

each year;
Increase the involvement of the private sector in the provision of social services;
Help reduce overcrowding in government-aided schools;
Create employment for at least 80 people.
47

14.0
SPECIAL FEATURES, RISKS AND ISSUES
Low Risk
The project has a relatively low risk of failure because of the strong demand for private
education facilities in Uganda and the educational and business strengths of the
sponsors. With increasing population and the subsequent overcrowding at governmentaided schools, demand for private schools is expected to grow substantially in the
coming years. With the facilities being provided at Zulaiha High School and with the
strong educational performance background already being provided by its sister school
Hope Boarding Secondary School Lutembe, maintaining full enrollment should not
be a problem.
Financing
Historically, banks and other financial institutions have been reluctant to provide long
term finance for education or other social infrastructure projects. As government have
not been able to cope with the pace of demand for social services in Uganda, more and
more non-financial institutions have shown a growing interest in picking the tab for
these activities because the public demand and willingness to pay for these services
have increased dramatically. In Uganda today, a well-planned educational project can
be considered a sound commercial investment and an investments in the nations
development.
Management
The good set-up of the school has depended on the experience of the principal promoter
Mr. ----------------- in education and business management
48

15.0
KEY ASSUMPTIONS
15.1
Financial Assumptions
Interest Rate on
Long Term Loan
Project Financing
12%
Equity
Debt
Long Term Loan Repayment [Yrs]
29%
71%
10
15.2 Revenue Assumptions

All Boarders [1,900 No.]
Annual Change in Fees Rates
1. At US$ 600/Student/Year
2. At US$ 630/ Student/Year
15.3
Total Annual Fees Revenues [US$]

1,140,000
1,197,000
1,292,000
1,387,000
1,482,000
1,577,000
1,672,000
1,767,000
1,862,000
Miscellaneous Assumptions
Salaries growth rate

Operating expense growth rate
Appreciation rate (on Land)
Depreciation on: [Written Down Value]
Buildings
Furniture & Fixtures
School & Office Equipment
Vehicle
Preliminary Cost
Tax Rate
Cash in Hand [Days]
10%
5%
10%
5%
10%
10%
20%
5%
30%
30
49

ANNEX 01: ZULAIHA HIGH SCHOOL - NOTES TO PROJECTIONS
All projections (unless indicated)
Exchange rate: 1 US$
US$
2,500
USHS.
Note 1
Projected Student Numbers
S.1
S.2
S.3
S.4
S.5
S.6
TOTAL
400
400
400
400
150
150
1,900
Number of Streams/Class
S.1
S.2
S.3
S.4
S.5
S.6
TOTAL
8
8
8
8
3
3
38
Average Number of Students/Stream

S.1
S.2
S.3
S.4
S.5
S.6
50
50
50
50
50
50
50

Note 2
Fees US$
Boarder/term
200
Fees structure per annum per student

S.1
S.2
S.3
S.4
S.5
S.6
Miscellaneous fee rate
600
600
600
600
600
600
1.00
Registration Fee
Possible additional Intake (no siblings)

Possible additional Intake (no siblings)
New students with siblings at the school
New students from Learning Ladders (Nursery)
0
0
0
0
Caution fees (Deposit per student per

year)
USD
51

Note 3
Tax Holiday
Corporate Tax
Direct Costs
Expense Item
Salaries [Teaching Staff]
Salaries [Non-Teaching Staff]
Telephone
Accounting & Legal Fees
Office Running Expenses
Education License
Business License
Office Stationery & Supplies
Maintenance
Marketing
Insurance
Travel/Entertainment
Subscriptions
Staff Uniforms
Food
Drugs
Utilities
0
30%
years
Year 1
Year 2
Year 3
Year 4
Year 5
256,800
269,640
283,122
297,278
312,142
76,440
80,262
84,275
88,489
92,913
3,575
3,754
3,941
4,139
4,330
4,547
4,774
4,770
5,009
5,259
500
Year 6
Year 7
Year 8
Year 9
327,749
344,137
361,343
379,411
97,559
102,437
107,559
112,937
4,345
4,563
4,791
5,030
5,282
5,013
5,263
5,526
5,803
6,093
6,397
5,522
5,798
6,088
6,392
6,712
7,047
300
315
331
348
365
383
402
422
443
3,580
3,759
3,947
4,144
4,352
4,569
4,798
5,037
5,289
7,150
7,508
7,883
8,277
8,691
9,125
9,582
10,061
10,564
3,120
3,276
3,440
3,612
3,792
3,982
4,181
4,390
4,610
8,525
8,951
9,399
9,869
10,362
10,880
11,424
11,996
12,595
3,030
3,182
3,341
3,508
3,683
3,867
4,060
4,264
4,477
200
210
220
230
240
252
265
280
294
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
405,250
425,513
446,788
469,128
492,584
517,213
543,074
570,227
598,739
5,240
5,502
5,777
6,066
6,369
6,688
7,022
7,373
7,742
12,130
12,737
13,373
14,042
14,744
15,481
16,255
17,068
17,922
796,940
52

Note 4
Balance Sheet
Loan
Long term Debt payable over 9 years with 2 years grace
Interest rate
USD
12%
Sponsors Funds
Institutional Equity
100% of sponsors contribution

0% of sponsors contribution
Accounts receivable
Inventory
Accounts payable
0.50 months revenues

1.00 months revenues
2.00 months exp.
Appreciation
Land
Depreciation
Buildings
Equipment
Vehicles
Accounting period [year ending]
10%
5%
10%
10%
20%
Dec. 31st
53

Note 5: PROJECT COST AND FINANCING
SOURCE OF
PROJECT ITEM
VALUE
VALUE
FUNDING
[USHS]
[USD]
DEBT
EQUITY
I. EXISTING:
A. BUILDINGS
41,325,000
16,530
_
16,530
1. Administration Block/Library
144,675,000
57,870
_
57,870
2. Classrooms
41,325,000
16,530
_
16,530
3. Boys Dormitory
41,325,000
16,530
_
16,530
4. Girls Dormitory
20,675,000
8,270
_
8,270
5. Staff Quarters/Canteen
10,350,000
4,140
_
4,140
6. Kitchen/Store
2,500,000
1,000
_
1,000
7. Washrooms [8]
4,000,000
1,600
_
1,600
8. VIP Stance Toilets [8 Units]
3,825,000
1,530
_
1,530
9. Gate Structure
310,000,000 124,000
0
124,000
Sub-Total
B. OTHER ASSETS
Sub-Total
206,825,000
_
90,000,000
50,000,000
62,500,000
409,325,000
82,730
_
36,000
20,000
25,000
163,730
TOTAL
719,325,000
287,730
1. Land
2. Vehicle
3. Office Furniture & Equipment
4. Computers
5. Books
54
_
_
_
_
_
82,730
36,000
20,000
25,000
163,730
0
287,730

PROJECT ITEM
VALUE
[USHS]
VALUE
[USD]
SOURCE OF
FUNDING
DEBT
EQUITY
II. ADDITIONAL:
550,000,000
220,000
47,075,000
94,000,000
188,325,000
141,250,000
18,830
37,600
75,330
56,500
18,830
37,600
75,330
56,500
_
_
_
_
235,400,000
235,400,000
117,700,000
94,160
94,160
47,080
94,160
94,160
47,080
_
_
_
102,250,000
10,000,000
12,500,000
9,450,000
2,500,000
4,150,200
2,750,000
1,202,750,200
40,900
4,000
5,000
3,780
1,000
1,660
1,100
480,000
40,900
4,000
5,000
3,780
1,000
1,660
1,100
480,000
_
_
_
_
_
_
_
150,000,000
112,500,000
3,750,000
3,750,000
270,000,000
60,000
45,000
1,500
1,500
108,000
60,000
45,000
1,500
1,500
108,000
_
_
_
_
15,000,000
20,000,000
3,500,000
25,000,000
12,500,000
2,500,000
1,500,000
80,000,000
100,000,000
6,000
8,000
1,400
10,000
5,000
1,000
600
32,000
40,000
6,000
8,000
1,400
10,000
5,000
1,000
600
32,000
40,000
_
_
_
_
_
_
_
125,000,000
125,000,000
50,000
50,000
50,000
50,000
125,000,000
50,000,000
175,000,000
50,000
20,000
70,000
TOTAL [II+III]
2,502,750,200
GRAND TOTAL [I+II+III]
3,222,075,200
A. LAND
220,000
B. BUILDINGS & OTHER

INFRASTRUCTURE
Administration Block
1. Headmaster's Office
2. Staff Room
3. Science Labs + Computer Lab
4. Library
Dormitory Blocks
1. Boys' Dormitories
2. Girls' Dormitories
Dining Hall + Kitchen
Other Infrastructure
1. Staff Accommodation
2. VIP Stance Toilets [20 Units]
3. Septic Tank
4. School Clinic/Domiciliary
5. Tool Spares Store
6. Gate House
7. Sports Field
C. FURNITURE & FIXTURES
1. Reading Desks
2. 500 Decker Beds
3. Office Tables
4. Office Chairs
Sub-Total
D. EQUIPMENT
1. Generator + Fuel Store
2. Underground Water Tank
3. Sports Equipment
4. Solar Power Unit
5. Admin Computers + Peripherals
6. TV + Video Deck
7. LCD Projector
Sub-Total
E. VEHICLES
F. SCHOLASTIC MATERIALS
1. Text Books + Library Books
Sub-Total
0
0
0
0
III. PROJECT ACTIVATION:

1. Pre-operational expenses
2. Working Capital
Sub-Total
50,000
20,000
70,000
1,000,000
710,000
290,000
1,287,730
710,000
577,730
55
_
_

ANNEX 02: ZULAIHA HIGH SCHOOL - PROJECTED BALANCE SHEET
2015
US$
Year ending 31st Dec.
2016
2017
2018
2019
2020
2021
2022
2023
2024
0
0
0
34,320
66,412
110,665
35,859
69,393
115,170
37,074
72,863
122,486
38,321
76,506
130,052
39,652
80,331
138,657
41,072
84,347
146,904
42,585
88,565
154,939
44,197
92,993
163,210
45,912
97,643
171,718
211,397
220,422
232,423
244,879
258,640
272,323
286,089
300,400
315,273
Fixed Assets
Less: Accumulated Depreciation
1,173,003
57,800
1,206,303
110,530
1,242,933
158,782
1,283,226
203,059
1,327,549
243,791
1,426,304
289,353
1,479,934
330,464
1,538,927
367,725
1,603,820
401,635
1,675,202
432,612
Net Fixed Assets
1,115,203
1,095,773
1,084,151
1,080,167
1,083,758
1,136,951
1,149,470
1,171,202
1,202,185
1,242,590
50,000
40,000
30,000
20,000
10,000
1,165,203
1,347,170
1,334,573
1,332,590
1,338,637
1,395,591
1,421,793
1,457,291
1,502,585
1,557,863
0
85,200
85,200
62,552
85,200
147,752
65,679
85,200
150,879
68,963
75,600
144,563
72,411
64,800
137,211
76,032
54,000
130,032
79,834
43,200
123,034
83,825
32,400
116,225
88,016
21,600
109,616
92,417
10,800
103,217
710,000
710,000
630,000
540,000
450,000
360,000
270,000
180,000
90,000
795,200
857,752
780,879
684,563
587,211
490,032
393,034
296,225
199,616
103,217
370,003
0
370,003
366,486
122,932
489,418
292,135
262,059
554,194
204,671
443,356
648,027
85,427
665,999
751,426
-17,774
923,333
905,559
-197,302
1,226,061
1,028,759
-404,919
1,565,985
1,161,066
-638,227
1,941,196
1,302,969
-895,112
2,349,758
1,454,646
1,165,203
1,347,170
1,335,073
1,332,590
1,338,637
1,395,591
1,421,793
1,457,291
1,502,585
1,557,863
1.43
1.46
1.61
1.78
1.99
2.21
2.46
2.74
3.05
1.45
1.14
0.83
0.6
0.4
0.26
16
0.07
ASSETS
Current Assets
Cash
Accounts receivable
Inventory
Total Current Assets
Pre-Operating Expenses
TOTAL ASSETS
LIABILITIES & EQUITY
Current Liabilities
Accounts Payable
Current Portion of L. T. Debt
Total Current Liabilities
Long Term Debt - Loan 1
Total Liabilities
Shareholders Funds
Retained Earnings
Total Equity
TOTAL LIABILITIES & EQUITY
Current Ratio [:1]
Net LT Debt/Equity Ratio [:1]
1.92
56

ANNEX 03: ZULAIHA HIGH SCHOOL - PROJECTED INCOME STATEMENT
2015
US$
2016
2017
2018
2019
2020
2021
2022
2023
2024
1,140,000
0
0
1,140,000
1,197,000
0
0
1,197,000
1,292,000
0
0
1,292,000
1,387,000
0
0
1,387,000
1,482,000
0
0
1,482,000
1,577,000
0
0
1,577,000
1,672,000
0
0
1,672,000
1,767,000
0
0
1,767,000
1,862,000
0
0
1,862,000
Direct Costs
Food
Total Direct Costs
256,800
76,440
405,250
738,490
269,640
80,262
425,513
775,415
283,122
84,275
446,788
814,185
297,278
88,489
469,128
854,894
312,142
92,913
492,584
897,639
327,749
97,559
517,213
942,521
344,137
102,437
543,074
989,647
361,343
107,559
570,227
1,039,130
379,411
112,937
598,739
1,091,086
GROSS PROFIT
401,510
421,586
477,815
532,106
584,361
634,479
682,353
727,870
770,914
Indirect Costs
Utilities
Telephone
Staff Uniforms
Licenses
Subscriptions
Drugs
Maintenance
Marketing
Insurance
Total Indirect Costs
12,130
3,575
4,330
4,770
3,580
3,030
2,000
800
200
5,240
7,150
3,120
8,525
58,450
12,737
3,754
1,050
5,009
3,759
3,182
2,100
315
158
5,502
7,508
3,276
8,951
57,299
13,373
3,941
1,103
5,259
3,947
3,341
2,205
331
166
5,777
7,883
3,440
9,399
60,164
14,042
4,139
1,158
5,522
4,144
3,508
2,315
348
174
6,066
8,277
3,612
9,869
63,173
14,744
4,345
1,216
5,798
4,352
3,683
2,431
365
183
6,369
8,691
3,792
10,362
66,331
15,481
4,563
1,276
6,088
4,569
3,867
2,553
383
192
6,688
9,125
3,982
10,880
69,647
16,255
4,791
1,340
6,392
4,798
4,060
2,680
402
202
7,022
9,582
4,181
11,424
73,130
17,068
5,030
1,407
6,712
5,037
4,264
2,814
422
212
7,373
10,061
4,390
11,996
76,786
17,922
5,282
1,477
7,047
5,289
4,477
2,955
443
223
7,742
10,564
4,610
12,595
80,626
Operating Margin
343,060
364,287
417,650
468,933
518,030
564,831
609,223
651,084
690,288
Interest Payable on Loan

Depreciation
Amortization of pre-investment costs
85,200
52,730
10,000
147,930
195,130
85,200
48,250
10,000
143,450
220,837
75,600
44,277
10,000
129,877
287,773
64,800
40,732
10,000
115,532
353,401
54,000
45,562
10,000
109,562
408,468
43,200
41,112
0
84,312
480,519
32,400
37,261
0
69,661
539,562
21,600
33,910
0
55,510
595,574
10,800
30,977
0
41,777
648,511
Income
Total Fee Income
Registration Fee Income
Caution Fee Income
Total Income
Total
Profit [Loss] before Tax
57

Corporate Tax [30%]
58,539
66,251
86,332
106,020
122,540
144,156
161,869
178,672
194,553
NET PROFIT/[LOSS]
136,591
154,586
201,441
247,381
285,927
336,364
377,693
416,902
453,958
13,659
15,459
20,144
24,738
28,593
33,636
37,769
41,690
45,396
Retained Earnings
Cumulated Retained Earnings
122,932
122,932
139,127
262,059
181,297
443,356
222,643
665,999
257,335
923,333
302,727
1,226,061
339,924
1,565,985
375,212
1,941,196
408,562
2,349,758
Gross Margin [%]

Operating Margin [%]
Net Margin [%] after tax
35.22%
30.09%
11.98%
35.22%
30.43%
12.91%
36.98%
32.33%
15.59%
38.36%
33.81%
17.84%
39.43%
34.95%
19.29%
40.23%
35.82%
21.33%
40.81%
36.44%
22.59%
41.19%
36.85%
23.59%
41.40%
37.07%
24.38%
Dividends
10%
CALCULATION OF PAYBACK
YEAR/ITEM
2016
Net Profit
2017
2018
2019
2020
2021
2022
2023
2024
136,591
154,586
201,441
247,381
285,927
336,364
377,693
416,902
453,958
Interest
85,200
85,200
75,600
64,800
54,000
43,200
32,400
21,600
10,800
Depreciation
52,730
48,250
44,277
40,732
45,562
41,112
37,261
33,910
30,977
274,521
288,036
321,318
352,913
385,489
420,676
447,354
472,412
495,735
"Profit"
YEAR
Amt paid
back
from
Balance
Investment
2016
"profits"
1,000,000
2017
274,521
-77,573
2018
288,036
210,463
2019
321,318
531,781
2020
352,913
884,694
2021
385,489
of Total
-352,094
Payback period: 2.27 Years
58

ANNEX 04: ZULAIHA HIGH SCHOOL - PROJECTED FUNDS FLOW STATEMENT
2015
US$
2016
2017
2018
2019
2020
2021
2022
2023
2024
SOURCES OF FUNDS
Net Profit
136,591
154,586
201,441
247,381
285,927
336,364
377,693
416,902
453,958
Add: Depreciation, amortization
52,730
48,250
44,277
40,732
45,562
41,112
37,261
33,910
30,977
189,321
202,836
245,718
288,113
331,489
377,476
414,954
450,812
484,935
Equity
370,003
-3,517
-74,351
-87,464
-119,244
-103,201
-179,528
-207,617
-233,308
-256,885
Loan 1
710,000
1,080,003
185,804
128,485
158,254
168,869
228,288
197,948
207,337
217,504
228,050
1,142,730
40,000
50,000
Dividends paid
13,659
15,459
20,144
24,738
28,593
33,636
37,769
41,690
45,396
Principal repayments on LTD
80,000
90,000
90,000
90,000
90,000
90,000
90,000
90,000
1,192,730
13,659
95,459
110,144
114,738
158,593
123,636
127,769
131,690
135,396
-112,727
172,145
33,026
48,110
54,131
69,695
74,312
79,568
85,814
92,654
Increase/[Decrease] in Cash
34,320
1,539
1,215
1,247
1,331
1,420
1,513
1,612
1,715
Incr./[Decrease] in Receivables
66,412
2,981
3,470
3,643
3,825
4,016
4,218
4,428
4,650
Incr./[Decrease] in Inventory
110,665
4,505
7,316
7,566
8,605
8,247
8,035
8,271
8,508
Decrease/[Increase] in Payables
-62,552
-3,128
-3,284
-3,448
-3,621
-3,802
-3,992
-4,191
-4,401
148,845
5,897
8,717
9,008
10,140
9,882
9,774
10,120
10,472
Interest Cover
4.03
4.28
5.52
7.24
9.59
13.07
18.8
30.14
63.92
Debt Service Coverage Ratio
3.22
1.74
1.94
2.28
2.68
3.16
3.66
3.74
4.5
Funds from Operations
TOTAL SOURCES
USE OF FUNDS
Fixed Assets
Pre-investment costs
TOTAL USES
NET FUNDS FLOW
NET CHANGE IN WORKING

CAPITAL
59

ANNEX 05: ZULAIHA HIGH SCHOOL - PROJECTED CASH FLOWS
US$
Year ending 31st
Dec.
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
1,862,000
CASH IN
Equity
370,003
Loan 1
710,000
1,140,000
1,197,000
1,292,000
1,387,000
1,482,000
1,577,000
1,672,000
1,767,000
-66,412
-2,981
-3,470
-3,643
-3,825
-4,016
-4,218
-4,428
-4,560
1,080,003
1,073,588
1,194,019
1,288,530
1,383,357
1,478,175
1,572,984
1,667,782
1,762,572
1,857,440
1,171,712
Fees Revenues
Less: Change in Receivables
Total Cash In
CASH OUT
Operational Expenses
796,940
832,914
874,350
918,067
963,970
1,012,169
1,062,777
1,115,916
Less: Change in Accts Payable
-62,552
-3,128
-3,284
-3,448
-3,621
-3,802
-3,992
-4,191
-4,401
Add: Change in Inventory
110,665
64,776
93,833
103,399
154,133
123,200
132,307
141,903
151,677
840,000
0
0
Capital outlay
Replacements
Pre-Investment Costs
Loan 1 repayments
Loan 1 interest
Tax Payments
Dividends Payments
40,000
50,000
80,000
90,000
90,000
90,000
90,000
90,000
90,000
90,000
85,200
85,200
85,200
75,600
64,800
54,000
43,200
32,400
21,600
10,800
58,539
66,251
86,332
106,020
122,540
144,156
161,869
178,672
194,553
13,659
15,459
20,144
24,738
28,593
33,636
37,769
41,690
45,396
Total Cash Out
975,200
1,002,451
1,141,472
1,236,975
1,303,576
1,449,615
1,442,559
1,513,130
1,585,590
1,659,737
NET CASH FLOW
104,803
71,137
52,547
51,555
79,781
28,560
130,425
154,652
176,982
197,703
104,803
175,940
228,487
280,042
359,823
388,383
518,808
673,460
850,442
Interest
104,803
175,940
228,487
280,042
359,823
388,383
518,808
673,460
850,442
1,048,145
Closing Cash Balance
104,803
175,940
228,487
280,042
359,823
388,383
518,808
673,460
850,442
1,048,145
Opening Cash
Closing Cash Balance before
Minimum Cash
24,199
20,180
28,783
28,783
28,783
28,783
28,783
28,783
28,783
28,783
Surplus Cash
80,604
155,760
199,704
251,259
331,040
359,600
490,025
644,677
821,659
1,019,362
60

ANNEX 06: ZULAIHA HIGH SCHOOL - PROJECTED FINANCIAL MEASURES US$
Year
2016
2017
2018
2019
2020
2021
136,591
154,586
201,441
247,381
285,927
Gross Margin
35.22%
35.22%
36.98%
38.36%
Operating Margin
30.09%
30.43%
32.33%
33.81%
Net Margin
11.98%
12.91%
15.59%
1.45
1.14
3.22
1.74
Net Profit After Tax
2015
0
2022
2023
2024
336,364
377,693
416,902
453,958
39.43%
40.23%
40.81%
41.19%
41.40%
34.95%
35.82%
36.44%
36.85%
37.07%
17.84%
19.29%
21.33%
22.59%
23.59%
24.38%
0.83
0.6
0.4
0.26
16
0.07
1.94
2.28
2.68
3.16
3.66
3.74
4.5
Current Ratio [:1]

Net income/assets
Debt/Equity Ratio [:1]
1.92
L.T. Debt Service Coverage

Ratio [:1]
Project IRR after tax
30.62%
Return on equity
23.64%
61

ANNEX 07 A: ZULAIHA HIGH SCHOOL - SUMMARY OF PROJECT COST AND FINANCING US$
Project Cost
PROJECT
Existing
Additional
Land
82,730
220,000
Buildings
124,000
480,000
Furniture, Fixtures
36,000
108,000
Equipment facilities
20,000
32,000
Motor Vehicles
0
40,000
Scholastic materials
25,000
50,000
Pre-Operating Expenses
0
50,000
Total Capital Cost
287,730
980,000
Working Capital
TOTAL
302,730
604,000
144,000
52,000
40,000
75,000
50,000
1,267,730
20,000
20,000
287,730
1,000,000
1,287,730
100%
0%
0%
287,730
0
0
290,000
0
0
577,730
0
0
100%
287,730
290,000
577,730
Loan 1
710,000
710,000
Total Debt
710,000
710,000
287,730
0%
100%
1,000,000
71%
29%
1,287,730
TOTAL PROJECT COST

FINANCIAL PLAN
EQUITY
Sponsors/Promoter Funds
Institutional Equity
Retained Earnings
Total Equity
DEBT
LONG TERM LOANS
TOTAL FINANCING
Debt
Equity
62
55%
45%

ANNEX 07 B: ZULAIHA HIGH SCHOOL - ENROLLMENT AND REVENUE ASSUMPTIONS [US$]
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
PROJECTED STUDENT NUMBERS

[BOARDERS]
S1
S2
S3
S4
S5
S6
Miscellaneous Intake
Total no. of Students
PROJECTED FEE RATES
[BOARDERS]
S1
S2
S3
S4
S5
S6
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
400
400
400
400
150
150
0
1,900
600
600
600
600
600
600
630
630
630
630
630
630
680
680
680
680
680
680
730
730
730
730
730
730
780
780
780
780
780
780
830
830
830
830
830
830
880
880
880
880
880
880
930
930
930
930
930
930
980
980
980
980
980
980
240,000
240,000
240,000
240,000
90,000
90,000
0
1,140,000
252,000
252,000
252,000
252,000
94,500
94,500
0
1,197,000
272,000
272,000
272,000
272,000
102,000
102,000
0
1,292,000
292,000
292,000
292,000
292,000
109,500
109,500
0
1,387,000
312,000
312,000
312,000
312,000
117,000
117,000
0
1,482,000
332,000
332,000
332,000
332,000
124,500
124,500
0
1,577,000
352,000
352,000
352,000
352,000
132,000
132,000
0
1,672,000
372,000
372,000
372,000
372,000
139,500
139,500
0
1,767,000
392,000
392,000
392,000
392,000
147,000
147,000
0
1,862,000

Possible additional Intake [no siblings]
Possible additional Intake [Families]
New pupils with siblings at the school
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Caution Fee Income
1,140,000
1,197,000
1,292,000
1,387,000
1,482,000
1,577,000
1,672,000
1,767,000
1,862,000
PROJECTED FEE INCOME

[BOARDERS]
S1
S2
S3
S4
S5
S6
Miscellaneous Fee Income
Total Fee Income
TOTAL INCOME [BOARDERS]
63
ANNEX 07 C: ZULAIHA HIGH SCHOOL - COST SCHEDULE [US$]

2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
256,800
269,640
76,440
80,262
283,122
297,278
312,142
327,749
344,137
361,343
379,411
84,275
88,489
92,913
97,559
102,437
107,559
112,937
Telephone
3,575
4,330
3,754
3,941
4,139
4,345
4,563
4,791
5,030
5,282
1,050
1,103
1,158
1,216
1,276
1,340
1,407
1,477
4,770
5,009
5,259
5,522
5,798
6,088
6,392
6,712
7,047
Education License
500
Business License
300
315
331
348
365
383
402
422
443
3,580
3,759
3,947
4,144
4,352
4,569
4,798
5,037
5,289
Maintenance
7,150
7,508
7,883
8,277
8,691
9,125
9,582
10,061
10,564
Marketing
3,120
3,276
3,440
3,612
3,792
3,982
4,181
4,390
4,610
Insurance
8,525
8,951
9,399
9,869
10,362
10,880
11,424
11,996
12,595
3,030
3,182
3,341
3,508
3,683
3,867
4,060
4,264
4,477
200
158
166
174
183
192
202
212
223
Expenses
Subscriptions
Staff Uniforms
Food
Drugs
2,000
2,100
2,205
2,315
2,431
2,553
2,680
2,814
2,955
405,250
425,513
446,788
469,128
492,584
517,213
543,074
570,227
598,739
5,240
5,502
5,777
6,066
6,369
6,688
7,022
7,373
7,742
12,130
12,737
13,373
14,042
14,744
15,481
16,255
17,068
17,922
796,940
832,714
874,350
918,067
963,970
1,012,169
1,062,777
1,115,916
1,171,712
85,200
85,200
85,200
75,600
64,800
54,000
43,200
32,400
21,600
10,800
57,800
52,730
48,250
44,277
40,732
45,562
41,112
37,261
33,910
30,977
143,000
934,870
966,164
994,227
1,023,599
1,063,532
1,096,481
1,132,438
1,171,426
1,213,489
Utilities
Total Operating Expenses
Financial Charges
[Interest on Loan]
Depreciation
TOTAL COSTS
64

ANNEX 07 D: ZULAIHA HIGH SCHOOL - DEPRECIATION SCHEDULE [US$]
2015
2016
2017
2018
2019
2020
2021
10%
302,730
0
302,730
30,273
333,003
30,273
333,003
0
333,003
33,300
366,303
63,573
366,303
0
366,303
36,630
402,933
100,204
402,933
0
402,933
40,293
443,226
140,497
443,226
0
443,226
44,323
487,549
184,820
487,549
0
487,549
48,755
536,304
233,574
536,304
0
536,304
53,630
589,934
287,205
5%
124,000
480,000
604,000
30,200
573,800
30,200
573,800
0
573,800
28,690
545,110
58,890
545,110
0
545,110
27,256
517,855
86,146
517,855
0
517,855
25,893
491,962
112,038
491,962
0
491,962
24,598
467,364
136,636
467,364
0
467,364
23,368
443,996
160,005
10%
36,000
108,000
144,000
14,400
129,600
14,400
129,600
0
129,600
12,960
116,640
27,360
116,640
0
116,640
11,664
104,976
39,024
104,976
0
104,976
10,498
94,478
49,522
94,478
0
94,478
9,448
85,030
58,969
10%
20,000
32,000
52,000
5,200
46,800
5,200
46,800
0
46,800
4,680
42,120
9,880
42,120
0
42,120
4,212
37,908
14,092
37,908
0
37,908
3,791
34,117
17,883
20%
0
40,000
40,000
8,000
32,000
8,000
32,000
0
32,000
6,400
25,600
14,400
25,600
0
25,600
5,120
20,480
19,520
20,480
0
20,480
4,096
16,384
23,616
2022
2023
2024
589,934
0
589,934
58,993
648,927
346,198
648,927
0
648,927
64,893
713,820
411,091
713,820
0
713,820
71,382
785,202
482,473
443,996
0
443,996
22,200
421,796
182,204
421,796
0
421,796
21,090
400,706
203,294
400,706
0
400,706
20,035
380,671
223,329
380,671
0
380,671
19,034
361,637
242,363
85,030
0
85,030
8,503
76,527
67,472
76,527
0
76,527
7,653
68,874
75,125
68,874
0
68,874
6,887
61,987
82,013
61,987
0
61,987
6,199
55,788
88,211
55,788
34,117
0
34,117
3,412
30,705
21,295
30,705
0
30,705
3,071
27,635
24,365
27,635
0
27,635
2,764
24,872
27,129
24,872
0
24,872
2,487
22,385
29,616
22,385
0
22,385
2,239
20,147
31,854
20,147
0
20,147
2,015
18,132
33,869
16,374
0
16,374
3,275
13,099
26,891
13,099
40,000
53,099
10,620
42,479
37,511
42,479
0
42,479
8,496
33,983
46,006
33,983
0
33,983
6,797
27,186
52,803
27,186
0
27,186
5,437
21,749
58,240
21,749
0
21,749
4,350
17,399
62,590
Land
Rate [%]
Opening Book Value
Additions
Cost
Appreciation
Closing Book Value
Accumulated Appreciation
Buildings
Opening Book Value
Additions
Cost
Depreciation
Closing Book Value
Accumulated Depreciation
Opening Book Value
Additions
Cost
Depreciation
Closing Book Value
55,788
5,579
50,209
93,790
Equipment
Opening Book Value
Additions
Cost
Depreciation
Closing Book Value
Vehicles
Opening Book Value
Additions
Cost
Depreciation
Closing Book Value
65

Amortization of
Pre-Operating Costs
Opening Book Value
Additions
Cost
Rate
Amortization
Closing Book Value
0
50,000
50,000
10,000
10,000
40,000
40,000
0
40,000
0
10,000
30,000
30,000
0
30,000
0
10,000
20,000
20,000
0
20,000
10,000
0
10,000
0
0
0
0
0
0
0
0
0
0
0
0
10,000
10,000
10,000
0
0
0
0
0
0
0
0
0
TOTALS
Opening Book Value

Additions
Cost
Depreciation
Closing Book Value
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
482,730
660,000
1,142,730
57,800
1,115,203
57,800
1,115,203
0
1,115,203
52,730
1,062,473
110,530
1,095,773
0
1,095,773
48,252
1,047,522
158,782
1,084,152
0
1,084,152
44,277
1,039,875
203,059
1,080,157
0
1,080,157
40,732
1,039,425
243,791
1,083,747
40,000
1,123,747
45,562
1,078,186
289,353
1,126,941
0
1,126,941
41,112
1,085,829
330,464
1,139,459
0
1,139,459
37,261
1,102,198
367,725
1,161,191
0
1,161,191
33,910
1,127,281
401,635
1,192,175
0
1,192,175
30,977
1,161,198
432,612
66

ANNEX 07 E: ZULAIHA HIGH SCHOOL - PROJECTED DEBT SERVICE SCHEDULE [US$]
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Opening Balance
710,000
710,000
710,000
630,000
540,000
450,000
360,000
270,000
180,000
Drawdown
710,000
80,000
90,000
90,000
90,000
90,000
90,000
90,000
90,000
Loan 1
Interest rate
Loan Amount
Principal Repayments
Interest Payment
Closing Balance
12%
710,000
90,000
85,200
85,200
85,200
75,600
64,800
54,000
43,200
32,400
21,600
10,800
710,000
710,000
630,000
540,000
450,000
360,000
270,000
180,000
90,000
67

ANNEX 07 F: ZULAIHA HIGH SCHOOL - WORKING CAPITAL SCHEDULE [US$]
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Cash
34,320
35,859
37,074
38,321
39,652
41,072
42,585
44,197
45,912
Change in Cash
34,320
1,539
1,215
1,247
1,331
1,420
1,513
1,612
1,715
Accounts Receivable
66,412
69,393
72,863
76,506
80,331
84,347
88,565
92,993
97,643
Change in Accounts Receivable
66,412
2,981
3,470
3,643
3,825
4,016
4,218
4,428
4,650
Accounts Payable
62,552
65,679
68,963
72,411
76,032
79,834
83,825
88,016
92,417
Change in Accounts Payable
62,552
3,127
3,284
3,448
3,621
3,802
3,991
4,191
4,401
Inventory
110,665
115,170
122,486
130,052
138,657
146,904
154,939
163,210
171,718
Change in Inventory
110,665
4,505
7,316
7,566
8,605
8,247
8,035
8,271
8,508
WORKING CAPITAL
148,845
154,743
163,460
172,468
182,608
192,489
202,264
212,384
222,856
CHANGE IN WORKING CAPITAL
148,845
5,898
8,717
9,008
10,140
9,881
9,775
10,120
10,472
68

ANNEX 07 G: ZULAIHA HIGH SCHOOL - INTERNAL RATE OF RETURN [US$]
2015
2016
2017
2018
2019
136,591
154,586
201,441
Depreciation
52,730
48,250
Interest Payments
85,200
85,200
Tax Payments
58,539
Net Profit
2020
2021
247,381
285,927
336,364
44,277
40,732
45,562
75,600
64,800
54,000
66,251
86,332
106,020
2022
2023
2024
377,693
416,902
453,958
41,112
37,261
33,910
30,977
43,200
32,400
21,600
10,800
122,540
144,156
161,869
178,672
194,553
Add:
Net Cash Flow after Tax
274,521
288,036
321,318
352,913
385,489
420,676
447,354
472,412
495,735
Net Cash Flow before Tax
333,060
354,287
407,650
458,933
508,029
564,832
609,223
651,084
690,288
New Investment
1,000,000
Residual Value
Cash Flow after tax
-1,000,000
274,521
288,036
321,318
352,913
385,489
420,676
447,354
472,412
495,735
Cash Flow before tax
-1,000,000
333,060
354,287
407,650
458,933
508,029
564,832
609,223
651,084
690,288
IRR after tax
30.62%
IRR before tax
39.66%
69

ANNEX 07 H: ZULAIHA HIGH SCHOOL - SENSITIVITY ANALYSIS
DSCR
Change
Base Case
Operating Costs
Fees/Revenues
Enrollment Build-up
IRR
ROE
2016
2017
2018
2019
2020
2021
2022
30.62%
23.64%
3.22
1.74
1.94
2.28
2.68
3.16
3.66
24.06%
13.99%
2.57
1.39
1.57
1.86
2.21
2.63
3.05
-10%
20.61%
9.83%
2.29
1.24
1.39
1.65
1.96
2.33
2.7
-5%
25.75%
16.74%
2.75
1.49
1.67
1.97
2.32
2.74
3.18
Up by 10%
70
71

Zulaiha High School - Main Report

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Zulaiha High School - Main Report

Caricato da

Copyright:

Formati disponibili

BUSINESS PLAN CORPORATE DOCUMENT

BUSINESS PLAN CORPORATE DOCUMENT

Provision of free land, or land on concessional rates in rural/urban areas.

In 1997 the Ugandan Government introduced Universal Primary Education (UPE) as a

BUSINESS PLAN CORPORATE DOCUMENT

According to the constitutional provisions, the main responsibilities of the Government

BUSINESS PLAN CORPORATE DOCUMENT

Target Market and Customers

Need for Private Secondary School

Provision of excellent and quality education as compared to what is obtainable abroad

BUSINESS PLAN CORPORATE DOCUMENT

BUSINESS PLAN CORPORATE DOCUMENT

Demand. There is a strong and increasing demand for quality secondary

BUSINESS PLAN CORPORATE DOCUMENT

Promoters Reputation. Mr. ----------------------- one of the principal project

Spiritual ethics and values. Parents in Ssabagabo-makindye Sub-County are

BUSINESS PLAN CORPORATE DOCUMENT

Viable Economic Size

Business Legal Status

Zulaiha High School Limited is registered as a limited liability company in the

BUSINESS PLAN CORPORATE DOCUMENT

GOVERNMENT POLICY ON SECONDARY EDUCATION

Overview Ugandas Formal Education System

Technical & Vocational

Lower Secondary (UCE)

UPE/Primary Education (PLE)

BUSINESS PLAN CORPORATE DOCUMENT

Government Policy on Education

BUSINESS PLAN CORPORATE DOCUMENT

Specific Aims and Objectives of Secondary Education

Promoting an appreciation and understanding of the cultural heritage of Uganda

Imparting and promoting a sense of self-discipline, ethical and spiritual values,

Enabling individuals to acquire and develop knowledge and an understanding

Providing up-to-date and comprehensive knowledge in theoretical and practical

Enabling individuals to develop basic scientific, technological, technical,

Enabling individuals to develop personal skills of problem-solving, information

Laying the foundation for further education;

BUSINESS PLAN CORPORATE DOCUMENT

Enabling the individual to apply acquired skills in solving problems of the

BUSINESS PLAN CORPORATE DOCUMENT

GUIDING PHILOSOPHY & CORE VALUES OF THE SCHOOL

Our Core Values

Theme 1: Foster Academic Excellence

BUSINESS PLAN CORPORATE DOCUMENT

Theme 2: Nurture Socially Responsible Citizens

BUSINESS PLAN CORPORATE DOCUMENT

THE COMPANY AND SPONSORS

%age of Shares held

All are directors/shareholders of the company are Ugandan nationals.

INSERT BRIEF CVs OF DIRECTORS HERE

BUSINESS PLAN CORPORATE DOCUMENT

Past Performance School Results

BUSINESS PLAN CORPORATE DOCUMENT

Examination Results per Division

Examination Results per No. of Principal Passes

BUSINESS PLAN CORPORATE DOCUMENT

CURRENT INDUSTRY STRUCTURE

Secondary Schools in Uganda by Ownership and Founding Body

Figure 2: Secondary Schools by Ownership Type, 2010

Source: Education Statistical Abstract 2010, Ministry of Education & Sports

BUSINESS PLAN CORPORATE DOCUMENT

BUSINESS PLAN CORPORATE DOCUMENT

Secondary Schools by Location