Q 2014

Proposal for
© Rabbit Quaill empire Limited I

establishment of a
Rabbit Multiplication
& Training Centre
Business Proposal
This document gives insights to a cooperation and partnership
proposed between Rabbit quill empire Limited and Judith
mutinda to consider with a view of going into a management,
training and cooperation agreement. This document should give
the reader an understanding of the operation of the unit,
background of the market and strategies to be employed by the
different actors concerned and their roles in the running of the
breeding center
.
It is our hope that Ms Judith Mutinda will take into consideration
our proposal and form a basis for a formal working
understanding.

06-may2014l-2

0 | © RabbitQuill EmpireLtd
Contents
EXECUTIVE SUMMARY 2
Background – Ms JUDITH MUTINDA 2
Background – Rabbitquill empire Ltd 2
Partnership Summary 3
BUSINESS BACKGROUND 3
Proposed areas of collaboration 4
Primary areas of Collaboration......................................................................................................................................4
Secondary areas of Collaboration..................................................................................................................................4
PRODUCTS AND BY PRODUCTS 4
Uses of Rabbits By products 5
Rabbit for Medicinal Use:...............................................................................................................................................5
Rabbit Urine:..................................................................................................................................................................5
Rabbit Manure:..............................................................................................................................................................5
Rabbit Skin:.....................................................................................................................................................................5
JUSTIFICATION FOR INTERVENTION 6
Strategic Approach 6
Vision:.............................................................................................................................................................................6
Mission:..........................................................................................................................................................................6
Business goal..................................................................................................................................................................7
Objectives.......................................................................................................................................................................7
MARKETING PLAN 7
Training 7
Sale of Breeders 7
Revenues from sale of finished products 8
Competitor Analysis 8
ORGANIZATION PLAN 9
Organization Chart 9
Key Personnel 9
The Business Management 13
PRODUCTION AND OPERATIONAL PLAN 13
STRATEGIES AND ACTIVITIES 15
Objective 1: 15
Objective 2: 15
Objective 3: 15
Objective 4: 16
Objective 5: 16
Production strategies 16
ACTIVITIES 17
FINANCIALS 18
Conclusion and sign off 19

1 | © RabbitQuill EmpireLtd
EXECUTIVE SUMMARY

Background –Ms.Judith Mutinda

She is the Founder and CEO of Gilgal Springs Foundation Non Governmental Community Based Organization based in
Kasambani market Kathonzweni District Makueni County. The Foundation deals with education of the ovc .currently we
have 596 children who depend on Gilgal for their education.we have pre-school, primary ,secondary, colleges, technical
institutions and university. The major challenge that the organization is facing is to source funds for school fees and care
of the children. Judith is a widow with three children;form3, std5 ,pre school.

Background – RABBIT QUAILL EMPIRE

Agri-business is the mainstay of Kenya’s economy and provides for well over 60% of GDP. However,
the agricultural sector has seen rapid drop in productivity given the deteriorating weather which has
now become unpredictable and thus discouraged many farming communities from continued
investment in a market that is not predictable. To this end land set aside for farming on animals and
crops that are rain dependent has reduced significantly over time.

RABBIT QUAILL EMPIRE is a limited liability company incorporated in Kenya under the Companies
Act [Cap 486], Laws of Kenya. It was set up in 2013 primarily as sustainable farming trainer and
consultancy firm and has run several training advisory consultancies in beekeeping, fish farming and
crop management techniques with funding from World Bank through the Ministry of Agriculture
targeting mainly disadvantaged groups in rural areas. It was geared towards encouraging farmers to
set up and put in place sustainable projects in western Kenya. The challenges most farmers met
included limited control over arable land and especially widows disinherited by their in-laws. In its
attempt to seek alternative livelihood for this disadvantaged group, RABBIT QUAILEMPIRE Limited
was approached to undertake research on the viability of Rabbit farming. The outcome of the study
moved the Consultants so much so; they opted to put all efforts in setting up a rabbit farming and
consultancy project. Consider the following facts about rabbit meat:

1. low in cholesterol
2. low in saturated fats
3. high in protein
4. low in sodium
5. all white meat

2 EXECUTIVE SUMMARY | © RabbitQuill EmpireLtd

Further, rabbit by-products such as skins, urine and droppings can be put to good use. The skins are
used in the making of mittens and gloves as the fur is very fine thus naturally warm. The urine is
used in the manufacture of insect repellants especially for green houses and vegetable farming.

Rabbit Quaill empire Limited goals in the short term is to multiply the number of rabbit farmers to
attain yields of up to 3 tons per month in the next 12months; with the long term effect of creating a
livelihood for at least 200,000 households in the next 3 years. They thus aim ventures into
partnerships with individuals and organizations that have the capacity to bring on board new rabbit
farmers thus promote the rearing of rabbits as a profitable business venture.

Partnership Summary

To venture into the new line of production, Ms JUDITH MUTINDA wants to set up a rabbit
multiplication, training and breeding Centre through collaboration with Rabbit Quaill empire
Limited. This cooperation and partnership will specialize in breeding, multiplication and marketing
of live rabbit, rabbit meat and other by-products.

Rabbit meat is the best white meat and demand for rabbit meat is increasing in the local market.
Most of the five star hotels in Kenya are willing to introduce rabbit meat in their menus but the
challenge has always been a constant source which could sustain the demand both locally and for
the export market. The Norfolk Hotel for example are serving rabbit on plate, the Safari Park &
Casino once introduced but could not get adequate supplies from farmers and were forced to
remove it from their menu. Most farmers are forced out of business especially given huge demand.
Buyers in the market strive to enter into partnerships where they are assured of continued supply
especially where the commodity they are introducing into the market is new and not readily
available everywhere. Rabbits have a high multiplication rate but the demand constraint on one
farmer means that the farmers are not able to consistently supply to the market.

In the local market (Kenya) one will easily find market demand for a minimum of 1ton of rabbit
meat which translates to 350 rabbits (average weight 3kilos dressed) per day. In one month the
demand is 10,500 rabbits. Demand from the export market is insatiable. China, Australia, Denmark,
Germany and South Africa require high quantities of rabbit meat. The export contracts available are
for a period of 5 years. Kenya will therefore be required to produce 630,000 rabbits per year for a
single contract. The country has been able to export barely less than 1% of the total export demand.

3 EXECUTIVE SUMMARY | © RabbitQuill EmpireLtd

This proposal will therefore lay down guidelines for:

1. Production, sales and operations for a pilot project of fifteen giant rabbit breeds at the Ms
Judith mutinda Rabbit Quaill empire Limited will supply 15 giant breeders each of 2 different
breeds giving a total of 17 giant rabbits at a sex ratio of 1:7 (one male to eight females).
2. Set up a training center for beneficiary schools and institution where we have the ovc who
may include employees or out-growers within the region.
3. Use the existing human resource capacity in the welding and fabrication department at Ms
Judith mutinda to the construction of new structures for farmers.

BUSINESS BACKGROUND
Rabbit Quaill empire Limited would like to partner with investors in establishing at least one center
in each county in the country. In so doing, farmers will have access to the breeds, training and also
information on rabbit farming locally. In due course these same centers will serve as buying points
for rabbits for marketing once production picks up. Eventually the centers will also undertake
processing and packaging of rabbits by products for sale in both local and export market. Rabbit
Quaill empire Limited is in the process of coordinating the establishment a rabbit breeder’s
network, with a view of promotion of commercial rabbit farming countrywide.
Rabbit Quaill empire Limited strives to go into partnerships with private investors, groups or donors
in the establishment of the training/demonstration/multiplication centers in the remaining counties
are pleased to partner with GILGAL SPRINGS FOUNDATION.

Proposed areas of collaboration

1 Every beneficiary school and institution of gilgal springs foundation every members branch offices

Primary areas of Collaboration

1. Promote production and marketing of rabbit farming for institutions, individuals and social
groups.
2. Sensitize and create awareness on the benefits of rabbit farming,
3. Produce training literature and videos on the same and train farmers on hutch construction,
4. Consult, advice and in collaboration with Ms Judith mutinda establish a rabbit farming
project,
5. Introduce giant breeds.
6. Identification of target farmer groups.

4 BUSINESS BACKGROUND | © RabbitQuill EmpireLtd

 Secondary areas of Collaboration

1. Deliver live rabbits from adjacent farmers to the established abattoir for slaughter,
2. Develop training schedules and programs and development of training manual on
commercial rabbit farming,
3. Establishment of breeding centers with approximately 25 breeds and 250 mothers,
4. Establish a buying and fattening center for rabbits from farmers for supply meat,
5. Use the human resource capacity on the Clients premises to erect hutches for new rabbit
farmers in the surrounding areas,
6. Create a close relationship between farmers and the outside world through rabbit
marketing.

PRODUCTS AND BY PRODUCTS

Rabbit Quaill empire Limited is currently in the business of buying and selling live breeds, rabbit
meat and is planning to start buying rabbit urine, droppings and skins. For the last 3years, Rabbit
Quaill empire Limited has managed to identify and improve 25 breeds of rabbits out of the 45 breed
recognized by the American Rabbit Breeders Association. We are still working on and partnering
with organizations such as, World Bank, Ministry of Livestock, Ministry of Youth Affairs, ILRI, KIRDI,
World Vision International, the Deaf Opportunities Outreach (DOOR) to name but a few.

Uses of Rabbits By products

Rabbit for Medicinal Use:

This is the best market for rabbits at the moment due to high returns. A farmer in Mwingi County
has been exporting live rabbits to a drug manufacturing company in South Africa at Kshs.15, 000.00
for a 3 Months old rabbit. Another farmer in Central Kenya has established his own market to
companies in China and Egypt.

Rabbit Urine:

Is used as a direct insecticide however this market is not exploited due to small production and poor
construction of hutches. Our modern self-cleaning hutches have a urine collection system that
ensures that nothing goes to waste. Local greenhouse farmers are buying urine at Kshs.50.00 per
liter which they dilute in a 1: 5 ratio in water and spray directly to their crops. Companies dealing in

5 PRODUCTS AND BY PRODUCTS | © RabbitQuill EmpireLtd

agro-chemicals have shown interest on the same but small production has always been a major
setback.

Rabbit Manure:

Being the best composite manure with the highest contents of ammonia and nitrates, rabbit
manure is going for Ksh 50 Kenya shillings for a 20 kg bag. Most farmers prefer using it on their
farms than selling. Fresh rabbit droppings serve as tilapia food for those with fish ponds, also done
by our Aqua Culture department.

Rabbit Skin:

Used in making ornaments in Asian countries and the best in making mittens, gloves, winter boots
and fishing rods. Rabbit skin is going at Kshs.300.00. Proper training on slaughtering in done during
the initial 3 months stage since the quality of the skin depends on the skill of slaughtering.

Rabbit Quaill empire Limited would wish to contribute to poverty reduction, employment creation
and food security through promotion of commercial rabbit farming. The big challenge is lack of
adequate breeding stock and proper training on management of rabbits. The farm has identified
markets locally and exports for rabbit meat but the supply is very low.

JUSTIFICATION FOR INTERVENTION

Commercial Rabbit farming is relatively new farming enterprise that is being embraced by most
farmers due to its relatively low cost of production and high returns. As more farmers embrace the
farming of rabbits there is need for establishing breeding centers to provide quality breeding stock
and offer basic training on management of the enterprise. A weaned rabbit, one Month is fetching
between Kshs.500.00 to 1,000.00. Every extra month increases the value by Kshs.1, 000.00, with a
mature 4 Months rabbit going for between Kshs.3, 500.00 to 5,000.00 depending on the pedigree,
breed, health and the region.

With high demands out there, we have engaged in a intensive awareness and marketing campaign
to the middle class investors so as to meet a target of 10,000 breeding rabbits per county to meet
the international markets. Starters are given routine trainings and every available supportive
material that can increase the investor motivation for maximum production.

The following are the facts which prove that rabbit farming is a very lucrative commercial farming
practice where the market waits for the product.
6 JUSTIFICATION FOR INTERVENTION | © RabbitQuill EmpireLtd
 a) Cholesterol and % of fat levels in rabbit meat are much lower than chicken, turkey, beef and
pork.
b) Unsaturated “fatty acids” is 63% of total fatty acids.
c) Rabbit meat gives the highest in protein %.
d) A doe rabbit that weighs 4.5kg can produce 145kg of meat in a year. This is more than a cow
that requires 2 acres of land to raise.
e) Rabbits will produce 2.7kg of meat on the same feed and water as a compared to a cow that
will produce 0.45kg of meat.
f) Rabbits are reared in raised structures and are therefore some of the cleanest meats.
g) Rabbits are among the most productive of domestic livestock 1 rabbit can give birth up to 6
times in a year with average litter of 7.
h) Rabbits lend themselves to both small and large scale production.
i) Rabbit manure has the following percentages of dry material.
2.20% Nitrogen
0.87% Phosphorus
2.30% Potassium
0.36% Sulfur
1.26% Calcium
0.40% Magnesium
As the world human population grows there will be less land to raise food. The rabbit will play a
more increasing role in this supply.

Strategic Approach

Vision:

To be the largest rabbit supplier of rabbit products in the region,

Mission:

To increase farm incomes for beneficiaries through promotion of smart farming technologies and
establishment of efficient market linkages among the orphans and widows and others.
Slogans: Farm Smart! Farming Bila Stress!

Business goal

The Goal is to improve livelihoods of Kenyans by providing alternative source income through the
sale of rabbit meat and by products.

7 JUSTIFICATION FOR INTERVENTION | © RabbitQuill EmpireLtd

 Objectives

1. To offer product sensitization to persons of all genders and further act as a training
facility for at least 50 trainees every month,
2. To establish breeding center for the original 10 breeds introduced at the start of the
project,
3. To establish efficient marketing channels and processing facilities, thus create job
opportunities in rabbit production and processing,
4. Identify and establish linkages with existing rabbit farmers especially farmers from
vulnerable groups and /or institutions in Kenya.
5. Raise household farm incomes to at least Kshs 20,000 per month.

MARKETING PLAN

Training

Rabbit Quaill empire Limited conducts three days training sessions at the multiplication center. The
revenue generated from this training is shared between the consulting firm (DEMAS Limited) and
the Centre. Key aspects covered in the course include rabbit husbandry, construction of hutches,
slaughter and safe handling of rabbit meat, skin management – tanning, record-keeping, customer
care, networking, marketing and Management of working capital. We target to hold training session
for at least 100 persons per month. Through this program it is our anticipation and belief we will be
able to meet our primary objective of reaching out to farmers and expand our stocking levels to
meet local market demand within the first 12months and get access to the international market
within 24 to 36 months.

Sale of Breeders

The market opportunity for rabbit and rabbit products is immense both locally and internationally.
The project will start by keeping 40 breeding stock (10 bucks and 60 Does).

Breeding Stock Sales: The center will be able to sell breeding stocks from the third month after the
inception of the project. Going by our experience, we anticipate each of the breeders will have an
average of 7 litters. The mortality rate is between 20 and 30% which is an average of 5 litters
surviving through to the weaning stage.

Sales revenue from the sale of rabbits if sold at weaning stage (one month after birth) (60*6) 360
assuming 100% sale @Ksh 500 is Kshs.180,000.00. Compare this to sales revenue from sale of

8 MARKETING PLAN | © RabbitQuill EmpireLtd

breeders if sold at 4 months and served @Kshs.2,000.00 on a sell and walk away basis (no
management agreement) is (60*6) assuming 100% sale is Ksh 720,000.00.
The does produce after every 60 days meaning we will be able to replicate the selling process as
above every 2 months.

Revenues from sale of finished products

The organization still has the option of slaughtering the rabbits and selling the meat and the skin.
One rabbits weighs between 3 and 5 kilograms at 5 months. The cold dressed weight for rabbit is
50% of live weight. One kg of live rabbit will go for Kshs.400. Selling the 240 slaughtered mature
rabbits gives Rabbit Quaill empire Limited 384,000 (240rabbits * 4kg average weight/rabbit *400sh
per kg live weight).
The skin will be sold at Ksh.300 each which will earn Ksh.72, 000 (240*300) while other by-product
that can be sold is rabbit urine. A Farm of 40 can give an average of 2 drum per month. This can be
sold at Ksh.15,000 per drum giving a total of Ksh. 60,000.00 every 2 months. The total revenue
therefore will beKshs.516,000 every two months or kshs.258,000 per month.
Rabbit Quaill empire Limited will be buying the rabbit and rabbit products from the multiplication
center and sell to the market since they have already secured orders for rabbit meat. We have also
secured an order for urine and skin from private investors within the country. When the quantity of
rabbit and rabbit products increases the organization plans to market the product internationally.

Competitor Analysis

From market intelligence, we have established that there are several large scale rabbit producers in
the country today who have attempted to sell and promote rabbit products. Most of these
producers are strained by market demand to the extent that they are not able to expand further
due to resource constraints. Given this intelligence, we wish to bridge the shortfall in supply of
rabbit meat in the market and further venture into new markets as our production levels increase.
We will target to supply to leading 5 Star hotels as well as the international market for both meat
and skins in addition to the domestic demand. We are aware that potential buyers require
consistent volumes of quality rabbit meat. To this end it is our hope that our partnership will accord
us the avenue to increase rabbit farms so as to yield a consistent supply of the products.

ORGANIZATION PLAN

Organization Chart
9 ORGANIZATION PLAN | © RabbitQuill EmpireLtd
 MS JUDITH MUTINDA TEAM Rabbit Quill TEAM

Ms Judith mutinda Project Manager

School Manager Field Operations Manager

Rabbit Section sup Training Coordinator

Support staff Marketing Coordinator

Abattoir Staff

Key Personnel

1. Mr. JOSHUA OLUYALI – MSc (Entomology) BSc (Agriculture)

Joshua has a widespread experience in management and administration in the Kenya public service.
He brings to this assignment over 25 years’ experience gathered from the public service during
which he has served at all levels of the Government of the Republic of Kenya. He has helped
establish new institutions/projects at district, provincial and national headquarters. At the
headquarters between 2000 and 2005, Joshua introduced critical changes in the planning and
budgeting unit of the Ministry of Agriculture the system that has gained significance in the entire
government. Mr. Oluyali was also responsible for initiating and implementing the complete
restructuring of the Ministry of Agriculture. The two activities have contributed to the good
performance of the ministry in the performance contracting concept introduced in government to
improve service delivery.
Joshua also served as deputy CEO for Cotton Development Secretariat which was established to
revive the cotton industry and within 3 years a new Cotton Development Authority had been
established. During that period Mr. Oluyali was the lead person in the development of the 1 st Cotton
Industry Strategic Plan. Joshua has also participated in the development of National Agriculture
Sector Extension Policy (NASEP).
The following is a summary of Joshua’s credentials:

10 ORGANIZATION PLAN | © RabbitQuill EmpireLtd

 1. Name of Consultant : Mr. Joshua Oluyali
2. Profession : Agriculture and Rural Development
3. Year with Entity : Since inception
4. Date of Birth : Jan 1st 1962
5. Nationality : Kenyan

EDUCATION

No Institution Attended Period Key Qualification Obtained

1 Newcastle Upon Tyne 1991 - 92 MSc in Applied Entomology and Crop

University Protection.

2 University of Nairobi 1983 - 86 BSc In General Agriculture

OTHER RELEVANT TRAINING

Strategic Leadership Course Kenya Institute of Administration October to December 2011,

Corporate Governance Course Serena Hotel October 2007.

WORKING/FIELD RECORD

Position Held Organization Period Years

Chief Executive Officer Rabbit Quaill empire Limited Current

Deputy Head and Officer In Charge Ministry of Agriculture – H/Q 2005-2010 5
of Planning and Budgeting
Head: Extension Programs Ministry of Agriculture – H/Q 2000 - 2005 4
Coordination Branch
Chief Inspector Fresh Produce Ministry of Agriculture – Coast 1993 - 2000 7
Inspectorate Unit – Moi Province
International Airport, Mombasa
District Crops Officer Ministry of Agriculture – Tana 1986 - 1991 4
River District
EDUCATION

Institution Attended Period Key Qualification Obtained

Jomo Kenyatta University of 2010 – To date BSc Animal Production

Agriculture & Technology
Kenya Institute of Professional 2000 – 2003 Diploma in Sales and Marketing (Brand
Studies (KIPS Marketing and Research).

11 ORGANIZATION PLAN | © RabbitQuill EmpireLtd

OTHER RELEVANT TRAINING
 Rabbit Husbandry and Management Course – International Livestock Research Institute (ILRI)
 Corporate Governance Course.
EMPLOYMENT HISTORY

Position Held Organization Period Years

Director Business Rabbit Quaill empire

Since inception
Development and Marketing Limited
Sales Representative Primavarapicknick snacks 2005 to 2009 4

OTHER INTERESTS
Member: The Association of Rabbit Breeders and Exporters; Vet.Com, Kenya Rabbit Stakeholders
Forum: Kajiado Rabbit Breeders Association, Mt Kenya Rabbit Breeders Network. Moses is married
and father of 2 boys aged seven and four.

The Business Management

This business is a partnership between Ms JUDITH MUTINDA and Rabbit Quaill empire Limited but
will be wholly funded by Ms JUDITH MUTINDA while Rabbit Quaill empire Limited will provide
technical expertise, animal health services and create market linkages and also facilitate the
trainings. The estimated cost of operating one center according to the provided budget is Ksh
330,000. Gilgal intend to run 28 projects of this magnitude. The entire project will therefore cost
Ksh 9,240,000.

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PRODUCTION AND OPERATIONAL PLAN

The business will involve production and selling of rabbit and rabbit products. For this to be
effective the following facilities need to be availed.
1. Hutches
2. Cold storage facility
3. Abattoir
These facilities are to be erected on a site to be agreed on by the parties
Production process

Site identification

Training

Construction

Stocking

Breeding

Slaughtering Selling

Packaging

ACTIVITIES

Rabbit Quaill empire Limited will provide basic training, and routine management (disease control
and treatment). Rabbit Quaill empire Limited shall also provide the market for all the rabbits at
competitive prices. The beneficiaries shall be expected to provide rearing hutches, labour for the
construction, finance purchase of the breeds, training and registration of members into the
association of rabbit breeders and exporters.

By establishing a training and demonstration center the project will provide one stop solution point.
All interested farmers will be encouraged to visit the demonstration center to learn and access a
source of breeding stock.

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Key activities include:
1. Providing guideline on the construction plans of rabbit hutches
2. Supervise construction of at least 150 no hutches for a minimum of 50 mothers,
3. Train the farm manager and his team on the basics of rabbit keeping
4. Conduct 6 months management and disease control consultancy
5. Develop and implement production and marketing programs for the center
6. Conducting farmers training on commercial rabbit farming and management
7. Recruitment of center workers and develop working contract
8. Selling the breeds to out grower farmers
9. Develop a data base of farmers and breed distributions
10. Construction and install the facilities of slaughter house and cold storage at the center
11. Developing a rabbit supply plan for the farmers
12. Organize for collection and delivery of rabbits from the farmers
13. Process the rabbits (slaughter the rabbits)
14. Package and store the rabbit meat and by product
15. Signing MOU with other stakeholders ( transporters and other service providers

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Monitoring and Evaluation of the Project

Monitoring and Evaluation

1. Train farmers on record keeping at the farm level,

2. Develop and provide the production and sale recording forms to each farmer,
3. Collect and compile data from each farmer,
4. Monitor the data collected
5. Prepare progress report

Production Management

Ms Jubith Mutinda will assign a Farm Manager in charge of all the production operations guided by
our Project Manager from Rabbit Quaill empire Limited.

BUDGET
Activities Date Unit cost No of Amount Actors
required Ksh units
Construction of Rabbit housing units:
1. Design preparation and approvals Start up
2. Builders works One month
3. Construction of cages for first lot Week 3
Introduction of breeder rabbits Month 2
Introducing and training Farm Manager Month 2 3trainees RABBITQUILL
& Support Team LTD
Labeling, filing and setting up Month 3 1week RABBITQUILL
information center LTD
Site visits (2visits per month): Every 15 10days RABBITQUILL
treatment, immunization, treatment, days LTD
weaning, mating, etc
Management Consultancy Fees Monthly 100,000. 6months 600,000. CLIENT

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FINANCIALS

16 FINANCIALS | © RabbitQuill EmpireLtd

Conclusion and sign off

It is our hope that this partnership will see our two organizations achieve our shared objectives and look
forward to a long standing working relationship.

Joshua Oluyali – Lead Consultant

Rabbit Quaill empire Limited
PO Box 8766-00300
Nairobi, KENYA
TEL: +254-722 551 795
Email: joshuaoluyali85@yahoo.com

17 Conclusion and sign off | © RabbitQuill EmpireLtd