Brick World Zambia Limited

Investing in Zambia :
Construction opportunities
in a frontier market

In partnership with
What is Brick World Zambia?

Brick-World Zambia Limited is an emerging construction, contracting and manufacturing

company located in Solwezi, North-Western Province (Zambia). The company was registered as
a limited company by shares on 4th October 2007. It is also registered with the following
Institutions : National Council for Construction in the building and housing category, Grade 6 ;
Zambia Development Agency as a micro business; and, the Zambia National Tender Board
(renamed as the Zambia Public Procurement Authority).

Our Mission : “Pioneering innovative construction solutions”

Brick World Zambia aims to establish a global enterprise that pioneers innovative construction solutions.
We plan to achieve this through developing global networks and partnership that encourage pool of finance
and technical resources to achieve our growth prospects. Our vision is to become the leading African clay
brick-making company with output of 3 million bricks/year and annual earnings of K7.5 billion per year by
2020.

Our present focus is in construction, contracting and making burnt clay bricks and concrete blocks, with the
long term vision of concentrating on the brick-making function where greater profitability and market share
potential exists. New investment would be targeted at significantly improving this area of the business. The
company is currently producing an average of 2000 clay bricks per month, using manual methods (hand
moulds). The intention is to increase brick production to at least 37,500 bricks/month through the
acquisition of brick moulds and/or simple to use machines. In two years we intend to set-up a trading point
in Lumwana district, extending to Mwinilunga district by 2012. This would increase brick and block range
and grow our overall brick output to 125,000/month in six (6) years and 250,000/month in 10 years through
investment in plant, equipment and personnel. Within five years, Brick-World aims to penetrate outside
markets by commencing with the Angola market by establishing sales point in other neighbouring country.
Organisation

Incorporation - The company was registered as a limited company by shares on 4th October
2007 and has since made its first annual returns. The company’s registration number is 68879.
The registered physical office is Plot 16, Chakeluka road, Olympia Park, Lusaka, Zambia.

Income Sources - The main source of income is through sale of bricks to individuals, organizations,
contractors, dealers / suppliers and property developers. Brick-World Zambia estimates that commencing
financial year January to December 2009 net profit is estimated at ZMK251.750 million (US$50,350) (subject
to increased investment and production output of 250,000 bricks/year and 250,000 blocks/year).

Employment - The company has two (2) permanent employees and five (5) temporary workers during peak
production) under the direct supervision of the Managing Director. Employees are eligible to purchase
ownership shares through the Young Brickmaker's Fund at a 20% discounted price of ZMK100 per share,
encouraging productivity and long term company loyalty.

Ownership - The business is owned by Mr. Herman Kunda, Mr. Tadeyo Lungu and Mr. Chola Mukanga. The
Company is lodging with Companies’ office the change in ownership.

History - The business traces its origin from the founder and Managing Director, Herman Kunda's
assignment to produce a viable business proposal during his final year at University in 2005. The business
proposal became a reality after receiving investment support of US$30,000 from the Africa Technology
Development Forum Entrepreneurship Limited at the end of 2007. With this funding, contributions from
Herman Kunda totaling an estimated US$20,000 to date, and US$1,440 from Mr. Chola Mukanga, Brick
World Zambia acquired land, plant, recruited staff, built a storage room and commenced manual brick/block
making at the Solwezi site in North-Western Province
Investing in Brick World Zambia
Brick World Zambia is looking to raise capital of K375 million (US$75,000) over a period of one
year. The capital required is to significantly increase output to 250,000 bricks/year and 250,000
blocks per year. The investment would cover three principal areas :

Brick Making : Working capital for Working capital for initial 6 months, 4No. manual moulds /
machines, 5 ton light truck and workshop (Target Amount : K237m)

Block Making :Working capital for initial 1 month, concrete working platform (200m2) and cement storeroom
(Target Amount : K138m).

Technical Support :Clay brick-making expertise, kiln, moulds designs, management skills and technology
transfer

Options for Investment : Two principle options are available for investment. Other investment options are
being considered including a social fund where investment profits are exclusively reinvested in the local area.
Investors are welcome to suggest potential options that may be considered :

Personal Investment – Personal direct investment with returns paid in line with the “Dividend Policy”.

Young Brickmakers Fund (YBF) – A new innovative investment fund that offers a preferential discounted
ownership for employees. As a way of empowering workers, a fund has been set to allow donations or
grants from individuals and organisations with proceeds paid to employees in form of incremental ownership
in Brick World Zambia and towards training and development.

Dividend Policy : The goal of Brick-World Zambia is to grow and expand business activities, therefore it will
reinvest 100% of its net profits for the next three years (2009 – 2011). However, commencing 2012, Brick-
World is expected to distribute 50% of its net profits as dividends for shareholders and invest the remaining
50% in the growth of the business for at least a period of one year.
Why choose Brick-World Zambia ?

Location - Solwezi is an emerging town within the emerging “new copperbelt” that has seen
significant investment in the mining sector by Lumwana Copper Mines (Africa’s largest single
copper mine) and Kansanshi Copper Mines under First Quantum Minerals. There are new
investments planned in the nearby town of Mwinilunga. New investment brings new construction
and new demand for Brick World Zambia.

Infrastructure Gap - Solwezi and entire North-Western Province is largely rural with huge demand for
infrastructure. Therefore, Brick-World Zambia presence is strategic in meeting the need.

Networks - Brick-World Zambia has formed extensive business linkages and networks locally and
overseas, including members of the Zambian Diaspora. This is essential to business success and future
prospects.

Ambitious Vision - The company has a clear vision, to become the best African clay brick-making
company with output of 3 million bricks/year and annual earnings of 7.5 billion Zambia kwacha per year by
2020.

Choice – Brick World Zambia offers a broad range of investment choices. Investors can invest for private
return or/and for non-profit reasons. The Young Brickmakers Fund is focused on poverty alleviation through
the empowering of local workers with brick and block making skills and incremental ownership.

Socio-Economic Impact - The company seeks to provide quality and strong bricks for the construction of
affordable, decent and durable infrastructure to all income groups in Solwezi district and surrounding areas.
Thereby, creating a conducive and secure environment for other economic activities to be undertaken.
Bricks/blocks are essential requirement for infrastructure development. The company will create more
gainful employment to the local people on both temporary and permanent employment. We are also
providing a reliable source of revenue to government through taxes and other related levies and taxes, and
an earner of foreign exchanging from trade with neighbouring countries.
Why choose Zambia?

Zambia is one of the most politically stable countries in Africa and has multi party political system.
It is endowed with abundant natural resources - minerals, arable land, rivers, forests,
waterfalls, lakes and wildlife - and with the country sufficiently underdeveloped it offers potential
and profitable openings for investors. With total surface area of about 752,600 square km and
mean altitude rising around 1200m above sea level, Zambia enjoys sub-tropical vegetation and
climatic conditions.

Its central geographical location within South Central Africa with common borders to eight countries in the
region provides excellent export market opportunities to potential enterprises. Though landlocked its road, rail
and telecommunication facilities are reasonably well developed for direct access to regional and international
markets. Zambia has abundance of electric power and is a net exporter in the region.

Zambia’s active participation in 14 regional countries Southern African Development Community (SADC)
Trade Protocol as well as the Africa wide 20 Countries Common Market for Eastern and Southern Africa
(COMESA) offers preferential tariff access to total market potential of nearly 380 million people. Similarly,
with advent of Africa Growth and Opportunity Act (AGOA) duty free access to the huge USA market has
become a reality. Zambia is also signatory to the Cotonou Agreement, which aims to achieve free trade
arrangements between the EU and the ACP regional groupings.

Potential investment opportunities in physical infrastructure such as housing, roads, and communications
abound. The construction sector in Zambia is rapidly growing mainly due to construction of residential
housing, investments in the mines, road construction and other civil works. Zambia also has a very robust
Road Sector Investment Programme (ROADSIP) in which both local and international road construction
companies participate although emphasis is on quality. The country is also looking for serious investors to
venture into the construction industry to support the ever growing housing, commercial retail and tourism
sectors.
Ready to find out more?

Further information can be obtained from :

Head Office - Lusaka

Plot 16, Chakeluka Road, Olympia Park
P.O Box 39190
Lusaka, 10101
Zambia
E - mail: brick-world@zambia.co.zm

Solwezi Plant & Office

Kifubwa Area. Off Chingola Road
Cell: +260 977 542 476
Cell: +260 955 460 880
E - mail: info@brick-world.net

Website : www.brick-world.net