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Preparer NameCompany NameStarting MonthStarting Year
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Ken MakungaOpen Source Ecology Botswana (OSEB)January2026
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OSEB Summary & Key Assumptions (CEDA Loan Model)
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This document outlines the key assumptions used in the OSEB financial model, updated to reflect the new funding structure for the CEDA loan application. All figures have been converted from US dollars to Botswana Pula (BWP) using the exchange rate of US$1 = BWP15.
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Project Funding & Loan Details
BWPUS$
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Total Project Cost: BWP30,000,000 P 30,000,000 $2,000,000
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Promoter's Contribution (Equity): BWP3,000,000 (10% of total project cost) P 3,000,000 $200,000
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CEDA Loan Amount: BWP27,000,000 (90% of total project cost) P 27,000,000 $1,800,000
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CEDA Loan Interest Rate: 7.5% per annum7.50%
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CEDA Loan Term: 20 years (240 months)20
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CEDA Grace Period: 48 months (4 years) on both principal and interest.48
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General Assumptions
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Exchange Rate: US$1 = BWP15US$1 = BWP15
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Year 1Year 2Year 3Year 4Year 5
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Inflation Rate (General): 5% annually for most expenses (personnel, admin, utilities, maintenance, inventory).5.00%5.00%5.00%5.00%5.00%
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Depreciation: PP&E is depreciated at an annual rate of BWP2,550,000 over its useful life. P 2,550,000 P 2,550,000 P 2,550,000 P 2,550,000 P 2,550,000
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Accounts Receivable: 10% of annual Total Revenue.10.00%10.00%10.00%10.00%10.00%
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Accounts Payable: 5% of annual Cost of Goods Sold (COGS).5.00%5.00%5.00%5.00%5.00%
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Other Current Liabilities: 2% of annual Operating Expenses (excluding depreciation).2.00%2.00%2.00%2.00%2.00%
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Taxes: A corporate tax rate of 22% is applied to Net Profit before Tax.
22.00%22.00%22.00%22.00%22.00%
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Revenue & Cost Projections
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Compressed Earth Block (CEB) Housing Revenue:
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Year 1: BWP21,000,000 P 21,000,000
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Annual Growth: Assumed to increase in line with the ambitious national housing targets and OSEB's expanding capacity.
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Year 2Year 3Year 4Year 5
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OSEB Construction Services
50%25%20%20%
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OSEB Agricultural Services
25%20%15%15%
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OSEB Manufacturing & Fab.
35%30%25%25%
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OSEB Well Drilling Services
20%15%10%10%
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OSEB Consultancy & Tech Spt.
10%10%10%10%
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Cost of Goods Sold (COGS):
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Initially projected at 71.56% of revenue in Year 1, decreasing as production efficiencies improve.71.56%
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Year 2Year 3Year 4Year 5
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Raw Materials for GVCS Prod.
50%25%20%20%
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Microfactory Consumables
25%30%25%25%
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Aquaponics & Agri. Inputs
10%20%15%15%
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Inventory Assumption
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Inventory-to-COGS Ratio: The projected inventory balance for each year is based on a strategic operational assumption to maintain a buffer of 25% of the annual Cost of Goods Sold (COGS). This ratio ensures a consistent supply of raw materials and consumables, mitigating supply chain risks and preventing disruptions in our manufacturing and service delivery.
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25.00%25.00%25.00%25.00%25.00%
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Year 1Year 2Year 3Year 4Year 5
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 P 4,050,000 P 5,983,125 P 7,484,438 P 8,989,134 P 10,797,465
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Apprentice Stipends:
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Year 1: BWP757,500 P 757,500
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Annual Increase: 5%5.00%
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Other Operating Expenses:
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Salaries, Admin, Utilities, and Maintenance are assumed to increase annually by 5%.5.00%
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Apprentice Program Assumptions:
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Cohort Size: apprentices per year
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Apprentice Stipend/month (for 10 months of training)
 P 1,500
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Annual Apprentice Stipend Increase
5%
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Training Fees:
All 100 Apprentices FREE training
Year 1: $0
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All 100 Apprentices FREE training
Year 2: $0
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10% of apprentices pay $500ea/yr or $50/mo*10mo/yr
Year 3: P 75,000
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15% of apprentices pay $600ea/yr or $60/mo*10mo/yr
Year 4: P 135,000
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20% of apprentices pay $700ea/yr or $70/mo*10mo/yr
Year 5: P 210,000
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The Amortizing Loan Payment Formula
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The standard formula is:
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A=P*r*(1+r)^n/[((1+r)^n)​ -1]
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Where:
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A = The loan repayment amount per period.
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P = The principal loan amount, which is P27,000,000.
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r = The periodic interest rate. Since the annual rate is 7.5% (0.075) and payments are made monthly, we divide the annual rate by 12: 0.075/12=0.00625.
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n = The total number of payments. The loan term is 20 years, but there is a 4-year grace period. This means repayments will be made over 16 years (20 - 4). The total number of monthly payments is 16 years×12 months/year=192 payments.
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1+0.00625^192 = 3.3077
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0.00625*3.3077=0.0206731325
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27,000,000*0.020673125 = 558,174.375
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558,174.375/2.3077 = 241,875
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A = P241,875/mo
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Annual repayment = P241,875*12 = P2,902,500
 P 2,902,500
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Land Value
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7 plots adjacent to each other at Mantshadidi at 16ha each
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1 plot separate @ 10ha.
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Assume P12,000/ha
 P 1,464,000
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OSEB future infrastructure
P 1,536,000
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Promoter's Contribution
P 3,000,000
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