Techno-economic guide for the establishment of a groundnut paste production plant

Abstract

The guide is designed to facilitate invest decision making by already operating and potential entrepreneurs interested in the establishment of a groundnut paste production plant. The guide is modelled on the use of a rented factory building, market conditions prevailing in Accra and a processing plant with capacity of 600 kg of groundnuts a day. Factors affecting the location of the plant are considered. These include the availability of raw materials, power, water, labour, facilities for waste disposal, transport etc.The fixed capital outlay is estimated at ¢6,162,530.00 with a working capital of ¢17,505,260.00, thus giving a total investment capital of ¢23,667,790.00. Return on investment averaging 70 per cent can be registered within 5 years of operation. The venture shows an Internal Rate of Return (IRR) of 61 per cent after all financial obligation have been settle. The guide concludes that given the factor costs used and assumptions made, the selected model shows high financial returns/viability and therefore, it is recommend for adoption