Detailed Plan
The trade of illegal goods (counterfeit) in Kenya is estimated to be USD$8.26billion in year 2018. The building, mining and construction industry accounts for greatest portion at 23.37% (USD$1.93Billion) of this annual estimate in Kenya only. If we were to extrapolate the entire African continent (54 countries), this figure would easily escalate to USD$446billion.
“…..According to the study conducted between October 2019 and February 2020, the Government revenue lost in 2018 stood at Kes 153.1 billion up from Kes 129.72 billion in 2017. From the sixteen (16) sectors of the economy that the study concentrated on, building, mining and construction was heavily affected by counterfeiting with a share of 23.37% in value of total illicit trade, followed by energy, electrical and electronics with a share of 14.67% in 2018.
Source of data: (https://www.aca.go.ke/mediacenter/news-and-events/225-the-national-baseline-survey-on-the-extent-of-counterfeit-and-otherforms-of-illicit-trade-in-kenya.)“
Roadmap
1. Phase 1:
a. This phase will include the creation of the MVP.
b. Core functionalities of the product will be implemented (anti-counterfeit data on blockchain and web portal for price-comparison and product tracking) to give us a foundation on which the iterative agile process of product refinement can be initiated and to prove the product-market fit of the solution.
c. The web portal will be created using the MEAN programming stack which is a popular and synergetic software bundle that stands for MongoDB + Express.js + Angular + Node.js. This choice will guarantee low development costs, no-licensing fees, access to knowledge hubs and wide-availability of developers familiar with those technologies.
d. In terms of blockchain part we will be taking advantage of Cardano’s metadata functionality to guarantee immutability of crucial product and procurement data.
2. Phase 2:
a. This phase will include product refinement - based on feedback from initial users. The web portal will be expanded with more advanced functionalities as highlighted below;
i. Manufacturers’ Supply Chain management optimization analytics.
ii. Quantity Surveyors’ Bill of Quantities (B.o.Q) linkage to the proposed retail product pricing bidding platform.
iii. Online collection and remittance of government taxes (V.A.T, excise duty etc.) from manufacturing to consumers.
iv. Registration and transfer of property title on Cardano blockchain in government registry.
b. The application will be expanded into a second African country to prove the ability to scale to new markets.
3. Phase 3:
The last phase will focus mostly on scaling the solution and the user base. It will consist of a number of wide-scale marketing campaigns and further product refinement.
KPIs
3 months – Phase 1:
1. Implemented in One (1) country.
2. MVP ready and deployed for beta testers.
3. Nine (9) beta testers onboarded;
- Manufacturers - 3.
- Wholesalers – 3.
- Retailers – 3.
- Total 9
6 months – Phase 2:
- Implemented in 2 countries.
- Eighteen (18) B2B paying clients.
- First iteration based on feedback from paying clients.
12 months – Phase 3:
- Implemented in 14 countries.
- Thirty Six (36) B2B paying clients.
- 14 nation wide-scale marketing-campaigns delivered.
Budget for Phase 1
Product design: 5 000 USD
Front-end development: 15 000 USD
Back-end development: 15 000 USD
Blockchain development: 10 000 USD
Project management: 10 000 USD
Marketing: 10 000 USD
______________________________________
Grand total: 65 000 USD
Demographic
Targeting three (3) primary cement manuafacturing (B2B) firms that have over 90% of market share in Kenya. Secondly, four (4) financial institutions in Kenya cover 70% of the market in building and construction of residential homes to purchasing legitimate cement products from the 3 manufacturering firms with the proposed Cardano blockchain supply chain and price bidding network marketplace. This will be done directly after a bank client building and construction loan is approved by any of the four (4) banks in the ecosystem (De-risk).
Action Plan
Recruit the best software engineering firm to develop a start-to-end anti-counterfeit blockchain system for the African market.
PROJECT SUMMARY
We seek to develop a start-to-end “product and retail price” tracking network ECOSYTEM that accomplishes the following objectives;
1. Track multiple building, mining & construction products from multiple factories-sales-points and mining excavation sites e.g. sand harvesters’ (sellers) to develop the first digital marketplace in Africa around individual customers’ and financial institutions on Cardano blockchain technology.
2. To principally track all legitimate products from registered factories-sales-points to large-scale wholesales’, middle wholesalers’, small wholesalers’ and retailers’ to the individual customers’.
3. This Cardano blockchain network will provide trust, visibility, traceability and immutability to all stakeholders’ in the ecosystem. An audit-trail of all construction materials/products used in the building industry will be available to all registered financial institutions in the marketplace.
4. Eliminate counterfeit products in the marketplace/ecosystem that results in significant reduction of manufacturers’ anti-counterfeit measures’ costs and enhance their profitability due to increased sales.
5. Elimination of systematic industry fraud and price fixing inefficiencies will reduce lending interest rates by financial institutions and significantly reduce total project cost for the customers’ in the marketplace.
6. A simplified example of one major product in the building and construction industry is provided hereon. There are three (3) fundamental types of cement products manufactured by all competing players in building and construction industry to sell to customers’ in the market as below;
a. Grade 33.
b. Grade 43.
c. Grade 53.
We want the Cardano blockchain to track these multiple grade products and provide a ranked (lowest to highest) retail price list to an individual customer per project. Below is a comprehensive price and product template at the retail-level for all manufacturers’ grade products.
7. Provide each manufacturers’ a comprehensive (online) start-to-end sales and distribution ecosystem of their products from factory-sales-point to customer’s purchase point.
a. Primary objective – Industry B2B based product tracking system for manufacturers and financial institutions. Secondly, a competitive retail pricing platform for individual customers’ per project.
b. Secondary objective – Adopt an efficient industry-based Cardano blockchain e-payment system for financial institutions in Kenya and beyond. Deliver an ADA system to financial institutions for Africa.
MARKETPLACE SHAKEHOLDERS VALUE PROPOSITION ANALYSIS FOR AFRICA
BUYERS & SELLERS VALUE ADDITION
1. FINANCIAL INSTITUTIONS -
More Lending opportunities To retail customers’ in building & Construction Projects. This will significantly reduce unsystenatic risks & cost of lending.
2. INDIVIDUAL RETAIL CUSTOMERS’ UNDERTAKING CONSTRUCTION PROJECT.
Significantly reduce unsystematic risk & total project cost.
3. MANUFACTURERS’ OF CONSTRUCTION PRODUCTS, MINERS OF BUILDING MATERIALS (SAND).
Eliminate counterfeith products in the marketplace & closed ecosystem. Provide each manufacturers’ with an online (real-time) tracking of their products from factory sales to end customers’.
4. PROFESSIONAL SERVICE PROVIDERS (ARCHITECTS, ALL BUILDING & CONSTRUCTION ENGINEERS, CONTRACTORS, CONSTRUCTION WORKERS).
Enhance project payment efficency and turnaround time via cardano smart contracts services. Ensure fair competition in the procurement of professional services in this marketplace.
NB: The successful rollout of this project will be a precursor to a seamless 80% copy & paste solution for our reverse auction retail pharmaceutical price bidding and electronic health record network for Africa under Cardano blockchain…