‘The Paper Bag Man,’ Plastic Prohibition turned into Rising Opportunity

This quick thinking entrepreneur saw a business opportunity in environmentally friendly packaging. Today he calls himself ‘the Paper Bag Man’ of Rwanda.
When the Rwandan government recently decided to prohibit plastic bags due of the negative effect on the environment, Fabrice Shema Ngoga realised he had a chance to start a potentially prosperous business for himself, while greatly benefitting his country. After researching the viability of his idea, he found out that most retailers in Rwanda imported  paper bags from neighbouring Kenya. After making this discovery, Fabrice went about creating SOGEM, which would be the first local paper bag manufacturing company in Rwanda.
Fabrice travelled to Dubai and India in order to learn how best to go about operating his business and to gain an understanding of the paper bag manufacturing process. It wasn’t all smooth sailing though, as financing proved to be a major hurdle in Fabrice’s way. Since he had no assets to start with, conventional banks were unwilling to grant him loans. So, in order to obtain the funds needed to start his business.

Fabrice Shema Ngoga: Owner of SOGEM

Fabrice approached GroFin, an investment organization who provide finance to small and medium enterprises. GroFin was immediately interested in Frabice’s idea, firstly because he was so passionate about it, and secondly as a result of his a well laid out business plan. GroFin believed his idea would work, granting him the capital he so desperately needed.
An additional difficultly that Fabrice faced was the high cost of machinery needed to produce the paper bags from the raw materials. His way around this was to purchase a semi-automatic machine that was more cost-effective and allowed him to churn out product at an acceptable albeit not optimum rate.
Fabrice employs many local people to fold the bags. Their goal is to fold twelve thousand bags each every month. If they exceed this amount, they get a bonus of ten percent of their salary. This is an extremely motivational business tactic, it encouraging employees to want to work harder. In only four months Fabrice was able to take a good idea and turn it into a profitable, beneficial business.
At the moment he is only producing ten percent of the demand for paper bags in his country, but he is hoping that within the next six months, with new machines and more employees, he can increase production to up to fifty percent. Judging by the way things are going, it looks as though Fabrice is well on his way to seeing that dream become a reality.
26 total comments on this postSubmit yours
  1. well, i was really impressed when i saw the documentary on tv. that’s some real determination he has. i wish him all the best and i hope in a year’s time he will be a big time company manager. to those of us who don’t have much determination, let us learn from him.

  2. This is wat the youth of today should be doing instead of looking for white-collar jobs which are not available..Big ups fabrice.

  3. I am very impressed. I am motivated and empowered. Can u please link me to
    SOGEM paper bag manufacturing campany? I would like to learn more.

  4. Dear Smith,

    Thank you for watching Africa Report. Should you wish to replay the SOGEM feature please scroll over the ‘Episodes’ tab on our website. Scroll over ‘Episode 4′ which will bring up a drop-down menu with the episode chapter names. Click on ‘SOGEM’ and press play indicated by a forward arrow. This is the link http://www.africareport.com/?page_id=677

    The contact details for Fabrice Shema of SOGEM are:
    SOGEM Rwanda
    SOCIETE GENERALE D’EMBALLAGE
    B.P. 2194
    Kigali, Rwanda
    Tel: (250) 0788 567 687/740 272
    Email: sogem.rwanda@yahoo.com

    Stay tuned to Africa Report.

  5. it surely pays to be focused. They say “the moment an organization realizes success, progress stops” Don’t stop there guys, this is just the beginning of something great. may the Lord guide you through

  6. i was motivated by the paper bag story .i live in ghana and will like to start a paper bag factory too . ho w do i get funding and training?

  7. i like to much

  8. wonderful job done keep focused and excel

  9. Mbame
    Cameroon.
    April 2010.

    Exploiting this idea is marvelous and timely.I pray others emmulate you to keep our environment free of plastic polutants.Your business prowess cannot be under estimated. More greese to your elbows.

  10. Man i love you so much, upon seeing your company on the africanreport.com i said to myself my dream has come to pass.please how do i get to know more about this business. I live in GHANA.Thank YOU.

  11. Hi Francis
    To get to know more about business, read our Africa Report articles and keep watching the show!
    We regularly update our website with new information and advice for entrepreneurs.
    All the best.

  12. I have watched africa report and my life is changing now because i have been dreaming for so long and now i have the edge to start putting up my business plan for finance,I know i will call you to cover my project to ginger others sooner than later.Youth of Africa awake and lets build our Africa,Lets build our land.

    Emmanuel
    Ghana

  13. I am very pleased to see your reports.
    I have an idea to start a plastic and paper bag manufactory in Dem. Rep. of Congo. I stay in United Kingdom, and I want to know where can I get trainig and where to equipments(machines). If you can tell me all I need to do for that kind of Business.
    Waiting to hear from you

    Yours

    Adriano Zevo

  14. Great blog ! Your article is admirable and i will look again…………………………………….
    regards:
    http://www.viaam.com

  15. I appreciate your post, thanks for sharing the post, i want to hear more about this in future.

    http://www.viaam.com

  16. Few feelings .. but nice …

  17. This article is very informative. Great stuff here.

  18. Fabrice,

    I sent you an email but to no avail. Please reply soonest as we might share ideas. In the meantime, bravo!

  19. Hi Fabrice,
    That’s brilliant. Congratulations. I live in Ghana and have been contemplating this idea for a while now. I have just started doing some research on the internet and that’s how come I got to know about Africa Report and you. I would very much appreciate it if I could get in touch with you/SOGEM very soon. I would sure need some help and information form your end. Thanks.

  20. Wonderful. I have also tried to start this business in Uganda, but seem to be facing the same problems – more so about buying the machinery needed. These machines go for as much as half a billion.

  21. Hi, i would greatly appreciate it if you could give me some advice as to where to purchase a good machine to start with. I am trying to get this same business concept started in Gambia and any advice you can give will be very helpful, I also want to include plastic bags.

    Thank you

  22. Nice blog ! I like your article and I will really read it again. It will be beneficial especially for young graduates, as well as for freshmen.

    For a number one quality bag in which you will get quality as well as fashion.

    bag manufacturers

  23. I am very pleased to see your post. I am planning to start this business in India and this has helped me a lot to know about the financial matters and production.

    In future I hope you become a great entrepreneur.

  24. By the way, after having a bad shopping experience – shipping directly from the supplier to my house in Austria. I decided to use mail forwarding address provided by post-rocket.com
    My Ford GT had broken down and the only place in the US where I could buy the parts was not going to ship overseas. This was the moment when 6X Express helped me. The company is really good in what they do and when I talked to them – I understood that this is because they work as a team. Whoever I spoke to – everyone was very helpful and never redirected me.
    I had been searching for this kind of service for several months, so I believe this information is very helpful.
    Anne

  25. Thanks for the article, it was interesting and compelling. I will come back another time :)

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