Prosperity in paper bag production for SOGEM in Rwanda
Meet the paper bag man of Rwanda – Fabrice Shema of SOGEM.
When the Rwandan government recently decided to prohibit plastic bags due of the negative effect on the environment, Fabrice 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 neighboring 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 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 F
abrice 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.
Comments
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.
This is wat the youth of today should be doing instead of looking for white-collar jobs which are not available..Big ups fabrice.
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.
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.
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
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?
i like to much
wonderful job done keep focused and excel
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.
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.
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
I loved the bungalow’s business of Marcel Karam it inspered me to focus on my dream of being successful entreprenurer of opening a business like of Marcel Karam,all iam asking for fund to start my own here in Tanzania
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