Business Growth Strategy
Project: As a result of unpredictable droughts, climate change, and certain livestock farming practices, native thornbush species are growing out of control and are encroaching on open savannah and Namibian farmlands. With 70% of the Namibian population involved in agriculture, bush encroachment poses a major livelihood threat to communities, the cheetah and other indigenous wildlife species. This loss of habitat reduces available farmland as well as habitat for cheetahs, who typically hunt using bursts of speed in open or semi-open savannah, and their prey species. With less usable land for humans and wildlife, human-wildlife conflict is exacerbated. In 2001, CCF and the United States Agency for International Development (USAID) collaborated to find a habitat improvement program that would be ecologically and economically viable. CCF identified a business opportunity: processing encroaching bush into high-heat, low-emission, compacted logs for use as a cooking fuel or for home heating. CCF Bush (PTY) Ltd. (www.bushblok.com) was established to manufacture the Bushblok product. However, the business was constrained by high production costs, low volume sales, and high transport costs. The SGE Immersion team analyzed the business and made recommendations to increase growth and profitability.