Sheffield Advisors LLC
Afghan Construction Depot
Afghan Construction Depot (ACD) will pioneer the concept of a full-service construction materials and hardware supply vendor in Afghanistan.
The company expects to capture a significant portion of the more than $4 billion construction market there over the next 5 years.
- Obtain financing from the Overseas Private Investment Corporation (OPIC)
- Write a business plan
- Negotiate vendor and supply contracts
Existing and traditional vendors of construction materials in Afghanistan cannot take full advantage of the boom in the Afghanistan construction market because they cannot consistently supply materials of adequate quality.
The domestic construction materials marketplace is not equipped to meet current demand because of three key deficiencies:
- domestically-produced goods are inconsistent in quality and availability;
- the import market is generalized goods traders resulting in materials imports from odd lots, are not available consistently, or are of inferior quality;
- many traditional vendors are single-goods specialists, such as wood sellers, creating inefficiencies for supply of larger construction projects.
With these structural impediments the domestic market can support only localized small-scale construction needs, such as private home renovation. These projects are only a fraction of the total market, which is fueled by a massive influx of international donations to reconstruct and modernize Afghanistan’s infrastructure. Large construction projects purchase and import their own materials outside Afghanistan. This practice increases the cost of each project and does little to improve the Afghan economy through duties and tax revenues.
To correct these deficiencies and capture market share, ACD will act as a distributor for international wholesalers of construction materials, equipment and hardware. By leveraging a modern logistics network and volume purchasing, ACD will be able to provide consistently higher quality goods than those currently available in the domestic market while maintaining competitive prices. The company will also introduce modern, customer-centric and demand- driven management practices to the Afghan construction supply market.
Pending the finalization of its first debt financing round, ACD will open a flagship facility in Kabul in the spring of 2005. Satellite sales offices will follow in major Afghan cities within two years and, within three to five years ACD will become a national chain, backed by exclusive distributor agreements with international suppliers.
Afghan Construction Depot LLC is a U.S.-based partnership bringing together substantial business experience and critical local knowledge and contacts. All four partners are actively engaged in related businesses in Afghanistan, including construction and import/export. The partners also have international and regional business ties spanning the U.S., Germany, Pakistan and Dubai, UAE.
