ENTREPRENEURIAL SKILLS 1

ENT15W2
2025 ACADEMIC YEAR
BUSINESS PLAN

Group No: 24
Name of the business: African Furniture Limited
Field/sector of business: Furniture Manufacturing
Category of the business: Innovative business idea
No Group Member Name Group Member Student Group Member
Number Contribution
(%)
1. Mpinyane, RB 240771435 100
2. Msutwana, A 240774892 100
3. Ngabom, N 240810600 100
4. Mthombeni, LU 240816218 100
5. Mdese, L 240819829 100
6. Mbidlana, L 240824296 0
7. Thungo, TS 240861329 100
8. Soga, I 240863305 100
9. Matli, LT 240865790 100
10. Manana, S 240875168 100
11.
 ACADEMIC INTEGRITY DECLARATION

Declaration

We, the undersigned group members, hereby declare that:

1. Original Work: This is our own original work and has not been copied or plagiarized
from any other source, except where properly referenced.
2. Proper Acknowledgement: All sources used, including texts, ideas, visuals, and
external assistance, have been properly acknowledged and cited in accordance with
academic conventions.
3. Integrity and Compliance: we understand what constitutes academic dishonesty,
including plagiarism, collusion, falsification of data, and unauthorised assistance, and
I agree to uphold the standards of academic integrity as per the institution’s code of
conduct.

Signed at: 23:30PM

Date: 09/13/2025 Signature: ___________________________

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Table of Contents
1. Executive Summary
2. Business and Product/Service Description
2.1 Business Overview
2.2 Products and Services
2.3 Industry Overview
3. Marketing Plan
3.1 Product
3.2 Price
3.3 Promotion
3.4 Place
3.5 Competitive Advantage
3.6 Customers and Market Size
3.7 Competition
3.8 Market Evaluation
4. Operations Plan
4.1 Facilities
4.2 Manufacturing
4.3 Equipment and Capability
4.4 Steps to Full Operational Capacity
5. Management Plan / The Team
5.1 Management Team Overview
5.2 Directors and Key Roles
5.3 Consultants and Advisers
5.4 Key Professionals
6. Sustainability Plan
6.1 Environmental Sustainability
6.2 Opportunities for Green Impact
6.3 Social Sustainability
6.4 Economic Sustainability
6.5 Potential Environmental Impact
7. Financial Plan and Critical Risks
7.1 Start-Up Capital
7.2 Projected Income
7.3 Projected Balance Sheet
7.4 Projected Cash Flow Statement
7.5 Projected Capital Equipment
7.6 Critical Risks Involved
8. Appendices

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1. Executive Summary

African Furniture Limited (AFL) is a new South African company based in Mthatha,
Eastern Cape. The business designs and produces furniture that is inspired by African
culture and made from eco-friendly materials. African Furniture Limited aims to supply
high-quality, affordable furniture that reflects African identity while protecting the
environment.

The company will target homeowners, hotels, lodges, guesthouses, and interior
designers looking for stylish and sustainable furniture. AFL will sell its products through
showrooms and online platforms, making it easy for customers to access unique
designs.

African Furniture Limited’s competitive strengths include:

• African-inspired designs not available in regular furniture stores

• Use of recycled and natural materials to reduce environmental impact
• A strong brand that appeals to both local and international markets

The business will create jobs by hiring skilled workers and will partner with reliable
suppliers to ensure quality materials. AFL plans to grow across South Africa and
expand into international markets within five years.

African Furniture Limited is run by a team skilled in business management, design,

and sustainability. The company provides a variety of home, office, and hospitality
furniture made from reclaimed wood, bamboo, and recycled metal. In the R20 billion
South African furniture market, African Furniture Limited aims to earn R624,000 in
revenue in Year 1 and become profitable through customization, eco-friendly
branding, and high customer demand.

Financial projections indicate that African Furniture Limited can break even within 2
to 3 years and grow steadily through product expansion and strong customer demand.

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2. Business and Product/Service Description

1. Business

African Furniture Limited (AFL) is a proudly South African company located in Mthatha,
Eastern Cape. The company was started to create high-quality furniture that
showcases African culture while promoting sustainability. African Furniture Limited
combines traditional African design with modern production techniques to offer
furniture that is both stylish and environmentally friendly.

The company’s goal is to provide affordable, durable, and culturally inspired furniture
to customers across South Africa. Eventually, it plans to expand into international
markets. Our business also wants to support local communities by creating jobs and
collaborating with skilled artisans and suppliers from the area.

African Furniture Limited will operate from a production facility in Mthatha and sell its
products through physical showrooms and online platforms. This dual approach helps
the business to reach customers in both urban and rural areas.

Our business was founded to meet the demand for furniture that honors African
identity and promotes sustainability. The team at AFL believes furniture should tell a
story that reflects culture, craftsmanship, and a commitment to the environment.

2. Products or Services

Our business offers a wide range of furniture for homes, offices, and hospitality
businesses. The product categories include:

• Home Furniture: Beds, dining tables, chairs, wardrobes, coffee tables, and
shelving units

• Office Furniture: Desks, conference tables, ergonomic chairs, and storage

cabinets

• Hospitality Furniture: Custom pieces for hotels, lodges, and guesthouses,

including reception desks, lounge seating, and bedroom sets

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Our home collection includes hand-carved coffee tables with tribal motifs, bamboo-
frame lounge chairs, and wardrobes with woven panel accents. Office furniture
includes ergonomic chairs and minimalist desks with natural finishes. Hospitality pieces
feature reception counters, custom lodge beds, and outdoor seating made from
recycled materials.

All products showcase African patterns, textures, and themes. We use reclaimed
wood, bamboo, recycled metal, and natural fabrics. African Furniture Limited also
offers customization options, allowing customers to choose sizes, finishes, and design
elements that fit their space and style

Our furniture is made using eco-friendly production methods, including computer-

aided design (CAD) for precision and low-waste manufacturing processes. This
ensures high quality while reducing the environmental impact.

In addition to our main product lines, our business provides delivery, installation, and
design consultation services. Customers can also request restoration or upcycling of
old furniture, fitting with our business’s circular design philosophy.

3. The industry

African Furniture Limited operates in the South African furniture industry, which is
worth over R20 billion and continues to expand. This industry includes both large
manufacturers and small local producers. There is a rise in demand for:

• Locally made products that reflect African identity

• Environmentally friendly furniture
• Customizable designs for modern homes and businesses

Consumers are becoming more aware of environmental issues and are seeking
products that are made responsibly. At the same time, African design is gaining
popularity both locally and internationally, creating a strong market opportunity for
African Furniture Limited.

By focusing on cultural authenticity, customer choice, and sustainability, Africa

Furniture Limited can stand out in a competitive market and meet the needs of a
growing customer base.

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The South African furniture industry is growing at an annual rate of 5.17%. This
growth is driven by eco-conscious consumer behavior, urbanization, and the demand
for customizable products. African Furniture Limited is in a strong position to take
advantage of this growth and expand into regional and international markets

3. Marketing Plan

Product

African Furniture Limited offers a wide range of furniture for homes, offices, and
hospitality businesses. Our products include beds, tables, chairs, wardrobes, desks,
and custom pieces for hotels and lodges. Each item is designed with African patterns
and made from eco-friendly materials like reclaimed wood, bamboo, and recycled
metal. Customers can choose from ready-made collections or request custom designs
to suit their space and style.

Price

Our pricing strategy is based on value and affordability. We offer competitive prices
that reflect the quality, craftsmanship, and sustainability of our products. African
Furniture Limited will use a tiered pricing model to serve different income groups:

• Standard range for middle-income customers

• Premium range for high-end buyers and export clients
• Bulk discounts for hospitality and corporate orders
• Loyalty discounts for devoted and valuable clients.

Promotion

African Furniture Limited will promote its products through:

• Social media platforms such as Facebook, Instagram, TikTok showcasing

designs and customer stories. We will target individuals seeking distinctive
furnishings through engaging content that highlights AFL’s emphasis on
environmental sustainability and African culture.
• Local radio and print ads reach listeners in Mthatha and the surrounding areas
by airing music or talk shows that are appropriate for the target audience on
local radio stations. After then, print advertisements are distributed to readers

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 of Mthatha’s event programs, community publications, and local newspapers to
build brand awareness.
• Collaborations with interior designers and influencers collaborate with nearby
interior designers to incorporate our business furniture into their designs.
Additionally, collaborate with local or specialized influencers in fields like eco-
friendly living, home décor, or lifestyle to reach new audiences.
• Seasonal promotions and launch events provide special offers or discounts
during South African holidays such as Heritage Day, Christmas, or back-to-
school periods. And organize occasions to unveil fresh furniture lines or designs
that draw inspiration from African culture to attract walk-in and online
customers.
• Online advertising using Google Ads and SEO to drive traffic to our website.
Target search terms for furniture in Mthatha, eco-friendly furniture, or designs
with African influences.
• Branding Strategy is that African Furniture Limited brand will reflect African
pride, sustainability, and craftsmanship. From logo design to showroom layout,
every element will incorporate traditional patterns, earthy tones, and
storytelling that connect customers to their heritage and values.
• Customer Engagement is to build lasting relationships, African Furniture Limited
will host showroom events, offer free design consultations, and run online polls
to involve customers in product development. This approach fosters loyalty and
community around the brand.

Place

African Furniture Limited will sell furniture through:

• Physical showrooms allow clients to view and handle African Furniture Limited’s
environmentally friendly, African-inspired furnishings in Mthatha and other
major cities.
• Online store serves clients outside of physical locations using African Furniture
Limited’s website, which also allows for browsing and purchasing with
nationwide delivery options.

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 • Partnerships with hospitality suppliers and design firms. This multi-channel
approach ensures that both urban and rural customers can access our
business's products. It helps hotels, resorts, and restaurants source our
business furniture while collaborating with designers to create unique or
featured pieces.

Competitive Advantage

African Furniture Limited stands out in the market because of:

• Unique African-inspired designs that reflect cultural identity

• Eco-friendly production methods using recycled and renewable
• Options that let customers personalize their furniture
• A strong brand identity that connects with both local and international buyers

Customers and Market Size

African Furniture Limited targets a diverse customer base, including:

• Middle- and high-income homeowners seeking quality, eco-friendly furniture.

• Hospitality businesses such as hotels, lodges, and guesthouses that need bulk
orders.
• Interior designers and decorators looking for customizable furniture for clients.
• Export buyers wanting authentic African-inspired products.

The South African furniture market was valued at USD 2.47 billion is about R46 billion
in 2024, and it is expected to grow to USD 3.65 billion is about R68 billion by 2032,
with a 5.17% annual growth rate. AFL aims to sell 500 units in its first year, with 60%
of sales expected from hospitality clients and 40% from individual buyers.

Competition

African Furniture Limited (AFL) operates in a competitive environment with large

national retailers and smaller local producers. Major furniture retailers like @Home
and Coricraft dominate the mass-market segment. Their strengths include broad
reach, strong brand recognition, and established distribution networks. However,
these retailers mainly sell mass-produced furniture that often lacks cultural identity
and heavily depends on imported materials.

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In contrast, African Furniture Limited provides authentic African-inspired designs and
eco-friendly production methods, which set it apart from these mainstream
competitors.

Smaller local workshops also compete in the industry by providing customized

furniture solutions. Their strength lies in personalization, but they often face
challenges with growth, branding, and consistent quality. African Furniture Limited fills
this gap by merging customization with eco-friendly innovation and professional
branding while operating on a larger scale and maintaining a strong cultural identity.

This strategy helps African Furniture Limited connect with a growing consumer base
that values furniture not just for its functionality but also for its cultural significance
and environmental responsibility. These qualities are increasingly important in today’s
market, giving our business an advantage that large retailers and small workshops
find hard to match.

Market Evaluation

The South African furniture sector offers strong opportunities due to rising
urbanization, sustainability trends, and increasing demand for customized designs.
African Furniture Limited is ready to take advantage of this market by providing
products that combine cultural authenticity with eco-friendly innovation.

Positioning Statement:

“African Furniture Limited will establish itself as South Africa’s top provider of African-
inspired, eco-friendly, and customizable furniture. It will blend tradition with
sustainability to serve local and global markets.”

4. Operations Plan

Facilities

African Furniture Limited (AFL) will operate from a production facility in Mthatha,
Eastern Cape. We chose this site because it has access to skilled labor, affordable rent,
and is close to suppliers and transport routes. The facility will be divided into four
functional areas:

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 • A manufacturing workshop for furniture production
• A storage area for raw materials such as wood, bamboo, recycled metals and
for finished goods
• A CAD-equipped design studio for planning and prototyping
• A small showroom to attract walk-in customers and support local marketing
• Administrative offices for management and staff operations.

This setup allows our business to manage design, production, storage, and customer
engagement all in one efficient location. As demand grows, our business plans to
expand its operations to other urban centers such as East London and Port Elizabeth
within three years.

Manufacturing

African Furniture Limited will follow a semi-automated production model, that

combines machine efficiency and skilled craftsmanship. The process includes:

• Design and planning custom and standard furniture designs are finalized using
CAD software
• Material preparation such as cutting, shaping and sanding
• Assembly of furniture components
• Finishing stages such as painting, varnishing, upholstery
• Quality control checks before packaging and delivery

Equipment and Capability

To support efficient production, our business will invest in:

• Carpentry machines such as table saws, routers, planers, and sanders

• Metalworking tools like welding machines and grinders
• Upholstery tools such as sewing machines, foam cutters, and staple guns
• CAD software and computers for design and layout
• Delivery vehicles for local distribution.
• IT infrastructure for online sales management and customer service

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Initial production capacity will be 50 to 60 units per month, covering beds, chairs,
tables, and wardrobes. Within the first two years, our business plans to increase this
to over 100 units per month to meet growing demand. A team of 10 to 15 staff
members, including artisans, designers, and logistics personnel, will manage
operations. They will be supported by a digital inventory and workflow system.

Steps and Time Taken to Bring the Business Up to Full Speed

African Furniture Limited will follow a phased rollout to achieve full operational
capacity:

• Months 1-2: Secure premises, set up the production workshop, install

machinery and tools, and hire the main team of artisans, designers, and
administrative staff.
• Months 3-4: Start trial production of sample furniture lines, check quality, refine
production processes, and launch initial marketing campaigns.
• Months 5-6: Officially launch the showroom and online store, increase
production to meet early customer demand of 30-40 units per month.
• Months 7-12: Expand output to full start-up capacity of 50-60 units per month,
partner with hotels and lodges for bulk orders, and strengthen supplier and
logistics networks.
• Year 2 onwards: Achieve full-scale capacity of 100 additional units per month,
open more showrooms in major Eastern Cape towns, and expand into national
and export markets.
5. Management Plan / The Team

Management Team

African Furniture Limited (AFL) will be led by a skilled and passionate team with
experience in business management, design, production, and sustainability. The team
is committed to building a strong brand, delivering high-quality products, and creating
positive impact in local communities.

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Directors and Key Roles

1. Managing Director – Mr. L. T. Matli

• Responsible for overall business strategy, leadership, and operations
• Holds a background in entrepreneurship, financial reporting, and strategic
planning
• Leads group assignments and integrates marking rubrics into academic and
business work
• Strong interest in African heritage and sustainable development

2. Operations Director – Mr. S. Manana

• Oversees production, inventory control, and supplier relationships

• Experienced in managing workshops and coordinating artisan teams
• Ensures quality control and timely delivery of products

3. Creative Director – Miss L. U. Mthombeni

• Leads product design and development using CAD tools

• Specialises in African-inspired design and custom furniture concepts
• Works closely with interior designers and hospitality clients

4. Finance and Compliance Officer – Miss R. B. Mpiyane

• Manage budgeting, financial forecasting, and funding applications

• Ensures compliance with tax, labour, and environmental regulations
• Prepare financial reports and risk assessments

Consultants and Advisers

1. Business Development Consultant – Miss A. Msutwana

• Advice on market expansion, partnerships, and export opportunities

• Has experience in growing small businesses across Southern Africa

2. Sustainability Adviser – Mr. T. Thungo

• Guides the team on eco-friendly materials and production methods

• Helps align AFL’s practices with global sustainability standards

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3. Legal Adviser – Mr. I. Soga

• Provides legal support for contracts, intellectual property, and company

registration
• Ensures AFL meets all regulatory requirements

Key Professionals

• Artisan Team: Skilled carpenters, upholsters, and metalworkers trained in both

traditional and modern techniques
• IT Specialist: Manages the online store, digital marketing, and customer
support systems
• Sales and Marketing Coordinator: Handles promotions, customer engagement,
and showroom management
6. Sustainability Plan

African Furniture Limited (AFL) is committed to building a business that delivers value
to customers while promoting long-term sustainability for the community and the
environment. Our sustainability strategy focuses on three key areas: social, economic,
and environmental impact.

Environmental Sustainability

African Furniture Limited is dedicated to protecting the environment by using eco-

friendly materials and green production methods. We will use:

• Reclaimed wood, bamboo, and recycled metal to help reduce deforestation and
landfill waste
• Water-based paints and non-toxic finishes to avoid harmful chemicals
• Energy-efficient machines and low-waste manufacturing processes
• By choosing sustainable materials and minimizing pollution, African furniture
Limited helps lower its carbon footprint and supports a cleaner environment.

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Nature of Opportunities for Green Impact

African Furniture Limited will create positive environmental change by:

• Encouraging customers to buy long-lasting furniture instead of cheap,

disposable items
• Giving consumers what they want since more people prefer environmentally
responsible products. Our business’s eco-friendly approach gives us a
competitive edge
• Partnering with suppliers who practice ethical and sustainable methods
• Educating customers about the benefits of eco-friendly furniture through
marketing and community workshops
• Recycling materials and promoting longer product lifecycles to help reduce
South Africa’s waste problem.

Social Sustainability

African Furniture Limited will support local communities by:

• Hiring and training skilled artisans from the Eastern Cape

• Creating jobs in manufacturing, sales, design, and delivery
• Offering fair wages and safe working conditions
• Supporting skills development and career growth for young people and
unemployed workers
• Creating Employment Opportunities as our business will generate jobs for
artisans, designers, delivery staff, and office personnel, with a special focus on
hiring youth and women to address unemployment in Mthatha and surrounding
areas.
• Supporting Skills Development as Training programs will be set up to teach
local carpenters and apprentices sustainable furniture-making techniques.
• Empowering Communities as our business will work with schools and NGOs to
host workshops on eco-friendly design and entrepreneurship, helping to
empower future entrepreneurs.
• Promoting Customer Well-being by providing safe, non-toxic furniture, our
business ensures customers enjoy healthier living and working environments.

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Economic Sustainability

African Furniture Limited’s business model is built for long-term success. We will:

• Use locally sourced materials to lower costs and support South African
suppliers.
• Offer customizable products to meet various customer needs and boost sales.
• Build a strong brand that can expand into regional and international markets.
• Focus on quality and durability, which leads to customer loyalty and repeat
business.
• By balancing profit with purpose, our business aims to grow steadily while
making a positive impact.

Potential Environmental Impact

Without sustainable practices, furniture production can cause:

• Deforestation and loss of biodiversity.

• Air and water pollution from toxic chemicals.
• High energy use and carbon emissions.

African Furniture Limited’s green approach helps prevent these issues and sets an
example for other businesses in the industry.

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7. Financial Plan and Critical Risks

African Furniture Limited (AFL) is built on a strong financial base and a commitment
to social responsibility. This section details the start-up capital needs, expected
financial results, asset investments, and major risks related to starting and growing
the business.

Start-Up Capital

To launch AFL, we estimate a total start-up capital requirement of R850,000, which

will cover:

• Facility setup and renovations: R200,000

• Machinery and equipment: R300,000

• Initial raw materials: R100,000

• Marketing and branding: R50,000

• Website and e-commerce setup: R30,000

• Legal, registration, and compliance: R20,000

• Working capital (salaries, utilities, transport): R150,000

Funding will come from a mix of personal investment, business loans, and potential
partnerships with local development agencies.

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Projected Statement of Comprehensive Income of African Furniture Limited

Sales R624000

Cost of sales (R218400)

Gross profit R405600

Operating expenses R388000

Salaries (10 partnersxR2000pm) R240000

Rent R60000

Utilities R18000

Marketing / advertising R42000

Depreciation R16000

Insurance and license R12000

Profit before tax R17000

Interest expense (no loan in year 1) 0

Company tax (27%) (R4752)

Net profit for the year R12848

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Projected Balance Sheet of African Furniture Limited

R
ASSETS
Non-current assets 450,000
Machinery & Equipment 350,000
Furniture & Fixtures 100,000
Current assets 370,000
Inventories 140,000
Accounts receivable 100,000
Bank 130,000

Total assets 820,000

EQUITY AND LIABILITIES

Equity 550,000
Share capital 350,000
Retained earnings 200,000

Non-current liabilities 0
Long-term borrowings 0

Current liabilities 170,000

Accounts payable 120,000
Short-Term Loan 150,000

TOTAL LIABILITIES & EQUITY 820,000

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Projected Capital Equipment

African Furniture Limited will invest in essential tools and technology to support
efficient production and delivery:

• Woodworking and metalworking machines

• Upholstery tools and spray booths
• CAD software and design systems
• Furniture fixtures and showroom setup
• Delivery vehicle for regional distribution

Total Capital Equipment Investment: R150,000

These assets will be efficient production and delivery while maintaining high product
quality.

Critical Risks Involved in Business

1. Supply Chain Disruptions

• Risk: Delays in receiving raw materials from suppliers
• Mitigation: Build relationships with multiple suppliers and keep buffer stock
2. Market Competition
• Risk: Larger retailers offer cheaper mass-produced furniture
• Mitigation: Focus on unique designs, customization, and eco-friendly branding
3. Economic Downturn
• Risk: Reduced consumer spending during tough economic periods
• Mitigation: Offer flexible pricing, promotions, and diversify product range
4. Skilled Labour Shortage
• Risk: Difficulty finding trained artisans
• Mitigation: Invest in training programs and partner with local technical colleges
5. Technology and E-commerce Challenges
• Risk: Website downtime or poor user experience
• Mitigation: Hire a dedicated IT specialist and use reliable platforms

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8. Appendices

Group meetings attendance register:

Group member Student Day 1 Day 2 Day 3 Day 4 Day 5

number
1. Mpiyane, RB 240771435 Present Absent Absent Absent Absent
2. Msutwana, A 240774892 Present Present Present Present Present
3. Ngabom, N 240810600 Present Present Present Absent Absent
4. Mthombeni, 240816218 Present Present Present Absent Absent
LU
5. Mdese, L 240819829 Present Present Present Present Present
6. Thungo, TS 240861329 Present Absent Absent Absent Present
7. Soga, I 240863305 Present Absent Absent Absent Absent
8. Matli, LT 240865790 Present Present Present Present Present
9. Manana, S 240875168 Present Present Absent Present Absent
10. Mbidlana, L 240824296 Absent Absent Absent Absent Absent

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 African Furniture Limited
Crafting Elegance, Preserving Heritage

About Us
African Furniture Limited celebrates Africa’s rich cultural identity by merging traditional
craftsmanship with modern design. Each piece tells a story of heritage, created with love by local
artisans using sustainable materials.

✔ Authenticity ✔ Sustainability
✔ Community
✔ Innovation
Empowerment

Our Collections
Living Room
• Sofas & chairs with vibrant African fabrics
• Handcrafted coffee & side tables
• Decorative stools & woven baskets
Bedroom
• Carved wooden bed frames
• Stylish nightstands
• Storage units with African motifs
Dining & Outdoor
• Solid wood dining tables
• Rattan & wooden chairs
• Durable outdoor sets
Décor & Accessories
• Handwoven lampshades
• Tribal stools & baskets
• Wooden wall panels & doors

Why Choose Us?

✔ 100% Authentic African craftsmanship
✔ Durable, eco-friendly materials
✔ Custom designs for unique spaces
✔ Furniture that tells a cultural story
✔ Empowering African artisans

Contact Us
■ Phone: 071 980 2711

■ Email: africanfurniture@[Link]

■ Website: [Link]
Follow us: Instagram | Facebook | Twitter | Pinterest

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