By: Nghiinomenwa Erastus
In their quest to establish a new beef export processing facility in Namibia, Savanna Beef Processors have raised N$146 million from 549 producers in its First Round of Funding.
One of the initiators and spokesperson of the group, Mecki Schneider, updated in a statement last week.
He indicated that the money raised so far is more than 70% of its equity target from beef producers. The planned Processor is currently developing a strategy to fund the remaining share capital.
Once the planned Savanna Beef Processor gets off the ground and starts producing beef for export, the country will have five active export abattoirs: Meatco, Beefcor, Hartlief, Zamco and then the new planned Savanna Beef.
It is also NNMP from the southern side of the country. However, if one uses Meatboard monthly statistics, the abattoirs haven’t been slaughtered.
According to Schneider, the Beef Value Chain Forum initiated the Savanna Beef Processors’ aim to create a sustainable cattle slaughter and marketing industry to ensure a prosperous future for the Namibian beef industry through profitable beef exports.
He said an industry-led pre-feasibility study on the Namibian Beef Value Chain, which was concluded in early 2020, highlighted the shortcomings and assessed the profitability of beef exports.
The Beef Value Chain Forum (BVCF) then addressed all outstanding issues, followed by a complete feasibility study and a bankable business plan.
The business plan was then approved by the BVCF members and led to the registration of the Savanna Beef Processors Ltd company and kick-started the capital-raising process.
The first round of funding for the new export abattoir lasted from the 24th of April to the 24th of June 2022.
Cirrus Capital, the corporate/transaction advisors, travelled throughout the country with members of the BVCF task team to present the project’s investment strategy and business plan to Namibia’s beef producers.
According to Schneider, the project, which is a producer-driven initiative, has garnered support from the Namibian beef farming community, with the capital-raising process gaining significant momentum in the last few weeks of this first round of funding.
The first round ended with 549 applications and N$146.008 million in equity raised by livestock producers.
The subscription rate for the offer was 73%, “which we considered a massive success given the initially targeted raising of N$100 million from Namibian beef producers,” said Schneider.
He said the the next steps are to raise the remaining funds needed to hit the project’s equity target of N$200 million.
Schneider indicated that the Savanna Beef Processors board is developing a strategy to raise the remaining N$54 million, possibly through another round of funding in the second half of 2022.
“With the Private Placement for Savanna Beef Processors Ltd, we embarked on a unique challenge to capitalise on a newly incorporated public company and inviting only beef producers to participate..” Romé Mostert from Cirrus Capital commented.
As chairperson of Savanna Beef Processors Ltd and on behalf of the BVCF task team, Schneider thanked all producers who had the confidence to invest in the new beef processing facility.
“This clearly shows a need and desire to improve the profitability of cattle farming,” he wrote.
According to Schneider, with this producer-driven initiative, “we should take control over our product for the benefit of the producer”.
This initiative will enhance the ‘growth at home’ concept with additional foreign currency earnings, further job creation, and reverse the declining rural Namibian economy, said Schneider. Email: firstname.lastname@example.org