Established in 2010 – expanded to +8,000ha of freehold land under management across 3 farms producing vegetables and lucerne / grazing land enabling all year round production
Exceptional revenue growth over the past years:
Annual turnover of $24.5m (BWP 270m)
2019 Revenue of $4.25m (BWP47m)
2019 EBITDA of $994k (BWP11m)
Asset base of $21m (+BWP232m)
Main crops are potatoes, butternut, tomatoes, green peppers, beetroot and carrots, other crops include onions and maize for crop rotational purposes
Now occupying an estimated +40% market share of local supply chain of potatoes and carrots
Currently employing +300 people fulltime and 150 seasonal workers
Main customers are local retail chain stores who buy in bulk and vendors who pay by cash. Main retail customers include Spar, Choppies, MrVeg, Shoprite, Woolworths, Veggieland, Saverite
All produce is sold in branded packaging material
Irrigation water supply is being sourced from the Limpopo River and Shashe River
Use of Funds:
Settle long term loans with local commercial banks - this will release bond secured on assets by these institutions
Acquisition of moveable and non-moveable assets
Working capital for farms under production
Location: Sherwood, Tuli Block, Botswana (close to SA border)
Funding Required: $14 million for its Phase 2 Expansion capital needs
Preferred instrument: Pure debt finance, bullet repayment with a refinancing option.
Collateral offered to the guarantor: Freehold Zoned Farmland with a market value of $16.3m (+BWP 180 million)
Note: US$3 million investment from local DFI now confirmed