Savanna Beef Processors, a grouping of Namibian beef producers, has raised an additional N$12,3 million from 39 producers on the opening day of its 2nd capital raise which opened on Friday.
Only N$54 million shares will be on offer on a first come basis as the company seeks to raise the targeted N$200 million required for the establishment of a new export beef processing facility in the country.
“We are out of the blocks with an excellent start on the first day with an additional N$12,258 million from 39 producers. This brings us to a total of N$158,3 mill. We have thus passed the strategic mark of 75% of producer-owned shares,” Beef Value Chain Forum (BVCF) chairman, Mecki Schneider said on Saturday.
In the first round of its capital raise which closed in June, the grouping raised N$146 million from 549 producers.
Cirrus Capital is the corporate advisor to Savanna and is facilitating the second capital raise.
This comes at a time when Namibia has started exporting beef from the Northern Communal Areas (NCA) to Ghana and Angola, with the European Union (EU) funding the construction of N$35 million meat processing plant at Katima Mulilo, a development which could create an opportunity to export beef to the European market.
The NCA, which comprises of Zambezi, Kavango East, Kavango West, Oshikoto, Ohangwena, Omusati, Oshana and Kunene regions, is a livestock-rich part of Namibia with approximately 1.6 million cattle representing 64% of the national cattle herd estimated to be at 2.5 million.
Besides the traditional market of the European Union, Sweden and Norway, Namibia now exports beef to the United States of America and China.
