Savanna Beef Processors Ltd plans to turn to institutional investors to raise a N$26.4 million shortfall from its capital raising effort, which was targeting N$200 million and an additional N$300 million in debt required to establish a new export beef-processing facility in the country.
“After having assured the financial support from producers, the next task is to secure the remaining N$26,432 million in equity from institutional investors and to raise the debt portion needed for the project, totalling N$300 million,” the Savanna Beef Processors Ltd Chairperson, Mecki Schneider, said.
He said the company, which is spearheading the establishment of the facility on behalf of the Beef Value Chain Forum (BVCF), is finalising the abattoir design and proposed location.
“A huge task still lies ahead to bring the project to fruition. Be assured that the Savanna Beef Processors Board and the Beef Value Chain task team are paying attention to many details with the appreciated support of many advisors and experts in project management. Further progress has been made with finalising the site and engaging with local and international experts in abattoir design and construction,” he said.
According to Romé Mostert of Cirrus Capital, the group’s corporate advisor, “through the private placement and the slaughtering rights linked to the shares, Savanna Beef Processors managed to secure a significant milestone of committed throughput of 43 392 animals.”
“The overwhelming producer support saw Savanna raising more than 80% of its equity need from producers, surpassing our greatest expectations. The N$173.568 million raised has turned an idea into a reality, ever-increasing the prospects of Savanna.”
BVCF says it initiated the Savanna Beef Processors, which now represents over 659 producer shareholders, to create a sustainable cattle slaughter and marketing industry to ensure a prosperous future for the Namibian beef industry through profitable beef exports.
Savanna anticipates the new facility to have the capacity to retain an additional 50 000 weaners for slaughter cattle production through a positive weaner-to-slaughter cattle price ratio.
Besides the traditional market of the European Union, Sweden and Norway, Namibia now exports beef to the United States and China.
