UK-based company, Big K Products has acquired a majority stake in Namibian charcoal producer Carbo Namibia, a move set to boost production capacity and generate economic benefits for local producers.
The investment is expected to inject N$100 million into the local economy within a 150km radius of Grootfontein, while also creating employment opportunities.
Over the next three years, Carbo Namibia aims to increase its workforce by 100 employees, including a dedicated team for its briquette plant. Workers will undergo extensive training to meet European standards and regulations.
The expansion includes a N$10 million enhancement of the dust extraction system, upgrades to the briquette and packaging plants, and an expansion of the sieving capability.
The investment will enable Carbo Namibia’s Grootfontein-based plant to align with European production standards and double its annual export capacity to approximately 20,000 tonnes of charcoal.
Carbo Namibia’s founder and Managing Director, Hans Steyn, underscored the significance of financial stability and proper infrastructure in the charcoal industry, which is susceptible to external factors.
“Charcoal production is highly influenced by weather conditions and market demand, making financial stability and proper infrastructure essential for maintaining a stable cash flow, whilst adhering to stringent European standards,” Steyn said.
Negotiations for the share acquisition began in December 2023, marking a new phase of growth for Carbo Namibia. Steyn assured producers that full production would resume on 4 May, following temporary factory upgrades.
Moving forward, Forest Stewardship Council (FSC) certification will be a mandatory requirement for all charcoal producers. Carbo Namibia has experts available to assist producers in obtaining certification to meet international market demands.
Additionally, the company will enforce strict adherence to the European Union Deforestation Regulation (EUDR), which aims to combat deforestation linked to products consumed within the EU market.
Steyn also highlighted the increasing demand for restaurant-grade charcoal, which commands a premium price compared to regular charcoal.
“Our goal is to encourage farmers to produce higher-quality charcoal, which has a growing international market,” he stated.
Big K’s team, which frequently visits Namibia, is set to return in May 2025 to assess engineering improvements on-site.
