Savanna Beef Processors says it has now raised N$186.736 million to be utilised towards the establishment of a new export beef-processing facility in the country.
The company’s third private placement is still open, with N$13.264 million required to reach the targeted N$200 million.
According to latest figures, which were presented at the company’s recently held annual general meeting, Savanna Beef has so far raised N$13.168 million from its third capital raise which closes on the 7th of September.
During the meeting, the company shareholders also gave the go-ahead to the company’s board to start with the construction of the proposed abattoir and processing facility, subject to the conclusion of the funding and finance agreements.
“The main resolution approved was to give consent to release the shareholder equity (presently N$186.736 million) and place it under the direct discretion of the board of SBPL thereby effectively giving the go-ahead to construct the proposed abattoir and processing facility. We trust that within the next weeks, the detailed design can be finalised and now that shareholders have given their consent to start with the construction phase, all funding aspects and financial due diligence processes with financial institutions can be concluded,” Savanna Beef Chairperson, Mecki Schneider said.
He said the development will stabilise the country’s beef value chain while allowing the local retention of an additional 50 000 weaners.
“This is a major turning point and a culmination of all the effort and activities that have taken place to make the construction of a new state-of-the-art facility, owned by producers, a reality! This will furthermore support the stabilisation of the beef value chain with products destined for the international beef export markets with the clear focus to retain an additional 50,000 weaners to be raised locally as slaughter cattle, instead of being exported live on the hoof to South African feedlots,” Schneider said.
The latest development comes after Savanna Beef Processors requested proposals for the Engineering, Procurement and Construction of the Plant in December 2022, for the project, being initiated by the Beef Value Chain Forum (BVCF).
The construction of the facility is expected to create additional market pressure for the Meat Corporation of Namibia (Meatco), which said it had rejected a proposal by Savanna Beef Processors to use its abattoirs for slaughtering and processing of beef for export to international markets.
Besides the traditional market of the European Union, Sweden and Norway, Namibia now exports beef to the United States and China.
