Savanna Beef Processors raise N$146 million

Creating a sustainable cattle marketing industry
To date the project has garnered widespread and unprecedented support from the Namibian beef farming community
    - 2022-07-05 00:00:00
The project, which seeks to invest in a new beef export processing facility in Namibia, raised more than 70% of its equity target from beef producers and is currently developing a strategy to fund the remaining share capital.
The Beef Value Chain Forum, the initiators of this project, aim to create a sustainable cattle slaughter and marketing industry to ensure a prosperous future for the Namibian beef industry through profitable beef exports.
An industry-led pre-feasibility study on the Namibian Beef Value Chain, which was concluded in early 2020, highlighted the short-comings and assessed the profitability of beef exports. The Beef Value Chain Forum (BVCF) then addressed all outstanding issues; this was then followed-up by a full feasibility study and a bankable business plan, which was approved by the BVCF members and led to the registration of the Savanna Beef Processors Ltd company and kick started the capital raising process.
The first round of funding for the new export abattoir lasted from the 24th of April to the 24th of June 2022, during which, Cirrus Capital, the corporate/transaction advisors, travelled throughout the country with members of the BVCF task team to present the project’s investment strategy and business plan to Namibia’s beef producers.
To date the project, which is a producer driven initiative, has garnered widespread and unprecedented support from the Namibian beef farming community, with the capital raising process gaining great momentum in the last few weeks of this first round of funding, ending with 549 applications and N$146.008 million in equity raised by livestock producers. Subscription rate for the offer was 73.0%, which we considered a massive success given the initial targeted raising of N$100 million from Namibian beef producers
Target
The next steps are to raise the remaining funds needed to hit the project’s equity target of N$200 million. Currently the Savanna Beef Processors Board is developing a strategy to raise the remaining N$54 million, possibly through another round of funding in the second half of 2022.
“With the Private Placement for Savanna Beef Processors Ltd, we embarked on a unique challenge to capitalise a newly incorporated public company and inviting only beef producers to participate. The Cirrus Capital team was astonished by the enthusiasm from the Namibian farming community and the excitement to be involved in the new project. It was truly an honour to be involved in this process with the BVCF and Savanna.” Romé Mostert from Cirrus Capital commented.
“As chairperson of Savanna Beef Processors Ltd and on behalf of the BVCF task team I would like to thank all producers who had the confidence to invest in this new beef processing facility. This clearly shows that there is a need and desire to improve the profitability of cattle farming. Most of us were overwhelmed by the support that far exceeded our initial target of N$ 100 million. With this producer driven initiative we should take control over our product for the benefit of the producer.”
This initiative will furthermore enhance the “growth at home” concept, with additional foreign currency earnings, further job creation and initiate to reverse the declining rural Namibian economy.