Chamwe Kaira
Savanna Beef Processors, which is in the process of setting up a meat processing plant in the country plans to achieve 100% producers shareholding of the N$200 million issued share capital.
“Hence, we are offering producers an additional share capital of N$ 26,5 million shares. The procedures will be announced shortly. This will also strengthen our position with banks and other investors,” the
company said.
With the present N$173,5 million issued share capital from producers, the company is in the process to open the transaction of shares again for shareholders and producers in the near future to hopefully achieve 100% producers shareholding of the N$200 million issued share capital.
Savanna said Beef Value Chain Forum task team has again been very active over the last weeks, often with daily meetings or consultations on various topics.
“We do however pay a lot of attention to detail to ensure that shareholders investment will be optimally applied. Nevertheless, important milestones have been reached and these we would like to share with you,” the company said.
Savanna has concluded a purchase agreement of the 25 hectares’ site on the farm Teufelsschlucht subject to a number of conditions and approval for subdivision of land.
“The services of water and power have been ensured. The Environmental Impact Assessment has been approved by the Ministry of Environment and Tourism and the environmental clearance certificate has been issued.”
Savanna said three selected international abattoir designers were submitted on 21 April 2023 under the silver book engineering approach; they in turn lined up with local companies in the various fields of expertise.
“Two of the three bidders were shortlisted and requested to adapt their design proposal to a specified
capital layout. We are evaluating each proposal (with validity until 21 July) in detail to get the best
design and still to optimize the cost. This unfortunately takes time, but we are sure that this is time well spent. Phasing in the development of the new facility is seriously being contemplated in order to get operational as soon as possible within the available share capital presently at our disposal and that it fits within the updated business plan parameters,” the company said.
On the financial side, the business plan of 2021 was updated with financial models and with new insights in marketing and the capital cost from the tender process.
Savanna said Namibian beef has much to offer for the modern consumer and that the company will apply all branding techniques to make it a sought-after product.
“The marketing team has engaged and entertained big international steak-house chains within Namibia as well as focussed on other niche markets,” the company said.
Savanna engaged with executive members of Meatco since February to find common ground on a beef marketing initiative, whereby Savanna would directly pay farmers and in return received certain predetermined cuts for international marketing.
“The main intention is to stabilize the slaughter market under the present financial circumstances in the beef export industry. It will of course also give Savanna an opportunity to get into the markets earlier.”
Savanna said marketing team has already ensured that a first 22-ton container with specified cuts could leave to the EU as soon as possible.”
Savanna has engaged the Minister of Finance, Meatco and the Development Bank of Namibia, to present its case and to discuss a N$30 million guarantee.
