PROJECT DESCRIPTION
Project Ownership
The Project is owned by the Malbro Investment group (MIG) a duly registered Malawian Company.
Business Model
The business model entails sourcing maize from small to medium scale farmers. Enhancing their capabilities by providing inputs and technology to boost their output and enhance their productivity.
Objective of the project
The Malbro Group is interested in improving the health, social economic status, gender balance and wellbeing of the ordinary farmer and his family.
Sector of Operation
The sector of operation is Agriculture and manufacturing (agricultural products processing).
Business Activity
Processing maize into starch, animal feed, corn oil, sweeteners, ethanol and other products
Competitive Advantage/gap analysis
The Plant will be the first of its nature on the African continent. As a continent Africa is a net importer of starch and starch products. Importation of Starch and starch derivatives represents a large foreign exchange for the Continent and Malawi as a country.
The production and operational technology, system and methods are based on the traditional USDA – ARS approved and researched corn wet milling process (NAICS:31221 Industry specified production methods) which Malbro Corn – Tech have developed to design and assemble an ultra-modern, efficient, low carbon foot print industrial deep corn processor. The plant is in the final design stages by Zhengzhou Jinghua Industry Co., Ltd of China.
The plant design and aspects are cutting edge in terms of utilities consumption and output.
LOCATION
Actual location of project
The proposed location of the Project is Mchinji, Malawi.
Prominent business activity surrounding your place of operation
The proposed project location is a predominantly agricultural production area. The principal activity is small scale farming.
BENEFITS OF THE PROJECT/ALIGNMENT OF PROJECT TO GOVT GOALS
Contribution to achieving national, regional or global economic, social, environmental and developmental goals
The project will create value in employment directly and indirectly. The project will create a total of 300 new jobs directly related to every day management and operational activities of the plant and projected over a million jobs indirectly
Export orientation/forex generation
As outlined above, Africa and Malawi in specifics is a net importer of starch and starch derivatives. The Project not only presents forgone imports (FOREX) but also presents a very large forex income earning potential. The earnings over the first 8 years of the Project are just over US$3.6 Billion.
Import substitution
Malawi imports nearly all of its starch and starch derivative products (apart from ethanol which is locally produced). The project presents the potential for Malawi to produce all of its local demand for starch and starch derivative products, as well as bolster the production of ethanol for energy, food and domestic use.
Value addition
Malawi as a country loses out on the value addition aspect of maize. Maize is used internally for food purposes (with a small quantity exported). Annual maize yields for the last 10 years have averaged 3 – 4 Million tons, 30% of which is lost to the maize going bad due to inadequate storage technology. The Project has the potential of driving production quantities up by as much as 2 – 3 Million tons (over and above current production quantities) as well as adding 70 – 80% value on a unit quantity of produced maize.
FINANCIAL REQUIREMENTS
Capital Expenditure Requirement
It has been assumed that a US$ 130,000,000 debt participation finance structure deal can be entered into, with a 30% maximum allowable equity participation. The financial Model has assumed full recovery of CAPEX (interest + principal) by equity Financing Partner, including a 6% return on investment a 1% all risk insurance form a recognized entity, such the African Trade Industry (ATI).
Working Capital Requirement
The Corn starch production is working capital heavy. The working capital requirement is US$46 Million for the first month.
Proposed Financing Structure
The proposed finance structure is 100% debt.
PROPOSED INVESTMENTMODEL (ACTIONS REQUIRED/ IMPLEMENTATION ARRANGEMENTS/ CONTRACT TYPE)
The Project Developer intends to enter into a debt finance agreement with a Financier. The desired implementation model is one where the Project Developer/Promoter engages a Financier to provide a debt facility, an EPC Contractor is engaged for Project implementation and construction, and a professional management team is engaged for post construction activities (commercial operation of the plant).
PROJECT FEASIBILITY
Technical Feasibility
The technical Feasibility documents have been completed by the Project Developer/Promoter.
Feasibility Study
The Project Feasibility study was undertaken and completed by the Project Developer/Promoter. A market study was done.
Environmental Impact Assessment
The Project EIA has not been completed yet. However, the Project Developer completed the Project Environmental Brief which was duly submitted to the Department of Environmental Affairs. The EIA Process is underway and it is expected that the same will be completed by Q4 of 2021.
Technical Designs,
Technical, Engineering and Architectural designs have been completed.
Licenses
The Project is yet to obtain relevant permits and licenses; EIA, Building Permit and Operational Permits.
Financial Feasibility
The Project has an unlevered IRR of 25% and a Levered IRR of 15%, NPV of approximately US$2.4 Billion and payback period of 8 years.
CONTACTS
Noel Maluza: +265 999 916 106, Anthony Tasosa: +265 999 92 13 24, Alexander Maluza: +265 994 424 786. Email: noel. This email address is being protected from spambots. You need JavaScript enabled to view it. | This email address is being protected from spambots. You need JavaScript enabled to view it. | This email address is being protected from spambots. You need JavaScript enabled to view it.
Project Ownership
The Project is owned by the Malbro Investment group (MIG) a duly registered Malawian Company.
Business Model
The business model entails sourcing maize from small to medium scale farmers. Enhancing their capabilities by providing inputs and technology to boost their output and enhance their productivity.
Objective of the project
The Malbro Group is interested in improving the health, social economic status, gender balance and wellbeing of the ordinary farmer and his family.
Sector of Operation
The sector of operation is Agriculture and manufacturing (agricultural products processing).
Business Activity
Processing maize into starch, animal feed, corn oil, sweeteners, ethanol and other products
Competitive Advantage/gap analysis
The Plant will be the first of its nature on the African continent. As a continent Africa is a net importer of starch and starch products. Importation of Starch and starch derivatives represents a large foreign exchange for the Continent and Malawi as a country.
The production and operational technology, system and methods are based on the traditional USDA – ARS approved and researched corn wet milling process (NAICS:31221 Industry specified production methods) which Malbro Corn – Tech have developed to design and assemble an ultra-modern, efficient, low carbon foot print industrial deep corn processor. The plant is in the final design stages by Zhengzhou Jinghua Industry Co., Ltd of China.
The plant design and aspects are cutting edge in terms of utilities consumption and output.
LOCATION
Actual location of project
The proposed location of the Project is Mchinji, Malawi.
Prominent business activity surrounding your place of operation
The proposed project location is a predominantly agricultural production area. The principal activity is small scale farming.
BENEFITS OF THE PROJECT/ALIGNMENT OF PROJECT TO GOVT GOALS
Contribution to achieving national, regional or global economic, social, environmental and developmental goals
The project will create value in employment directly and indirectly. The project will create a total of 300 new jobs directly related to every day management and operational activities of the plant and projected over a million jobs indirectly
Export orientation/forex generation
As outlined above, Africa and Malawi in specifics is a net importer of starch and starch derivatives. The Project not only presents forgone imports (FOREX) but also presents a very large forex income earning potential. The earnings over the first 8 years of the Project are just over US$3.6 Billion.
Import substitution
Malawi imports nearly all of its starch and starch derivative products (apart from ethanol which is locally produced). The project presents the potential for Malawi to produce all of its local demand for starch and starch derivative products, as well as bolster the production of ethanol for energy, food and domestic use.
Value addition
Malawi as a country loses out on the value addition aspect of maize. Maize is used internally for food purposes (with a small quantity exported). Annual maize yields for the last 10 years have averaged 3 – 4 Million tons, 30% of which is lost to the maize going bad due to inadequate storage technology. The Project has the potential of driving production quantities up by as much as 2 – 3 Million tons (over and above current production quantities) as well as adding 70 – 80% value on a unit quantity of produced maize.
FINANCIAL REQUIREMENTS
Capital Expenditure Requirement
It has been assumed that a US$ 130,000,000 debt participation finance structure deal can be entered into, with a 30% maximum allowable equity participation. The financial Model has assumed full recovery of CAPEX (interest + principal) by equity Financing Partner, including a 6% return on investment a 1% all risk insurance form a recognized entity, such the African Trade Industry (ATI).
Working Capital Requirement
The Corn starch production is working capital heavy. The working capital requirement is US$46 Million for the first month.
Proposed Financing Structure
The proposed finance structure is 100% debt.
PROPOSED INVESTMENTMODEL (ACTIONS REQUIRED/ IMPLEMENTATION ARRANGEMENTS/ CONTRACT TYPE)
The Project Developer intends to enter into a debt finance agreement with a Financier. The desired implementation model is one where the Project Developer/Promoter engages a Financier to provide a debt facility, an EPC Contractor is engaged for Project implementation and construction, and a professional management team is engaged for post construction activities (commercial operation of the plant).
PROJECT FEASIBILITY
Technical Feasibility
The technical Feasibility documents have been completed by the Project Developer/Promoter.
Feasibility Study
The Project Feasibility study was undertaken and completed by the Project Developer/Promoter. A market study was done.
Environmental Impact Assessment
The Project EIA has not been completed yet. However, the Project Developer completed the Project Environmental Brief which was duly submitted to the Department of Environmental Affairs. The EIA Process is underway and it is expected that the same will be completed by Q4 of 2021.
Technical Designs,
Technical, Engineering and Architectural designs have been completed.
Licenses
The Project is yet to obtain relevant permits and licenses; EIA, Building Permit and Operational Permits.
Financial Feasibility
The Project has an unlevered IRR of 25% and a Levered IRR of 15%, NPV of approximately US$2.4 Billion and payback period of 8 years.
CONTACTS
Noel Maluza: +265 999 916 106, Anthony Tasosa: +265 999 92 13 24, Alexander Maluza: +265 994 424 786. Email: noel. This email address is being protected from spambots. You need JavaScript enabled to view it. | This email address is being protected from spambots. You need JavaScript enabled to view it. | This email address is being protected from spambots. You need JavaScript enabled to view it.