INVESTMENT OPPORTUNITY
INVESTMENT OPPORTUNITY BETHLEHEM APPLE-JUICE PLANT Credit: aleksandarlittlewolf/Freepik Free State MECs Thabo Meeko ( Department of Small Business Development, Tourism and Environmental Affairs) and Saki Mokoena (Agriculture and Rural Development) inspected produce during the Apple Harvest Day in Bethlehem. Photo: DARD Adding value to agricultural resources. LOCATION Bethlehem, Dihlabeng Local Municipality, Thabo Mofutsanyane District Municipality ECONOMIC SECTOR Agriculture and agroprocessing COMPANY NAME Remmoho Capital Investments (Pty) Ltd. RCI is a 100% black-owned entity which seeks to drive transformation in the apple industry in the Eastern Free State by establishing a greenfield apple-juice concentrate plant. Remmoho Investments in Agriculture is the main business of RCI, being the production of apples through a 74% equity acquisition of Stead Fruit Growers. Remmoho Apple Juice Concentrate was established for the production of apple-juice concentrate which is currently in the project development phase. PROJECT DESCRIPTION Production of apples. Manufacturing of apple-juice concentrate INVESTMENT VALUE R396.6-million FUNDING SOURCES Debt and equity finance, grants and new blended finance from select development finance institutions (DFIs) FUNDING GAP R118.9-million INCENTIVE REQUIRED No less than 30% of total development costs or 50% of capex (estimate) JOBS TO BE CREATED About 2 500 over the project development cycle EMPOWERMENT Of jobs at primary production level, more than 70% will be women with average age of 25. A quota system of 55% in favour of unemployed graduates during construction and post-construction phases plus in-service training opportunities for TVET college students. A set aside of 5% of skilled and specialised skills for youth with disabilities. PROJECT SCHEDULE In progress, awaiting technical stream of feasibility study PROJECT STATUS Primary agriculture: implementation phase is currently at 12ha, with plans to scale up to 100ha over the next three years. Concentrate plant: feasibility phase, bankable business case in place REGULATORY REQUIREMENTS None required ISSUES TO BE RESOLVED Water rights, market-related regulation, council permits PARTNERSHIPS Thabo Mofutsanyane District farmers, Heineken Beverages PROJECT MANAGER Phuti Kubushi TEL: 083 325 8193 EMAIL: phuti.kubushi@remmoho-ci.co.za
17 INVESTMENT OPPORTUNITY MOSAMANE TOURISM AND INTELLIGENT SHEEP FARMING PROJECT Boosting local employment through tourism and agriculture. LOCATION: Rosendal, Dihlabeng Local Municipality, Thabo Mofutsanyana District ECONOMIC SECTOR: Tourism and agriculture COMPANY NAME: Mosamane Holdings PROJECT DESCRIPTION: On a 395-hectare farm the following projects are to be developed: • Tourism and game farming: 150ha mountainous area for small game; self-catering backpackers lodge, a four-star lodge and family chalets • Intelligent sheep farming: will deliver 12 500 sheep for local and overseas markets • World-class training centre • Solar-energy plant INVESTMENT VALUE: R550-million FUNDING SOURCES: Impact Empowerment Ventures committed R80-million in 2021 and have so far invested R14.2-million. We intend attracting venture capitalists, private investors and public investors and entities FUNDING GAP: R470-million INCENTIVE REQUIRED: Yes EMPOWERMENT: Women, 55% of workforce; youth, 45%; people with disabilities, 5% PROJECT SCHEDULE: Five-year timeline, with phase one in the first quarter of 2024 PROJECT STATUS: Currently at pre-implementation phase, funding required to go into full implementation. Intelligent Sheep Farming has been in operation for two years and it is ready to scale up. REGULATORY REQUIREMENTS: EIA process has begun. More funding is needed for this phase. ISSUES TO BE RESOLVED: None PARTNERSHIPS: Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA), Impact Empowerment Ventures, Agri All Africa, Agri X, Department of Agricultural Economics at University of Pretoria, Bengu Farm RETURN ON INVESTMENT: Investors will get a full benefit on their investment PROJECT MANAGER: Terence Nkhwashu, Director EMAIL: terence@mosamane.com TEL: 082 521 2006 JOBS TO BE CREATED: 650
