Company history/background
Dutch entity, led by an international finance professional
A family-run agricultural enterprise in Tanzania is seeking financial partners to establish a high-quality cashew processing facility. The investments are channeled through a Dutch entity led by an international finance professional. He resides in the Netherlands, speaks fluent English and German, and is related to the family in question on a first-degree basis.
Company activities
Fifth country in the world
Tanzania is the fifth-largest cashew producer in the world, producing approximately 20% of all cashew in Africa, but at the same time has very limited domestic processing capacity. Therefore, approximately 90% of the cashew harvested in Tanzania is exported abroad as 'raw cashew nuts' (RCN) for further processing.
Unique selling points
From harvesting and exporting RCN to a state-of-the-art production facility
By investing in a state-of-the-art facility within the country itself (sustainable and socially responsible), a much more profitable business can be established compared to merely exporting RCN. The company in question aims to process 30,000 tonnes of RCN per year and will subsequently sell directly (bulk export) to wholesale companies and nut roasters (which supply retail in North America and Europe).
Other
IRR expects approximately 20%
The company in question has formal approval from the Tanzanian government and priority regarding the required tonnes of RCN. In addition, Free Zone Status has been granted to the enterprise's activities. The company is co-investing itself and has a network of 7,000 farmers. The total investment requirement amounts to 21 million euros.
- 12.6 million euros is financed via bank loans.
- 1.5M is being realized through international subsidies
- 2 million euros is being contributed by the current shareholders.
- 5 million euros is being sought via equity investors.
The expected IRR is approximately 20%.
Personal data
- MBI candidate
- Strategic acquisition
- Investor