Bitumen Manufacturing

The road network in Namibia is one of the best in Africa, and growth of the network is imminent. As part of Namibia’s quest to become a regional gateway for the Southern Africa Development Community (SADC), the Roads Authority (RA) has budgeted a total of NAD990 million for the construction of roads for the 2016/17 financial year.

Of the total amount, NAD808 million is earmarked for road construction to bitumen standard. The Roads Authority plans to tar approximately 1,450 km of roads in the next five years.

Road construction and road maintenance account for 80% of bitumen applications. Namibia currently has an estimated 40,000 km of road of which only 6,400 km is tarred with the rest either being gravel or earth graded. The main types of bitumen used in the local market are 80/100 Concentrate, Anionic 60% Stable Grade Emulsion and MC 30.

Project Overview

Project 7 Trading will establish a bitumen products manufacturing facility in Windhoek, the first in the country. They will also engage in warehouse paving and roofing of buildings.

The shareholders of the company have invested NAD2 million in the development of the business plan, Environmental Impact Assessment (EIA) certificate and securing land and partnership agreement of technology. They are now seeking investors and financiers to contribute a negotiable amount by way of either share  capital of equity or loan funding.

Project Timeline Summary

Project timeline summary available from contacts.

Investment Opportunity

USD2.5 million or NAD33.2 million

(NAD : USD= 13.5)

 

Funding split:

USD

NAD

 

30% equity share

738, 155

9,965100

 

Loan finance

1,722 million

23,251900

 

Contact:

Mr. Elia Tapalo

Managing Director

Project 7 Trading cc

Mobile: +264 81 142 8856

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Mr. Penda Ickua

Managing Director

Project 7 Trading cc

Mobile: +264 81 129 0033

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Kaptau manufacturing

Namibia has a number of packaging manufacturers, particularly plastic forms for wholesale and retail goods, however additional forms are needed for bulk industries. Durable paper bags for larger volume dry and granulated products are imported, and there is a gap for local manufacturing to reduce dependency on foreign sources of supply and spread the risk of unexpected gaps in production.

Project Overview

Kaptau Packaging was established in 2014, and operations commenced in 2017. As the only manufacturer of paper bags in Namibia, it plans to expand by building a technologically advanced manufacturing facility and increase its capacity to meet the local/regional demand. Kaptau has secured an offtake agreement with the largest cement manufacturer in the country. Kaptau also secured Letters of Intent from key industry leaders and intends to competitively supply a cost-effective range of packaging solutions across a diverse range of paper packaging markets in Namibia and Southern Africa.

Kaptau manufactures sustainable paper-packaging bags for the Namibian and potentially for the SADC market. An advantage over regional/overseas competitors is that it is comparatively closer to its markets (materials supply and potential clients). Smarter strategies that have been tested and proven are in place for swift adaptability and readiness to develop solutions that are unique, better and cost effective. As it is closer to its markets, potential clients have a chance to observe products being made. This offers additional flexibility in product design and order quantities to cater for the currently neglected smaller businesses. The company intends to procure the  most competent production technology from Germany.

Project Timeline Summary

Project timeline summary available from contacts.

Investment Opportunity

Total capital is USD8,712,276.18. The owners have invested about USD3,1 million in existing technology during the Pre-Seed phase. The company has secured USD3, 6 million (41%) of the investment required in debt financing from a local development bank, and requires USD5, 5 million (59%) preferably in equity finance.

Total Project Cost: USD1,55 million or NAD21 million

NAD : USD= 13.5

Funding split:

 

USD

NAD

 

Namibia Shareholder’s Equity

3.1 million

36.6 million

 

Debt Finance

4.1 million

48.4 million

 

Financial Gap

5.5 million

68.9 million

Deal Structure: 1st option-10% Shareholding in the Company for an investment of USD1.8 million.
Deal Structure: 2nd option-21% Shareholding in the Company for an investment of USD3.7 million
Deal Structure: 3rd option - 32% Shareholding in the Company for an investment of USD5.5 million

Contact:

Mr Paulus Endjala

Managing Director

Kaptau Packaging

Mobile: +264 81 127 3538

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Namibia is currently engaged in initiatives to construct affordable housing and infrastructure. In order to reduce its dependence on imported construction material, the country is actively encouraging all manufacturing of building supplies, including cement, cement products and other products to meet rapidly rising demand. By developing local manufacturing of building supplies, the country will also buffer itself against unexpected gaps in imported supplies. There is no rebar manufacturing facility in Namibia and all rebar used in the country has to be imported. In 2014 the market for rebar in Namibia was estimated at 155,000 tonnes and the demand is projected to grow more than 9% per annum in line with the projected growth of infrastructure and construction projects.

Project Overview

The company, Otavi Rebar Manufacturing (Pty) Ltd (ORM) was founded in 2012 and commenced with the development of a feasibility study to establish a rebar
manufacturing plant in Otavi. ORM intends to build a 400,000 ton per annum long product mini mill steel manufacturing plant in Otavi, Namibia. Manufacturing of rebar, rounds, sections and angles for the construction industry. The target market is Namibia, Angola, Zambia, Zimbabwe and Botswana. The company signed an MOU with NORIC Steel as a technical and equity partner which will own 59% equity share of the company. The projected investment in the rebar manufacturing plant is estimated at NAD2,725 billion.

Project Timeline Summary

Project timeline summary available from contacts.

Investment Opportunity

USD201,9 million or NAD2,725 billion.

(NAD : USD= 13.5)

Funding split:

 
 

Dividend policy: 50% Equity Share

Contact:

Mr Jan Fourie

Otavi Rebar Manufacturing Pty (Ltd)

Tel: +264 61 250 278

Mobile: +264 81 710 9869

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Otavi rebar manufacturing

Namibia is currently engaged in initiatives to construct affordable housing and infrastructure. In order to reduce its dependence on imported construction material, the country is actively encouraging all manufacturing of building supplies, including cement, cement products and other products to meet rapidly rising demand. By developing local manufacturing of building supplies, the country will also buffer itself against unexpected gaps in imported supplies. There is no rebar manufacturing facility in Namibia and all rebar used in the country has to be imported. In 2014 the market for rebar in Namibia was estimated at 155,000 tonnes and the demand is projected to grow more than 9% per annum in line with the projected growth of infrastructure and construction projects.

Project Overview

The company, Otavi Rebar Manufacturing (Pty) Ltd (ORM) was founded in 2012 and commenced with the development of a feasibility study to establish a rebar
manufacturing plant in Otavi. ORM intends to build a 400,000 ton per annum long product mini mill steel manufacturing plant in Otavi, Namibia. Manufacturing of rebar, rounds, sections and angles for the construction industry. The target market is Namibia, Angola, Zambia, Zimbabwe and Botswana. The company signed an MOU with NORIC Steel as a technical and equity partner which will own 59% equity share of the company. The projected investment in the rebar manufacturing plant is estimated at NAD2,725 billion.

Project Timeline Summary

Project timeline summary available from contacts.

Investment Opportunity

USD201,9 million or NAD2,725 billion.

(NAD : USD= 13.5)

Funding split:

 
 

Dividend policy: 50% Equity Share

Contact:

Mr Jan Fourie

Otavi Rebar Manufacturing Pty (Ltd)

Tel: +264 61 250 278

Mobile: +264 81 710 9869

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Charcoal production and processing

Charcoal cooking is an emerging food trend across the world due to the flavour that the smoke imparts, and as it has gained popularity, demand has surged. The industry has grown rapidly from 50,000 tons per annum in 2014 to 120,000 tons per annum in 2015. Namibia is a large and well established charcoal exporter to South Africa, Europe and the Middle East. It has an abundance of wood which is suitable for conversion to charcoal, and various enterprises have been established to meet demand. Collection of wood also has the benefit of reducing invader bush and improving land for farming.

Project Overview

Ozondjeno seeks to expand and develop the existing charcoal manufacturing operations into a modern processing plant to produce charcoal on a larger scale. The company currently exports about 400 tons of bulk charcoal to South Africa. The project plans to increase the output to 6,000 ton per annum. Through expansion of the project, the company wishes to diversify its export market to other international markets. After expansion, Ozondjeno expect to have 5% share of the Namibian charcoal production industry.

Project Timeline

Project timeline summary available from contacts.

Investment Opportunity

USD1.3 million or NAD18.1 million

(NAD : USD= 13.5)

Funding split:

 
 

Deal structure to be discussed with promoter.

 

Contact:

Mr. Mbakumua Hengari

Managing Director

Mobile: +264 81 122 5486 / 081445 6823

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Email: This email address is being protected from spambots. You need JavaScript enabled to view it.