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BXR in Africa March 2013. BXR Group. BXR Group Introduction. BXR – Existing Operations. BXR Group, headquartered in Amsterdam, Netherlands, is an international private investment group with a 15 year track record of superior investment performance across a variety of industry sectors.

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Bxr in africa march 2013

BXR in Africa

March 2013


Bxr group
BXR Group

BXR Group Introduction

BXR – Existing Operations

BXR Group, headquartered in Amsterdam, Netherlands, is an international private investment group with a 15 year track record of superior investment performance across a variety of industry sectors

  • Today the group has a diverse range of global interests and an established track record of accessing the international debt and equity capital markets for large and high profile transactions

Selected investments:

Oil & Gas

Transport

Agriculture

Real Estate

Other

Mining

Viking Int’l


Bxr agro
BXR Agro

BXR Agro – Existing Operations

  • BXR Agro Introduction

  • BXR Agro looks to acquire and develop agricultural properties as part of an expanding worldwide portfolio of land

  • BXR Agro seeks to address the increasing demands of a growing global population through:

    • Introduction of modern farming techniques

    • Land development and soil correction

    • Creation of efficient operations of scale

  • The approach looks to be always sustainable and sensitive to the needs of local communities

  • On-going Development

  • BXR Agro continues to grow its portfolio over:

    • Diverse regions: Latin America, Southern & Eastern Africa, and Eastern Europe

    • A range of commodities: soybean, corn, sunflower, cotton and wheat as well as fruits and livestock

  • BXR Agro partners with local and international farmers and investors in its efforts to establish an effective, considered and well-integrated supply chain to feed both growing and established markets


Malawi Mangoes: Agro-Processing Investment

Case Study


Malawi mangoes introduction
Malawi Mangoes – Introduction

  • Company Background

  • Malawi Mangoes is a fruit producer growing mangoes and bananas which has:

    • Developed a 130 Ha plantation and nursery 7km from Lake Malawi

    • Planted 50,000 mango and 100,000 banana plants

    • In the nursery – 150,000 mango saplings, 60,000 banana plants

    • Installed a hi-tech drip Jain irrigation system (the first of its kind in Malawi)

    • Established a network of thousands of smallholders to supply high-value fruit

  • Recent Investment

  • BXR became the majority shareholder in 2013

  • Its investment will be used to:

    • Irrigate and cultivate a further 1,000 Has of farmland

    • Develop a substantial processing facility near Salima

  • Hopes for the Future

  • Once complete, Malawi Mangoes hopes to sell long-life fruit pulp to international markets

    • Potential customers include Pepsi, Coca Cola, and Innocent Smoothies

  • Great potential to create a large number of jobs, boost the local economy and demonstrate the benefits of investment in Malawi


Malawi mangoes why mangoes
Malawi Mangoes – Why Mangoes?

  • Mangoes…

  • Strongly growing global demand for certain mango strains

  • Demand is being driven by growing popularity of :

    • Smoothies and other fruit flavoured soft drinks

    • Baby food products (often have fruit as a base)

  • India, the world’s largest producer of mangoes, is forecast to become a net importer in the near future

  • And Bananas…

  • Banana is a key component of most smoothies and common in baby food

  • Whilst mango has only a 3-4 month harvest season, banana crops year round

  • Combining both:

  • Demand increasing for both fruits in:

    • Health-conscious developed markets

    • Developing markets with emerging consumer class

  • Growing both will enable Malawi Mangoes to run its processing facility and farm at optimum capacity year round

  • Being able to supply customers with a diversified product offering is preferable


  • Malawi mangoes why malawi
    Malawi Mangoes – Why Malawi?

    • A country with great potential:

    • BXR Group is optimistic for the future of Malawi: once visited, never forgotten

    • Excellent engagement by Malawi Mangoes with the Malawi Government and local businesses

    • Malawi Mangoes represents another step in the development of BXR Group’s agricultural portfolio and African strategy

    • Foreign Direct Investment in Malawi currently limited, but realisation of successful projects should encourage others and build up necessary momentum

    • Major foreign exchange generation possible with more projects targeting foreign trade

    • Important for Government to provide attractive fiscal environment for foreign investors and to make land available

    • Substantial improvements possible from investment:

    • Large unemployed rural population eager for jobs

    • Lake Malawi an exceptional fresh water resource, but needs investment in irrigation to establish certain agricultural operations

    • Climate:

    • Mangoes are naturally well suited to the climate around Lake Malawi : ~4m mango trees

    • High fruit wastage currently:

    • ~85% of the fruit is wasted each year


    Malawi mangoes taking the project forward
    Malawi Mangoes – Taking the Project Forward

    • Processing capacity:

    • Increased in-country processing facilities will be the answer

    • Once processed and sealed in asceptic bags, fruit pulp can be kept for 12-18 months at ambient temperatures

    • Opens up the opportunity to sell to international African, European and further overseas markets

    • Malawi Mangoes is constructing a substantial processing facility near Salima

    • Grafting higher value mango strains:

    • Local Malawian mango varieties are not much in demand for international markets

    • Malawi has had success in grafting higher value strains such as Tommy Atkins onto local root stock

    • Malawi Mangoes is now not only grafting its own new plantation, but mature trees belonging to local smallholders

    • Smallholder engagement:

    • The grafted trees will fruit sooner thanks to their developed root systems

    • Local smallholders have the opportunity to work with Malawi Mangoes to convert trees producing fruit with very limited value, to high value trees that can sell their fruit for processing

    • Malawi Mangoes is working with thousands of local farmers to create real future income generating opportunities

    • New farm:

    • To reach sufficient scale, Malawi Mangoes will need to develop a further 1,000 Ha

    • The company continues to search for a suitable area then looks forward to taking the project through this next step


    Malawi mangoes vision for the future
    Malawi Mangoes – Vision for the Future

    • Top class supplier:

    • A key problem for fruit pulp consumers has been securing reliable supply

    • Malawi Mangoes aims to excel in all aspects to attract customers

    • By having its own farm to supply the processor, Malawi Mangoes will establish a reliable ethical supply chain

      • The company already employs farming practices approved by the Rainforest Alliance

      • It will source 20% of fruits from local smallholders

    • Great development possibilities:

    • Malawi Mangoes is investigating the potential to introduce premium variety pineapples

    • Other products could include dried banana chips, and mango strips (highly in demand in the local African markets as well as the Middle East and China)

    • A significant fruit pulp producer serving international markets and benefitting local communities:

    • There are few to no precedents for such an operation in Malawi

    • Malawi Mangoes will have to overcome infrastructure, transport and logistical difficulties

    • Appropriate financing for working capital and further capex is less accessible

    • Alongside foreign investment, it will take continuing local support from local smallholders to government bodies for Malawi Mangoes to succeed

    • Malawi Mangoes is ready to face the challenges confident in the goals shared with Malawi


    The fruits of effective investment
    The Fruits of Effective Investment

    Irrigation project costing $2,500

    Transforming the lives of 700 families in Malawi

    A $2,500 irrigation project

    Transforming the lives of 700 families in Malawi


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