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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 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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