- Country: Ethiopia
- Industry: Agriculture
- Stage: Start-up
- Investment size: $3,000,000 / min. $130,000
- ROI: 25% in 5 years
- Type of investment: Debt, Equity
Commercial Hydroponics Greenhouses to produce high quality nutritional vegetable. in Ethiopia. Offering you the ownership of shares in our global company.
The objective of this project is to establish an intensive farm to produce high-quality lettuce, tomatoes, fresh herbs, cucumbers, peppers, strawberries, Moringa leaf and other crop items for both the national and international market year round.
Our farm aims to be the biggest growers of hydroponics in the Ethiopia/Oromia region. The advantage of hydroponics on a large scale is the availability to produce vegetables all year round in large quantities. This immediately becomes a positive factor with major retail outlets and our export to neighbouring countries and continents.
We are currently identifying and securing land. We have targeted city of Methara for our first facility for the following reasons:
Ethiopia has favourable conditions for the production of a number of vegetable crops. The wide range of altitude, ranging from below sea level to over 3000 m above sea level, gives its wide range of agro-ecological diversity ranging from humid tropics to alpine climates, where most types of vegetable crops can be successfully grown. Further, the abundant labour, vast land and water resources give the region an opportunity and facilitation for the production of different types of vegetable crops
Great for logistics main road to port of Djibouti is within 600 kilometers, and 200 kilometers distance from Addis Ababa.
Higher unemployment rate. A 4 hectares facility will create around 40 new jobs
The project is estimated to cost $3 million, including contingencies
Hydroponics farming is in its infancy stage in Ethiopia. Currently, there are no commercial hydroponics in the region.
To encourage private investment, the Ethiopian Government has developed a package of incentives for investors engaged in new enterprises and expansions, across a range of sectors. These incentives are available both to foreign and domestic investors and the said Regulations doesn’t discriminate between a foreign and domestic investor or between foreign investors of different nationalities. The type of incentives that are available both to foreign and domestic investors. A 100 percent exemption from the payment of import customs duty and other taxes levied on imports is granted to investment capital goods and construction materials necessary for the establishment of a new enterprise or for the expansion or upgrading of an existing enterprise as well as spare parts worth up to 15 percent of the value of the imported capital goods;
According to Ethiopian Investment Agency:
Investment capital goods imported without the payment of import customs duties and other taxes levied on imports may be transferred to investors enjoying similar privileges; Any income derived from an approved new manufacturing, agro-industrial or agricultural investment is exempted from the payment of income tax ranging from 2-8 years depending up on the area of investment, the volume of export and the location in which the investment is undertaken.
Income derived from an expansion or upgrading of an existing manufacturing, agro-industrial or agricultural enterprise is exempted from income tax for a period of two years if it exports at least 50% of its products and increases, in value, its production by 25%. In Ethiopia, both the Constitution and the investment Code protect private property. Ethiopia is also a member of MIGA, which issues guarantees against non-commercial risks to enterprises that invest in signatory Countries. Besides, the Country has signed bilateral investment promotion and protection treaties with a number of Countries and is also in the process of signing such treaties with a number other countries
Rationale for the deal
The opportunities that are available to us cannot be quantified, we know that everybody on planet earth eat vegetable and use herbs which are our major farm produce. We are ready to take advantage of any opportunity that is available in the hydroponics farming industry. We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard hydroponics farms that will be involved in diverse produces, we will be able to take advantage of all the available opportunities within the industry.
Use of financing
The funds will be utilized for:
Building/Land, Greenhouse, Hydroponic Irrigation System, temperature control and water treatment, light duty trucks. Plant/Seed Inventory, Operating expenses including wages.
One of our major goals of starting the Farm is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
Opportunity for the investor
Opportunity for the investor:
Overall Loan Amount: $3M
Minimum Investment: $100,000
Payback Period: 5 years
Interest Rate is negotiable
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