Food Supply to Mines, Mining Installations and Support Companies

Opportunity Snapshot

Food Supply to Mines, Mining Installations and Support Companies There is a significant shortage of food in the mining areas and the return on investment in food supply is very high. Image courtesy: Lusciousblopster, 2009, Flickr CC.

Investment Opportunity

Oil, gas and coal have been found with no infrastructure to support the expansion. With all the mines & support providers, the potential for our services is tremendous.

We want to establish a company that will supply and provide the goods the mines and industries require to function efficiently.

By importing from South Africa and manufacturing locally to cut down costs and ensure better and faster service delivery, we will offer anyone investing now immense growth opportunities in one of the fastest growing countries. Look what's now happening in Pemba Mozambique.

Competitive Advantage

To sustain the advantage we plan to create some industries to produce and manufacture some of the products locally. I can’t say we will be very different than the competition in terms of products offered but we will aim to maintain high quality of service delivery, abd we certainly know the African market very well, which will give us an edge. Actually, we believe that competition can be good for a business.

Rationale for the deal

The gap in the market is huge and nobody would like to invest because of lack of knowledge of the African market. The business will grow with the demand as 150,000 workers are expected to come working at the mines, with no infrastructure.

There is a big shortage of food and foodstuffs in all sectors and the return on investment is very lucrative.

The same thing has happened in Tete, Mozambique and not a single business has been left with empty hands. It is also a fact that there is good returns on opening mining activities.

I have been involved with Kawena Distributors for 10 years in the supplying of foodstuff and commodities for mine workers, including full importing and exporting of products.

Use of financing

$200,000 will be used for operating expenses and the rest will be used over a period to expand and develop the business to operate at a more productive level.

We plan to invest the majority of the capital in stock and let the business grow from there. Three months later $100,000 we will be used to get more fridge vehicles so that we are less dependent on outsourcing.

The other $200,000 will be used over 6 to 8 months for expansion of outlets. Every amount can be allocated after financials.

Opportunity for the investor

The specific form of the deal depends of the investor.
In case of debt investment, the loan amount will be $500,000.00 which will be paid back over 5 years with an interest rate of 15% per annum.

If the investor wants equity in the business we would like to offer 15%. The investor will be part of a very nice concern with good growth potential.

I would always encourage investors to be part of the investment because I think they actually like to know what happens with their money and most of them can provide you with very valuable information and know-how.

When the money get through I would like to have three months before payment starts as this would give me some time to settle in with the whole project.

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