Project location: River Nile State, 134 km North Khartoum, Sudan. Stage 1: cultivate area of 1300 feddan. Crop: Potato. Fund required: USD 4,600,000. ROI: 50%.
Products: We are intending to grow potatoes in stage one, soybeans shall come in stage two.
Acreage: 10 center pivot each 130 = 1300 feddans, irrigation by pumping water from deep water wells.
Winter cycle: November to February
Summer cycle: May to September
Yield: 30 tons per feddan x 1300 feddan
Total production: 39,000/MT per season x2 seasons = 78,000/mt
Market Price: Assuming selling price is USD 150/MT
Total sale: USD 5,850,000.00 x 2 seasons = USD 11,700,000.00
Cost of Investment: 1st season = USD 4,600,000.00
Cost of investment for the 2nd season = USD 1,300,000.00
Total cost of investment for 12 months = USD 5,900,000.00
EBITDA= USD 5,800,000.00 year
Taxes: Exempted (Nil) for 7 years
Project Justification: Raise food for Sudan domestic market, less competition, high demand and large consumption for potatoes, create job opportunities for thousands of highly educated unemployed graduates, as well as export the surplus to the international markets.
Progress on the project:
a) Investment/project License has been issued and granted in 2012
b) Investment company has been formed last year.
c) All formalities regarding the actual acquisition of 10,000 feddan have been completed in December 2012 with possible future expansion up to 50,000 feddan (the land is already reserved land for project expansion).
d) All federal and regional administrative fees and charges have been fully settled and paid.
e) Land registry title deed has been completed.
f) A topography survey and mapping have been completed, and GPS co-ordinates have been identified.
g) The process if negotiation and settlement with local indigenous communities has also been completed.
Project timeline: 4-6 months to finish stage one; drilling water wells fixing 10 center pivot irrigation systems, soil analysis, soil levelling and cleaning.
There is no competition in Sudan since currently only 7000 hectares are under cultivation by small farmers around Khartoum, Kassala and the neighboring states, which is not even sufficient for the domestic consumption. Maybe after we shall see real competition in five years.
Nevertheless, several new investors from the GCC region are currently investing in large scale commercial farming projects in Sudan. Most of them are about cropping alfalfa, wheat and sunflower. Generally speaking, the area cultivated with potatoes remains very small, whereby most of the production is consumed locally.
The project will be one of the leading commercial farms specialized in potatoes cropping with special focus on the domestic and export markets, strategically located and connected to well paved roads advance infrastructure at only 3 hours drive to Port Sudan, the country's main export harbour.
The project lays within the Nubian Aquifer a potential source of huge underground water reservoir, this development would rely on, cheap and well trained labour force, specialized agro-engineers, fertile soil and suitable weather conditions for growing potatoes as well as many other crops like, soybeans, sunflowers, peanuts, wheat, maize and sorghum.
Surrounded by 38 million population, the population of Khartoum alone is 10 million, being the main local market, in which 90% of the country's potatoes production is consumed. With regard to the absence of competition we have the advantage of selling our production locally but still strategically exporting to the EU market and Russia.
• 10 complete center pivot irrigation machines.
• 10 water pumps complete with all accessories
• Drilling 10 deep water wells 800 feet
• Tractors, harvesters, planters, plough and discs, soil levelling and analysis
• Working capital
• Potato seeds
• 4x4 cars and pick-ups, trucks and trailers for transport
• 1 loader, 1 excavator, 1 forklift, 1 electric generator, 1 water tanker, 1 fuel tanker
• Buildings workers barracks, cold storage, workshop, offices and warehouses.
Funding needed for phase one: USD 4,600,000.00.
Offering to Investor: Debt finance .
Payback period: 12 months, at 50% ROI.