The aim: 3 modern abattoirs & processing plant in Uganda for a growing local & export market. First step - modern abattoir and model farm purchase. Then build local refrigerated distribution network.
Alafis International is an Australian registered proprietary company limited by shares (ACN 159 713 890) with a Ugandan sister company Mafepros Limited. Driven by an ambition to become the largest domestic and export meat supplier in East Africa, the company has an agreement to initially acquire Uganda’s most modern abattoir.
The company plans to be the driving force in developing a meat industry with high growth and profitability potential. With the availability of strong management and an extensive knowledge of Uganda and surrounding countries and with carefully planned strategic growth, the company will expand its abattoir facilities following the initial acquisition and then progressively develop a robust supply chain leading to growing domestic and export meat sales. The company is confident that this leadership and the timely expansion of the local cattle industry will result in profitable and international success.
The company is issuing Phase 1 convertible notes to partly fund the purchase payment and provide sufficient initial working capital for early operation of this ready to produce, modern abattoir.
In addition to catering for the growing Uganda domestic middle-class market, the company will further improve this operating facility as well as future acquisitions, to meet Australian beef export standards to fully exploit the huge & growing international export opportunities.
Uganda investment now approx Aus$2,500,000 in lands, permits, travel, legal & support. Abattoir purchase agreement. Extra finance needed.August, 2020
Alafis International is an Australian registered company intending to export meat from Australia when post drought cattle numbers increase. Its sister Ugandan company (Mafepros) has been established to operate within that country to conform to Government requirements including the need for an operating company to be registered in Uganda
No. Mafepros will immediately begin its operational life with its abattoir following the completion of the purchase process. The abattoir plant manager and certain key employees will be retained, and under the experienced management team & new Board input will focus on a significantly improved production phase. Alafis International will accelerate its trading objectives following the end of the Australian drought and consequent increase in cattle numbers.
Initially our domestic sales will be expanded to Ugandan hotels, restaurants and grocery chains. The abattoir will also establish a retail shop front for local residents. At the beginning of 2020, the Uganda economy GDP growth rate was 6.2% per annum, placing Uganda among the 15 fastest growing economies in the World. The current pandemic will have some effect on economic growth, but as the country has so far managed the corona virus problem well, there is every expectation that it will rapidly regain its high rate of growth. There is a growing middle class with high expectations regarding the quality of food and our objective is to meet these high expectations. Export sales contracts are now being negotiated with regional African countries.
The modern abattoir such as our initial purchase has a potential throughput capacity of between 600 -800 cattle per shift. Following further upgrading to conform to international export standards with OH&S and animal welfare improvements the Middle East markets present a huge opportunity.
No business venture can be guaranteed success. However the company has done a great deal of research including a comprehensive risk and financial analyses. This combined with strong local knowledge and industry experience and an assured supply of cattle is very likely to lead to the success and profitability of this venture in one of the most rapidly advancing countries in the world.
This amount will secure the purchase of the initial abattoir and demonstrate the project viability as the business builds its cash flow and reserves. The company is also confident a multi-million dollar bank facility and investor funding will be released as the abattoir commences operations and the project demonstrates its scale potential. The whole project is planned to include the construction of more abattoirs as mentioned, a dedicated, central processing and distribution centre and the purchase of a 4 square mile ranch land to ensure a continuous supply of prime quality cattle.
The following correspondence has been received from Multilateral Investment Guarantee Agency [MIGA], World Bank Group. “Regarding your proposed investment in Uganda, your application has been registered with MIGA and the Registration Number 15031 has been assigned to the investment.” This policy will be activated upon receipt of substantial investment funds.
Our Income projections have provided confidence that all loan repayments will be well covered each year and that significant profits can be achieved following the first year of operation.
Under President Museveni, Uganda has experienced relative political stability, democratic progress, and economic growth. The country is making great advances in the health and wellbeing of its people and is experiencing strong economic growth. In addition, a recent UN reports states that Uganda has the best model for treating refugees – from South Sudan. A visit to the country will give you great confidence in its future.
As of the 27th July 2020, the country has had 1,103 recorded cases with 975 of these listed as recovered. There has been one death attributed to the virus. As with other places, there has been some confusion regarding lockdown regulations, but the strict rules to contain the spread of the pandemic across the country appear to be working
Uganda is a presidential republic, in which the President of Uganda is both head of state and head of government. Legislative power is vested in both the government and the National Assembly. The system is based on a democratic parliamentary system with universal suffrage for all citizens over 18 years of age. Not all processes are top class with some, strange to western eyes, such as legislative glitches associated with the rather common African homophobia. However, the parliament building accepts visitors to see how the country’s democracy works, making it more transparent than in many western countries.
The 2019 Index of Economic Freedom ranked Uganda, the 9th freest economy out of the 46 Sub-Saharan Africa countries. The business operating environment allows the full repatriation of profits after mandatory taxes and 100% foreign ownership of private investments. Incentives embedded in the country’s tax laws are non-discriminatory and accessible to both domestic and foreign investment depending on the sector and level of investment. The minimum capital investment required for a foreign investor to be eligible to invest in the country in virtually any sector is US$100,000. Uganda’s labor is highly trainable, English speaking and the cost compares favorably in Africa. Inflation stabilized at 6.6% after the GFC and the Uganda economy was resilient and continued to attract foreign direct investment during the period. – (www.statehouse.go.ug/why-uganda-best-investment-location-africa). The expectation is that it will recover quickly from the current pandemic.
According to a UN report, “there are some high corruption risk areas, such as police, judiciary and procurement. It has been said that businesses may be vulnerable when bidding public contracts in Uganda because processes are often non-transparent. ” While establishing strong links and gaining support, Alafis International through its Ugandan sister company Mafepros has kept politicians and government officials at ‘arm’s length’ and there has never been any hint of corrupt practices. In fact officials there have been very helpful.
The Company aims to export to the most profitable market for meat in the Middle East. Christians and other religions will eat non-halal foods, Muslims will not. The demand for ‘Halal’ meat and other foodstuffs is growing internationally. Halal slaughtering practices are widespread in the UK, USA, Australia and other western countries. In the UAE up to 80% of meat is imported. The Halal Food Market which is estimated at US$500 billion. The Company will be in a unique position to export to many Middle East Arab countries plus Sudan, Libya, Egypt. Mafepros will tap into and network with international distributors to cater to the demand for ‘Halal’ meat and other Halal foodstuffs globally. This potential offers a unique opportunity to invest in the meat sector and livestock production in Uganda. In East Africa a rapidly growing population means increased demand for protein-rich food such as meat will increase from the present level of more than 420,000 Tonnes per year - a huge opportunity for the company.
In a recent survey there were more than 16 million head of cattle in the country. A kill rate of 1,000,000 per annum is achievable, but this number is beyond the company’s expectations. What needs to happen as soon as possible is for the Company to improve breeding stock with semen from Australian breeds and build the quality of cattle herds in the supply farms. It will run model farms to assist local farmers to improve practices.
Abattoirs visited by company members do not meet western standards. They are substandard in the main Kampala abattoir and worse in smaller suburban abattoirs. The practices reflect those recently publicized in Indonesia and condemned by animal rights activists. Animal cruelty, the lack of hygiene, the absence refrigeration and the nonexistence of codes of practice for the meat industry are major areas where Alafis will set Australian standards and elevate the meat industry.
Risk and Disclosure Statement
This is not a comprehensive statement of potential risks associated with the purchase of an operating abattoir in Uganda. A full analysis has been prepared by the Company. While Company Directors are confident of the success of the abattoirs in Uganda, an investment in Convertible Notes should always be regarded as speculative as are risks associated with all investments in an overseas project.
Overall, the directors consider the project, not as risk free, but given the political, economic and social evolution of the country, likely to deliver very strong, sustainable returns to the Company and it investors.
In addition to specific risks, there is a range of general which are beyond the control of the Company. Factors such as inflation, interest rates, taxation law, accounting standards, natural disasters, social upheaval, war and terrorism may have an impact on prices, operating costs and market conditions generally. The Company’s operations and future profitability can be affected by these factors.
The following factors are common to many new businesses:
Reputation – The qualifications and experience gained elsewhere will enable us to builda reputation for quality, consistency, fairness, integrity and reliability which it will jealously and assiduously guard to maintain sales, good supplies and profitability.
Increased Competition –No modern competition exists in the country. Our aim is establish a strong business to meet and beat such competition if and when it comes to Uganda.
Retaining Key Personnel –Key staff will be retained and highly qualified and experienced in the Australian meat industry will be recruited on a contract basis.
Support of Key Suppliers – To ensure a reliable supply of stock, immediate cash and/or direct bank deposit regimes will engender trust in the Company and its operations.
Liability and Insurance – Insurance requirements and policy availability is similar to that in other countries will be adopted..
Financing requirements – With expected investment and bank finance the Company will have sufficient capital resources to enable it to achieve its current business objectives. . However, if in the unlikely circumstances that further financing will be required, there can be no assurance that further financing will be obtained on reasonable or acceptable terms.
Government legislation - Any change is likely to be beyond the control of the Company and could affect both industry and the Company’s profitability. Uganda currently does not have double many double taxation treaties with the USA or Australia which do have such treaties between the two countries
Possible Catastrophic Events – These are beyond the control of the Company could occur and may have a negative impact on the value of an investment in the Company.
Exit Strategy - Our preferred exit strategy is an acquisition by a major player in the African or international food supply industry. The business plan has been developed with that strategy in mind to ensure that the business will be built to a highly profitable, multi-million turnover level.