Our company SAGRICOM has a concession of about 1,600 ha of arable land in the Kinshasa province. In the initial investment phase, infrastructure will be built for the exploitation of a 4,000 ha area and an area of 1,200 ha will be effectively farmed, employing the equivalent of about 160 full time people.
The company will produce maize, soja, peanuts, cassava tubers, and cassava leaves. For management and finance, the company will assisted by DRM (Belgium). Technical expertise is to be provided by Jean Lejoly, professor Emeritus at the Free University of Brussels, and advice can be sought from GIEDER, an organisation supporting rural development.
A subsidiary of the Groupe Avril (France) will later provide technical expertise relating to the production of animal feed. As a first step, the products will be placed on the market without processing other than the shelling and cleaning of the products. In the long term, however, the idea is to increase the added value by adding processing into corn flour and extraction of soybean oil.
To implement the project, a limited company “Ferme du Papillon Vert” will be established. SAGRICOM and DRM will hold, respectively, 80% and 20% of the initial capital of 150,000€.
The total capital needs, excluding animal feed equipment, are estimated at about € 3 million, including € 0,72 million of working capital. The project is expected to generate an EBITDA (Earnings before interest, taxes, depreciation and amortizations) of about 39 percent of capital expenditures.