Executive Summary
Africa Food Basket (AFB) is a company that specialises in aquaculture using the recirculation aquaculture system (RAS). AFB builds, operates and manages fish farms in Africa and Europe.
AFB is expanding the RAS model in Sub-Sahara Africa, replicating farms currently in operation. We offer high-level expertise and competency in the science of aquaculture, notably in the following areas:
• The design and implementation of the RAS model;
• Brood-stock including cultivating species through research and development;
• Sales and marketing with consolidated corporate experience and thorough knowledge of doing business in Sub-Sahara Africa.
At AFB we focus on installing, building and running aquaculture farms in locations which are suited to the best climatic conditions, in regions close to markets where there is clean and abundant water (marine or fresh). Our primary focus is on harvesting organically grown fish, cultivated in water free of antibiotic substances and chemicals. We make use of alternative energy wherever possible and ensure that our farms have a neutral carbon footprint. Our distribution targets include both local and export markets.
Each RAS farm is sustainable and typically breaks even after 12 months, generating returns in year two starting from 20% return on investment (ROI). Depending on the climatic conditions, country and demand, we would typically grow trout, salmon, tilapia, catfish and pangasius. Oysters, mussels, abalone and other marine species can also be cultivated easily on the African continent.
The cost of a RAS farm ranges from $1 million for small farm producing 200 tons per annum to $6.5 million for a large farm (800 – 1,000 tons pa). The farms are modular and include a grow-out facility and hatchery.
Africa has been one of the fastest growing economic regions over the past ten years having recently overtaken Asia. Many of the fastest growing African countries have growth rates above 7% with six of the world’s ten fastest-growing economies in Sub-Sahara Africa. Most of these emerging economic regions are in urgent need of agricultural solutions. Aquaculture is sustainable and has been growing globally for the past 20 years by a minimum of 7% annually. Although Sub-Sahara Africa only accounts for 2% of the world’s total aquaculture production, the aquaculture industry in Sub-Sahara Africa grew by 28%, according to the Food and Agricultural Organisation (FAO) of the United Nations (UN) figures published in 2012.
Aquaculture investment on the Continent, supported by most governments and the African Union’s agricultural program (NEPAD), offers investors tax incentives leading to healthy and sustainable returns. With perfect climatic conditions, Sub-Saharan Africa is ideally poised and offers investors excellent returns, on a Continent with an abundance of natural resources.
AFB earns its fees through part ownership and through a management contract. The RAS aquaculture-farming model can be wrapped into a fund investment model that AFB will take to the private and public fund market in two years time to accelerate the expansion of the business.