Savanna Beef strengthens capital base
Expansion orientated
Savanna Beef Processors has increased its total equity financing to N$290 million after securing a N$40 million equity investment from BPF Windsor Holdings Limited.The company announced the development in a notice to shareholders, stating that the allotment of shares to BPF Windsor was finalised in the run-up to the end of 2025.
“Final negotiations were concluded and procedures finalised over the past few weeks with BPF Windsor Holdings Limited for the allotment of the agreed N$40 million shares within the next three weeks. This will bring the total private equity raised to finance the project to N$290 million,” Savanna Beef Processors said.
The company said the capital raise would support the transition of the processing plant towards profitability, following significant progress in construction activities.
A busy 2025
“The year 2025 has seen immense progress during the construction and completion phase of this large capital development, and our vision of a profitable beef processing facility remains on a favourable trajectory. Detailed management of all financing aspects has received meticulous attention,” the company said.
Despite completing the equity raise, Savanna Beef Processors reported an operating loss for the first six months of its current financial year. The company recorded a loss before taxation of N$13.21 million for the period, compared to a loss of N$7.67 million for the year ended 28 February 2025.
“This initial loss during the construction and ramp-up phase is lower than anticipated in the business plan. Ongoing strict financial planning, budgeting, and control of capital and operational expenditure throughout the construction and ramp-up period will ensure continued financial stability,” the company said.
Eyeing lucrative markets
In an interview conducted in September last year, Savanna Beef Processors managing director Ian Collard said the company faced the challenge of proving that its products were ready not only for the domestic market, but also for export to the rest of Africa, as well as the United Kingdom and the European Union (EU).
He explained that meeting stringent regulatory and traceability requirements was critical to accessing export markets.
“With regard to standard operating procedures, the Department of Veterinary Services requires clear guidelines on how we will operate and how we will ensure full traceability of our products, as well as maintain a healthy environment for exporting meat into other markets. This is to ensure that our product is safe for consumption,” Collard said.
The facility, which has a slaughter capacity of up to 250 cattle per day, or approximately 50,000 cattle per annum, represents the largest producer-led investment in Namibia’s beef industry. Construction began in January 2024 and is expected to be completed by August or September 2025.
The project’s financial structure comprises approximately N$200 million from around 730 producer shareholders, N$40 million from international investors, N$150 million in construction loans, and N$86 million in financial leasing. The main engineering, procurement and construction contract is valued at N$352 million, with additional infrastructure costs bringing total capital expenditure to N$417.5 million.