 |
|
||||||||||||||||||||||
|
|||||||
The Jatropha Organisation of South Africa
|
|||||||
|
. Invest in land & labour in return for a long-term secure and reliable source of Jatropha Oil. Jatropha Oil Investment Opportunities in South Africa Jatropha Oil Investment Opportunities in Congo Brazzaville Company Structure for Jatropha Investment in Africa and South Africa Information for Landowners and Investors -------------------------------------------------------------------- Invest in land & labour in return for a long-term secure and reliable source of Jatropha Oil The following properties are all available for development on long term lease bases. There will be no monthly lease payments required. The reason for this is that most of this land has been unused for more than 50 years and the Tribal Chiefs are in need of employment for their starving people. We have investigated and established that these Tribal Chiefs/Landowners have registered title to their land enabling them to contract with an investor(s) thereby providing security of land tenure by way of registered leases. The Jatropha Organisation of South Africa has negotiated agreements with Landowners such that a Company / Companies be formed on a 49/51% shareholding basis for one or more parcels of land. The Investor(s) would own 51% and the Landowners 49% in the new Company that would enter then into a registered lease agreement to lease-back the land from the Landowners. In other words Landowner(s) provide the land and Investor(s) put up the capital. The net proceeds would then be divided between Landowners and Investors on a 49/51% shareholder basis. Benefits for the Landowner(s): a. The Landowners have no capital to invest in the development of their land that has been standing idle for more many years. b. The land is not suitable for food crops but highly suitable for the planting of Jatropha. c. The Landowners will benefit from the net proceeds of the enterprise by ownership of 49% shareholding in the new Company. d. Investment in the development of the land will provide employment for their people in mitigation of extreme poverty and its associated health and social problems. e. The Jatropha Oil produced is a clean, renewable source of energy that the rural people will use for their energy needs instead of firewood and paraffin which cause respiratory problems. f. The deterrence and arrest of extensive deforestation. (The most serious destruction of Natural Forests that I have ever seen - only to be used as firewood) Benefits for the Investor(s): a. Investors will not be required to purchase or pay for the lease of land. b. Investment required will be utilised directly for capital expenditure, start-up expenses, and operational costs. This all under control of the Investor(s) c. The Investor will hold 51% shares in the company with the ability to ascribe where produce is traded thereby securing for themselves a reliable, long-term source and supply of Jatropha oil. d. Security of Land Tenure: The landowners have title to the land therefore full contractual capacity. e. A major contribution to the alleviation of poverty, climate change and social upliftment. f. The ability to attract Carbon Credits and the provision of Specialised Green Fleet Solutions to Private and Public Fleet Owners locally and abroad. Top ↑--------------------------------------------------------------------------------------------------------------------------------------- Jatropha Oil Investment Opportunities in South Africa
--------------------------------------------------------------------------------------------------------------------------------------- Jatropha Investment Opportunities in Congo Brazzaville: 250,000ha A co-operative known as The Foundation Bayo in Congo Brazzaville have the ambitious plan to develop 1million hectares of land under Jatropha. The foundation has secured large tracts of land in the Pool Region of the Congo Republic and has full co-operation of the various authorities in each jurisdiction. The Foundation will undertake full establishment of Jatropha farms for the production of Jatropha as a feedstock for the biofuel industry. The company currently has 60ha of Jatropha under cultivation. Africa, and especially the Congo, has characteristics that make them particularly suited to biofuel production including the availability of cheap land and labour. Jatropha Project Manager, Bernie Pavitt says that ‘the overwhelming task of tackling the project has been daunting. We have therefore decided to divide each lot into segments of 50,000-hectare plantations. The idea behind the business is to establish an initial plantation of 50,000 hectares of Jatropha. In addition the company plans to establish further lots of 50,000 hectares on properties that have been made available to the company. Before establishing a Biodiesel Manufacturing Plant it is always prudent to secure a long term, reliable source and supply of feedstock. It therefore makes sense to invest in a plantation, land and labour where you have control in the assignment of raw material to your factory locally or abroad’. Separate and autonomous companies will be formed to own and direct one or more of these 50,000-hectare lots. Capital Expenditure invested in accordance with an initial plantation may contribute towards the establishment of further plantations and will require less capital to be expended in respect of additional facilities and equipment. Foundation Bayo's management team is led by Mr. Joseph Louvouezo as Business Manager who has extensive knowledge of industry in the Congo. The company expects to employ an annual average of 910 employees within the first 8 years of its Jatropha operations. The Foundation plans to concentrate on Jatropha Farming as one of its primary products. The company's more technical horticultural aspects include the utilisation of advanced planting technology to speed up and streamline the production of seedlings. This will enable the plantations to be established rapidly such that products are brought to the market in a relatively short time frame. This includes establishing a mechanised Nursery that will have a capacity sufficient to produce in excess of 198,400 seedlings per day. This equates to 13,200 biodegradable trays of seedlings per day. This strategy will allow Foundation Bayo to produce a crop during most of the year that will allow for double production of seed. The Foundation's initial 50,000ha farm will have a capacity sufficient to produce in excess of 320,000 tons of Jatropha seed each year from the fifth year onwards. This amounts to 99,972 tons of Jatropha Oil per annum. Company Location and Facilities The farms are located in the Pool district of the Congo Republic. See maps: http://www.maplandia.com/republic-congo/pool/ or http://athaia.org/congo-republic-of-the-map.html The location of the current nursery is in a place named Songa Longui that is centrally located around the various plantations. This land is immediately available and is situated in the following places: Boko: Louingui & Loumo - 160,000 hectares Kinkala - 30,000 hectares Mbanza Ndunga - 30,000 hectares Mindouli - 30,000 hectares Total: - 250,000 hectares This land is ideally suited for the plantation of Jatropha in that the topography is extremely undulating thus facilitating the introduction of mechanical harvesting at a later stage. The 60 hectares of Jatropha that are currently under cultivation are situated in Kinkala, Mataka and Luingi. Financial Considerations The Foundation is seeking investment capital of R180m over a three-year period from one or more investors in both short-term and long-term investment finance in return for a 51% shareholding in the relevant Jatropha Company or Plantation. The funds will be utilised to cover capital expenditure, start-up expenses and operational costs. It is estimated that the company will begin to make a profit in Year 4 of operations. The company does not expect to have any cash flow problems after the first three years of operations. Interested parties, Utility Companies, NGO’s or Biodiesel Manufacturers who require a secure and reliable supply of Jatropha Oil over a long-term period are hereby called upon to evaluate this investment opportunity. For further information and a copy of the Business Plans and Spreadsheets, you may direct enquiries to Bernie Pavitt pavitt@jatropha.org.za Top ↑ ____________________________________________________________ Company Structure for Jatropha Investment in Africa and South Africa Information for Landowners and Investors Preamble: Land owned by Governments, Tribal Chiefs and other African entities has been reverted back to them by Colonial, Foreign or the Apartheid Government in the case of South Africa. These Landowners have been unable to develop their land for various reasons, being mainly the lack of development funding due to their menial circumstances and lack of local or foreign investment capital. With the advent of Climate Change, Renewable Energy and Biofuels, Africa is now the most opportune platform for development due to the stupendous availability of virgin land, cheap labour and the need for alleviation of poverty. Land Title: Investment apprehension locally and abroad has also stemmed from social and political unrest and the lack of security of land tenure. Land dwellers, representatives or people who profess to have land rights have little or no contractual capacity in that the properties they occupy belong to more than one person, their children, children’s children and so on. Investment on the African continent has thus been discouraged mainly due the lack of security of land tenure and the need to protect an investment. There are, however, many African countries, especially Southern Africa, where there is political stability in which place an investment opportunity can be secured. Many people, Governments, Tribal Chiefs, NGO’s and other entities have Registered Title and control of their land. This enables them to form legal and binding contractual relationships that will provide benefits for both Landowner and Investor. Having exercised due diligence, the Jatropha Organisation of South Africa has sought these opportunities and come up with a simple company structure that will protect the rights and interests of both Landowner and Investor. Jatropha Oil in return for Investment Capital The key to understanding the prerequisite for a secure, reliable and long-term supply of Jatropha Oil from Africa is to invest in Land and Labour. It would be imprudent for any company to establish a Biodiesel Manufacturing Plant based on Jatropha Oil as a feedstock, without an investment and controlling interest in the source. It is for this reason and the need for development funding that Biodiesel Manufacturers, locally and abroad, consider an investment strategy in Africa for the fledgling Jatropha Farming and Oil Extraction industry. There will never be a surplus of oil. Jatropha Oil and Biofuels are very lucrative especially now that most western countries have mandated Biofuels as a proportion of all fuel sold. Company Structure explained in brief: Step 1. A company to be formed on the basis of 51/49% ownership. 51% to the Investor(s) and 49% to the Landowner(s) Rationale: Investors need to have a controlling interest in the company they finance so as to prescribe where produce is traded thereby securing for themselves a reliable, long-term source and supply of Jatropha oil. See Chart 1 below: |
|||||||
|
Step 2. The new company enters into a registered, long-term, rent-free Lease Agreement (suggested 40 to 50 years) to leaseback the land from the Landowners. The Landowners therefore lease their land to the company that they jointly own together with the Investor. Step 3. The Investor invests in Start up Costs, Capital Expenditure and Operational Costs. The Local Community are paid normal wages for work carried out in the establishment and long term maintenance of the plantations. Step 4. Because the company is divided on a 49/51% basis, all company profits derived are shared according to this percentage. We acknowledge that Investors and Landowners are free do whatever they wish with their dividends. We have, however, a profit sharing plan that most Investors and Landowners have agreed to. * Of the Landowners’ 49% share: 1. 50 % to goes to the Local Community. 2. 35 % to the Tribal Council, Trust or Co-operative 3. 15 % to Individuals or driving forces behind implementation and success of the project. 100% We believe that the above is an important motivational factor in that it promotes entrepreneurial spirit and full transparency. See Chart 2 below: Chart 2 Landowner(s)
50% Community 35% Tribal Council, Trust or Co-operative 15 % implementation
* Of the Investors’ 51% share: (Please note that this is not mandatory)
4. 70% of the Investors’ profit goes to the Investor. 5. 30 % of the Investors’ profit goes to the development of local infrastructure. 100%
Chart 3.
30 % of the Investors’ profit contributed to the development of local infrastructure
70% of the Investors’ profit goes to the Investor
Step 5. Contact us for details that will enable you to evaluate the various investment opportunities in Africa and South Africa. A Non-Disclosure and Confidentiality Agreement including copies of the Business Plans and Spreadsheets will be emailed to you. You may direct all enquiries to Bernie Pavitt pavitt@jatropha.org.za |
|||||||
Jatropha Projects & Investment Opportunities 
 Today's Date:
03/27/2011 06:56
More Information |
|
Jatropha Investment Opportunities
Downloads/Order Seeds/Templates Knowledge Base & Reading Material
|
 |
|
Custom Search
|
Latest News
