Sudafric Sunflower Project Proposal Draft8 2025
Sudafric Sunflower Project Proposal Draft8 2025
CONTACT PERSON
| Name: Anthony M. Wanjohi
| Position: Resource Mobilization Lead
| Phone: +254 725 788 400
| Email: kenprokenya@gmail.com
February, 2025
EXECUTIVE SUMMARY
To achieve its objectives, the project seeks to raise USD 10,714,000 through a a
joined venture framework, with equity-based financing. The funds will be
allocated to land preparation, processing infrastructure (medium plant with a
capacity of 10 Mt/Day), farmer support programs, and market expansion
strategies, ensuring long-term sustainability and profitability.
I
TABLE OF CONTENTS
II
1.0 COMPANY DESCRIPTION
Sudafric Agriculture Ltd, established in 2019, is a subsidiary of Sudafric Group Ltd, a prominent
East African business entity. The company is headquartered in Dar es Salaam, Tanzania but has
key operations in Kenya and Uganda, specializing in agribusiness, leveraging the region's rich
agricultural resources to supply high-quality products.
Products: Sudafric Agriculture Ltd offers a diverse range of products including Grade A Hass
avocados, organic garlic, onions, sunflower oil, soybeans, fresh vegetables
Sudafric’s Products
Category Description
Offers Grade A Hass avocados, known for their quality and taste, catering to both
Hass Avocado
local and international markets.
Provides organically grown garlic and onions, ensuring chemical-free and healthful
Garlic and Onions
produce.
Cultivates and supplies soya beans, essential for various food products and animal
Soya Beans
feeds.
Offers sesame seeds, commonly known as simsim, used in culinary applications
Sesame (Simsim)
and oil extraction.
Assorted Fresh Provides a variety of fresh vegetables, ensuring a steady supply to meet diverse
Vegetables consumer needs.
Supplies premium hardwood timber suitable for various construction and
Hardwood Timber
manufacturing needs.
Supplies softwood timber, suitable for various applications in construction and
Softwood Timbers
manufacturing.
Services: Sudafric Agriculture Ltd offers a wide range of services including agrochemical supply,
agricultural production, livestock and meat processing, export services, and sustainable farming
practices.
Sudafric’s Services
Service Description
Providing high-quality agrochemical products such as pesticides, herbicides,
Agrochemical Supply
fungicides, and fertilizers to improve crop yields and protect crops.
Agricultural Cultivation of various crops, including Grade A Hass avocados, garlic, onions,
Production sunflower oil, soybeans, and fresh vegetables.
Livestock and Meat Involvement in the production and export of premium frozen meats, ensuring
Processing high-quality standards in processing and packaging.
Exporting agricultural products such as crops and meats to international markets,
Export Services
maintaining high-quality standards to meet global demand.
Sustainability Promoting sustainable farming practices with minimal environmental impact,
Practices ensuring long-term growth and environmental stewardship.
1
1.3 Sudafric’s Major Clients
The major clients of Sudafric Agriculture Ltd represent a diverse range of local and international
partners specializing in agricultural products and services.
Distributes
agrochemicals in Kenya, Agrochemical
1 Artal www.artal.net
Uganda, Tanzania, and products
Rwanda
Distributor of fresh
2 Twiga Fresh produce www.twigafoods.com
produce
Global agribusiness and Agricultural
3 Olam Agri www.olamgroup.com
supply chain operator products
Distribution of fertilizer
Tanzania
4 under the government Fertilizer www.kilimo.go.tz
(Government)
subsidy program
Supplier of timber
Northern Ireland
5 sourced from Tanzania Timber www.niccommodities.com
Commodities LLC
and DRC Congo
Northern Ireland Buyer of red onions
6 Red onions www.niccommodities.com
Commodities LLC from Tanzania
Nairobi-based buyer of
7 Saumu Centre Ltd Garlic www.saumu.co.ke
high-quality garlic
The major suppliers of Sudafric Agriculture Ltd are trusted partners providing high-quality
inputs, machinery, and resources to support sustainable agricultural operations.
Sudafric’s Suppliers
2
Sudafric’s Suppliers
The key competitors in crop and goat meat export include established agribusinesses and
exporters specializing in high-quality agricultural produce and livestock products for
international markets.
3
Sudafric’s Key Competitors
4
1.6 Management and Technical Team
The management and technical team of Sudafric Agriculture Ltd comprises experienced
professionals dedicated to driving innovation, sustainability, and operational excellence in
agriculture.
5
2.0 BUSINESS MODEL
Sudafric Agriculture Ltd. adopts a hybrid business model that integrates both internal
and external outgrower models to ensure a sustainable and scalable sunflower oil
processing venture. This approach enhances supply chain efficiency by leveraging
contracted farmers within its 5,000-acre farming scheme (internal outgrowers) while also
engaging medium and large-scale farmers outside the scheme (external outgrowers) to
expand production capacity and secure a consistent supply of sunflower seeds. By
combining these two models, Sudafric is expected to achieve greater production volumes,
risk diversification, and increased farmer participation, strengthening its position in the
edible oil and animal feed market.
This model operates within the project's 5,000-acre farm, where sunflower cultivation is
directly managed and coordinated. The internal outgrower system ensures efficient land
utilization, centralized quality control, and the adoption of best agronomic practices. The
project management team oversees land preparation, seed distribution, planting
schedules, crop monitoring, and harvesting to maximize yields.
The external outgrower model involves contracting medium- and large-scale farmers
outside the 5,000-acre farm to cultivate sunflowers under agreed production guidelines.
These farmers receive structured support, including access to improved sunflower seeds,
technical training, and a guaranteed market for their produce. This model expands the
project’s production capacity, fosters inclusivity, and enhances rural economic
development by integrating independent farmers into the sunflower value chain.
6
The Sunflower Farming Project adopts a structured outgrower model that integrates both
internal and external outgrowers to ensure a sustainable and scalable sunflower
production system. The model components are outlined in the table.
These models work together to create a sustainable, scalable, and efficient sunflower
production and processing ecosystem: The Outgrower Model ensures that Sudafric can
scale sunflower production efficiently, working with a large number of farmers without
needing to own large tracts of land; The External Procurement Model ensures that
additional sunflower supply is available for continuous processing.
The roles and responsibilities of key stakeholders are shown in the table.
7
3.0 MARKET ANALYSIS
3.1 Top World Exporters of Crude Sunflower, Seed or Sufflower Oil (2019-2023)
Based on ITC calculations from UN COMTRADE and ITC statistics, the leading exporters of crude
sunflower-seed or sunflower oil from 2019 to 2023.
Rank Country 2019 (USD 2020 (USD 2021 (USD 2022 (USD 2023 (USD
'000) '000) '000) '000) '000)
1 Ukraine 3,798,216 4,702,869 5,655,090 4,658,314 4,363,651
2 Russian 1,732,076 1,819,475 2,431,389 3,128,496 3,225,125
Federation
3 Bulgaria 239,418 377,371 673,649 1,406,685 713,935
4 Argentina 332,531 229,874 648,769 710,109 652,938
5 Netherlands 388,789 484,778 570,160 699,888 615,929
6 Hungary 219,922 213,526 312,319 558,029 496,089
7 Türkiye 62,696 90,055 188,576 713,513 303,936
8 Romania 116,360 115,851 170,106 364,504 283,270
9 Kazakhstan 49,970 75,718 65,104 262,238 278,048
10 France 109,471 124,196 185,589 343,169 257,917
11 Poland 8,920 55,645 60,719 283,458 245,615
12 Moldova 67,216 90,861 104,784 321,910 236,707
13 Bolivia 28,576 59,201 94,067 122,225 90,131
14 Czech Republic 59,187 32,833 38,058 67,373 68,507
15 Serbia 86,181 72,124 98,058 77,805 66,441
Sources: ITC calculations based on UN COMTRADE and ITC statistics
Key Insights:
Ukraine and Russia dominate the global market, consistently holding the top two
positions over the years.
Bulgaria and Argentina have shown significant growth, particularly in 2022.
The Netherlands and Hungary remain strong exporters, highlighting the role of
European countries in the global sunflower oil trade.
Emerging Exporters: Countries like Kazakhstan and Romania have shown growth,
indicating their rising importance in the market.
India 2.5 - 3 million 25-30% Ukraine, Russia, High demand for cooking oil,
MT Argentina population size, and changing
dietary habits.
China 1.2 - 1.5 12-15% Ukraine, Russia, Increasing demand for edible oils,
million MT Argentina, growing population, and demand
Bulgaria from food industries.
8
Turkey 600,000 - 6-8% Ukraine, Russia, High consumption due to culinary
800,000 MT Moldova uses and increased demand in the
hospitality sector.
United Arab 350,000 - 4-5% Ukraine, Russia, Growing demand in the food service
Emirates 450,000 MT India industry, high consumption in the
Middle East.
Saudi Arabia 300,000 - 3-4% Ukraine, Russia, Rising demand for sunflower oil in
400,000 MT Argentina processed food and industrial use.
Pakistan 400,000 - 4-5% Ukraine, Russia, Significant demand for cooking oil in
500,000 MT Argentina households and food production.
Sunflower importation into Africa has witnessed a notable increase due to rising demand for
sunflower oil, animal feed, and other derivative products. While some African nations, including
Tanzania, Uganda, and South Africa, are sunflower producers, the local supply of sunflower oil
often remains insufficient to meet the growing demand. This has led to a reliance on imports,
particularly from key exporters such as Ukraine, Russia, and the European Union (European
Commission, 2023). The expansion of the edible oil market in Africa, especially sunflower oil, has
been driven by changing consumer preferences towards healthier oils. The table --- shows the
leading sunflower oil importing countries in Africa.
South Africa 200,000 - 25-30% Ukraine, Russia, Strong demand for sunflower oil in
300,000 MT Argentina food processing and consumption,
especially in urban areas.
9
Kenya 80,000 - 6-8% Ukraine, Russia, Growing demand due to urbanization
120,000 MT India and adoption of healthier oils for
cooking.
Tunisia 50,000 - 3-5% Ukraine, Russia, High demand for sunflower oil for
70,000 MT Argentina culinary and industrial purposes.
Côte d'Ivoire 40,000 - 3-4% Ukraine, Russia, Significant demand in the food
(Ivory Coast) 60,000 MT Argentina industry, especially for frying and oil-
based products.
Uganda 20,000 - 1-2% Ukraine, Russia, Demand for sunflower oil rising with
30,000 MT Argentina changing dietary habits in both urban
and rural populations.
Key Insights:
1. South Africa is the leading importer of sunflower oil in Africa, representing 25-30% of the
continent's total sunflower oil imports. The demand is high due to urbanization, the expansion of
the food processing industry, and a growing consumer base that prefers vegetable oils.
2. Egypt also imports a significant amount of sunflower oil, with 25-30% of the market share. The
large population and increased consumption of edible oils for domestic cooking and food
production contribute heavily to the demand.
3. Nigeria, Kenya, and Morocco are notable importers as well, with increasing demand for
sunflower oil driven by changing dietary habits and the rise of the middle class in these countries.
4. North African countries like Algeria and Tunisia are key importers, driven by population growth
and the expansion of the food industry.
West African nations, particularly Côte d'Ivoire, Ghana, and Uganda, are gradually increasing
their sunflower oil imports, largely due to urbanization and the demand for edible oils in the
hospitality sector.
The export of crude sunflower-seed or safflower oil from Tanzania has shown fluctuations over
the years, with different countries importing varying quantities. The total exported value globally
has generally increased, indicating growth in demand, particularly from key markets. The table
below shows a summary of List of importing markets for Crude sunflower-seed or safflower oil
exported by Tanzania.
10
List of importing markets for Crude sunflower-seed or safflower oil exported by Tanzania
The Tanzanian sunflower oil market is competitive, with Murzah Oil Mills Ltd leading in
workforce size, indicating a large-scale operation. Fidahussein And Company Ltd and
Jambo Oil Mills have a broad product range, suggesting market diversification. The
concentration of key players in Dar Es Salaam and Arusha highlights the importance of
infrastructure and logistics in the sector. As demand for sunflower oil grows, these
companies are likely to play a critical role in Tanzania’s edible oil industry.
11
3.4 Project Risks
12
3.5 Project Impact
Internal Outgrower External Outgrower Impact on the Entire
Impact Area Socio-Economic Impact
Farmers Farmers Community
$8M+ in annual revenue
25-40% higher income Local economy grows by 5-
generation, contributing to the Increased income by 40-
Economic Growth per acre compared to 7% annually due to new
local, regional, and 60% annually.
previous crops. agricultural investments.
international economy.
Unemployment rate
6,000+ direct and indirect jobs 1,000+ farmers employed, 2,500+ external farmers
reduced; steady rural
Job Creation created across farming, 500+ indirect jobs in and 1,200+ rural indirect
employment leads to lower
logistics, and processing. supply chains. jobs created.
rural-to-urban migration.
$8M+ annual revenue from Increased cash flow
Annual income increases External farmers earn an
Income sunflower product sales, benefits local markets,
from $1,500 to $3,000 per average of $2,500 per
Generation boosting cash flow to local supporting regional
hectare. hectare.
markets and businesses. economic development.
Access to both local and
75% of external High-quality, locally
international markets, 90% of internal
outgrowers gain new produced sunflower oil
Market Access expanding the reach of outgrowers secure direct
buyers through project available at competitive
sunflower oil to Asia, Europe, market contracts.
partnerships. prices in global markets.
and the Middle East.
30% increase in 20-30% reduction in
$3M+ investment in roads, Improved roads, water
Infrastructure productivity due to post-harvest losses
storage, irrigation systems, systems, and electricity
Development improved irrigation and through better supply
and processing facilities. benefiting all.
transport. chains.
100% of internal 20% increase in
Training 5,000+ farmers 80% of external farmers
Training & outgrowers receive productivity due to better
annually on modern farming trained and supported by
Capacity Building training in modern knowledge and skills
practices. the project.
farming techniques. region-wide.
Investment in modern Farmers adopt hybrid Improved irrigation and Region becomes a leader in
Technology
processing facilities with 95% sunflower seeds, boosting mechanization reduce modern sunflower farming
Adoption
efficiency. yield by 40%. labor costs by 30%. practices.
100% compliance with 70% of internal 60% of external Reduced deforestation and
Environmental
sustainable farming practices outgrowers practice outgrowers use eco- improved sustainability
Sustainability
and eco-friendly methods. organic farming methods. friendly practices. practices across the region.
60,000 MT of heart-healthy Farmers and their External farmers benefit Community experiences
Health & sunflower oil produced families have access to from access to healthier better public health
Nutrition annually, improving health healthier oils, leading to oils, improving quality of outcomes due to improved
outcomes. better dietary options. life. nutrition.
Internal outgrowers External communities
15% reduction in rural Reduced rural-to-urban
experience financial enjoy stability through
Social Stability poverty, promoting financial migration as rural
stability and improved steady contracts and
stability. opportunities improve.
livelihoods. higher income.
$500K annually for Internal outgrowers
Cultural & External outgrowers Strengthened community
community programs, participate in community-
Community engage in joint initiatives, ties and long-term social
cooperatives, and educational driven projects and
Engagement fostering regional unity. cooperation.
initiatives. initiatives.
40% of all farming
Female outgrowers will At least 30% of external Female empowerment will
opportunities and leadership
receive equal training, outgrowers will be be emphasized through
Gender Equity positions in processing
market access, and women, with a focus on gender-sensitive policies
facilities will be allocated to
opportunities. women’s leadership. promoting equality.
women.
Ensuring marginalized groups Women and youth-led Disabled farmers are Commitment to social
Social Inclusion & (youth, women, people with cooperatives receive included, ensuring inclusion, focusing on
Equity disabilities) have access to job support to boost their equitable access to empowering marginalized
opportunities. output and participation. resources. groups.
In conclusion, the sunflower project presents a transformative opportunity for both internal and
external outgrower farmers, driving significant socio-economic development in the local community
and beyond. With a focus on job creation, increased incomes, access to global markets, and
infrastructure development, the project will have a far-reaching impact on economic growth, social
stability, and environmental sustainability. By incorporating gender equity, social inclusion, and
capacity building, the project ensures that marginalized groups, particularly women and youth, are
actively engaged and empowered. With a solid foundation in modern technology, sustainable
practices, and training, this initiative not only promises to elevate the livelihoods of farmers but also
contributes to long-term, inclusive growth that benefits the entire region and expands Tanzanian
agricultural products onto the global stage.
13
4.0 PROJECT FINANCIAL AND INVESTMENT PLAN
For the Sunflower Project, Sudafric will adopt a Joint Venture (JV) model with Equity
Financing. JV will involve two or more parties coming together to undertake the
project.Each party is expected to contribute resources including capital, expertise, or
assets and share the financial and operational risks of the project.
Sudafric Agriculture Ltd. seeks equity investment to finance the development and
expansion of its sunflower oil processing facility. This model involves selling ownership
stakes in the processing operation to investors in exchange for funding. The investment
will support infrastructure, equipment, and working capital, ensuring the facility meets the
growing market demand for sunflower oil and animal feed.
The equity investment model is expected to provide a sustainable and scalable financing
approach for Sudafric Agriculture Ltd.’s sunflower oil processing facility. By securing
investor participation, the company can expand production, enhance efficiency, and
maximize profitability while ensuring a fair return on investment. This model fosters a
long-term partnership between Sudafric and investors, driving growth in the sunflower
value chain and contributing to food security and economic development.
14
Required Investment
Land Valuation
Land Value Per Acre: Estimated at $864 per acre, considering its agricultural utility and market
rates in the region.
Total Land Value: 5,000 acres × $864 per acre = $4,320,000
Funding Sources
15
4.3 Investment Cost Estimate
1 Disclaimer: This financial analysis is based on hypothetical assumptions, projected figures, and estimated
costs. The accuracy of the financial outcomes presented is subject to numerous variables, including but not
limited to changes in market conditions, revenue fluctuations, operational efficiency, and unforeseen economic
factors.Potential investors and stakeholders are advised to conduct their own due diligence.
16
5.2 Projected Revenues
Assumptions
3. Procurement Costs:
7. Market Destinations
17
Revenue Projection
Profit Margin
Assumptions
Investment Cost (Year 1 Only): $10,714,000 (Factory setup, machinery, initial working capital)
Annual Procurement Costs: $3,250,000
Annual Operational Costs (Excluding Procurement): $1,070,500
Total Annual Costs (Operations + Procurement): $4,320,500
Annual Revenues: $7,700,000
Tax Exemption: No taxes apply due to government incentives
Formula: Net Cash Flow = Revenue - (Investment Cost in Year 1 + Total Annual Costs)
Cumulative Cash Flow = Previous Year’s Cumulative Cash Flow + Net Cash Flow
18
10-Year Cash Flow Projection2
Year Investment ($) Revenue ($) Total Annual Costs ($) Net Cash Flow ($) Cumulative Cash Flow ($)
1 10,714,000 7,700,000 4,320,500 -7,334,500 -7,334,500
2 0 7,700,000 4,320,500 3,379,500 -3,955,000
3 0 7,700,000 4,320,500 3,379,500 -575,500
4 0 7,700,000 4,320,500 3,379,500 2,804,000
5 0 7,700,000 4,320,500 3,379,500 6,183,500
6 0 7,700,000 4,320,500 3,379,500 9,563,000
7 0 7,700,000 4,320,500 3,379,500 12,942,500
8 0 7,700,000 4,320,500 3,379,500 16,322,000
9 0 7,700,000 4,320,500 3,379,500 19,701,500
10 0 7,700,000 4,320,500 3,379,500 23,081,000
Substituting values:
Project Feasibility
Strong Revenue Model – The project generates stable revenues of $7.7M annually from sunflower oil
and animal feed.
Fast Break-even Period – Due to increased production, the project reaches break-even in just 3.2
years, much earlier than previously estimated (6.1 years).
High Profitability – After breaking even, the project generates annual profits of $3.38M, leading to a
total profit of $23.08M by Year 10.
Recommendation
Given the strong financial outlook and early break-even point, the sunflower processing project is highly
viable. It is recommended to proceed with implementation, ensuring efficient procurement and operational
management for maximum profitability.
2 This cash flow projection does not factor in inflation, revenue growth rate, depreciation or potential cost fluctuations, which may impact
the actual financial performance over time. However, it provides a general view of cash flow projections, helping to estimate the timeline
for breakeven and long-term profitability under stable conditions.
19