Montara Continental
Investment Summary
- Major and largest shareholder, with 60% stake in new East African renewable energy source farming opportunity
- Montara holds a 70% interest in a Tanzanian agriculture focused JV with a local farming company
- Montara with applications for forestry, agricultural and coal concession in Mozambique
Opportunity
- Cash generative business
- Low upfront capex
- Short lead in period before a positive revenue stream produced
- Strong government support
- Well established local business partners
- Strong potential to centralise through processing operations
- Value upgrading with by-product utilisation
- Socially responsible investment opportunity
Agriculture in Tanzania
- Agriculture accounts for 26.5% of the GDP
- Cultivated land only accounts for 10% of the total land area of Tanzania
- Food and cash crops account for 70% of rural incomes
- Agriculture at present dependent on hand tools (only 10% of operations use motorised power (tractors eg); 20% use draft animals; 70% manual)
- Recent economic reforms have accelerated economic growth but slow in agriculture sector.
Crops under Consideration: Groundnuts & Sunflower
- Oil extraction uses the same process - press and filter
- Both used in biodiesel production
- Both produce non-perishable products
- store and sell at best prices
- reduces losses during long transportation
- By-products enhance cash flow
- Neither need elaborate management practises
- Little irrigation required and grow well in hardy soils
- Nitrogen fixing - enhance the soil conditions
Crop Products and By-products
| Groundnuts | Groundnut oil Protein rich food source (& vitamins) Groundnut paste an important source of calories for small children Bio-mass cattle feedNitrogen (60kg/ha) back into soils |
| Sunflower | Sunflower oil Sunflower seeds Animal feed for the oilcake |
Growth Strategy
- Focus on groundnuts, sunflower & blackwood
- Increase land holding and partnership base
- Expand into neighbouring countries
- Expand to trading
- Establishing processing & milling operations
- Provide market access and improve sustainable farming practices for local farmers
- Introduce carbon credit concepts
- Acquisition and investment into operational projects