Project: Strategic partnerships for increasing dairy (milk) production and related products.
Descrpition: Swaziland’s dairy sub-sector is still an infant industry producing 8 million litres of milk annually. Milk as a source of protein ranks second to beef and competes closely with poultry. However, the increase in the cost of beef and poultry in recent years has raised the demand for milk tremendously to 56 million litres. 48 million litres are currently imported. The Swaziland Dairy Board (SDA) is therefore seeking investors to partner in a milk production project to grow the industry.The project Payback period is a minimum of 5 years while the rate of return on capital is expected to be 25%. Potential investors have access to business plans and industry strategic plans.
Project location: Manzini region. The area has vast land and plenty of water, excellent climatic conditions, and
is near major centers.
Existing infrastructure
• Land - 600 hectares
• Electricity - 3 phase
• Water – Adequate. A borehole option is also available
Investment Cost: Minimum $5million
Implementation period: 1-2 years
Operational date: at the end of year 1
Benefits to the pomoter
• Import substitution
• Potential for exporting extra production, and investing in a Ultra Heat Treated (UHT ) plant
• Providing employment and foreign currency
Market size
Local production: 8 million litres
Local demand: 56 million litres
Imports: 48 million litres
Local market
There are 6 companies with businesses in the diary sub-sector, but only one (1) with a substantial investment.
The
government is providing incentives which include a 10% corporate tax, duty free importation of agricultrual equipment and related goods. Investors also have access to local funding.
Partners:
The Swaziland Dairy Board (SDA)is seeking both private sector and FDI investors.
Coordinating entities: SDB and Swaziland Investment Promotion Agency (SIPA)
For further information this investment contact SIPA
Key person: Zizwe Vilane
Director: Foreign Direct Investment
e-mail: vilanez@sipa.org.sz
