Project name: Production of day-old-chicks and eggs at Mfumbaneni hatchery
Description: Mfumbaneni hatchery sits on 100 hectares of land. Basic infrastructure includes three (3) breeding houses, one (1) office block and staff houses housing 10 families. The existing equipment and hatchery however needs revamping.
Project site location: Mpisi farm. Mpisi is 20 kilometres from Manzini with a good road that would provide smooth access to export markets in South Africa, Mozambique and beyond.
Cost of investment: The investment is expected to cost a minimum of US$ 1.5 million, with a maximum 2 years implementation period. It would be fully operational by 2010.
Industry overview: There are about 800 poultry producers in the country, ranging from small-scale farmers to those supplying 20,000 chickens a week. An estimated 25,000 to 30,000 reaches processors
daily. The largest abattoir and processor supplies 60% of the local requirement. The government is encouraging self-sufficiency to cut back on imports from neighbouring countries, and has implemented legislation to protect producers from imported competition. Only under special circumstances are import permits currently granted. However, the majority of eggs for chick production, as well as day-old chicks are imported from South Africa. Thus, the government is encouraging private-sector investment in the sub-sector to make it self-sufficient, and at the same time improve the supply chain and provide jobs.
Incentives: Incentives for this opportunity exist but depend on the scale of the investment. These include financing.
Partners: Local private sector and foreign investors. The percentage of ownership depends on the form of partnership.
Payback period: 2 years
Rate of
return on capital: 29.6%
Market: There are 2 main companies working in the same field, but only (1) with a substantial investment.
For further information on Mfumbaneni Hatchery project contact the Swaziland Investment promotion Authority (SIPA).
Key contact: Zizwe Vilane
Director: Foreign Direct Investment
vilanez@sipa.org.sz
