Title Go Africa · 28/08/2019 · North American markets for cashew & cocoa products (current)....
Transcript of Title Go Africa · 28/08/2019 · North American markets for cashew & cocoa products (current)....
Future: Seeking Investment for building and operating commodities processing facilities in Africa that serve local and global markets cost effectively, utilizing "First in Class” processes. Leveraging a backward integration strategy (Agri-tech).
Current: Selling Go Africa branded products in the USA on Amazon.com. Products launched between 2016 – 2018.
Go Africa LLC: U.S. Based Firm, Located in New York City. Founded in April 2014.
OUR FOCUS (Products & Market)
CASHEWS CACAO
COFFEE PEANUTS
Our Market Focus
• Go Africa Brand: Retail for
local & global markets
(B2C).
• Private Label: Production
of custom & specialized
products for local and
major partners (B2B).
• White Label: Commodities
produced, processed and
sold in bulk (B2B).
• Trading Portal: Allows for
the placement of large &
customized long-term
orders (B2B).
Go Africa LLC legal structure
Go Africa LLC
(USA based)
Go Africa LLC (GHANA)
foreign Subsidiary
GOAE Trading Limited
(NIGERIA) foreign subsidiary
THE PROBLEM / THE SOLUTION
THE PROBLEM : The cost of getting high quality commodities to the global market on a
consistent basis in a timely and efficient manner (too many middlemen & touchpoints).
THE SOLUTION : produce locally and sell direct (B2B & B2C)
• Efficient Production & delivery to market• Reduced supply chain cost• Savings of up to 40% from current market prices• Provides economies of scale and lower costs for Go Africa branded products
Cashews (Africa)
Processing
(Asia)
Processing & finishing (USA or Europe)
Buyer (B2B)
Consumer (B2B)
Cacao (Africa)
Shipping & Middlemen (USA or Europe)
Processing (USA or Europe)
Buyer (B2B)
Consumer(B2B)
Cashews/Cacao
Processed & finished locally (Africa)
Buyer (B2B)
Consumer (B2B)
Costs Costs Costs
Costs Costs Costs
$2B
Potential size of
African market for
cashew & cocoa
products (current).
$19B
THE MARKET SIZE (CONSUMPTION) 2019 for cashews & cocoa
$21B
Size for Europe, Asia and
North American markets
for cashew & cocoa
products (current).
Size of Global
market for cashew
& cocoa products
(current). Sources: statista.com, World
bank
Blended projected growth is 4.1% CAGR
Key potential private label partners:• Nestle• Hersey• Mars Inc• Starbucks• Modelez
WHY AFRICA
We chose Africa because we are leveraging “First in Class” processes, technologies, and local government incentives to deliver lower cost products to the global market. Areas of focus for competitive advantage:
• Local government incentives: We are in receipt of exemptions and credits that allow us to operate at a distinct cost advantage.
• Will locate in Free Trade Zones in every African Country to optimize benefits and other incentives.
• Speed & agility of operations: We will utilize pre-built warehousing facilities in all locations to maximize investments, lower time to market and provide the ability to scale production quickly and efficiently.
• Location of 8 of the top 10 largest producers of Cashews in the world
• Location of the 1st & 2nd largest producers of Cacao in the world
COMPETIT IVE EDGE
Benefits / Advantages Go Africa LLC
Local Competitors
Global Competitors
PRE-EXISTING KEY RELATIONSHIPS (Govt., Cooperatives, etc.)
Special Government Incentives (free trade zone: tax, duties, customs, export and import exemptions)
LONG TERM, SECURED PRE-ORDERS for operational efficiency & profitability
FIRST IN CLASS PROCESSES (e-logistics, AI, cloud computing, agile manufacturing
Brand Recognition
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Currently local producers produce on speculation without buyers.
We will produce for confirmed, long-term orders and/or purchase on the open market to fulfill orders at the optimum price and maximize profits.
This will lead to our facilities operating at the most efficient levels possible.
This will yield a stable marketplace for buyers & sellers in the long-term.
BUSINESS MODEL ( Pr o c e s s i n t e g r a t i o n w i t h i n t h e s u p p l y c h a i n ) A g r i - t e c h
COMMODITIES PROCESSING FACLITIES IN
GHANA, NIGERA, AND IVORY
COAST(2019 - 2021)
TRADING BUSINESS &
ONLINE PORTAL
RETAIL GO AFRICA
BRAND (Local & Global)
WHOLESALE PURCHASING
FROM (COOPERATIVES /
FAMERS, PRODUCERS,
BROKERS)
FARMING (Full 360, provide
best practices)
PRIVATE LABEL & WHITE LABEL OPERATIONS
(B2B)
GO AFRICA RETAIL
EXPERIENCE FRANCHISE
CONCEPT 2021
• Leverage unique processes and existing technologies for competitive advantage:• E-logistics (shipping &
tracking) • E-learning (Real time
training for team members)
• Quality Assurance (On-site food & health testing labs)
• Cloud Computing (ERP, Accounting, CRM, online portal)
• Go Africa will scope customers requirements and provide a quote for requested services inclusive of the following:• Facilities & Logistics • Commodities, production costs and Labor• Distribution, Marketing, and other sales services
• Go Africa may optionally procure the following for the customer to support production of private label products • Lease, terms and space for segregated production per the customer requirements • Logistics services for shipping to global markets are provided
Pr ivate Labe l Of fer ing
Agility Africa (Ghana)Land area of 16 Hectares• Being developed in phases
Once fully developed, the ALP will have a total built-up-area of 100,000 sqm• Warehouses, assembly and light
manufacturing facilities, offices, retail units and open storage yards
• Security, • Logistics, Power, Water, waste
management • Internet • Medical clinic
•Constructed to date• 13,000+ sqm warehouse with 0ffice
space• 700 sqm standalone office / retail
space• Up to 10,000 sqm open yard space
Under Construction: Completion in 1Q2019• 18,000+ sqm warehousewith office space
(Macro projections)REVENUE PROJECTIONS
Go Africa LLC (all planned facilities)
2019 2020 2021 2022
Total Revenues4,622,727.50 16,178,227.90 38,516,450.90 85,838,083.50
Projected Growth 250% 138% 123%
Total Cost of Goods Sold(2,260,731.1) (7,727,084.5) (22,321,502.9) (48,100,104.1)
Margin 49% 48% 58% 56%
Total Operating Expenses(990,747.0) (1,451,610.7) (1,879,103.1) (2,833,830.5)
EBITDA1,534,181.3 7,639,828.3 15,433,504.2 36,976,535.5
Margin 33% 47% 40% 43%
Interest Expense5,859.0 (114,561.5) (154,089.6) (217,741.5)
Net Income1,376,284.0 6,901,091.1 14,183,437.1 34,717,045.6
Margin 30% 43% 37% 40%
Strategies for growth:
• Leverage production
facilities to fulfill Go
Africa branded
orders for all
distribution channels
(internet, direct,
local & global
markets)
• Expand and grow
private label
operations (B2B).
• Fulfill long-term
contracts and bulk
orders (B2B).
TARGETED PROFITABIL ITY & INVESTMENT RAISE
Entrance Assumptions
Exit Performance
• $2.251 million initial investment opportunity for 5% stake (Stock, Note or Convertible note).
• Capital could be easily withdrawn due to highly liquid commodities.
Total investor payback in 3 years.• 10x EBITDA Multiple
at year 5 exit• IRR: 30% on Base case
(over 5 years)
Return Sensitivities
• Returns are durable under stress.
• Financial partners/insurers could readily collateralize commodities.
• Business performance based on forecasted projections. Assumption of 0% tax rates via government incentives.
RAISED TO DATE: 400K250K, African Development Bank, Agricultural Fast Track Grant (Nigerian Facility)
Raising: 2.251 Million (Ghana) 2.251 Million (Nigeria)
Current Valuation 30 Million
ROADMAP (2019 – 2020)
2019 Q4
2020 Q4
TARGET IS TO RAISE
USD 2.251m
Production facility in Ghana (GH)
Production facility inNigeria (NG)
Investment will be utilized for:
Facility Preparation: 450K(GH), 450K (NG)
Production Equipment: 1MM (GH), 1MM (NG)
Inventory Fulfilment: 250K(GH), 250K (NG)
Working Capital: 450K(GH), 450K (NG)
Sales & Marketing: 100K(GH), 100K (NG)
TARGET IS TO RAISE
USD 2.251m
ACHIEVE TWO WORKING FACILITIES FOR SUSTAINED
PRODUCT SUPPLY & ECONOMIES OF SCALE
BECOME THE LARGEST SUPPLIER FROM AFRICA IN THE PRODUCT CATEGORIES
Tract ion: Current Update –
(Bootst rapping Cont inues)
2019 (Jan –March) 2019 (April – June) 2019 (June – September)
• Received export permit From Ghana Export Authority.
• Began Investment funding Solicitation.
• Added members to the Executive Board.
• Opened Dubai Office (for increased access to customers, incentives & investors).
• Awarded grant of 250K from the African Development Bank for Nigerian facility.
• Opened corporate offices in Nigeria & Ghana (per exemption, legal, sales, and compliance requirements).
• Participating in startup accelerators.• Newchip (USA)• Seedstars (Nigeria)
• Opened credit facilities with Ecobank & Barclays bank (Ghana).
• Received Ghana Free Zone Authority (GFZA) approval.
• Received credit insurance approval for international customers from Euler Hermes.
• Filed Reg D form with SEC.
LEADERSHIP & CORE MANAGEMENT TEAM (U . S . B a s ed Tea m )
DR. DENNIE M. BEACH
Founder, President
PhD Public Policy,
Masters from NYU, 22 Years in tech (Microsoft,
IBM, Dell). Global sales &
management
experience.
LOSSENI KONESVP Managing Director (Sales)
24 years of experience in commodities
sales & trading. Extended tenure with KPMG and Ernst & Young in
Europe
DR. SAMUEL JONES
Co-Founder, Chairman
MD, Stanford Grad, 20 years of
experience in health & hygiene
operations
DR. ERIC FOUHCTO,
PhD in Computer
Science from Virginia Tech. 5
years of experience in AI,
mobile computing &
workflow processes
RICHARD IYASSERE
VP operations B.S. from CUNY in environmental
safety & operations. 20
years experience in engineering,
safety operations and
management
The management team has a over 80 years of cumulative experience in agriculture, manufacturing, commodities trading, health, education & technology. Extended team is fluent in over 10 languages.
IBRAHIMA SOUARE
VP Budgeting Forecasting MBA,
from CUNY10 years
experience in SMB deal
structuring & finance
LEADERSHIP & CORE MANAGEMENT TEAM (Africa & Middle east)
IBRAHIMA CISSE
VP, Communications (Ivory Coast) 25
years of operational
experience in life sciences. Fluent
in English, French,
Mandingo, Mandinka, Wolof
& Jola-Fony
IDRISSU ABDUL MAJEED
SVP, Field Operations and
Production (Ghana) 10
years of agri-business banking
(Ecobank) experience.
Strong relationships
with Cooperatives & local officials.
DR. CHEIKH TRAORE
President GOAE Trading Ltd.
(Nigeria) 20 years of experience in
health & organizational
management with United Nations agencies. Fellow
of the Royal Society of Public Health (United
Kingdom)
HARUNA MUSAH
CFO (UAE) over 10
years experience in investment
management. Member certified
Management Accountants - USA (Abu
Dhabi Chapter)
LINCOLN OSHO
SAO GOAE Trading Limited
(Nigeria) 8 years
experience Management & Admin. M.Sc.
Population Geography from the
University of Lagos.
Proficiency Certificate in Management
SETH MENSHA
SVP Operations (Ghana Facility)
B.S. Environmental Engineering (CUNY) 12 years of
experience in operational
management, industrial
hygienist/Quality Control.
CONTACT
GO AFRICA LLC
GHANA
Phone: + 233 0302633259Address: Movenpick, Presidential Floor Accra Ghana, Mövenpick Ambassador Hotel, Independence Avenue, Ridge, Accra, Ghana
NIGERIA
Phone:+234 014489282Address: Mulliner Towers, 7th floor, 39 Alfred Rewane Road Ikoyi, Lagos, Nigeria
UNITED ARAB EMIRATES
Phone: +971 4 444 9460 Address: Level 14, Boulevard Plaza Tower 1, Sheikh Mohammed Bin Rashid Boulevard Downtown Dubai, United Arab Emirates
USA
Phone: 1-646-838-1330Address: 101 Avenue of the Americas, 9th Floor, New York, 10013E: [email protected]