ABCD EXPORT CITY PROJECT

EXECUTIVE SUMMARY

BASIC BUSINESS PARTICULARS

ABCD Export City (Pty) Ltd is a duly incorporated company registered in Botswana. It is intended as a vehicle through which to introduce, implement and operate a project referred to as “Aqua and Agri-Based Community Development Export City (ABCD Export City) Project”.

The project involves construction of 2500 family housing units, each with an aquaculture unit capable of producing 100kg of fish and a hydroponic facility capable of producing 800/900kg of various vegetable every month. The set-up affords the family livelihoods, employment vocation as well as income generation for both the family and the project owners. The agricultural outputs are expected to be marketed locally and exported through external market links.

OPERATIONAL & MANAGEMENT STRUCTURE

The project is anchored on two major technologies: Backyard Applied Macrobiotic Module (BAMMTM), and Recirculation Biofloc Technology (REBIFTTM). The technology is IP-protected and owned by Spire Inc, a US based company. ABCD Export City (Pty) Ltd is a local company licensed by Spire to introduce the technology and undertake the project in Botswana.

ABCD Export City is led by a Core Team of four citizens of Botswana. They will be joined by staff from central and local government structures in Botswana and representatives of the community within the project locality to constitute a Steering Committee to guide and direct the project as it unfolds. External collaborators are sought to participate through various means, including equity participation, project funding, operational facilitation and management oversight.

BUSINESS FEASIBILITY AND JUSTIFICATION

As the local project sponsor, ABCD Export City has identified a suitable land on which to locate the project, being a 108Ha plot at Losilakgokong farming area, in close proximity to Molepolole, one of the biggest rural settlements in Botswana and less than 50km from Gaborone, the capital city of Botswana. The identification and securing of the plot (the project was specified to require a minimum 100Ha) is the most notable indication of its feasibility. The project is also made feasible and justified by a multitude of favourable political, economic, social, and technological factors, including:

 Botswana is socially and politically stable, has good governance and no major natural disasters, social strives, labour riots and civil unrests and business and enterprise are thus not prone to disruption;

 Botswana is economically stable, and has enjoyed decades of economic growth, low inflation rates, high capital investment, etc, accumulating credit worthiness and investor credibility;

Measures of Return/Capital Budgeting

 Project/Investment Cost $130mil

 Mostly capital: houses, infrastructure.

 Gross Income: $87mil, Repayment $27mil

 Return on Investment: less than 7 Years

 Complete unconditional handover 10yrs

 Benefits 5500 people, can be replicated

 Regionally, there is high trade potential since there are no foreign exchange controls and typically there is duty and quota free access and trade liberalisation in SADC;

 Market access is further supported by good road networks, telecom systems, infrastructure availability, decent standards of living, labour availability, all conducive to business and trade;

 From a commercial standpoint, Botswana’s food self-sufficiency is extremely low (less than 50% in most food commodities) especially in foods targeted by this project;

 The inability of Botswana to be food self-sufficient and secure stems from her harsh climatic conditions with 70% of the country arid and unproductive and proneness to drought. Botswana need innovative agricultural interventions which is what this project is about.

 The project focuses on commercial agriculture and employment creating opportunities, which remain the greatest challenges to the country despite the supportive government policies and the many efforts by government to lend a hand.

This project is not only justifiable and relevant for Botswana but the world at large. The current world population of 7.5billion is projected to reach 10billion by 2050, and with that two-thirds of the population will be in urban areas and 80% of food will be consumed in cities. The UN Food and Agricultural Organisation (FAO) predicts that the world will have to produce 60-80% more food to avoid global hunger. Technology and innovation are needed to make this possible, and an urban situated agricultural production method such as proposed in this project represents the future of the world. By embarking on this project, Botswana will be addressing its own food security challenges as well as contributing to addressing the large and growing global food demand.

The project is further justified by numerous socio-economic development and humanitarian benefits that are expected to accrue. These include, notably: Development of agriculture and improvement of food sufficiency and security; Export creation and import substitution or reduction; Employment creation and poverty eradication; Community development, citizen empowerment and skills development; Environmental protection and sustainable development, amongst many others.

FINANCIAL PERSPECTIVES

The project requires an investment (Project Cost) of US$ 130 million which shall be recouped in 7yrs inclusive of the first 24 months grace period, at the repayment rate of US$26 million per year. Most of the investment will go towards infrastructure development which will revert to the local partners after 10 years as a debt-free viable and sustainable undertaking. Apart from providing livelihoods and employment for 5500 people at a time, at its peak, it is expected to generate Gross Revenue of US$87 million from exports (US$ 13,5 million from fish and US$73.5 million from vegetables). The financial benefits will be shared by Spire and ABCD, and ABCD’s portion of returns will be shared with investment partners as would be agreed by the parties. ABCD is looking for investors and collaborators on this basis, as well as continuing benefits after the 10yr handover, and replication to other sites in Botswana and regionally.

6.1 RELEVANCE TO SOCIO-ECONOMIC DEVELOPMENT POLICIES

This project will go a long way in addressing critical socio-economic development aspirations, contained in national policy documents of any country in the region, such as:

 Promotion of agriculture and food production;

 Improvement of food self-sufficiency and security;

 Development of local production capacities;

 Economic diversification and creation of process industries;

 Export creation and import substitution or reduction;

 Community development and rural area development;

 Citizen empowerment, employment creation and skills development;

 Poverty eradication and wealth creation;

 Enterprise development and private sector creation;

 Technology application and innovation;

 Downstream beneficiation and enhancement of local supply chains (raw materials);

 Environmental protection and sustainable development;

 Foreign Direct Investment (FDI) and international collaborations;

 Regional and international competitiveness, and many others.

This project therefore addresses many government development strategies, plans, initiatives, policies and programmes geared towards the socio-economic development within the SADC nations and answers the aspirations, dreams and goals of many of the people of the region. In the case of Botswana, it is aligned with one of the tenets of Vision 2036, being the aspiration for Batswana to be a Prosperous, Productive and Innovative nation with adequate citizen engagement in enterprise.

6.2 RELEVANCE TO SUSTAINABLE DEVELOPMENT GOALS (SDGs)

At a broader level, the project is aligned with the stipulations of 17 of the Sustainable Development Goals (SDGs) set forth by the United Nations (UN). These are:

GOAL 1: No Poverty

GOAL 2: Zero Hunger

GOAL 3: Good Health and Well-being

GOAL 4: Quality Education

GOAL 5: Gender Equality

GOAL 6: Clean Water and Sanitation

GOAL 7: Affordable and Clean Energy

GOAL 8: Decent Work and Economic Growth

GOAL 9: Industry, Innovation and Infrastructure

GOAL 10: Reduced Inequality

GOAL 11: Sustainable Cities and Communities

GOAL 12: Responsible Consumption and Production

GOAL 13: Climate Action

GOAL 14: Life Below Water

GOAL 15: Life on Land

GOAL 16: Peace and Justice Strong Institutions

GOAL 17: Partnerships to achieve the Goal

This project is therefore relevant not only at national level but also meets international aspirations for inclusive, responsible, equitable, innovative and above all sustainable development.

6.3 COMMUNITY DEVELOPMENT & HUMANITARIAN VALUES

The project’s primary objective is community development as the name suggests. It is of humanitarian value in all respects. It aims to provide living quarters for 2,500 families or close relations within the selected part of the nation. It then provides employment for 2 adults in each family, thus employing 5,000 adults at a time, in most cases, equitably between male and female (can be husband and wife). It also employs a further 500 adults on the support services such as fish feed production, food processing and ancillary community services such as shops, schools, health posts, recreational facilities, etc. This is in addition to making healthy food supplies available to the community. The community development and humanitarian value can be summarised as follows:

With a progressive staff development and training program and policy, there will be skills impartation and transfer of best practice into the community. Non-residents will copy useful agricultural skills to apply in their own endeavours and residents can opt to leave the community and still continue using their skills wherever they go. There is also a plan to replicate the project in other areas, thus spreading the benefits to other parts of the country and into the region. The ultimate aim is to develop communities that are enterprising, fully economically engaged and prosperous whilst alleviating the growing food shortage across the world through beneficial export trade.