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AFRICABIZ VOL 1- ISSUE : 20
DECEMBER 15, 2000 - JANUARY 14, 2001
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Editor: Dr. Bienvenu-Magloire Quenum
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A WORD FROM THE EDITOR


Dear visitor and international investor,


We warmly welcome you, if this is your first visit to Africabiz Online - The ultimate newsletter on trading and investing in 49 sub-Saharan African countries. If you are a regular and faithful reader, welcome back.
If you are a regular and faithful reader, welcome back.

ZIMBABWE' SCENARIO WON'T HAPPEN IN SOUTH AFRICA

On November 10, 2000, this writer attended a workshop at Durban, Clairwood Race Course's compound, Kwazulu-Natal - dedicated to discussing the principles and guiding policy of South Africa's planned Land Reform, to correct the misdeeds and injustice of Land distribution which are the consequences of 1936-Development Trust and Act

The workshop was organized by UPHAPHE EMPOWERMENT TRUST, sponsored by South-Africa's government; co-chaired by the reigning Zulu's king, His Majesty King Goodwill Zwelithini and vice-president Jacob Zuma - in charge of Rural Development in South Africa's national government.

Mr. Michael Mabuyakhulu, Kwazulu-Natal's Ministry of Economic Development and Tourism, expertly coordinated the several interventions from the representatives of South African development agencies, financing organizations, governmental departments and institutions.

UPHAPHE EMPOWERMENT TRUST is a private, non-governmental body, incorporating in excess of 300 Cooperatives busy in the farming and related agribusiness industries. Its aim is to ensure that emerging black farmers are properly empowered, adequately represented, and accommodated within organized agriculture, that is currently white dominated.

Deputy President, Jacob Zuma, exposed SA-Government's Integrated Sustainable Rural Development Strategy.

He stressed the point that Black Emerging farmers have been identified as being important stakeholders for the strategy to be a success; as they are involved in multidisciplinary sectors of development in rural areas.

He praised the initiative devised by UPHAPHE EMPOWERMENT TRUST'S founders and particularly the passion, dedication and vision of its chairman, Dr. Ephraim Zungu who he compared to the emblematic figure of late Albert John Luthuli. Click here for more. Please read this delivery in particular.

After Deputy President's speech, Dr. Ephraim Zungu took the floor. He exposed to the assembly the reasons why UPHAPHE EMPOWERMENT TRUST had been established; the challenges facing developing black farmers; the current state of the organization and a global overview of Uphaphe's projects - including the purchase of 46 farms representing 56,000 hectares of highly productive and adjoining farm land from the most successful white farmers in Northern Natal; on a "willing buyer-willing seller basis. The BLUE GOLD opportunity here outlined is also part of Uphaphe' scheme.

UPHAPHE EMPOWERMENT TRUST is not only enrolling more and more black farmers and their organizations.

It has also succeeded in convincing established white farmers and white agribusinessmen to support the scheme in providing structured and effective training programs. (IThis writer - invited to the workshop by Dr. Zungu - met some of these white agribusiness entrepreneurs; during a round-trip of 1,450 km - from November 12 to November 15, 2000 - in the heartland of Kwazulu-Natal)

Several South African governmental departments and institutions, which attended the workshop, are now busy working on ways and means to assisting Uphaphe successfully implement its goals.

Deputy President Jacob Zuma announced that similar workshops are planned, in the coming year, for other eight South Africa's provinces .

The forthcoming Rural Development roadshow will provide an excellent opportunity for government to draw on the real life experiences of the people on the ground; and be in a better position to address their needs. Jacob Zuma believes that, for sustainable development to take place in South Africa, particularly in rural areas, it must be people driven, with government playing a supporting role.

Land reform - as devised by South Africa's Ministry for Agriculture and Land Affairs - encompasses three distinct components; namely the restitution, tenure reform, and the redistribution program.

The redistribution program, in turn, has different components, or subprograms:

      • Agricultural Development - to make land available to people for agricultural purposes.
      • Settlement - to provide people land for settlement purposes.
      • Nonagricultural enterprises - to provide people land for nonagricultural enterprises, for example eco-tourism projects.

The purpose of this brief delivery is to announce to the international community of investors that the strategic land reform in the making by South Africa's government and private entrepreneurs is completely different from the erratic and chaotic land reform undertaken by Robert Mugabe in Zimbabwe.

This wise land reform policy shall undoubtedly preserve social peace in South Africa, avoid unnecessary economic disruption and reinforce international investors' confidence for the South African market.

The success of the land reform would help South Africa develop a stronger economy, steadily bridging the gap of standard of living between South Africa's white and black citizens.

A politically stable and prosperous South Africa is an asset for African Renaissance.

Click here for an update to this delivery, titled, "Long Awaited South Africa's land Reform finally on track".

And click here to review why the downgrade of South Africa's economy to junk by western countries controlled credit rating agencies, is not a catastrophe - because South African authorities would have the opportunity to request for alternative sources to finance the Land reform.

Many thanks for dropping by and see you here next month.

Dr. B.M. Quenum
Editor of AFRICABIZ

Contact Dr. Bienvenu-Magloire Quenum

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BUSINESS OPPORTUNITIES IN AFRICA


FREEZE-DRIED PAPAIN PRODUCTION PLANT


On the promotion board, this month, we have another "niche" operation: FREEZE-DRIED PAPAIN PRODUCTION. Click here to view last month opportunity.

WHAT IS PAPAIN?

Papain is a natural proteolytic enzyme extracted from immature papaya fruit's latex.

The main characteristics of the product are:

      • Its proteolytic activity; measured in International Unit (I.U)
      • Its bacteriological purity
      • Its solubility
      • Its stability

The highest the above mentioned criteria, the better for use in advance technology industry such as pharmaceutical (medication to facilitate digestion; reagent for antibiotics preparation; manufacture of vaccines; component of medication to treat slipped dorsal disks. Etc.); and in cosmetics.

Lower quality product are used in food industry (brewing and meat "tendering"; baby food manufacturing; manufacturing of proteins for human consumption and animal feed. Etc.)

Global world production is in the range of 900 metric tons / year - all grades / qualities included. There is currently a gap between demand and offer in the range of 100 metric tons per year for high grade / quality freeze-dried papain.

PLANT TO PRODUCE ONE THIRD OF MISSING DEMAND

To bridge the above mentioned demand / offer gap, there is an opportunity to establish an operation to producing 35 metric tons of high grad freeze-dried papain.

In table below are summarized investment fundamentals:

Plantation of Papaya
260 to 400 hectares. 1,500 to 2,300 trees per hectare
Investment as below outlined
Workforce on plantation - 400 to 650 workmen for latex collection
Plant management: approximately 40 skilled technicians and engineers
1- Initial survey
Construction/
2- Setup of plant
3- Plantation setup
4- Staff training
5- Technology transfer + Startup Assistance. Etc.
Total investment
US $
8,000,000
Production full capacity
35 -38 metric tons of freeze-dried papain
Minimum activity guaranteed: 1,600 IU/mg
Possible: 3,200 IU/mg
 
Average selling price: US $ per metric ton
190,000
Total revenue / per year at full capacity: US $
6,650,000
Pay-back period
4 to 5 years
 
R.O.I
40 to 50%
 

These fundamentals / Revenue and R.O.I are based on the main production of freeze dried papain. Here is exposed ancillary production (animal breeding) resulting from wastes.

This operation can be used as a central operation for the economic development of a country's region as here exposed. It is a perfect "Income Building Power" operation; labor intensive and foreign currency provider or saver.

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