Business Description

The current land owners have initiated a project to develop tourism accommodation for the medium budget tourist which will include additional tourist activities e.g. game drives, nature walks, visits to the Vingerklip etc.  The conceptual design, lodge location, style, layout and detail design were completed.  The capital required for construction was calculated and an implementation schedule compiled.  A comprehensive study was done on tourism and strategic partnerships formed with marketing and reservation companies.  A 6-year cashflow model for the tourism accommodation, wildlife ranch and domestic farming was developed with the proposed staffing requirements and services.  A business plan was compiled which include a SWOT analysis, marketing strategy, management plan and implementation plan.  To raise the capital required for the completion of this project, and to establish the Lodge, Farmland and Wildlife Ranch as a profitable combined business, the owners is offering a shareholding interest of 49% to selected investors.

The current shareholders of the company are prepared to offer 49% (490 of 1000) shares in the Holding company to prospective investors.  This will enable non-Namibian investors to also become part of the development (a company in Namibia need to be 51% Namibian owned if farmland is involved as an asset).

The development will rely on three business elements namely tourist accommodation and activities, wildlife ranching, and domestic stock farming.  The tourist accommodation and activity will provide the highest revenue and will be the main focus.  Visitors will be treated in a safari style lodge with accommodation in standalone chalets.  Guests will have the opportunity to experience game drives in open vehicles and guided bush walks, sharing close quarters with African wildlife.  Sunset drives and lookout points over the spectacular Ugab valley and famous Vingerklip will let tourist enjoy the breathtakingly beautiful landscape scenes associated with vast open spaces of Namibia.

The wildlife ranch needs to be managed to support the tourist activities but are also able to generate substantial revenue.  The game populations in the wildlife sanctuary will be sustainably managed by habitat balance and controlling numbers.  The intent is to allow numbers of current game species to increase and reinstate other species not currently in the sanctuary.  One mechanism to generate profit is by selling live animals on game auctions.  The trophy grade springbuck shows the greatest promise to present at game auctions in Namibia and South Africa.  Another way to utilize game species will be by harvesting animals for meat and skin.  Some of the game meat will be processed and served as part of the menu of the lodge restaurant.

The remaining areas outside the wildlife sanctuary (2 000 ha of the total 6 704 ha) will primarily be utilized for livestock farming.  All infrastructure like fencing, kraals, water supply and farm workers housing are available to farm with cattle, goats and sheep.  The strategy is to farm intensively with goats and sheep with breeding herds, but speculate with cattle if prices look promising and enough grazing is available.  Mutton and beef will also make out some of the meat utilized in the lodge restaurant.

The business is diversified by the three elements to lessens risks, but also to support each other and utilize the asset to its full potential.