PO Box 345, Mzuzu, Malawi chipungafarmsltd@gmail.com
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Investor Relations

Investment Opportunity

Chipunga Farms Limited presents a unique opportunity to invest in a 282-hectare greenfield coffee and macadamia plantation in Nkhata Bay District, Northern Malawi. The project requires an investment of approximately US$0.8 million to fund working capital needs and capital expenditure requirements.

The business is owned by the Diocese of Karonga and supported by Missio USA. The farm is managed and developed by trusted experts with deep knowledge of the local agricultural landscape.

US$0.8M
Investment Required
US$0.5M
Already Secured
2023
First Positive Cash Flow
2025
Coffee Full Capacity
Investment Overview

Financial Summary (2024 - 2032)

All figures in US Dollars

2024 2025 2026 2027 2028 2029 2030 2031 2032
Revenue 159,551 253,544 306,301 464,026 607,530 836,780 980,820 1,203,525 1,287,202
Net Profit 258,709 359,298 413,774 603,182 425,259 629,160 341,786 460,461 518,444
Total Shareholder Funds 775,912 1,135,209 1,548,983 2,152,166 2,577,425 3,206,585 3,548,371 4,008,833 4,527,276
Closing Cash Balance 141,057 17,422 180,555 50,565 30,501 200,022 371,092 800,612 1,293,619

Coffee Gross Margins

Year Revenue (USD) Gross Profit (USD) Margin
202494,1771,9892%
2025165,86343,88526%
2026185,02022,69512%
2027301,75499,63133%
2028398,996158,41340%
2029577,010292,59851%
2030651,119353,42654%
2031792,892483,91361%
2032802,256490,90161%

Macadamia Gross Margins

Year Revenue (USD) Gross Profit (USD) Margin
202453,04629,93356%
202577,36954,25670%
2026108,17079,82374%
2027148,339113,77177%
2028189,182144,84477%
2029240,031195,66582%
2030309,567262,45385%
2031390,096341,38888%
2032463,999413,62789%

Key Milestones

2023

First positive annual cash flow expected

2024

Macadamia full capacity reached

2025

Coffee full capacity reached. Return anticipated on cumulative basis

Coffee Production

Current Planted Area: 40.81 hectares

Target Area: 130 hectares

Full Capacity Year: 2025

Harvested Cherry (Tons) by 2032: 846 tons

Average Price: USD 5.0 per kg for green bean

Gross Margin by 2032: 61%

Macadamia Production

Current Planted Area: 31.93 hectares

Target Area: 70.93 hectares

Full Capacity Year: 2024

Export Volume by 2032: 165 tons

Average Kernel Price: USD 8.30 per kg (weighted average)

Gross Margin by 2032: 89%

SWOT Analysis

Strengths

  • Plenty of water available from Katumbuka river
  • Secure title to the land (99-year lease)
  • Large proportion of blocks already terraced
  • Established macadamia and coffee trees already on farm
  • Natural shade tree coverage for coffee farming
  • Nearness to other commercial producers for knowledge transfer
  • Farm manager and staff reside on the farm

Weaknesses

  • Some areas of the farm not yet cleared for farming
  • Sloppy terrain increases maintenance costs
  • Insufficient nursery capacity for seedling demand
  • No electrical power on the farm
  • Significant skills gap in financial management
  • Insufficient financial resources for expansion

Opportunities

  • Attractive global prices for coffee
  • Elaborate transport system for domestic and export markets
  • Tropical climate ideal for macadamia and coffee
  • Stable government in Malawi
  • Growing demand for specialty African coffee
  • Malawi is 4th largest macadamia exporter worldwide

Threats

  • Global fluctuations of coffee and macadamia prices
  • Soaring global inflation increasing production costs
  • Climate change affecting farming operations
  • Reported reduction in annual rainfall
  • Lack of quality extension services
  • Currency devaluation risks

Risk Mitigation Strategies

Environmental Risk

56 hectares of natural woodlands remain untouched to protect water sources. Existing trees provide shade for coffee plantations and enable Rainforest Alliance certification.

Low Yields

Installation of irrigation system ensures constant water supply. High level agronomic care given to planted crops. Drip irrigation planned for both coffee and macadamia.

Pests and Diseases

Good farm management through variety choice, shade management, selective pesticide use, and plant nutrition. Constant monitoring and training of field workers.

Theft and Damage

Management ensures mature nuts are collected immediately when they fall to the ground. Perimeter fence planned for security.

Interested in Investing?

A detailed financial plan is available upon request. Please contact us for the complete prospectus, financial model, and investment memorandum.

Request Information

CHIPUNGAFARMSLTD

Chipunga Farms are located in Nkhata Bay, in the cool highlands of Viphya Plateau in Northern Malawi.

Address

PO Box 345, Mzuzu, Malawi

+265 991 239 684 / +265 883 182 877

chipungafarmsltd@gmail.com

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