Obtala Limited Update re Sustainable Agriculture in Tanzania (4015D)
April 26 2017 - 5:13AM
UK Regulatory
TIDMOBT
RNS Number : 4015D
Obtala Limited
26 April 2017
26 Apr 2017
Obtala Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Letter of Intent to Invest in Sustainable Agriculture in
Tanzania
Obtala Limited (AIM: OBT), the African focused agricultural and
forestry company, is pleased to announce that it has signed a
Letter of Intent expressing the Company's commitment to build
sustainable and inclusive business in Tanzania through investment
activities associated with the Grow Africa partnership(s) in
Sub-Saharan Africa.
The Grow Africa Partnership was founded jointly by the African
Union (AU), The New Partnership for Africa's Development (NEPAD)
and the World Economic Forum in 2011. Grow Africa works to increase
private sector investment in agriculture, and accelerate the
execution and impact of investment commitments. Our commitment is
to Grow Africa which is promoting multi-stakeholder collaboration
to advance private sector investment aligned to the Government of
Tanzania's agricultural development objectives, as well as the
Government of Tanzania's commitment to promote a business enabling
environment that provides confidence to both the domestic and
international private sector to achieve these objectives.
Obtala currently employs around 400 people and actively seeks
new partnerships to scale its operations through infrastructure
upgrades, extension of its farms and development of agreements with
surrounding farms. Intense planning is underway for several major
projects in Tanzania as the company transitions towards meaningful
production, and deployment of its substantial assets. Addressing
the issues of food security & nutrition, economic development
& social impact and environmental sustainability through waste
reduction will be priority.
Under the letter of intent, Obtala has conditionally committed
to investing USD 10 million over the coming five years in new
modular pack-house facility, housing of staff and training centers,
scaling plantation based activities and the development of an
outgrower programme, subject to sourcing of matched funding,
grants, preferential loans and equity from donors, development
finance institutions (DFIs) and impact investors.
To advance this commitment over the next 12 months, Obtala will
take the following actions:
-- Invest in the first stage of a modular packhouse facility to
meet increasing demand from local markets, Kenya and Middle
East.
-- Engage partners for co-financing further expansion of
packhouse, development of the outgrower scheme, staff housing and
training centres.
-- Identify local and regional partners for technical assistance
to identify and build capacity at local surrounding farms.
-- Collaboration with local and international Universities for
upskilling, training and development of farm managers and
development of a talent pipeline.
-- Engage local organizations to deliver community engagement activities (health & nutrition).
-- Further develop of national and international distribution networks.
Miles Pelham, Chairman of Obtala, commented:
"Obtala intends to progress our projects in Tanzania with the
collaboration and partnership of the Government of Tanzania. The
project is consistent with the investment priorities identified by
the country-led Comprehensive Africa Agriculture Development
Programme (CAADP) investment plans. In particular, this project
aims to contribute to Tanzania.
"We welcome the Government of Tanzania's intent to support this
investment with mechanisms for coordination with private sector,
farmers, and across Government entities, that are required for a
sound and sustainable policy, regulatory, administrative and
enabling environment. We further welcome development partners to
provide appropriate technical and financial support to accelerate
implementation, helping to build policy and provide funding or
grants, with the overall goal of facilitating private
investment.
"We at Obtala are committed to be part of the agricultural
transformation of Tanzania and look forward to building a long and
lasting relationship with the farmers, the government, the donors,
the private sector, and other players in Tanzania. Accordingly we
are pleased to submit this Letter of Intent to support and
accelerate the development of Tanzania's agriculture and to improve
the lives of Tanzania's farmers and citizens."
Obtala Limited
Miles Pelham - Chairman
Paul Dolan - CEO
www.obtala.com +44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
Peter Trevelyan-Clark / John Treacy +44 (0)20 7060 2220
Brandon Hill Capital (Broker)
Jonathan Evans +44 (0)20 3463 5000
This announcement contains information which was previously
inside information for the purposes of Article 7 of EU Regulation
596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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