KarooPrime Capretto Business Plan › Section 14 › Funding Strategy

The Phase-1 capital requirement of R185 million is structured as a
blended package that balances cost of capital, risk-sharing and
development alignment. The blend lowers the weighted cost of capital,
signals public-sector confidence, and positions the concessional tranche
to crowd in commercial debt and equity.

14.1 Sources and uses

Table 14.1 — Phase-1 funding sources.

Figure 14.1

14.2 Capital deployment and phasing

Phase-1 funds are deployed across the abattoir, feedlot, cold-chain
fleet, aggregation centres, technology platform and working capital, as
detailed in Section 8. Expansion capital of R45m (Year 3) and R50m (Year
5) is funded through additional senior tranches and internally generated
cash, avoiding further equity dilution while leverage is comfortably
serviceable.

Figure 14.2

14.3 Use of the concessional tranche

The R18.5m concessional / blended-grant component is earmarked for
the explicitly developmental elements of the build — farmer-development
infrastructure, training programmes and the aggregation network — where
the social return justifies below-market capital. This ring-fencing
gives development-finance partners a clear line of sight from their
funding to measurable impact outcomes.

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