AfriServ — Executive Summary

AfriServ seeks ZAR 2.0 billion to build a technology-enabled, cold-chain foodservice distribution platform across South Africa and Sub-Saharan Africa — a 26.4% equity IRR opportunity over a 7-year hold, scaling to ZAR 6.58 billion revenue by Year 5 at an 8.5% EBITDA margin and a 4.1× money multiple at exit.

Section 1 · Business Plan

Executive Summary

AfriServ Food Distribution Group (“AfriServ” or “the Company”) is a
large-scale, multi-temperature B2B foodservice distribution and supply
chain platform being launched to serve the hospitality, institutional,
retail and catering sectors across South Africa, with a programmed
expansion into Sub-Saharan Africa from Year 3. AfriServ is structured to
combine institutional procurement scale, modern cold-chain
infrastructure and a digital ordering layer in a region where supply
remains highly fragmented and cold-chain coverage is uneven.

The South African foodservice market — the addressable buying
universe for AfriServ’s primary customers — was valued at approximately
USD 10.16 billion in 2025 and is projected to reach USD 20.11 billion by
2030, a compound annual growth rate (CAGR) of 14.6% (Mordor
Intelligence, 2025). South Africa accounts for 32.4% of the broader
African foodservice market, which is itself forecast to grow from USD
75.92 billion in 2025 to over USD 102 billion by 2031. This expansion is
being driven by urbanisation, rising disposable incomes, the recovery of
tourism, the rapid build-out of QSR (quick-service restaurant) chains
and increasing chain-led penetration in markets such as Nigeria, Kenya
and Botswana.

1.1 Vision, Mission & Values

Vision	To become Africa’s leading institutional foodservice distribution platform, recognised for cold-chain reliability, supplier integrity and digital service excellence.
Mission	To deliver consistent, high-quality multi-category food and non-food products to professional kitchens across Africa through a best-in-class procurement, logistics and technology network.
Values	Operational excellence · entrepreneurial accountability · ethical sourcing · long-term customer partnership · disciplined capital allocation.

1.2 Business Snapshot

Item	Description
Legal form	Private holding company; will incorporate operating subsidiaries by region
Sector	Foodservice & institutional distribution (B2B)
Headquarters	Johannesburg, South Africa (Group HQ + first DC)
Initial markets	Gauteng, Western Cape, KwaZulu-Natal
Customer segments	Hotels, QSR chains, FSR groups, catering, hospitals, schools, mining, retail
Business model	High-volume, low-margin, multi-temperature distribution + value-added services
Year 1 revenue	ZAR 685 million (Year-1 ramp); ZAR 6.58 bn by Year 5
Year 5 EBITDA	ZAR 559 million (8.5% EBITDA margin)
Capital required	ZAR 2.0 billion (target raise; mix of equity and senior debt)
Plan horizon	7 years; full P&L, balance sheet, cash flow modelled

1.3 Strategic Rationale

AfriServ is being built to fill three structural gaps in the South
African and broader African foodservice supply chain:

Cold-chain undersupply. Outside of Bidfood SA,
Vector Logistics and a handful of regional players, the cold-chain
distribution market is extremely fragmented. WHO and World Bank
assessments place SSA cold-chain penetration at less than 30% of the
level seen in OECD markets, creating high spoilage rates (up to 30–40%
on perishables in some categories) and inflating end-customer
pricing.
Procurement fragmentation. Most independent
restaurants, mid-sized hotel groups and institutional kitchens still buy
from 5–12 separate suppliers. Customer interviews consistently identify
“consolidation under one accountable distributor” as the single largest
unmet need.
Digital lag. Digital ordering, integrated
inventory and real-time delivery tracking — table stakes in OECD
foodservice — are still nascent in South Africa. The first mover with a
credible B2B e-commerce stack can capture disproportionate share among
small and mid-market accounts.

1.4 Industry Benchmark

Bid Corporation Limited (“Bidcorp”), the JSE-listed parent of
Bidfood, is the global proof-of-concept for the AfriServ thesis. Bidcorp
generated approximately ZAR 240 billion in annual revenue in FY2024,
operates across five continents, and has compounded shareholder returns
at over 12% per annum since separating from Bidvest in 2016. Its model
rests on three pillars that AfriServ replicates at SSA scale: (i)
decentralised, entrepreneurial business units with full P&L
accountability; (ii) procurement scale that delivers 200–400 basis
points of margin advantage versus sub-scale competitors; and (iii)
disciplined working capital management generating cash conversion above
90% of EBITDA.

1.5 Financial Summary

Figure 1.

Figure 1. Projected revenue, gross profit and EBITDA, ZAR millions, Years 1–7.

ZAR millions	Y1	Y2	Y3	Y4	Y5	Y7
Revenue	685	1,480	2,680	4,380	6,580	11,420
Gross profit	123	281	549	941	1,480	2,741
EBITDA	(32)	67	188	350	559	1,130
EBITDA margin %	(4.7%)	4.5%	7.0%	8.0%	8.5%	9.9%
Net profit (after tax)	(67)	(22)	59	175	336	799
Net cash from ops	(85)	15	142	275	356	912

AfriServ achieves EBITDA break-even mid-Year 2 and net-profit
break-even in Year 3. By Year 5, the business is generating ZAR 559
million of EBITDA and ZAR 356 million of free cash from operations, with
a return on invested capital (ROIC) crossing 18%.

1.6 Capital Ask

AfriServ is seeking ZAR 2.0 billion of capital, structured as a blend
of growth equity, senior secured debt and asset-backed facilities to
optimise weighted-average cost of capital. The use of funds is allocated
as follows: warehousing and cold storage (40%), refrigerated fleet
(20%), working capital (25%), technology and ERP (10%), and an M&A
reserve (5%). Indicative pro-forma post-raise capital structure assumes
60% equity / 40% debt.

Figure 2.

Figure 2. Use of proceeds — ZAR 2.0 bn capital raise.

1.7 Investor Returns

Base-case modelling, summarised in Section 16, indicates a projected
equity IRR of 26.4% over a 7-year hold and a money-multiple of 4.1x at
exit, assuming a Year-7 exit at 9.0x EBITDA. The exit case is grounded
in actual recent transaction multiples for SSA distribution and
logistics businesses (range 7.5x–11.0x EBITDA).

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of AfriServ (Pty) Ltd.