KarooPrime Capretto — Executive Summary

KarooPrime Capretto seeks a Phase-1 capital raise of R185 million to build a vertically-integrated goat-meat production, processing and export enterprise in South Africa — commissioning its first integrated processing hub, feedlot and cold chain at a steady-state throughput of 400,000 goats per year, delivering a 35.5% base-case project IRR, a 48.0% equity IRR, an NPV of R367 million at a 15.5% WACC and a 5.8-year capital payback.

Section 1 · Business Plan

Executive Summary

KarooPrime Capretto (Pty) Ltd is a vertically
integrated goat-meat (chevon) enterprise being established to
consolidate South Africa’s fragmented, predominantly informal goat value
chain into a commercially scaled, export-capable platform. The Company
will own and operate a Halaal-certified abattoir and processing plant, a
commercial feedlot, a refrigerated logistics fleet and a network of
rural aggregation centres, linked to thousands of contracted communal
and emerging farmers through a hub-and-spoke aggregation model inspired
by the proven Kalahari Kid Corporation approach.

The Company is seeking a Phase-1 capital raise of R185 million to
commission its first integrated processing hub, establish its feedlot
and cold-chain capability, deploy a livestock traceability platform, and
build out the contract-farmer aggregation network. The plan covers a
seven-year horizon over which throughput scales from 40,000 head in Year
1 to 400,000 head per annum at steady state, and revenue grows from R95
million to R1.15 billion.

1.1 The opportunity

South Africa hosts an estimated 7.8 million goats, yet roughly
three-quarters of the national herd sits in the informal and communal
sector, largely outside the formal meat economy. Goat meat is culturally
significant and in structural demand for traditional, religious and
cultural purposes, but domestic formal supply is declining and the
country runs a persistent goat-meat consumption deficit. Simultaneously,
global import demand — concentrated in the Gulf, the United States and
East Asia — remains strong and Halaal-compliant chevon attracts premium
pricing.

Why now

Structural under-commercialisation: ~6 million of South Africa’s
goats are held informally, representing a large, low-cost supply pool
that a formal aggregator can mobilise. Declining formal supply against firm demand creates pricing headroom
for an organised, traceable, Halaal-certified producer. Proven template: the state-backed Kalahari Kid Corporation has
already demonstrated contract-grower aggregation, export-approved
slaughter and retail listings — KarooPrime productises and scales that
model commercially. Development-finance alignment: rural job creation, smallholder
inclusion and export earnings map directly onto DFI and blended-finance
mandates.

1.2 Business model in brief

KarooPrime captures margin across four reinforcing revenue streams:
(i) carcass and primal sales into the domestic formal market; (ii)
branded, value-added retail chevon products; (iii) Halaal cold-chain
export cuts into the Gulf, West Africa and Asia; and (iv) by-products
including skins, offal and rendering. Vertical integration — from farmer
aggregation through feedlot finishing, slaughter, processing and
distribution — allows the Company to control quality, traceability and
cold-chain integrity while retaining margin that is currently dissipated
across informal intermediaries.

Figure 1.1

Figure 1.1 — Revenue diversifies across domestic carcass, value-added retail, export and by-product streams as the platform scales.

1.3 Headline financial summary

ZAR million	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
Revenue	95	185	310	488	720	933	1,150
EBITDA	11	24	45	78	130	177	230
EBITDA margin	12%	13%	14%	16%	18%	19%	20%
Net profit after tax	(12)	(0)	10	32	62	99	139
Closing cash	12	6	6	6	7	42	71

Table 1.1 — Seven-year financial summary (base case, ZAR
million). Year 1–2 reflect commissioning and ramp; profitability is
achieved from Year 3.

Figure 1.2

Figure 1.2 — Revenue trajectory and EBITDA margin progression (base case).

1.4 Returns and the ask

Metric	Base case	Downside scenario
Project IRR (7-year)	35.5%	19.8%
Equity IRR	48.0%	—
NPV @ 15.5% WACC	R367m	R61m
Phase-1 capital payback	5.8 years	—

Table 1.2 — Return metrics. The downside case stress-tests an
import-parity maize-price squeeze on feed costs and
realisation.

The ask: R185 million in Phase-1 funding, structured
as R74.0m ordinary equity (founders and a strategic investor), R92.5m
senior term debt (targeted at IDC / DBSA), and R18.5m concessional or
blended grant funding (DAFF / Jobs Fund). A R30m revolving credit
facility supports working-capital seasonality. Subsequent expansion
capital of R45m (Year 3) and R50m (Year 5) is funded through additional
term tranches and internally generated cash.

Figure 1.3

Figure 1.3 — Phase-1 funding structure (R185m).

1.5 Development impact

Beyond commercial returns, the platform is engineered for measurable
rural development. At steady state the business supports approximately
1,950 direct jobs, contracts around 10,000 smallholder and communal
farmers, and benefits an estimated 38,000 people across its rural supply
base — positioning KarooPrime as an investable instrument of inclusive
agro-industrialisation aligned with national agricultural master-plan
objectives.

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 KarooPrime Capretto (Pty) Ltd.