Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current)....

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Future: Seeking Investment for building and operating commodities processing facilities in Africa that serve local and global markets cost effectively, utilizing "First in Class” processes. Leveraging a backward integration strategy (Agri-tech). Current: Selling Go Africa branded products in the USA on Amazon.com. Products launched between 2016 – 2018. Go Africa LLC: U.S. Based Firm, Located in New York City. Founded in April 2014.

Transcript of Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current)....

Page 1: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

Future: Seeking Investment for building and operating commodities processing facilities in Africa that serve local and global markets cost effectively, utilizing "First in Class” processes. Leveraging a backward integration strategy (Agri-tech).

Current: Selling Go Africa branded products in the USA on Amazon.com. Products launched between 2016 – 2018.

Go Africa LLC: U.S. Based Firm, Located in New York City. Founded in April 2014.

Page 2: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

OUR FOCUS (Products & Market)

CASHEWS CACAO

COFFEE PEANUTS

Our Market Focus

• Go Africa Brand: Retail for

local & global markets

(B2C).

• Private Label: Production

of custom & specialized

products for local and

major partners (B2B).

• White Label: Commodities

produced, processed and

sold in bulk (B2B).

• Trading Portal: Allows for

the placement of large &

customized long-term

orders (B2B).

Go Africa LLC legal structure

Go Africa LLC

(USA based)

Go Africa LLC (GHANA)

foreign Subsidiary

GOAE Trading Limited

(NIGERIA) foreign subsidiary

Page 3: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

THE PROBLEM / THE SOLUTION

THE PROBLEM : The cost of getting high quality commodities to the global market on a

consistent basis in a timely and efficient manner (too many middlemen & touchpoints).

THE SOLUTION : produce locally and sell direct (B2B & B2C)

• Efficient Production & delivery to market• Reduced supply chain cost• Savings of up to 40% from current market prices• Provides economies of scale and lower costs for Go Africa branded products

Cashews (Africa)

Processing

(Asia)

Processing & finishing (USA or Europe)

Buyer (B2B)

Consumer (B2B)

Cacao (Africa)

Shipping & Middlemen (USA or Europe)

Processing (USA or Europe)

Buyer (B2B)

Consumer(B2B)

Cashews/Cacao

Processed & finished locally (Africa)

Buyer (B2B)

Consumer (B2B)

Costs Costs Costs

Costs Costs Costs

Page 4: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

$2B

Potential size of

African market for

cashew & cocoa

products (current).

$19B

THE MARKET SIZE (CONSUMPTION) 2019 for cashews & cocoa

$21B

Size for Europe, Asia and

North American markets

for cashew & cocoa

products (current).

Size of Global

market for cashew

& cocoa products

(current). Sources: statista.com, World

bank

Blended projected growth is 4.1% CAGR

Key potential private label partners:• Nestle• Hersey• Mars Inc• Starbucks• Modelez

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WHY AFRICA

We chose Africa because we are leveraging “First in Class” processes, technologies, and local government incentives to deliver lower cost products to the global market. Areas of focus for competitive advantage:

• Local government incentives: We are in receipt of exemptions and credits that allow us to operate at a distinct cost advantage.

• Will locate in Free Trade Zones in every African Country to optimize benefits and other incentives.

• Speed & agility of operations: We will utilize pre-built warehousing facilities in all locations to maximize investments, lower time to market and provide the ability to scale production quickly and efficiently.

• Location of 8 of the top 10 largest producers of Cashews in the world

• Location of the 1st & 2nd largest producers of Cacao in the world

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COMPETIT IVE EDGE

Benefits / Advantages Go Africa LLC

Local Competitors

Global Competitors

PRE-EXISTING KEY RELATIONSHIPS (Govt., Cooperatives, etc.)

Special Government Incentives (free trade zone: tax, duties, customs, export and import exemptions)

LONG TERM, SECURED PRE-ORDERS for operational efficiency & profitability

FIRST IN CLASS PROCESSES (e-logistics, AI, cloud computing, agile manufacturing

Brand Recognition

✓ ✓

?

?

?

?✕

Currently local producers produce on speculation without buyers.

We will produce for confirmed, long-term orders and/or purchase on the open market to fulfill orders at the optimum price and maximize profits.

This will lead to our facilities operating at the most efficient levels possible.

This will yield a stable marketplace for buyers & sellers in the long-term.

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BUSINESS MODEL ( Pr o c e s s i n t e g r a t i o n w i t h i n t h e s u p p l y c h a i n ) A g r i - t e c h

COMMODITIES PROCESSING FACLITIES IN

GHANA, NIGERA, AND IVORY

COAST(2019 - 2021)

TRADING BUSINESS &

ONLINE PORTAL

RETAIL GO AFRICA

BRAND (Local & Global)

WHOLESALE PURCHASING

FROM (COOPERATIVES /

FAMERS, PRODUCERS,

BROKERS)

FARMING (Full 360, provide

best practices)

PRIVATE LABEL & WHITE LABEL OPERATIONS

(B2B)

GO AFRICA RETAIL

EXPERIENCE FRANCHISE

CONCEPT 2021

• Leverage unique processes and existing technologies for competitive advantage:• E-logistics (shipping &

tracking) • E-learning (Real time

training for team members)

• Quality Assurance (On-site food & health testing labs)

• Cloud Computing (ERP, Accounting, CRM, online portal)

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• Go Africa will scope customers requirements and provide a quote for requested services inclusive of the following:• Facilities & Logistics • Commodities, production costs and Labor• Distribution, Marketing, and other sales services

• Go Africa may optionally procure the following for the customer to support production of private label products • Lease, terms and space for segregated production per the customer requirements • Logistics services for shipping to global markets are provided

Pr ivate Labe l Of fer ing

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Agility Africa (Ghana)Land area of 16 Hectares• Being developed in phases

Once fully developed, the ALP will have a total built-up-area of 100,000 sqm• Warehouses, assembly and light

manufacturing facilities, offices, retail units and open storage yards

• Security, • Logistics, Power, Water, waste

management • Internet • Medical clinic

•Constructed to date• 13,000+ sqm warehouse with 0ffice

space• 700 sqm standalone office / retail

space• Up to 10,000 sqm open yard space

Under Construction: Completion in 1Q2019• 18,000+ sqm warehousewith office space

Page 10: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

(Macro projections)REVENUE PROJECTIONS

Go Africa LLC (all planned facilities)

2019 2020 2021 2022

Total Revenues4,622,727.50 16,178,227.90 38,516,450.90 85,838,083.50

Projected Growth 250% 138% 123%

Total Cost of Goods Sold(2,260,731.1) (7,727,084.5) (22,321,502.9) (48,100,104.1)

Margin 49% 48% 58% 56%

Total Operating Expenses(990,747.0) (1,451,610.7) (1,879,103.1) (2,833,830.5)

EBITDA1,534,181.3 7,639,828.3 15,433,504.2 36,976,535.5

Margin 33% 47% 40% 43%

Interest Expense5,859.0 (114,561.5) (154,089.6) (217,741.5)

Net Income1,376,284.0 6,901,091.1 14,183,437.1 34,717,045.6

Margin 30% 43% 37% 40%

Strategies for growth:

• Leverage production

facilities to fulfill Go

Africa branded

orders for all

distribution channels

(internet, direct,

local & global

markets)

• Expand and grow

private label

operations (B2B).

• Fulfill long-term

contracts and bulk

orders (B2B).

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TARGETED PROFITABIL ITY & INVESTMENT RAISE

Entrance Assumptions

Exit Performance

• $2.251 million initial investment opportunity for 5% stake (Stock, Note or Convertible note).

• Capital could be easily withdrawn due to highly liquid commodities.

Total investor payback in 3 years.• 10x EBITDA Multiple

at year 5 exit• IRR: 30% on Base case

(over 5 years)

Return Sensitivities

• Returns are durable under stress.

• Financial partners/insurers could readily collateralize commodities.

• Business performance based on forecasted projections. Assumption of 0% tax rates via government incentives.

RAISED TO DATE: 400K250K, African Development Bank, Agricultural Fast Track Grant (Nigerian Facility)

Raising: 2.251 Million (Ghana) 2.251 Million (Nigeria)

Current Valuation 30 Million

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ROADMAP (2019 – 2020)

2019 Q4

2020 Q4

TARGET IS TO RAISE

USD 2.251m

Production facility in Ghana (GH)

Production facility inNigeria (NG)

Investment will be utilized for:

Facility Preparation: 450K(GH), 450K (NG)

Production Equipment: 1MM (GH), 1MM (NG)

Inventory Fulfilment: 250K(GH), 250K (NG)

Working Capital: 450K(GH), 450K (NG)

Sales & Marketing: 100K(GH), 100K (NG)

TARGET IS TO RAISE

USD 2.251m

ACHIEVE TWO WORKING FACILITIES FOR SUSTAINED

PRODUCT SUPPLY & ECONOMIES OF SCALE

BECOME THE LARGEST SUPPLIER FROM AFRICA IN THE PRODUCT CATEGORIES

Page 13: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

Tract ion: Current Update –

(Bootst rapping Cont inues)

2019 (Jan –March) 2019 (April – June) 2019 (June – September)

• Received export permit From Ghana Export Authority.

• Began Investment funding Solicitation.

• Added members to the Executive Board.

• Opened Dubai Office (for increased access to customers, incentives & investors).

• Awarded grant of 250K from the African Development Bank for Nigerian facility.

• Opened corporate offices in Nigeria & Ghana (per exemption, legal, sales, and compliance requirements).

• Participating in startup accelerators.• Newchip (USA)• Seedstars (Nigeria)

• Opened credit facilities with Ecobank & Barclays bank (Ghana).

• Received Ghana Free Zone Authority (GFZA) approval.

• Received credit insurance approval for international customers from Euler Hermes.

• Filed Reg D form with SEC.

Page 14: Title Go Africa · 28/08/2019  · North American markets for cashew & cocoa products (current). Size of Global market for cashew & cocoa products (current). Sources: statista.com,

LEADERSHIP & CORE MANAGEMENT TEAM (U . S . B a s ed Tea m )

DR. DENNIE M. BEACH

Founder, President

PhD Public Policy,

Masters from NYU, 22 Years in tech (Microsoft,

IBM, Dell). Global sales &

management

experience.

LOSSENI KONESVP Managing Director (Sales)

24 years of experience in commodities

sales & trading. Extended tenure with KPMG and Ernst & Young in

Europe

DR. SAMUEL JONES

Co-Founder, Chairman

MD, Stanford Grad, 20 years of

experience in health & hygiene

operations

DR. ERIC FOUHCTO,

PhD in Computer

Science from Virginia Tech. 5

years of experience in AI,

mobile computing &

workflow processes

RICHARD IYASSERE

VP operations B.S. from CUNY in environmental

safety & operations. 20

years experience in engineering,

safety operations and

management

The management team has a over 80 years of cumulative experience in agriculture, manufacturing, commodities trading, health, education & technology. Extended team is fluent in over 10 languages.

IBRAHIMA SOUARE

VP Budgeting Forecasting MBA,

from CUNY10 years

experience in SMB deal

structuring & finance

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LEADERSHIP & CORE MANAGEMENT TEAM (Africa & Middle east)

IBRAHIMA CISSE

VP, Communications (Ivory Coast) 25

years of operational

experience in life sciences. Fluent

in English, French,

Mandingo, Mandinka, Wolof

& Jola-Fony

IDRISSU ABDUL MAJEED

SVP, Field Operations and

Production (Ghana) 10

years of agri-business banking

(Ecobank) experience.

Strong relationships

with Cooperatives & local officials.

DR. CHEIKH TRAORE

President GOAE Trading Ltd.

(Nigeria) 20 years of experience in

health & organizational

management with United Nations agencies. Fellow

of the Royal Society of Public Health (United

Kingdom)

HARUNA MUSAH

CFO (UAE) over 10

years experience in investment

management. Member certified

Management Accountants - USA (Abu

Dhabi Chapter)

LINCOLN OSHO

SAO GOAE Trading Limited

(Nigeria) 8 years

experience Management & Admin. M.Sc.

Population Geography from the

University of Lagos.

Proficiency Certificate in Management

SETH MENSHA

SVP Operations (Ghana Facility)

B.S. Environmental Engineering (CUNY) 12 years of

experience in operational

management, industrial

hygienist/Quality Control.

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CONTACT

GO AFRICA LLC

GHANA

Phone: + 233 0302633259Address: Movenpick, Presidential Floor Accra Ghana, Mövenpick Ambassador Hotel, Independence Avenue, Ridge, Accra, Ghana

NIGERIA

Phone:+234 014489282Address: Mulliner Towers, 7th floor, 39 Alfred Rewane Road Ikoyi, Lagos, Nigeria

UNITED ARAB EMIRATES

Phone: +971 4 444 9460 Address: Level 14, Boulevard Plaza Tower 1, Sheikh Mohammed Bin Rashid Boulevard Downtown Dubai, United Arab Emirates

USA

Phone: 1-646-838-1330Address: 101 Avenue of the Americas, 9th Floor, New York, 10013E: [email protected]