Invest in common beans processing and canning to take advantage of Rwanda’s excellent growing conditions and serve a growing and under-serviced middle class in the EAC.
Investment Highlights
The opportunity to invest $8M–$10M into a common beans processing and canning business will yield an expected IRR of 30%–35%, with net income of ~$3M (by year five of business).
l Early mover advantages and premium posi6oning mean an investor can target market share of 40% with revenues of $22M by year five.
Sales to supermarkets and institutional buyers will be supported by sales to 2–3 key wholesalers/ distributors.
Cost assumptions indicate that a 400 g can of red kidney beans can fetch a margin of 20%.
Diversity of beans production and demand for legumes in Middle East and South Asia offer poten6al for long-term growth.
l Rwanda’s potential market for canned beans is large, with per capita consumption amongst the highest
globally.
l Canned beans market in Rwanda could reach $55M–$85M by 2017; demand for canned beans in neighboring countries (Eastern DRC, Burundi) can further complement the local market.
l Limited compe66on, an aIrac6ve product and a pricing market gap offer an opportunity to secure first mover advantages.
l Rwandans consume 4 6mes more common dry beans than the average African consumer at 60 kg per capita compared to 17 kg per capita.
0 Comment Found...