R5 Million - R20 Million

Capital Expenditure
Infrastructure Funding
Working Capital

The project is currently generating revenue through:

• Bulk Marula oil sales at R85,000 per 200-litre drum to cosmetic manufacturers
• Face oil retail sales at R120 per 100ml to consumers
• Body butter retail sales at R150 per 200ml to consumers
  
  

The company has reported revenue growth over the past three years:

• Year 2022: Approximately R300,000
• Year 2023: Approximately R700,000
• Year 2024: Approximately R1.5 million (year to date)
  
  

Monthly revenue fluctuates seasonally, with recent months showing the following:

• January 2025: Approximately R70,000
• February 2025: Approximately R200,000
• March 2025: Approximately R40,000
• April 2025: Approximately R150,000
  
  

The business has projected continued revenue growth to reach approximately R7.95 million at full production capacity. It has diversified revenue streams across oil production, cosmetics, puree/juice production, beverages, and animal feed by-products. 

The project provides significant support to communities, particularly women and young people:

Employment creation: During the Marula harvest season (January-March), the company employs over 160 seasonal workers, primarily from surrounding communities. This provides critical income in an area with limited economic opportunities.

Women's cooperatives: Marula SA works with women's cooperatives to process the fruit, support existing women-led businesses, and provide them with market access and fair compensation.

Skills development: The company provides workers with training and skills development in various aspects of Marula processing, quality control, and production, enhancing their employability and economic opportunities.

Benefits sharing: Through the partnership with the Marula Phalaborwa Trust, proceeds from commercial transactions are directed to the Trust for community benefit initiatives.

Healthcare access: The company aims to enrol workers in national healthcare plans, similar to successful models in other community-based natural product enterprises.

Youth employment: The company has begun incorporating young people into its operations, particularly in roles requiring technical skills such as machine operation, forklift driving, and production supervision.

Indigenous knowledge preservation: The project helps preserve traditional knowledge about Marula and its uses, ensuring the maintenance of this cultural heritage for future generations.

Economic empowerment: By formalising and commercialising Marula collection and processing, the project enables communities to capture more value from this indigenous resource than was previously possible through informal harvesting and processing.  

The project promotes Small, Medium and Micro Enterprises (SMMEs) in several ways:

Supply chain integration: Marula SA creates opportunities for local service providers in transport, logistics, and delivery services, having already secured an agreement with a strategic transport provider.

Women's cooperatives: The company actively supports women's cooperatives for initial processing, purchasing processed nuts at a premium compared to raw materials, thereby supporting these small-scale enterprises.

Local sourcing: Materials and services are sourced locally where possible, supporting the development of local enterprises.

Skills transfer: The company provides training and skills development that enables community members to establish or improve their own small businesses related to Marula harvesting and processing.

Value chain development: By establishing a structured value chain for Marula, the company creates opportunities for specialised small businesses to participate at various stages.

SMME development model: The organisational structure explicitly includes SMME development as a key component, with dedicated pathways for supporting local enterprises.

Outsourcing non-core functions: The business model includes partnering with specialised service providers for certain functions, creating opportunities for small businesses to provide these services.

Future franchising potential: The established and documented processes create potential for future franchise-type arrangements where SMMEs could operate under the Marula SA model in other regions.

This emphasis on SMME development aligns with South Africa's economic development priorities and helps ensure that the benefits of commercialisation are widely distributed throughout the community.  

Scalability: The project demonstrates strong scalability potential through several mechanisms:

Geographic expansion: The model can be expanded from the current Phalaborwa base to other Marula-growing regions. A phased approach is already planned to cover Mopani District (Phase 1), the broader Limpopo Province (Phase 2), Mpumalanga (Phase 3), the Northwest (Phase 4), and eventually all of South Africa (Phase 5).

Production capacity scaling: The current equipment can be scaled up with additional processing machines. With planned investment, oil production can increase from 3,000 to 4,500 litres annually, with corresponding increases in other product lines.

Product line expansion: The basic infrastructure for Marula processing can be leveraged to develop additional product lines beyond the current oil, cosmetics, and puree offerings.

Supply chain development: Establishing commercial Marula orchards will provide a reliable, scalable supply source independent of seasonal wild harvesting variations.

Value chain integration: The vertically integrated model allows for scaling across different parts of the value chain, from raw material sourcing to finished consumer products.

Replicability: The project model can be effectively copied, with adaptations for local contexts:

• Documented processes: The company has developed clear operational procedures and organisational structures that could be replicated elsewhere.  
• Success precedents: Similar models have been successfully implemented for other natural products, such as Argan oil in Morocco and Shea butter in Ghana, demonstrating the approach's viability. 
• Community partnership template: The relationship with the Marula Phalaborwa Trust provides a template for community engagement that could be adapted for other regions.
• Training programmes: The company's training approach for harvesters and processors could be replicated to develop skills in new areas. 
• Technology transfer potential: The production methods and equipment configurations could be transferred to other regions where Marula or similar fruits grow.
  
  

The combination of scalability and replicability makes this model particularly valuable as a template for sustainable biodiversity-based enterprise development throughout Southern Africa. 

The project will improve existing environmental conditions through multiple pathways:

Sustainable harvesting practices: The project preserves tree health and maintains ecosystem function by implementing collection protocols where the fruit is only gathered after natural falling (not forced harvesting). This represents an improvement over unregulated harvesting that may damage trees. 

Reduced pressure on wild populations: The planned development of commercial Marula orchards will decrease reliance on wild harvesting, allowing natural populations to flourish with reduced human interference. 

Genetic diversity conservation: The nursery and orchard development programme will incorporate strategies to maintain genetic diversity, preserving the species' resilience and adaptive capacity in the face of climate change.

Circular economy implementation: The project utilises all parts of the Marula fruit, with by-products from oil extraction being converted into animal feed rather than becoming waste. This closed-loop approach minimises environmental impact. 

Habitat connectivity enhancement: Tree planting initiatives in community areas will create stepping stones between natural Marula populations, supporting genetic exchange and ecosystem services.

Carbon sequestration: The establishment of Marula orchards will increase carbon sequestration in the region, with mature trees providing significant carbon storage benefits.

Environmental education: The project includes awareness creation about sustainable resource use, which will broadly have positive spillover effects on community attitudes toward environmental conservation.

Reduced habitat disturbance: The project minimises disturbance to surrounding habitats during harvesting activities by coordinating collection efforts through established protocols and trained harvesters. 

Indigenous knowledge application: Integrating traditional knowledge about Marula cultivation and harvesting incorporates generations of sustainable management practices that have co-evolved with local ecosystems.

Climate adaptation support: The project's focus on drought-resistant indigenous species supports landscape resilience to climate change effects in the region. 

Through these mechanisms, the project demonstrates how commercial activity can be designed to enhance rather than degrade environmental conditions, creating a model for sustainable bioeconomy development.

The project will substantially improve the livelihoods of local communities and marginalised people through multiple channels:

Direct employment creation: The project currently provides seasonal employment to approximately 160 harvesters and permanent employment to operational staff. Most of these opportunities benefit previously unemployed or underemployed community members in an area with limited economic options. 

Income generation: Harvesters and processors earn direct income from Marula collection and processing activities, providing critical cash flow to rural households. This represents a significant improvement over the previous situation, where communities derived minimal economic benefit from this indigenous resource.

Value capture enhancement: By processing Marula locally rather than exporting raw materials, the project ensures more value remains within the community, multiplying the economic impact.

Skills development: The project builds human capital that increases employability and entrepreneurial capacity through training programmes in harvesting, processing, quality control, and administration.

Women's economic empowerment: The project specifically supports women's cooperatives, helping to address gender-based economic disparities in the region. The cooperatives receive premium prices for processed nuts compared to raw materials, enhancing their income.

Community benefit sharing: Through the partnership with the Marula Phalaborwa Trust, a portion of the proceeds is directed to community development initiatives, creating broader benefits beyond direct employment.

Indigenous knowledge valuation: The registration of Marula as an Indigenous Knowledge Asset creates recognition and potential compensation for traditional knowledge holders, many of whom are from marginalised communities.

Local enterprise development: The project creates opportunities for local service providers in transportation, logistics, and support services, stimulating broader economic development.

Healthcare access improvement: The company aims to enrol workers in national healthcare plans, addressing a critical gap in social services for rural communities.

Cultural heritage preservation: By valorising indigenous knowledge and traditional practices around Marula, the project supports cultural continuity and identity, which are important aspects of community wellbeing.

Reduced economic migration: By creating local economic opportunities, the project reduces pressure for community members to migrate to urban areas in search of employment, helping maintain family and community cohesion.

These social impacts address multiple dimensions of marginalisation, including economic exclusion, gender inequality, and lack of recognition for indigenous knowledge, creating a holistic approach to community development. 

The project demonstrates strong potential for post-investment sustainability through several key factors:

Proven business model: The company has established operations and demonstrated revenue growth over three years, validating its business model and market demand.

Diversified revenue streams: Multiple product lines (oil, cosmetics, puree, planned beverages) create resilience against market fluctuations in any single product category.

Vertical integration: Control over multiple stages of the value chain reduces dependency on external suppliers and allows for value capture at multiple points.

Exclusive resource access: The company holds the BABS permit as reportedly the only Black-owned company with this certification for Marula, creating a significant competitive advantage and barrier to entry for competitors.

Strong community partnerships: The relationship with the Marula Phalaborwa Trust and local harvesters ensures stable access to raw materials and community support for operations.

Supply security plans: The planned development of commercial Marula orchards will provide longterm supply security independent of wild harvesting variations

Growing market demand: The natural oils and plant-based ingredients market is projected to reach $105.6 million by 2034, growing at a CAGR of 6.1%, with Marula oil specifically experiencing strong growth.

Operational self-sufficiency: Current operations are self-financing, with the investment primarily aimed at expansion rather than sustaining basic functions.

Zero debt position: The company has no existing loans or debt obligations, creating a clean financial slate for growth.

Experienced management: The leadership team brings extensive experience in business development, agricultural processing, and community engagement, supporting sound decision making. 

Circular business model: The waste-to-feed component creates additional revenue while eliminating waste management costs, enhancing overall sustainability.

Indigenous adaptation: As a native species, Marula is well-adapted to local environmental conditions, reducing cultivation risks compared to exotic crops.

These factors combined indicate that the project has established the fundamental elements needed for long-term sustainability, with the requested investment accelerating growth rather than artificially propping up an unsustainable operation. 

The business model demonstrates strong viability with compelling profitability metrics:

Established revenue growth: The company has consistently grown from R300,000 in 2022 to R700,000 in 2023 and R1.5 million in 2024, demonstrating market acceptance and operational capability.

Strong gross margins: With production costs at approximately 40% of the selling price, the company maintains a 60% gross margin, well above industry averages for agricultural processing.

Premium pricing potential: Marula oil's high quality and ethical sourcing enable premium pricing at R85,000 per 200-litre drum (R425 per litre), with further value addition through cosmetic products.

Scalable revenue projections: At full capacity, the operation has a potential annual income of R7.95 million, broken down as follows:

• R1,912,500 from 4,500 litres of oil at bulk pricing
• R2,700,000 from value-added retail cosmetic products
• R1,800,000 from puree production (36,000 litres)
• R1,200,000 from beverage production (gin, vinegar)
• R337,500 from animal feed by-products
  
  

Healthy customer retention: Approximately 80% of revenue comes from repeat business, indicating strong product satisfaction and reducing customer acquisition costs.

Low overhead structure: Monthly overhead expenses of approximately R14,000- 15,000 represent a small percentage of revenue, allowing for efficient operations.

No debt service burden: The company operates without loans or debt, eliminating interest costs and improving net profit margins.

Investment return metrics: The business projects:

• 120-150% ROI on processing equipment within 24 months
• Profit margins of 40-60% for oil and 55-65% for cosmetics
• Cumulative ROI over 5 years of 180-220%
• Quarterly dividend distributions beginning in year 2
  
  

Asset appreciation: Investment in land and commercial orchards creates long-term asset value beyond operational profits.

Efficient inventory management: Only 20% of inventory typically remains unsold per cycle, allowing the company to maintain healthy stock turnover while minimising working capital requirements.