R15,000,000 for operational expansion and wildlife

Capital Expenditure
Infrastructure Funding
Working Capital

Revenue Growth Drivers:

• Wildlife population maturation enabling hunting operations
• Lodge occupancy scaling from 35% to 75%
• Premium pricing through biodiversity node certification
• Export market development for processed products
  
  

Economic Impact

• Create 75+ permanent jobs by 2027 (25 immediate, 50 seasonal during peak periods)
• Generate R45 million in annual revenue, contributing to regional GDP
• Support 150+ indirect jobs through the supply chain and community procurement
• Establish an R50+ million asset base through wildlife, infrastructure, and equipment 
  
  

Social Impact

• 70% target for women in processing and value-addition activities
• Youth training and mentorship programmes with 50+ participants annually
• Community development fund allocation of 2% of annual revenue
• Preferential procurement targeting 60% local supplier participation
  
  

Environmental Impact

• Rehabilitate 4,200 hectares of degraded land to natural ecosystem functions.
• Achieve carbon neutrality through renewable energy and sequestration practices.
• Restore indigenous wildlife populations supporting regional conservation goals.
• Implement zero-waste circular economy principles across all operations
  
  

Transformation Impact

• Demonstrate 100% Black-owned success in the wildlife industry worth R4.3 billion annually.
• Create a replicable model for biodiversity economy transformation
• Contribute to the government's rural development and job creation objectives
• Support South Africa's National Biodiversity Strategy implementation

Total Raise: R15,000,000 for operational expansion and wildlife introduction

Use of Funds 

• R8,000,000 – Wildlife stocking programme (Big Five and plains game)
• R3,000,000 – Operational capital and working capital requirements
• R2,000,000 – International marketing, brand development, and distribution
• R1,500,000 – Equipment, vehicles, and technology systems
• R500,000 – Product development and certification programmes
  
  

Return Projections

• Target 35-45% annual ROI on invested capital
• 5-year cumulative return of 6-8x initial investment
• Exit opportunities through strategic acquisition or management buyout
• Potential carbon credit revenue providing additional return streams

Mlungisi Sonwabile Bushula – Managing Director & Founder

• 5+ years of experience in agricultural and forestry enterprises
• Educational background: Public Management (Nelson Mandela University), Financial Management (Damelin / Milpark)
• Award recognition: 2017 Small-Scale Forestry Award, 2019 YAFF Large-Scale Category Winner
• Extensive networks within government, conservation, and agricultural sectors
• Proven track record in project management and stakeholder engagement 
  
  

Proposed Key Personnel (to be recruited with investment): 

• Operations Manager (PDI): Wildlife/agriculture degree, 5+ years of experience
• Head Professional Hunter: International certification and experience
• Lodge Manager (PDI): Hospitality management qualification and experience
• Financial Manager (PDI): CA(SA) or equivalent professional qualification
• Conservation Manager: MSc Conservation Biology, research coordination experience
  
  

Strategic Partnerships:

• Department of Forestry, Fisheries and Environment (DFFE)
• South African National Parks (SANParks)
• Department of Agriculture, Land Reform and Rural Development (DALRRD)
• Wildlife Ranching South Africa (WRSA)
• Professional Hunters Association of South Africa (PHASA)

Possible Exit Options:

• Strategic Acquisition: Sale to established wildlife, tourism, or agricultural operators seeking transformation credentials and Eastern Cape expansion
• Private Equity Partnership: Buyout by impact investment funds focused on conservation and transformation
• Management Buyout: Structured divestment to the management team through performance based arrangements
• Government Partnership: Enhanced partnership with SANParks or provincial development agencies
• Sector Consolidation: Participation in broader biodiversity economy sector consolidation
  
  

Recent Comparable Transactions: 

• Wildlife operations in Eastern Cape trading at 4-6x EBITDA multiples
• Conservation-focused enterprises attracting premium valuations due to ESG focus
• Transformation operators receiving preferential terms from impact investors
  
  

Unique Value Proposition for Exit:

• 100% PDI ownership with established government partnerships
• Diversified revenue model reducing single-sector risk
• Strategic location within an established biodiversity economy node
• Demonstrated conservation impact and community development outcomes
• Scalable business model suitable for regional expansion 

• Environmental Impact Assessment and Approval Documentation
• DFFE-EPIP funding agreements and disbursement schedules
• Financial statements and projections (detailed 5-year model)
• Land lease agreements and tenure documentation
• Professional hunter and tourism operator certifications
• Conservation management plans and biodiversity assessments
• Community development agreements and stakeholder engagement records 

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.

R5 Million - R20 Million

Capital Expenditure
Infrastructure Funding
Working Capital

Revenue Growth Drivers:

Accommodation occupancy increase: 40% (Year 1) to 80% (Year 5)

Premium pricing strategy: 15-25% above regional competitors

Diversified revenue streams: Reducing seasonal fluctuation impact

Repeat business development: Target a 30% repeat visitation rate

Economic Impact:

Direct Employment: 75 full-time positions across diverse skill levels

Indirect Employment: 75 additional positions in supporting industries

Local Procurement: R15 million annually in local purchasing by Year 3

Tax Contributions: R3.2 million annually in local and provincial taxes

Social Impact: 

Skills Development: 200+ individuals trained annually through various programmes

Community Integration: Local advisory committee participation in planning decisions

Cultural Preservation: Historical education programmes highlighting the Great Trek and mining heritage

Educational Partnerships: Agricultural and environmental education for local schools

Environmental Impact: 

Habitat Restoration: 25+ acres of degraded land restored to natural state

Carbon Offset: Over 200 metric tons of CO₂ offset through agroforestry programmes

Water Conservation: 35% reduction in agricultural water consumption through efficient irrigation

Zero-Waste Operations: Comprehensive recycling and organic waste management

Biodiversity Impact: 

Wildlife Population Recovery: Restoration of historically native species

Habitat Enhancement: Professional wildlife management supporting ecosystem health

Conservation Education: Visitor programmes promoting environmental awareness

Research Collaboration: Partnerships with academic institutions for biodiversity monitoring 

Total Investment Required: R50,000,000

Use of Funds:

Infrastructure Development (R35,000,000 - 70%):

• Luxury accommodation facilities: R20,000,000
• Conference and event centre: R8,000,000
• Restaurant and recreational facilities: R4,000,000
• Support infrastructure and utilities: R3,000,000
  
  

Equipment and Furnishing (R8,000,000 - 16%):

• Tourism vehicles and specialised equipment: R3,500,000
• Accommodation furnishing and equipment: R2,500,000
• Conference and audiovisual equipment: R1,500,000
• Agricultural equipment upgrades: R500,000
  
  

Working Capital (R4,000,000 - 8%):

• Pre-opening marketing and promotion: R1,500,000
• Staff recruitment and training programmes: R1,000,000
• Operating expenses during the ramp-up period: R1,500,000
  
  

Professional Services and Contingency (R3,000,000 - 6%): 

• Architectural and engineering services: R1,200,000
• Legal, licensing, and regulatory compliance: R800,000
• Project contingency reserve: R1,000,000

Lefa Samuel Tsamaelator - CEO & Sole Beneficiary:

Background: Electrical engineering, agricultural sciences, transport and logistics expertise

Current Studies: MBA candidate providing contemporary business management skills

Experience: 5 years of intensive farming experience across multiple agricultural sectors

Unique Qualifications: Combination of technical expertise, practical agricultural experience, and formal business education 

Management Structure:

Farm Manager: Agricultural qualifications with crop and livestock management specialisation

Tourism Operations Manager: Hospitality management with resort operations experience

Wildlife Manager: Professional hunting guide certification and game ranch operations

Financial Controller: Chartered Accountant with agribusiness experience 

Advisory Support:

• Professional Hunters Association of South Africa membership
• African Game Rangers Association participation
• Local agricultural cooperative relationships
• Tourism industry professional network  

Risk Management Framework:

Comprehensive Insurance: Agricultural, tourism, and liability coverage

Financial Reserves: Minimum 6-month operating expense reserve maintenance

Diversification Strategy: Multiple revenue streams, reducing dependency risk

Professional Networks: Industry association participation for regulatory awareness

Target Exit Timeline: 7-10 years

Possible Exit Options:

Strategic Acquisition:

• International hospitality chains seeking African market entry
• Agricultural conglomerates with tourism divisions
• Conservation organisations with commercial operations
  
  

Private Equity Buyout:

• Specialised tourism and hospitality investment funds
• Agricultural investment vehicles
• Social impact investors focused on rural development

Management Buyout:

• Senior management team acquisition with investor backing
• Employee share ownership programme development
• Community trust structure implementation
  
  

Recent Comparables:

• South African lodge acquisitions by international hospitality groups
• Agricultural tourism operations attracting private equity investment
• Government incentives for tourism infrastructure development 

• Detailed financial projections and sensitivity analyses
• Architectural plans and development timeline
• Environmental impact assessment and conservation programme details
• Market research and competitive analysis
• Management team CVs and professional references
• Legal structure documentation and compliance certificates
• Agricultural production records and wildlife management plans 

R10,000,000 for business expansion and infrastructure development

Capital Expenditure
Infrastructure Funding
Working Capital

Economic Impact

• R10 million investment generating R58+ million cumulative revenue over 5 years
• Creation of 50+ permanent employment opportunities by 2035
• R15+ million annual contributions to the local economy at full capacity
• Support for 200+ indirect jobs through supply chain activities
  
  

Social Impact 

• 100% Black woman-owned enterprise demonstrating transformational leadership
• Skills development and training for local community members
• PWD accessibility promoting inclusive tourism
• Cultural heritage preservation and promotion 
  
  

Environmental Impact

• Sustainable management of 1,590 hectares supporting biodiversity
• Wildlife conservation through professional game management
• Habitat enhancement and ecosystem restoration
• Educational programs promoting conservation awareness

Investment & Use of Funds

Total Investment Required: R10,000,000

Allocation:

Abattoir & Processing Facility (40%): R4,000,000 for game meat processing infrastructure

Accommodation Expansion (25%): R2,500,000 for lodge expansion and tourism facilities

Game Management Enhancement (15%): R1,500,000 for species development and security

Equipment & Vehicles (10%): R1,000,000 for operational equipment and hunting vehicles

Working Capital & Marketing (10%): R1,000,000 for operations and market development 

Ellina Nomanesi Ndevu - CEO & Owner

• A successful entrepreneur with 6+ years wildlife industry experience
• 100% ownership demonstrating commitment and vision
• Strong industry relationships and government partnerships
• Proven track record in business development and operations
  
  

Nandipha Nomatyindyo - Business Manager 

• Post-graduate qualification in Land and Agrarian Studies
• Advanced management and business development certifications
• 5+ years of experience in wildlife industry operations
• Expertise in marketing, permits, and stakeholder relations
  
  

Brendan Moorcroft - Farm Manager

• 17+ years of farming and wildlife management experience
• Professional hunter certification with a dangerous game endorsement
• Project management qualifications
• Comprehensive operational and technical expertise 

Potential Exit Pathways (5-7 years):

Strategic Acquisition: Sale to an international hunting / tourism conglomerate

Private Equity Partnership: Partnership with a specialised tourism investment firm

Franchise Development: Licensing of the Capstone model to other operators

Public Listing: JSE listing as a premium wildlife tourism enterprise

Valuation Drivers

• Strong financial performance and growth trajectory
• Unique transformation positioning in the wildlife sector
• Premium infrastructure and operational assets
• Established international client relationships

R5 Million - R20 Million

Capital Expenditure
Infrastructure Funding
Working Capital

The project currently generates revenue primarily through hunting operations, which account for approximately 85% of income. However, the business model is being diversified to incorporate additional revenue streams, including:

• Commercial hunting and associated services
• Accommodation for hunters and tourists (the reserve already offers accommodation as part of hunting packages)
• Limited ecotourism activities with growth potential
• Game sales and population management
• Anti-poaching services

Full financial projections are provided in the detailed business plan, demonstrating the current revenue generation and forecast growth as additional activities are developed and infrastructure is enhanced. The business aims to transition from heavily relying on hunting towards a more diversified model that includes ecotourism and ecosystem services.

The project provides substantial support to communities with particular emphasis on opportunities for young people and women:

Direct employment:

The project creates employment opportunities specifically targeted at women and youth from the Balepye community, providing sustainable livelihoods in an area with limited economic options.

Skills development:

The Balepye Academy will provide wildlife management and tourism training designed to create career pathways for young people and women from the community. The academy will deliver comprehensive training in theory, practical skills, and development programmes. 

Food security:

The project contributes to community welfare through monthly meat donations and Maise Meals to crèches in the Greater Tzaneen and Greater Ba-Phalaborwa areas, benefiting vulnerable children. 

Educational support:

The community provides maintenance services at the Gravelotte School, enhancing educational infrastructure for local children.

Women in leadership:

The governance structure includes specific provisions for women's representation in decision-making, ensuring gender-inclusive benefit sharing. 

Youth engagement:

Conservation awareness programmes targeted at young people build environmental consciousness and create pathways to careers in the wildlife economy. 

Employment targets:

The project plans to employ 2 farm managers and 2 assistant farm managers from the community (funded by the CPA) and 3 lodge managers with support staff (funded by investors), creating meaningful career opportunities for community members.

The project has plans to actively promote small, medium and micro enterprises (SMMEs) through various mechanisms, though this aspect is still in development:

Future enterprise development plans:

The business plans to build timeshare accommodations and other facilities to create construction and maintenance opportunities for local SMMEs.

Supply chain integration:

The reserve intends to prioritise procurement from community-based enterprises for construction, maintenance, catering, and transportation as development progresses.

Enterprise development:

The business plan includes support for community members to establish ancillary businesses such as craft production, guiding services, and cultural experiences that complement the reserve's tourism offerings.

Skills transfer:

The Balepye Academy will provide training that enables community members to establish their own wildlife-related enterprises, creating a supportive ecosystem for entrepreneurial development.

Market access:

The reserve's tourism activities will create market opportunities for local producers of goods and services, reducing barriers to entry for community-based enterprises.

Value chain participation:

Developing meat processing facilities, taxidermy, and tannery operations will create opportunities for local enterprises to participate in the wildlife product value chain.

Community involvement is primarily through employment rather than SMME development, but the business plan includes specific initiatives to foster local enterprise growth as operations expand. 

• Grant
• Reimbursable grant
• Guarantees
• Equity
• Subordinated loan
• Senior Loan
• Other: LEASE FINANCE

The governance structure focuses on supporting the capacity and effective governance of the Balepye Community that owns and manages the conservation land and other restituted properties:

Community Property Association:

The Balepye Community Property Association (CPA 10/1265/A) serves as the primary community representative entity, holding community land rights and participating in land use and benefit distribution decision-making.

Operating Company:

Greater Balepye Nature Reserve (Pty) Ltd (Reg: 2015/240323/07) is the operating entity that manages the reserve's day-to-day operations and implements the business plan.

Ownership Structure:

The community currently holds a 35% ownership stake with a pathway to increase to 50% once loan accounts are repaid. Strategic partners hold the remaining 65% to provide operational control, financial resources, and technical expertise. This arrangement ensures both community benefit and operational excellence.

Management Structure:

• A board of directors comprising community representatives and strategic partners provides strategic oversight
• A professional management team with conservation and business expertise handles operational execution
• An advisory committee with technical experts offers scientific and business guidance

Decision-making Processes:

• Clear policies and procedures guide financial management, operational decisions, and benefit distribution
• Transparent reporting mechanisms ensure accountability to all stakeholders
• Regular community consultations maintain alignment with community expectations and priorities
  
  

This governance structure ensures effective operational management and meaningful community participation in decision-making and benefit-sharing while providing a sustainable community-based conservation model.

Scalability Dimensions:

• Geographic expansion: The plan to grow from 11,000 to 30,000 hectares demonstrates the model's scalability within the immediate landscape.
• Operational diversification: The business model allows for incremental revenue streams (hunting, ecotourism, meat processing, etc.) as capacity and market demand develop.
• Community participation: The governance model can accommodate increasing community ownership and participation as skills develop and capacity grows.

Replication Potential:

• Community conservation model: The approach provides a template for other community-owned conservation areas seeking to develop sustainable wildlife economies. 
• Skills transfer: The Balepye Academy can serve as a regional training centre, extending the model's influence beyond the immediate project area.
• Integration with government programmes: The project's alignment with national biodiversity targets and local development goals creates pathways for policy support and replication through government programmes.

Value Chain Expansion:

The integrated business model, incorporating multiple elements of the wildlife economy value chain (from primary production to processing and tourism), creates opportunities to replicate specific components in other locations based on local conditions and market opportunities.

The project serves as a valuable model for transformation in the wildlife economy sector, demonstrating how previously marginalised communities can successfully participate in and benefit from conservation-based enterprises. 

The project will significantly improve existing environmental conditions through:

Habitat protection and restoration:

Expanding and formally protecting up to 30,000 hectares of natural habitat will safeguard biodiversity and ecosystem services in a region under developmental pressure.

Wildlife conservation:

Enhanced anti-poaching efforts will reduce illegal wildlife harvesting, allowing populations to recover and maintain ecological functions. The reserve has historically focused on rhino conservation as a flagship initiative.

Sustainable resource management:

Scientific approaches to vegetation management, including controlled bush clearing, will improve habitat quality whilst providing sustainable resources for community use. The project aims to reduce unsustainable wood harvesting for fuel through alternative livelihood options.

Ecological connectivity:

The reserve's location and planned expansion enhance landscape-level conservation by creating wildlife corridors between protected areas, particularly Kruger National Park and Hans Merensky Nature Reserve.

Water resource protection:

Conservation management will enhance watershed protection, improving water security for wildlife and surrounding communities.

Climate change mitigation:

Maintained natural vegetation provides carbon sequestration services, whilst sustainable management practices enhance ecosystem resilience to climate impacts.

Reduced habitat degradation:

Providing alternative livelihoods reduces pressure on natural resources, minimising destructive activities such as unregulated timber harvesting and charcoal production.  

Scientific conservation management:

Implementing evidence-based conservation practices informed by the Mopani District Bioregional Plan ensures optimal ecological outcomes aligned with provincial biodiversity targets.

Management of elephants:

The reserve currently has elephants but plans to reduce numbers due to their significant ecological impact on vegetation. This represents a scientifically based approach to maintaining ecosystem balance.  

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

Land rights and resource access:

The community already has secure tenure through land restitution, enabling them to benefit directly from hunting, ecotourism, and other sustainable land uses.

Economic diversification:

The project creates alternative livelihoods in an area heavily dependent on mining, which is particularly important given that the anticipated medium-term mine closure impacts Phalaborwa's economy.

Direct employment:

Creating conservation jobs, including anti-poaching units, wildlife management, hospitality services, and meat processing, provide sustainable employment in a region with limited opportunities. The project has a target of employing 100 people when it is fully operational.

Skills development:

Training programmes through the Balepye Academy create pathways to higher value employment within the wildlife economy and conservation sector. This addresses the current skills gap identified within the community.

Cultural heritage preservation:

The project reconnects community members with their ancestral lands and traditional knowledge, strengthening cultural identity and intergenerational knowledge transfer.

Environmental justice:

Transforming ownership patterns in the wildlife economy addresses historical inequalities in conservation benefits, creating more equitable outcomes. This directly addresses the structural inequality that has historically limited community conservation benefits.

Community infrastructure:

Support for local schools and community facilities improves the quality of life and creates enabling conditions for human development, as evidenced by maintenance support for the Gravelotte School.

Reduced vulnerability:

Sustainable livelihoods reduce community vulnerability to recruitment by wildlife crime networks, enhancing conservation outcomes and community security. This directly addresses the challenge of poaching and bushmeat trade in the area.

Food security:

Regular meat and maise meal provision to crèches in the Greater Tzaneen and Greater Ba-Phalaborwa areas contributes to nutritional security for vulnerable children.

The project demonstrates strong sustainability characteristics that will enable it to thrive post investment:

Diversified revenue model:

While currently dependent on hunting (85% of revenue), the business plan includes the development of multiple revenue streams, including ecotourism, meat processing, and wildlife sales, that reduce vulnerability to market fluctuations in any single sector. 

Community ownership:

The community's significant equity stake (35% currently, growing to 50%) ensures long-term commitment to the enterprise's success and alignment with community interests. 

Market demand:

Growing domestic and international interest in authentic community-based conservation and tourism experiences provides a sustainable market for the reserve's offerings. 

Skills development:

The Balepye Academy creates a pipeline of skilled community members able to assume increasingly sophisticated roles in reserve management and operations.

Ecosystem sustainability:

Scientific wildlife and habitat management ensure that the natural resource base underpinning the business model remains productive and resilient. 

Strategic partnerships:

Relationships with conservation authorities, tourism operators, and other stakeholders provide ongoing technical and market support.

Phased development approach:

The incremental development plan allows learning and adaptation, building on successful elements and adjusting strategies as needed.

Reinvestment mechanism:

The business model includes provisions for reinvesting a portion of profits into conservation activities and community development, creating a virtuous improvement cycle.

Alternative revenue exploration:

The business remains open to innovative funding mechanisms, including carbon credits, though it is not reliant on these more volatile sources for core operational viability.

The business model demonstrates sound financial viability based on several key factors:

Proven revenue generation:

The reserve generates income through hunting operations, demonstrating market validation and operational capability.

Multiple revenue streams:

The diversified business model includes complementary activities (hunting, ecotourism, meat processing) that create operational synergies and reduce market risk.

Value-addition opportunities:

Development of processing facilities (abattoir, taxidermy, tannery) allows the capture of additional value from wildlife products, increasing margins and profitability.

Strategic location:

Proximity to Kruger National Park creates tourism potential that remains largely untapped, offering significant growth opportunities.

Asset appreciation:

Investment in infrastructure and wildlife populations creates appreciating assets that enhance the operation's overall value over time.

Operational efficiencies:

The integrated business model creates economies of scale and operational synergies that improve cost-effectiveness as the enterprise grows.

Market differentiation:

The authentic community ownership and conservation impact create distinctive selling propositions in hunting and ecotourism markets, supporting premium pricing.

Growth potential:

While operating below capacity, the business has demonstrated the ability to generate revenue even with limited infrastructure. The projected returns with proper investment show strong potential for profitability and sustainability.

Professional financial analysis:

Financial projections developed with expert support indicate positive cash flow potential and attractive returns on investment as infrastructure is developed and operations are diversified.