Investment Appraisal of an Animal Feed Plant in South Africa

Limpopo Province of South Africa has been successful in recent years in attracting domestic and foreign investors. One of the priority sectors favored by the provincial development strategy is agriculture, and the proposed animal feed plant is a commercial project falling under the umbrella of those projects encouraged by the Provincial Government. At the same time, this project is owned and financed by a foreign investor, hence, making it eligible for the direct foreign investment (FDI) support scheme provided by the National Government. This study is an integrated financial, economic, stakeholder, sensitivity and risk analysis of the proposed animal feed plant in Polokwane Municipality of Limpopo Province. The plant is going to enter an existing industry where a number of domestic manufacturers already compete for consumers. The most likely impact on the industry will be a reduction in the market share held by the existing feed producers.