Project 12: Nkomazi Cotton Development Project

Sector: Textile Manufacturing

ZAR160 million (€€10.1 million or USD12.1 million)

Project Summary

The NEF has entered into a 49/51% joint venture with Lebombo Agricultural Secondary Co-op to undertake a BFS into the establishment of cotton gin (to manufacture cotton lint) in Mpumalanga province. The cotton gin shall have a total annual throughput of 5 000 ton seed cotton and nameplate capacity of 4 500 tons of cotton lint. The seed cotton is to be sourced from the farms owned by the 18 primary co-ops. The BFS is to be completed in January 2018 and the projected financial close funding is R160 million (€10.13 million @ €1/15.80 or USD12.14 million @USD1/13.08).