The Big Fish Project: A Lucrative Opportunity In The Fishery Export Business

The fishery resources of Kenya contribute to the national economy through foreign exchange earnings, employment generation, food security support and rural development. Of Kenya’s 2014 estimated population of 44.9 million, the fisheries sector provides employment to 2 million and livelihood for at least 2.3 million people. The sector also brings in valuable foreign exchange to the government, earning some 0.5% of the Gross Domestic Product per annum.

Mowlem Fish and Allied Products Ltd was incorporated in Kenya in 2012. Two years ago, the business received Kes. 15M funding from local private investors through our sister company, Mowlem Fish Group Kenya Ltd. This has seen us scale up our supply ability locally by investing in fishing boats, engines, fishing nets, beach cold storage, cold transportation, and an ice plant located in Nairobi.

Project Details

We have set our sights on the lucrative processed Nile Perch export business.

This proposal will show a potential investor how a total investment of only Kes. 100M (US$ 1M) could yield cumulative net profits in excess of Kes. 1.4B (US$ 14M) over a five-year period, and average monthly sales in excess of Kes. 58M (US$ 580,000), while maintaining adequate levels of liquidity.

We are earnestly seeking for an interested and able partner to finance this grand project.

We are happy to report that we have entered an agreement with a fish processing company that will see us use their vacant fish processing plant in Kisumu on lease basis. We have agreed on a five-year lease with a possible similar extension. The facility has all the machinery and equipment we need, and getting certification will be much easier. Selected photos of the premises are attached herewith.

Mowlem Fish and Allied Products Ltd. will offer a wide variety of processed fish and fish products mainly destined for the export markets. These include but not limited to; chilled and frozen Nile perch fillets, Nile perch maws, gutted and de-headed Nile perch, Nile perch frames, skins, etc.

The international fish export markets span the globe. Africa, Asia, Americas, European Union, Oceania all import fish and fish products. Of the US$ 152B worth of global fish exports in 2017, 54% came from developing countries like Kenya. This ably demonstrates a huge market with the potential to grow at an annual rate of between 5 and 6% as projected by FAO.

Our management is expected to use resources wisely, operate profitably, pay debts, and abide by laws and regulations in the fishery sector both locally and globally. Our management philosophy is based on teamwork, responsibility, and mutual respect. People who work at Mowlem Fish and Allied Products Ltd. would want to be part of our team because we operate in an environment that encourages creativity, diversity, growth, and performance. Frederick Owila who holds a BSc. in Biochemistry from Kenyatta University will be the Managing Director of Mowlem Fish and Allied Products Ltd., assisted by an experienced team as described elsewhere in this document. They have successfully started and are currently operating a local fish supplying company that is currently fishing along the shores of Lake Turkana and supplying fish to various clients in the city of Nairobi. They have more than 12 years’ relevant experience in the industry. The top management of the company have undergraduate degrees in various fields.

According to our conservative estimates, Mowlem Fish and Allied Products Ltd. is expected to maintain a healthy financial position over the next five years. Our company is expected to break even in the third month of operations and to be profitable in the first six months of operations, with profits increasing over the next four years, as we establish and increase both our production capacity and customer base. Our main concern will be to have sufficient cash on hand to meet our payment obligations and be prepared for unexpected needs of cash. Our conservative projections indicate that our business is able to generate positive cash flows and sufficient cash reserves. The ratio analysis clearly shows that Mowlem Fish and Allied Products Ltd.’s financial position is expected to remain strong, as measured by its liquidity, long-term solvency, and cash flow adequacy ratios. The company’s profitability, as measured by its profitability ratios, is excellent, and will gradually increase over the next five years. This performance will probably be rewarded by a higher market price when the company decides to go public.