We are seeking to use our local knowledge and experience to establish a sustainable and profitable fishing community operation in the Western Cape region of South Africa. In our view our business model is simple and achievable, will have secure and reliable cashflow, and is ethical and sustainable. Our experience is that this sector has been overlooked by large commercial fishing companies and now represents an attractive investment proposition for the right team with the right contacts. We believe that we our team is strong, and we are ultimately looking for the business to become a driving force in developing local employment.
Small-scale traditional hand-line fishing, a sector in which we have a great deal of experience and one in which members of our team are already active operating their own vessels and crews.
The number of boats and fishermen permitted to operate in the small-scale traditional hand-line sector is capped by the Fisheries Department to protect fish stocks and ensure long-term sustainability. Government policy is to issue permits to people from the local communities whose families show a historical reliance on small-scale fishing. This is intended to prevent industrial-scale fishing organisations from entering this sector and forms a barrier to entry for many would-be participants.
Over the years our team has helped local fishermen obtain traditional hand-line fishing permits. In our first hand experience many fishermen lack the financial resources to use their licences to their full potential. Our strategy is to partner with those permit holders in a mutually beneficial arrangement where they will provide the fishing permits whilst we run the fishing operations by providing boats, equipment and working capital. We believe that due to our teams long-standing relationships with the fishing communities we will be the first company bringing together small-scale permit holders within an organised structure focused on the sustainable small-scale fishing sector in South Africa.
We believe our relationship with local community fishermen combined with government-enforced barriers to entry for potential competitors affords us a unique opportunity to acquire first-mover advantage and establish Cape Fisheries as the only organisation of size operating in the small-scale fishing sector.
Cape Fisheries is a new company but we expect to benefit from long-established relationships between the management team, local communities and the Fisheries Department. We have the opportunity to enter into a contract to sell all of the catch every day when it is landed. Frans Olivier, one of the directors, has offered to purchase the entire Cape Fisheries’ catch at above-market prices for his fish processing depot. His company already purchases fish from other boats in the region.
Cape Fisheries has not commenced trading because we are aiming to raise our target amount to launch the operation. CoFunders Ltd, a UK company, invested seed funding in return for equity to enable the company to produce the promotional material, photographs and video. We have no outstanding debts or liabilities.
Use of funds
The funds will be used to lease fishing vessels and purchase equipment to enable those vessels to go to sea. The funds will also be used for working capital of the company.
We anticipate a very good and strong cashflow situation with minimal delay on payments because all fish is weighed at the harbour and payment is made within 7 days.