02 / Investment Structure
The capital
structure. Bankable.
A clearly scoped Special Purpose Vehicle, a defined capital requirement, and three structured pathways for institutional and strategic participation.
SPV Name
LRG Leather Botswana
Capital Requirement
$45MUSD
Jurisdiction
Botswana SEZA
Allocation
Use of funds.
Capital flows directly into productive infrastructure, equipment and human capital. Minimal overhead by design. Indicative breakdown subject to final SPV documentation.
Tannery Infrastructure
Wet-blue and crust processing lines, water treatment, environmental controls and core utilities.
Manufacturing Facilities
Bag, shoe and accessory production lines built to Italian luxury specification standards.
Machinery & Equipment
Tannery drums, finishing presses, cutting and stitching technology imported from Italian suppliers.
Training & Skills Transfer
On-site Italian master tanners and craftspeople training a Botswana-based workforce.
Working Capital
Reserve for hide procurement, logistics, and ramp to first export shipments.
Pathways
Investor
participation
options.
Three engagement structures. Designed for the way capital, manufacturing partners and offtake buyers actually approach an integrated project of this kind.
Equity Participation
Direct equity into LRG Leather Botswana SPV. Tiered for institutional, family office and strategic investors with structured exit pathways.
- Senior equity tranche
- Co-investment rights
- Board observation seats (institutional)
Strategic Manufacturing Partners
For Italian and European luxury houses seeking secured production capacity in Africa with audited quality standards.
- Capacity reservation agreements
- Joint quality protocols
- Co-branded production runs
Offtake & Distribution
Long-term purchase agreements for finished leather goods and finished hides into EU, US and global luxury distribution.
- Multi-year offtake contracts
- Exclusive territory options
- Volume-based pricing tiers
Capital Structure
Three entry points.
Investors can enter the platform at three different scopes — from a Phase 1 foundation position to full vertical integration of the leather park.
Phase 1 Entry
Foundation investment
Fastest path to revenue. Wet blue sourcing and initial processing, anchored against BMC supply.
- Wet blue sourcing & processing
- Small manufacturing unit
- Training centre
- Fastest path to revenue
Phase 1 + 2
Manufacturing scale
All Phase 1 operations plus finished leather production with Italian-grade equipment and export channel development.
- All Phase 1 operations
- Finished leather production
- Export channel development
- Quality certification
Full Leather Park
Long-term industrial development
Complete vertical integration of tannery, finishing, luxury manufacturing, training and export logistics. Maximum value capture.
- Complete vertical integration
- Full industrial ecosystem
- Regional hub positioning
- Maximum value capture
Investment Thesis
Structured for institutional capital.
Phased capital deployment reduces risk at every stage
Existing raw material base — no supply chain invention required
SEZA alignment provides regulatory framework and incentives
Clear export pathway to established global markets
Multi-institution support across government and DFIs
Named Italian technical partners de-risk operational execution
Projected Economic Impact
2,000-5,000
Direct Jobs Created
500+
Annual Training Places
$100M+
Export Revenue Potential
200-300K
Hides Processed Annually
$50M+
Manufacturing Output
100+
SME Suppliers
40%+
Women & Youth Workforce
6
Export Markets Served
Projected ranges based on phased development planning. Final figures subject to feasibility study and market conditions.
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