Major investment in charcoal industry
Annual export capacity to reach 20,000 tonnes
The north-eastern region plays a central role in Namibia's charcoal industry, and this investment is expected to inject approximately N$100 million into the local economy within a 150 km radius of Grootfontein
Namibia’s charcoal industry is set for a significant boost following a major investment aimed at increasing production capacity and economic benefits for local producers. Carbo Namibia has announced that, after nearly a decade of collaboration, UK-based company Big K Products has acquired a majority stake in the Namibian charcoal company, with approval from the Namibian Competition Commission.
According to a statement from Carbo Namibia, the investment will facilitate an upgrade of its Grootfontein-based plant to meet European production standards and double its annual export capacity to approximately 20,000 tonnes of charcoal. This expansion is expected to strengthen Carbo Namibia’s position in the international market and ensure long-term market stability.
The investment will fund several upgrades at the plant, including a N$10 million enhancement of dust extraction systems, improvements to the briquette and packaging plants, and an expansion of the sieving capability. The company anticipates increasing its workforce by 100 employees over the next three years, with the briquette plant operating under its own dedicated team.
“Charcoal production is highly influenced by weather conditions and market demand, making financial stability and proper infrastructure essential for maintaining a stable cash flow while adhering to strict European standards,” said Hans Steyn, Namibian founder and managing director of Carbo Namibia.
Big K, one of the UK’s top three charcoal distributors, has been a trusted business partner of Carbo Namibia for nearly ten years, ensuring timely payments and stable business relations. Negotiations for the share acquisition began in December 2023, marking a new chapter for Carbo Namibia’s growth.
Steyn assured producers that Carbo’s production will fully resume on 4 May following a temporary closure for factory upgrades. However, he stressed that Forest Stewardship Council (FSC) certification will now be a mandatory requirement for all charcoal producers. To facilitate this transition, Carbo Namibia has experts available to assist producers in obtaining certification. Additionally, the company will strictly enforce compliance with the European Union Deforestation Regulation (EUDR), which aims to combat deforestation linked to products consumed within the EU market.
Steyn also highlighted the strong demand for restaurant-grade charcoal, which commands a premium price compared to regular charcoal. “Our goal is to encourage farmers to produce higher-quality charcoal, which has a growing international market,” he said.
Big K’s team, which frequently visits Namibia, will return in May to assess engineering improvements on-site. Carbo Namibia remains committed to supporting local producers and maintaining high product standards. The company has also announced plans for extensive training to ensure workers understand the new European standards and requirements.
The north-eastern region plays a central role in Namibia’s charcoal industry, and this investment is expected to inject approximately N$100 million into the local economy within a 150 km radius of Grootfontein. “This development will benefit the community and create new opportunities for local producers,” Steyn concluded.
According to a statement from Carbo Namibia, the investment will facilitate an upgrade of its Grootfontein-based plant to meet European production standards and double its annual export capacity to approximately 20,000 tonnes of charcoal. This expansion is expected to strengthen Carbo Namibia’s position in the international market and ensure long-term market stability.
The investment will fund several upgrades at the plant, including a N$10 million enhancement of dust extraction systems, improvements to the briquette and packaging plants, and an expansion of the sieving capability. The company anticipates increasing its workforce by 100 employees over the next three years, with the briquette plant operating under its own dedicated team.
“Charcoal production is highly influenced by weather conditions and market demand, making financial stability and proper infrastructure essential for maintaining a stable cash flow while adhering to strict European standards,” said Hans Steyn, Namibian founder and managing director of Carbo Namibia.
Big K, one of the UK’s top three charcoal distributors, has been a trusted business partner of Carbo Namibia for nearly ten years, ensuring timely payments and stable business relations. Negotiations for the share acquisition began in December 2023, marking a new chapter for Carbo Namibia’s growth.
Steyn assured producers that Carbo’s production will fully resume on 4 May following a temporary closure for factory upgrades. However, he stressed that Forest Stewardship Council (FSC) certification will now be a mandatory requirement for all charcoal producers. To facilitate this transition, Carbo Namibia has experts available to assist producers in obtaining certification. Additionally, the company will strictly enforce compliance with the European Union Deforestation Regulation (EUDR), which aims to combat deforestation linked to products consumed within the EU market.
Steyn also highlighted the strong demand for restaurant-grade charcoal, which commands a premium price compared to regular charcoal. “Our goal is to encourage farmers to produce higher-quality charcoal, which has a growing international market,” he said.
Big K’s team, which frequently visits Namibia, will return in May to assess engineering improvements on-site. Carbo Namibia remains committed to supporting local producers and maintaining high product standards. The company has also announced plans for extensive training to ensure workers understand the new European standards and requirements.
The north-eastern region plays a central role in Namibia’s charcoal industry, and this investment is expected to inject approximately N$100 million into the local economy within a 150 km radius of Grootfontein. “This development will benefit the community and create new opportunities for local producers,” Steyn concluded.
Comments
Namibian Sun
No comments have been left on this article