Estate Living Magazine Smart Moves - Issue 38 February 2019 | Page 31

P R O P E R T Y
&
I N V E S T M E N T
And it’s not just investors who love the idea; Livestock Wealth has
won multiple awards such as the African Entrepreneurship Award
(BMCE Bank of Africa) as well as the SAB Foundation’s Social
Innovation Award. Their site also boasts many press articles from the
likes of Huffington Post, CNN, CNBC and others. If the past three
years are anything to go by, then Livestock Wealth is certainly a
business to keep your eyes on.
The company is also currently looking to expand into other forms of
agriculture, to offer similar ‘time-based investments in agriculture’
for chickens, vegetables, timber and anything that grows.
HOW IT WORKS: THE E-COW-NOMICS OF IT ALL
HOW CREDIBLE IS YOUR COW-LATERAL?
The idea was first presented by Ntuthuko Shezi (founder of
Livestock Wealth) in 2015 at TEDx Johannesburg, and the company
has since grown from a handful of investors and 26 cows in 2015 to
700+ investors who currently own over R26 million’s worth of cows.
The investment process happens online and you’re issued with an
investment certificate along with a photo of your cow. You’ll also
get details of the farm and farm manager, and you can even visit
the farm to see your cow if you wish. Some of the farms also have
accommodation offerings and you can make a weekend trip of it.
N
But Livestock Wealth, an innovative investment product, is making
it possible for people without the requisite land and skills to own
cattle. It’s bringing together farmers who are looking to grow their
businesses and investors with cash to spare. Through their unique
crowdfunding platform they’re really making it possible for anyone
to invest in cows.
The investment model has changed slightly since inception as
the company expands and perfects their offering. The current
investment option is similar to that of a fixed deposit account; it’s
easy to understand and low-risk. You can either invest in a calf
(R10,850) for a six-month period, or in a pregnant cow (R18,530)
over a 12-month period. You deposit the required money and will
earn between 10% and 14% growth on your investment (paid out at
the end). The final ROI is based on the beef price when the calves
are sold at auction. After your investment period is over, you can
withdraw completely or simply continue reinvesting. Livestock
Wealth also caters for smaller investments – you can invest in a
portion of a cow, which opens the investment opportunity to new
investors who are just starting to grow their wealth.
body corporate would not be impressed! There are some informal
schemes available where one can buy a cow and let someone look
after it in return for the first calf, but these investments are risky as
they generally offer little protection to investors, and the handshake
agreement can easily be broken.