Carbo Namibia partners with UK Company to grow local charcoal industry

UK company’s investment in Carbo Namibia to boost local production and industry growth

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.

After nearly a decade of collaboration, UK-based company Big K Products has acquired a majority stake in the Namibian charcoal company, Carbo Namibia, with approval from the Namibian Competition Commission.

This investment will enable an upgrade of the Grootfontein-based plant to meet European production standards and double its annual export capacity to approximately 20,000 tonnes of charcoal. The expansion is expected to enhance long-term market stability and strengthen Carbo Namibia’s position in the international market.

“Charcoal production is highly influenced by weather conditions and market demand, making financial stability and proper infrastructure essential for maintaining a stable cash flow, whilst adhering to stringent 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 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.

Hans assured producers that Carbo’s production will fully resume on May 4, following a temporary closure for factory upgrades. However, FSC (Forest Stewardship Council) certification will now be a non-negotiable requirement for all charcoal producers. To support this transition, Carbo has experts available to assist producers in obtaining certification. Additionally, strict adherence to the European Union Deforestation Regulation (EUDR) will be enforced. The EUDR is designed to combat deforestation linked to products consumed within the EU market.

Hans 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 stated.

Big K’s team, which frequently visits Namibia, will return in May 2025 to assess engineering improvements on-site. Carbo Namibia remains committed to supporting local producers and maintaining high product standards.

The investment will fund several upgrades at the plant, including a NAD 10 million enhancement of dust extraction, improvements to the briquette and packaging plants, and an expansion of the sieving capability. The company expects to increase their payroll by 100 employees over the next three years. The briquette plant will also have its own dedicated team. Extensive training will be provided to ensure workers understand the new European standards and requirements.

The north-eastern region is central to Namibia’s charcoal industry, and this investment is expected to inject approximately NAD 100 million into the local economy within a 150 km radius of Grootfontein. The development will benefit the community and create new opportunities for local producers, Hans added.

FOR MORE INFORMATION, KINDLY CONTACT FRANK DETERING (081 640 6141), EMIL JUNG (081 147 5788) OR PJ STEENKAMP (081 750 0824).