First of all, no investment comes without risks. However, many of the potential risks for a project like this one are mitigated in this case. The development risk is low. As mentioned before, Ajwa has a proven track record in the plantation of durian through our pilot project of 20 hectares and the company is now ready to scale the plantations to hundreds of hectares. Since 2017, several investors have reinvested with us while waiting for their first return as they have been satisfied by our plantation management and our reporting system (reports are sent every 6 months to the investors).
Country risk is the first consideration when investing overseas. Cambodia has been politically stable for almost 4 decades and Cambodia’s leader, Hun Sen, is the world’s longest-serving prime minister, he held the position since 1979. Hun Sen just got re-elected at the end of July 2018 and he has been predicted to stay in power for at least 9 more years. Cambodia is also one of the fastest-growing economies in Asia with increased investments in real estate and agriculture among other booming sectors.
Sales risk of the harvested produce is low, as well. The management company has worked hard over the last several years to cultivate relationships with important buyers in Cambodia, Vietnam and we are looking to secure contracts with Chinese importers in the future to increase our sale margin.
Weather risk in Cambodia is low, as the country has no real natural disasters. Risk of flood in the mountain is also extremely low and the risk of drought season is mitigated by our pond and two natural streams of water that come directly from the mountains. Ajwa Plantation only buys land near-natural streams of water to avoid depending totally on the rainfall.
Currency risk is minimized in Cambodia, as this country uses the U.S. dollar. While that takes away an advantage that some investors may be looking for in the form of currency diversification, it also eliminates the risk of your returns being eroded by local currency losses.
Pest risk is another general agricultural concern. Unlike the black pepper plants, the coffee trees are less exposed to disease and from our research, the risk is very low. Proper maintenance work also helps to keep pests down.
If you are interested in partnering with us, need any help or advice then please feel free to contact us. We’re here to help and answer any questions you might have.