Information on the target
Merec, founded in 1998, is the leading player in the flour milling and wheat-based product transformation sector in Mozambique. The company manufactures and distributes a range of products including pasta, biscuits, animal feed, and branded bread, catering not only to the Mozambican market but also to neighboring countries. Over the years, Merec has established itself as a vital contributor to the local economy, providing affordable staple foods and playing a significant role in addressing malnutrition in one of the world's most disadvantaged nations.
In January 2025, Amethis, alongside its co-investors Proparco and Kibo Capital Partners, successfully exited its investment in Merec by selling 100% of the company to Invictus PLC, a Dubai-based group. This transaction marks a significant milestone for Merec, which has seen substantial growth and operational expansion during Amethis's investment period, including the doubling of its milling capacity and the establishment of a new mill in Nacala in 2023.
Industry overview in the target’s specific country
The flour milling industry in Mozambique is a critical component of the country's food supply chain, providing essential products such as flour, pasta, and bread. With a population of approximately 35 million, the demand for affordable and nutritious food products is ever-increasing. The industry has faced challenges, including fluctuating wheat prices and supply chain disruptions, but it remains resilient due to the essential nature of its products.
Mozambique's agricultural sector, particularly wheat production, has been gradually improving, with efforts to enhance local farming practices and increase yields. However, the country still relies heavily on imported wheat to meet its milling needs. This dependency presents both challenges and opportunities for local milling companies like Merec, which play a crucial role in bridging the gap between supply and demand.
In recent years, the government has implemented policies aimed at boosting local production and reducing reliance on imports, which has positively impacted the flour milling sector. Investments in infrastructure and technology have also contributed to the industry's growth, enabling companies to enhance their production capabilities and improve product quality.
As the industry continues to evolve, there is a growing emphasis on sustainability and environmental responsibility. Companies are increasingly adopting practic…