Target Information
Amethis is pleased to announce its successful exit from its investment in Merec Industries, a major player in the milling and production of wheat-based products in Mozambique. The initial investment, made in 2018 in collaboration with partners Proparco and Kibo Capital Partners, aimed to support Merec’s expansion of production facilities and its diversification into a regional consumer goods group. Over the years, Merec has emerged as a crucial supplier, providing half of Mozambique's wheat supply and improving access to nutritionally enhanced staple foods such as bread and pasta.
Founded in 1998, Merec has become the undisputed leader in milling and wheat product transformation in Mozambique, manufacturing and distributing a range of products including pasta, biscuits, animal feed, and branded bread not only within Mozambique but also to neighboring countries. It currently employs over 900 workers, significantly increasing its workforce since Amethis's initial investment.
Industry Overview in Mozambique
Mozambique’s economy has been characterized by a variety of challenges, including high rates of poverty and limited access to basic necessities. However, the food production sector, particularly milling, has shown resilience and growth potential. As one of the poorest countries in the world, Mozambique relies heavily on agricultural production to ensure food security for its population of around 35 million people.
The country has a significant opportunity in the white maize and wheat markets, with an urgent need to increase local production capabilities to reduce reliance on imports. The milling industry is pivotal for the country's food system and plays a key role in addressing malnutrition, as it provides essential food items at affordable prices.
Despite the economic hurdles, investment in the food and agriculture sectors is becoming increasingly crucial. Mozambique’s agricultural growth, seen through partnerships and expansions like that of Merec, is vital in building local capacity, sustaining job creation, and establishing a more food-secure environment.
The strategic enhancements in the milling sector not only address local food needs but also contribute to broader economic growth by creating employment, improving nutritional standards,…