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MEREC: An equity investment to support the agribusiness sector in Mozambique
Project
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Signature date
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Location
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Mozambique
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Financing tool
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Financing amount (Euro)
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0
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Financing details
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Equity investment
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Customer
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Merec Industries SA
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Type of customer
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Company
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Country of headquarters
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Mozambique
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Project number
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PMZ1050
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Environmental and social ranking
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B+
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Merec is the leading flour and wheat-product manufacturer in Mozambique. By becoming a shareholder of Merec, PROPARCO will allow the company to finance its development and will contribute to strengthening the country’s food security.
Client presentation
MEREC is the leading local player in Mozambique’s wheat and maize milling market. In recent years, the company has diversified into manufacturing pasta, biscuits and animal feed. MEREC operates four industrial sites in the country’s three main regions.
Project description
Merec’s capital increase, in which PROPARCO has taken part, will allow the company to finance (i) its development plan via additional investments in new production lines (pasta, biscuits), and (ii) its working capital needs. It will also refinance some of the current production units.
Project impact
By processing raw materials into basic necessities locally (production of staple foods, bread, biscuits and pasta), Merec is contributing to strengthening food security in Mozambique and to the added value produced in the country. The project will also help create or permanently maintain 1,200 direct and indirect formal jobs. Finally, the entry of international investors will provide the opportunity to strengthen the governance, control systems and environmental and social management of a company which has until now been family-run.