Market study validating an equity investment into Merec
A consortium between Amethis Fund II, Kibo Fund II and PROPARCO made a minority equity investment into Merec Industries, a leading miller and packaged food manufacturer in Mozambique. Amethis is a European private investment fund dedicated to long-term responsible investments in Africa. Kibo is a Kenyan-based private equity firm that focuses on fast-growing companies with the potential to lead economic growth in Africa. PROPARCO is a French DFI that finances operations which are economically viable, financially profitable, environmentally sustainable and socially equitable.
We conducted a comprehensive market study of the Mozambican bread and bakery segment, a key offtaker of flour for the business
The investment will allow the business to build a multinational packaged food group. Merec plans to launch new categories, build brands, structure local partnerships and make new strategic acquisitions across Southern Africa. The deal represents a precursor transaction (in a non-oil related sector) in the young Mozambican market. Given a strong demographic profile, strong GDP growth and macroeconomic stabilisation, the outlook for the country continues to be promising for potential investors.
This engagement was executed through USAID’s Southern Africa Trade and Investment Hub