Mozambique: Zebu Investment Partners backs food distributor
The Africa Food Security Fund, managed by Zebu Investment Partners, together with Norwegian Investment Fund for developing countries (Norfund), have successfully closed a buyout of the Terramar Group.
Terramar is an importer, retailer, wholesaler and distributor of frozen, chilled and ambient consumer goods in Mozambique’s food and beverage market. The company’s proficiency in sourcing and distribution, through its two international procurement centres and best-in-class cold storage infrastructure, enables Terramar to service about 60% of this market and deliver food security to both rural and urban customers.
Operations started in 1998 with the set up of Portugal Fisheries in South Africa, initially as an importer of fish and shellfish from Mozambique. Subsequently, the company started the exportation of meat from South Africa to Mozambique, and thus established Moçambique Terramar Trading in Maputo in 2000. Terramar in Mozambique is now the heart of the group, importing products from its Portuguese and South African procurement centres, as well as from a variety of local suppliers, which include multinationals, such as Coca Cola and Unilever.
Dennis Matangira, senior managing partner of Zebu Investment Partners, was particularly impressed with Terramar’s infrastructure that has allowed it to specialise and become one of Mozambique’s top importers and distributors. “Terramar’s vertically integrated supply chain, as well as their multiple international procurement centres, enables the selection of a diverse range of products globally, at the best prices, and their world class cold storage infrastructure allows them to effectively reach rural communities who might not otherwise be serviced. This model could be leveraged to supply products to other sub-Sharan Africa countries and help bring food security to millions more.”
Simbah Mutasa, regional director for Southern Africa at Norfund said, “Norfund aims to invest in companies that give farmers, processors, and manufacturers access to markets for their products. We believe that Terramar can be an important catalyst for the development of the value chains needed, making further investments in the sector viable.”
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.