FMO invests in The Mohammed Enterprises Tanzania Limited Group (the “METL Group”) is a large family-owned diversified group of companies, headquartered in Dar es Salaam, Tanzania. The transaction provides a USD 20 mln 8 year term facility for the expansion and rehabilitation of sisal estates.
The development impact is high, with 14.900 employees in the agri division, METL is the largest employer in the primary agriculture sector in Tanzania. This project will create 400 additional jobs on the existing 1700 jobs and over 4000 indirect employments. In the project the housing of employees and other sanitary facilities will be improved. With the appointment of an E&S manager, METL is clearly committed to improve their E&S practices.
METL employs 24,343 people across the country and was incorporated more than 40 years ago. The family-owned METL group owns a wide variety of agri storage and processing facilities and acts in several commodities as a vertically integrated player owning its own farms. METL remains to be one of Tanzania’s largest and most diverse agri exporters.
The company has 9 sisal estates covering a total land area of 25.258 ha. Of this land area, only on 12.697 ha sisal is planted. Each year METL will plant about 2.200 ha with new sisal up to 2023, increasing the total planted area from 12.697 to 20.603 ha (Sisal has to be replanted every 10 year). Sisal production will increase from 9.623 tons in 2013 to 19605 tons in 2023. Sisal fibre and products are replacing synthetic products and therefore the transaction is qualified as 100% green. Demand for new products using sisal has been growing at a very fast rate in the last few years. Sisal is used as a fibre in various industrial applications (building material and car manufacturing).
