MOHAMMED ENTERPRISES TANZANIA LTD
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
The Mohammed Enterprises Tanzania Limited Group (METL) is a large, family-owned, diversified group of companies headquartered in Dar es Salaam, Tanzania. It 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 IS one of Tanzania's largest and most diverse agri exporters.
What is our funding objective?
FMO is providing a US$20 million, 8-year term facility for the expansion and rehabilitation of METL's sisal estates. The company has 9 sisal estates covering a total land area of 25,258 ha. Of this land area, only 12,697 ha is currently planted with sisal. Going forward, METL will plant about 2,200 ha with new sisal each year until 2023, thereby 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 19,605 tons in 2023.
Why do we fund this investment?
Sisal fiber and its products are often used to replace synthetic products. It is used as a fiber in various industrial applications, such as building material and car manufacturing. In the last few years demand for products using sisal has grown at a very fast rate. This investment therefore contributes to the greening of such products. In addition, this transaction also generates employment. 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 new jobs on top of the existing 1700 jobs, and will generate over 4,000 indirect employments. FMO's non-financial contribution to the client includes setting up an environmental and social management system (ESMS) for the sisal activities. This, along with the appointment of an E&S manager, will be a good step up to raising the environmental and social (E&S) standards of the group. FMO has prepared a complete review of the corporate governance of the METL Group, which was well received and resulted in a clear corporate governance action plan.
More investments
| Date | Total FMO financing |
|---|---|
| 8/23/2022 | EUR 0.05 MLN |
- Region
- Africa
- Country
- Tanzania, United Republic of
- Sector
- Agribusiness, Food & Water
- Effective date
- 12/2/2014
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+