(Ecofin Agency) - Norwegian Investment Fund for developing countries (Norfund) and private equity fund Zebu Investment Partners jointly invested in Terramar, a Mozambican company engaged in the importation and distribution of frozen foods and consumer products.
Norfund took a $6 million stake but Zebu committed $12 million through its second Africa Food Security Fund, which targets SMEs in the agriculture and food value chain in sub-Saharan Africa.
"We believe that Terramar can be an important catalyst for the development of the necessary value chains, therefore making new investments in the sector more viable [...] Terramar has one of the largest cold storage capacities in Mozambique," commented Simbah Mutasa, Norfund's regional director for Southern Africa.
This investment is the first made by Norfund and Zebu Investment Partners in the Mozambican frozen food and consumer goods industry. Nevertheless, Norfund is very committed in Africa, with investments in several sectors in Mozambique. For Zebu Investment Partners, this deal is its seventh through the Africa Food Security fund.
Terramar controls 60% of the local frozen food and consumer products market. Its goal with this fundraising is to expand further in the domestic market, targeting underserved areas. It also plans to develop local and regional supply chains.
According to data provided by the Norwegian fund, in 2020, the Mozambican food and beverage market was $1.4 billion. It is expected to grow to $2.4 billion by 2025.