SEF Merec Industries, Lda

completed

The project is for the establishment of a new plant for the processing of imported wheat, with a capacity of 140 tonnes per day or 30,000 tonnes per annum; and construction of silos with a storage capacity of 15,000 tonnes. The equipment will be supplied by Buhler, from whom Merec Industries has already imported a complete maize milling plant that is already in operation at the same complex at Machava. The sponsors have selected Machava for their industrial activities because of its good infrastructure; a railway line from the port, electrical power, easy access to land and labour, and proximity to the market. The main products will be: (a) wheat flour for bread; and (b) cake flour, bran and wheatgerm, which are used as ingredients in animal feed. Although the sponsors have significant experience in the food processing industry in Africa, IFC has helped structure the deal and contributed to optimization of project planning and implementation and will co-ordinate a security sharing agreement with BCM the local co-financier. IFC will facilitate the sponsor’s obtaining finance. The project will create about 55 direct jobs. While the managerial staff will initially be expatriates, part of the skilled and unskilled labor will be hired locally. Merec will provide necessary on-the-job training for supervising and technical staff in order to improve skills levels continuously. Merec will also increase competition in the market which may retard wheat flour price rises and therefore those in the price of bread. Bran will be exported to earn foreign exchange. Given Africom’s strong distribution network, wheat flour will reach the most remote areas of the country facilitating the provision to poor Mozambicans of the most affordable, ready-to-eat food, bread.