Zebu Investment joins forces with Norfund to acquire Mozambican food distributor Terramar Group

MOZAMBIQUE – Zebu Investment Partners through its sophomore fund, Africa Food Security LP (AFS LP), has partnered with Norweign Investment Fund for developing countries, Norfund, to take full ownership of Mozambican food distributor, Terramar Group.

Terramar is a leading importer, retailer, wholesaler and distributor of frozen, chilled and ambient consumer goods in Mozambique’s food & beverage market.

It commenced operations 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 is Portuguese and South African procurement centres, as well as from a variety of local suppliers, which include multinationals, such as Coca Cola and Unilever.

The company’s proficiency in sourcing and distribution, through its two international procurement centres and best-in-class cold storage infrastructure, enables it to efficiently service 60% of the Mozambican market and deliver food security to both rural and urban customers.

Dennis Matangira, Senior Managing Partner of ZIP highlighted that 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.

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In addition, 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.

“Our strength and capability in supply chain and sourcing has been a pillar of growth for Terramar and will continue to be at the core of future plans to continue our growth trajectory.

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“Customer service, and building mutually beneficial and sustainable relationship across our customer base, remains a focal point for us as a business. Ensuring continuity of availability for all the consumer loved brands and products that we have in our poortfolio is critical for Terramar.

“This buyout and investment by AFS LP and Norfund provide a renewed springboard for our future focus to maintain service, relationships and supply,” Terramar Group CEO said.

The AFS LP is pleased to support Terramar as it is bridging the gap left by shortfalls in local production, in order to meet Mozambique’s food demands.

This aligns with its mission of supporting a differentiated procurement and distribution model, that has the ability to service base of the pyramid consumers, facilitating movement of specialist food products to underserved rural populations, thus enabling food security in Sub Saharan Africa.

Simbah Mutasa, regional director for Southern Africa in 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.”

AFS LP’s Technical Assistance Facility (TAF), will explore funding inclusive projects targeting expansion of bottom-of-the-pyramid initiatives, upstream smallholder farmer support schemes to develop local supply bases and increase the company’s local purchasing capacity, and develop CRM systems to support supply chain management related to expansion of market channels.

The buy-out marks AFS LP’s 7th deal in AFS LP portfolio and presents the opportunity for various producers and suppliers along the agriculture value chain in Mozambique to have access to sell their outputs.

Its recent acquisition was of Elgin Free Range Chickens Holdings (EFRCH), a leading South African vertically integrated free-range poultry operation.

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