Tanzania’s richest man Mohammed “Mo” Gulamabbas Dewji has revealed plans to list an agriculture company in New York or London next year under a $4-billion blank check arrangement backed by development banks, Reuters reports.
“This is a fantastic way to bring food security … with the potential to feed ourselves and feed the world,” the Tanzanian billionaire told Reuters in a London interview, explaining the rationale for the planned agricultural investment.
The planned investment comes at a critical juncture in the world, with inflation and food prices at an all-time high as a result of Russia’s invasion of Ukraine, which has caused global grain, edible oil, and fertilizer prices to skyrocket.
The agricultural venture, which is still in its early stages of development, will launch as a special purpose acquisition company (SPAC) in 2023, with businessman putting up $400 million as 10-20 percent of the total funding.
The leading businessman explained that the agricultural company, which may diversify into soybean and sugar plantations, could provide investors with a five- to ten-fold return over a decade, but it would necessitate “patient, impact, long-term capital.”
Dewji explained that the company will produce grains and edible oils in Tanzania, Mozambique, Zambia, and the Central African Republic, and that the remaining funds required to launch the venture will be planned for the first quarter of 2023, adding that the venture’s capital structure will also take other forms of funding into account.
The leading businessman explained that the agricultural company, which may diversify into soybean and sugar plantations, could provide investors with a five- to ten-fold return over a decade, but it would necessitate “patient, impact, long-term capital.”
Dewji, 47, is the owner of MeTL Group, a Tanzania-based conglomerate founded by his father in the 1970s.
The businessman has built his family’s company, MeTL Group, into one of the largest homegrown industrial conglomerates in East and Central Africa, with 35,000 employees and annual revenues in the region of $2 billion.
Textiles and beverages, as well as edible oils and detergents, are all produced by the group. It is also one of the world’s largest sisal farmers, has container depots and liquid storage facilities, and a large property portfolio in Tanzania.
Dewji, who presently owns 70 percent of the company, has a net worth of $1.5 billion, according to Forbes.
Earlier this year, the Tanzanian billionaire announced plans to raise at least $1 billion to expand the conglomerate and enter new markets. About 15 percent of the funds will be used to finance operations in neighboring countries such as Rwanda and Uganda over the course of three to five years.
