AfDB finances MeTL’s agro expansion
DAR ES SALAAM: MOHAMMED Enterprises Tanzania Limited (MeTL) has secured 24.6 million US dollars (61.15bn/-) senior corporate loan from the African Development Bank Group to revitalise and expand the country’s agro-industrial production.
The Bank said in a statement recently that the project will rehabilitate ageing tea estates, convert more than 1,000 hectares into organic plantations and upgrade processing factories to double production capacity.
“It will also establish at least 15,000 hectares of sisal plantations and a new 200-hectare macadamia plantation, while strengthening rural infrastructure, providing modern machinery and enhancing value chains that connect smallholder farmers to regional and global markets,” the statement said.
This investment is expected to create more than 1,400 new jobs, mostly for women and youth, generate over 10 million US dollars (24.77bn/-) annually in new export earnings and contribute approximately 36 million US dollars (89.17bn/- in fiscal revenues for Tanzania.
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By supporting smallholder producers, especially women farmers, the project will help raise household incomes and reduce rural poverty.
“This partnership is about transforming potential into prosperity,” said Charles Orwothwun, AfDB Chief Investment Officer and project team leader: “By combining innovation, sustainability and inclusion, we are helping Tanzania build a more resilient agricultural future that works for its people and the planet.
” Founded in the 1970s, MeTL is a diversified agroindustrial and general trading company which operates multiple bulk storage and processing facilities across the country.
Some of these facilities are vertically integrated with the company’s farms, while others are linked to specialised agricultural supply chains. The company’s specialised agroindustrial division will oversee project execution.
The investment underscores the African Development Bank’s confidence in Africa’s private sector and its commitment to unlocking long-term financing for agricultural transformation.
By leveraging the strength of a homegrown company like MeTL, the project demonstrates how African enterprises can drive inclusive growth while protecting the environment.
The Bank’s loan forms part of a broader 74.7 million US dollars (185.03bn/- investment programme, co-financed by ILX B.V. (an emerging market fund) and MeTL’s own equity to modernise tea, sisal and macadamia plantations while promoting inclusive and climate-smart growth and strengthening Tanzania’s position as a lead producer of these crops.
“This investment will be a game changer for Tanzania’s agricultural transformation by combining industrial efficiency with inclusive growth, empowering rural women and youth while building climate resilience,” Orwothwun said.
