Country: Tanzania
Type of investment: direct investment company
Purpose: Capex Expenditure
Financial close: June 2019
Tenor: 9 years
S&E Category: B
On 13 August 2019, AATIF finalised a USD 15m facility agreement with Amsons Industries, for the expansion of its milling plant. Amsons Industries is a subsidiary of Amsons Group- a larger group of family-owned businesses operating across various sectors in Tanzania. The company recently decided to expand its operations, venturing into the food and agri industry having identified the potential for local processing of wheat into basic food products. In so doing, the company established Camel Flour Milling, a milling business geared towards addressing the consumption preferences of local and regional consumers.
The company has an existing milling plant that has been operating at 100% capacity, processing 150MT/day of wheat for local market consumption. Prompted by the continuously increasing demand for processed wheat on the market, the company initiated the expansion of its processing capacity, investing in a second milling plant. As a result, overall processing capacity increased from 150MT/day to 650MT/day. The new wheat mill was partially financed by AATIF’s loan provided in 2019. This expansion highlights the company’s intent to support local processing, while providing sustainable local employment.
AATIF sees the potential in this company, captivated by its unique mission of trying to revamp the local wheat production industry across Tanzania, which subdued in the late 80s. Camel Flour seeks to work with AATIF towards establishing a farmer outgrower scheme to ensure the purchase at least 50% of the wheat from small and commercial farmers across Tanzania, reducing dependency on imports from abroad. By working together with AATIF towards this ambition, the company aims to provide inputs and training to local farmers, elevating their wheat production skills and capacities to meet the company’s demands.
Technical Assistance Project Highlight
Design and implementation of a sustainable wheat outgrower scheme
Challenge: After the expansion of a wheat flour processing plant Amsons (Camel Flour) seeks to expand local sourcing of raw material to support local farmers.
TA Intervention: To design and to develop a respective implementation plan for a wheat outgrower scheme that will support Amsons (Camel Flour) to increase its local sourcing of wheat in Tanzania.
Result: This project will support Amsons (Camel Flour) to increase its local sourcing of wheat in Tanzania. It is anticipated that the establishment of the outgrower scheme will also be supported by the AATIF TA Facility.
Photo credits: Amsons Industries (T) Ltd
Local processing
650
MT Daily wheat processing capacity
OUTREACH TO AGRICULTURAL PRODUCERS
50%
Amsons seeks to source up to 50% of its wheat from local farmers.
Number of employees
8
Female employees
87
Male employees
Camel Flour has a workforce of 95 employees, comprised of 87 male employees (92%) and 8 female employees (8%).
TECHNICAL ASSISTANCE FACILITY
The TA Facility has supported Amsons/Camel Flour through the implementation of three TA Facility projects in total since 2015, this includes one rapid appraisal study to assess the impact of the AATIF investment.
TA Facility Projects
2019
Expert consultant for wheat outgrower scheme
2020
Rapid appraisal study of AATIF investment in Amsons/Camel Flour
2021
Apprentice miller training
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(232.6 KiB)
- Figures are based on latest available self-reported data by investees and data collected by AATIF’s collaboration partners
- Figures are subject to change as and when additional information becomes available
- Figures reported here are not replacing rapid appraisals / impact evaluations that are done in addition
