AATIF finalised a USD 15m facility agreement with a miller in Tanzania, for the expansion of its milling plant.
PRESS RELEASE
On 13 August 2019, AATIF finalised a USD 15m facility agreement with a miller in Tanzania, for the expansion of its milling plant.
AATIF completed the funding of a family-owned and locally operated milling business, incorporated in Tanzania. The company is affiliated to other local businesses operating across various sectors in Tanzania for several years and has in recent years expanded its operations to include food processing by establishing a milling business. The company has an existing milling plant that has been operating at capacity, processing 150MT/day of wheat for local market consumption. This has necessitated the need to increase its milling capacity to 500MT/day and enhance its operations to meet the growing market demand for wheat based products in the country. AATIF has advanced a USD 15m debt funding for capital expenditure and working capital for this expansion, which will enable the company meet its expansion objectives.
The AATIF investment, supports local value addition and import substitution as the Company has ongoing initiatives to improve the standards of wheat crop grown locally hence increasing their sourcing from local farmers. The high demand for wheat products in the local market will also be better met by the expanded milling operations.
“The Company will be another great addition to the AATIF portfolio, expanding AATIF’s footprint into the Tanzanian market and enabling the economy to satisfy more of its flour consumption from local production. Through its technical assistance facility AATIF will seek to further support the company in its strategy to secure more wheat locally, by jointly engaging with wheat farmers in the country to increase overall production and better yields.”