Mozambique, a resource-rich country, is seeking to drive economic growth through small and medium-sized enterprises (SMEs). Despite challenges such as rising public debt and foreign currency shortages, the country's long-term growth potential lies in supporting SMEs, according to Joel Rodrigues, Managing Director of Nedbank Mozambique. The country's key industries, including heavy mineral sands, coal, liquefied natural gas (LNG), and aluminium, have contributed significantly to its economy.
Rodrigues emphasizes the need to diversify the economy and support SME growth. However, he notes that typical SMEs in Mozambique are often run by self-made entrepreneurs without the knowledge to internationalize their businesses. To address this, Nedbank Mozambique is financing SMEs, including Merec, a family-owned milling and food production company. Merec was founded in 1998 as a corn/maize mill and has since expanded into breadmaking, pasta production, and biscuits.
Merec's director for quality and innovation, Mualide de Sousa, highlights the company's strategic decision to establish its main mill in Beira, which is now one of the biggest in the region. The mill, commissioned in 2025, enables the company to export products to the north and south of Mozambique. Merec has a significant presence in the country, with 300 kiosks selling its bread daily and plans to expand its pasta production line in Nacala, northern Mozambique.
De Sousa explains that Merec imports high-quality wheat from markets like Canada and Russia, as the quality of wheat from South Africa does not meet its standards. The company has significant storage capacity, allowing it to bring in vessels every 45 days and maintain a buffer stock. Merec's logistics are also being improved, with a project to establish railways to serve inland countries.
Merec's pasta division has one of the strongest local brands, Bela, which was introduced to appeal to the youth market. The company exports its pasta to Zambia, Zimbabwe, and Malawi and produces two types of pasta: entry-level Bela and premium Davinci made from durum wheat. Merec also exports the Bela brand to South Africa and plans to export to the Middle East.
Luis Aveleira, executive board advisor at Merec, notes that logistics are a significant challenge in Mozambique. He highlights the high cost of transporting goods within the country compared to importing from abroad. Nedbank Mozambique, which rebranded from Banco Único in 2021, has 15 branches covering major cities and is committed to supporting SMEs in the country.
Rodrigues remains optimistic about Mozambique's long-term growth prospects, citing the country's strengths, including its support for the South African economy through the Port of Maputo. He believes that Nedbank's investment in Mozambique will yield positive results in the next five years, despite short-term challenges. The country's population of 36 million generates revenue primarily from agriculture and gas extraction, including mega gas projects that have attracted significant investments.
Key points
- Nedbank Mozambique is financing SMEs to drive economic growth.
- Merec, a family-owned milling and food production company, is expanding its operations in Mozambique.
- Logistics remain a significant challenge for businesses in Mozambique.
