IFC Finances MMI Steel Mozambique to Promote Local Industry, Cross-Border Investment
IFC has announced an investment in MM Integrated Steel Mills Mozambique to support local industrial development and the regional growth of MMI’s Tanzanian-based parent company Motisun Group. The project will manufacture high quality galvanized, color coated roofing sheets and related products used in low-cost housing projects. The plant is based at Special Economic Zone Nacala Port, Mozambique
MMI Steel will be the first roofing sheet manufacturing plant in Mozambique with integrated facilities from cold rolling to profiling. The company will locally manufacture high quality products for the housing sector in Mozambique, where such materials are mostly imported. MMI Steel’s plant, which has been approved by Gazeda and Bank of Mozambique, is expected to create over 250 new jobs.
Subhash Patel, founder and Chairman of Motisun Group, said “Mozambique is a fast-growing market that will require local building materials to meet expanding housing needs. Our integrated facilities at Nacala will enable us to provide customized roofing sheets of various thickness, color and sizes at much competitive price. IFC is an important partner to help the Motisun Group grow into a significant regional player,”
Motisun has manufacturing operations in Tanzania, Uganda, and Zambia, and distributes to 10 more countries in Africa. The Group has plans to expand into Ghana to serve countries in West Africa.
IFC Country Manager Jumoke Jagun-Dokunmu said, “IFC aims to help investors that can create jobs and promote the development of industry in Mozambique. We are committed to helping strong African companies grow outside their home markets.”
Motisun commenced business in 1990s, starting with induction furnace, rolling and profiling of corrugated roofing sheets. In 1992, it opened its first manufacturing facility in Dar es salaam, Tanzania, which now has a pickling, cold rolling, galvanizing, profiling, color coating and welded pipe manufacturing lines. The plant also has scrap melting and billet casting facilities.
Motisun set up manufacturing facilities in Zambia in 2010 and Uganda in 2012 and today has cumulative rolling capacity of 192,000 tons spread across the three countries. Three quarters of Motisun’s revenue comes from its steel operations. The group also has interests in other industries such as beverages, paints, plastics and hospitalities.