August 3, 2023

Monter Capital CEO highlights African agribusiness opportunities

Brian Malambo, the chief executive officer of private equity firm Monter Capital, has identified distinctive agribusiness prospects in Africa, including soybean processing in Zambia and Botswana's potential as a regional meat production hub, How We Made It In Africa reported.

Monter Capital has recently achieved the initial close of its US$100 million private equity fund aimed at supporting enterprises in the agribusiness, financial services, and clean energy sectors across sub-Saharan Africa. The fund's focus lies in investing in agri-processing ventures capable of producing food products not only for local markets but also for neighbouring countries.

Malambo said Zambia has potential for processing soybeans into cooking oil, soy cake, and soy flour. The residual product, soy cake, often used as animal feed, holds export potential to neighbouring countries like Tanzania. He also highlights the transformation of corn into corn meal as a promising venture, particularly in exporting to the underdeveloped agriculture sector of the Democratic Republic of Congo.

Contrary to its small population, Botswana has captured Malambo's attention due to its favourable conditions for livestock farming. He envisions Botswana becoming a significant base for producing processed meat products, intended for export to neighbouring nations.

Malambo views Botswana's 5.8% GDP growth in 2022 as a positive sign and praises the government's policies and support for private sector development.

Despite challenges, Zambia's economic outlook is brightening. Malambo acknowledges the country's economic vulnerability due to its dependency on mining and rain-fed agriculture. Zambia's debt burden has been a significant concern, but recent debt restructuring agreements have eased the situation. The restructuring, which reschedules debt payments over two decades, has garnered international support and paved the way for increased foreign investor interest in various sectors.

Malambo sees this debt restructuring as a pivotal moment for Zambia, anticipating that it will enable the government to invest in sectors capable of driving economic growth. He notes a surge in interest from foreign investors in sectors like mining, agriculture, manufacturing, and infrastructure since the restructuring announcement.

-      How We Made It In Africa