Citrum took over two neglected farms in Southern Mozambique which were experiencing chronic losses, employee discontent and poor infrastructure. The new owners are looking to replace the existing citrus crops with banana trees over 150ha on one farm and to develop a sophisticated operation capable of exporting to South Africa. Intensive rehabilitation and planting, as well as equipment purchase, are required to do so and the Mozambican financial sector is reluctant to finance a semi-greenfield agribusiness operation.
AgDevCo invested $1.5m in equity alongside the new owners who injected $1.85m. Both parties share a common vision of promoting a Mozambican-owned agribusiness. The funding is allocated to capital expenditures including a pack-house, farm equipment and irrigation infrastructure. This investment is intended as the first phase of a larger business plan which will see the development of the second farm. If Citrum is successful, AgDevCo is considering supporting the sponsors in other ventures and serve as a best-in-class example of local investment being catalysed into agriculture in Mozambique.
· 26% female employees, including several managers and the general manager.
· Re-organisation of workforce leading to large productivity gains.
Small Traders/street sellers able to get local products at lower prices.
· Agronomic advice and trials for mitigating health and water issues.