Crookes Brothers, one of Africa’s leading agribusiness groups, has agreed to dispose of its Mozambique macadamia farming businesses for $2 as mounting losses and debt obligations prompt the company to exit the operation.

The South African agricultural group listed on the Johannesburg Stock Exchange on September 18, 2026, said it had agreed with AgDevCo Limited, a UK-based development finance institution, to sell 100% of Murrimo Macadamia Limitada and Murrimo Farming Limitada, including all claims owed to the sellers, for an aggregate cash consideration of $2.

The disposal follows a strategic review that concluded Murrimo Macadamia remained dependent on continued financial support and had limited prospects of reaching cash-flow break-even in the near term.

Macadamia venture records R300.8 million ($19 million) loss

Murrimo Macadamia operates a macadamia farming enterprise in Mozambique’s Gurué district, with approximately 584 hectares under orchard on land covered by a 3,193-hectare, 50-year land-use right.

The business handles orchard establishment, harvesting, dehusking and drying, with its macadamia production sold primarily into export markets.

For the financial year ended March 31, 2026, the combined net assets attributable to Murrimo Macadamia and Murrimo Farming were valued at nil, while the businesses recorded a combined loss of R300.8 million ($18.5 million). Crookes Brothers said the performance remained constrained by debt obligations, operational complexity and structural and country risks.

R89.3 million ($5.49 million) debt to be extinguished

The Mozambique operation was partly funded through an $8 million, 10-year term loan secured in November 2020 from AgDevCo. Crookes Brothers drew $5 million of the facility to finance the expansion of its macadamia operations.

As of the disposal announcement, approximately $5 million of principal remained outstanding, alongside about $500,000 in accrued interest. Together, the obligation amounted to approximately R89.3 million ($5.49 million).

The debt will be extinguished and derecognised from Crookes Brothers’ consolidated financial statements once the disposal is implemented. The company said it had previously halted further financial support for Murrimo Macadamia from January 1, 2026, as part of a strategy to conserve cash and redirect capital toward core operations.

AgDevCo takes control of Mozambique assets

The transaction is subject to Mozambican regulatory approvals, including competition clearance where required, foreign-investor registration, exchange-control approvals from the Bank of Mozambique and relevant agricultural and land-use authorisations.

The disposal is expected to become effective by December 31, 2026, unless the parties agree otherwise.

AgDevCo has also committed to provide up to $600,000 in funding to keep Murrimo operating as a going concern or facilitate an orderly wind-down before completion.

If AgDevCo subsequently sells more than 50% of Murrimo or its business within 18 months, Crookes Brothers could receive a share of the proceeds after specified costs and obligations are settled.

Crookes Brothers said the disposal follows extensive efforts to identify a third-party buyer and represents an orderly exit from an operation that no longer met its risk-return requirements.