Merec Industries, a subsidiary of UAE-based Invictus Investment Company, is expanding its manufacturing footprint in Mozambique with the construction of a pasta factory in Nacala, a project expected to strengthen domestic food production, reduce import dependence and open new export opportunities across Southern Africa.

The facility will complete Merec’s pasta manufacturing presence across Mozambique’s northern, central and southern regions, making it the only producer with manufacturing operations spanning all three regions. The investment, alongside an expansion of its Machava industrial facility in the south, will lift production capacity beyond domestic demand.

Nacala targets export markets

Nacala offers a strategic location for the investment, with access to a deep-water port and the Nacala Logistics Corridor, which connects Mozambique to landlocked Malawi and Zambia. The transport links could give Merec a more efficient route to regional markets as the company builds capacity to export surplus production.

Nampula Province Gov. Eduardo Abdula visited Merec’s facilities to inspect construction progress and review the investment. The project is expected to bring pasta production closer to consumers in northern Mozambique while increasing the availability of fortified products that meet the country’s food fortification requirements.

Beyond manufacturing, the development is expected to generate direct and indirect employment while creating opportunities for local suppliers and businesses involved in logistics, distribution and sales. It is also expected to support skills development and strengthen industrial activity across the food production value chain.

Invictus accelerates food expansion

Merec’s operating performance has improved since Invictus acquired the business in January 2025, encouraging a more ambitious expansion strategy. The company is seeking to move beyond its traditional milling operations into additional food categories in Mozambique and other markets across the Southern African Development Community (SADC).

Amir Daoud Abdellatif, CEO of Invictus Investment, said the Nacala project would bring production closer to consumers while providing the industrial capacity needed to build a stronger regional food business. He said the company’s longer-term ambition is to develop Merec into an integrated food platform serving Southern Africa.

Eng. Luís Aveleira, an executive board member at Merec, said the investment would help Mozambique meet domestic pasta demand through local manufacturing rather than imported products. The company also intends to generate production surpluses for export, potentially increasing foreign currency earnings while supporting the country’s industrialization objectives.

Helios deal brings new capital

Invictus and Helios Investment Partners announced in October 2026 that Helios Fund V had agreed to acquire an interest of up to 49% in Merec’s holding company, with Invictus retaining majority ownership. The transaction is expected to close by the end of 2026, subject to customary conditions and regulatory approvals.

The proposed investment brings another institutional investor into Merec as the company expands its manufacturing capacity and regional reach. It also follows cooperation agreements signed by Invictus and Merec with the International Finance Corporation, a member of the World Bank Group, at the Lusophone Africa Investment Forum in Cabo Verde.

Mozambique’s food industry expands

Founded in 1998, Merec is Mozambique’s largest flour milling company, with annual processing capacity of about 1 million metric tons and grain storage capacity exceeding 145,000 metric tons. Its operations span wheat and corn milling, pasta, biscuits and animal feed production, supported by grain handling and distribution infrastructure.

Invictus acquired Merec through the purchase of its Mauritius-based holding company, Stratton Africa Holdings, in a transaction valued at AED 696.4 million (approximately $190 million).

The deal marked a significant expansion into African food processing for the UAE-based investment company, which was founded in 2014 and operates across agricultural commodities trading, logistics and value-added food production.

The Nacala investment reflects Invictus’ broader push into midstream and downstream agribusiness, where processing capacity and distribution infrastructure can capture more value from agricultural commodities. By expanding domestic production while targeting neighbouring markets, Merec is positioning itself to serve Mozambique’s food market and build a larger export business.