Invictus Investment’s CEO on agro-food, strategic investments, expansion

UAE-based Invictus Investment Company, a rising force in the agro-food commodity sector, is rapidly expanding its footprint across Africa and the Middle East.

With a focus on strategic acquisitions and a vision to become a fully integrated enterprise, Invictus is making significant strides. CEO Amir Daoud Abdellatif shares insights into the company’s recent acquisition of Merec Industries in Mozambique, detailing the financial and operational benefits, and hints at further expansion plans for 2025.

Here Abdellatif delves into Invictus’s growth strategy, its impact on regional food markets, and the company’s ambitious vision for the future.

What are the key market drivers that will influence the growth of the agro-food sector in the coming years?

Several key market drivers will shape the agro-food sector in the coming years. Population growth and urbanisation in the Middle East and Africa are rapidly increasing demand for convenient and reliable food products. Africa’s population alone is projected to expand by one billion by the end of 2025 – this will in turn create a substantial need for staple food supplies.

At the same time, a rising middle class with greater disposable income is driving a shift towards higher-quality, premium food options. Governments are also prioritising food security and self-sufficiency, creating new opportunities for companies to contribute to national food security agendas.

Meanwhile, technological advancements – including precision agriculture, supply chain digitisation and innovations in food processing and storage – are transforming the sector and enhancing efficiency and resilience across the value chain.

What do you believe is the most effective approach to achieving long-term food security, and how do you view the GCC region’s efforts in this regard?

Food security has long been a priority for GCC countries, driven by the region’s climate and availability of arable land and freshwater resources. The most effective way to achieve long-term food security is by investing in a diverse portfolio of food-related assets across different regions, prioritising locations with the lowest production costs and the greatest potential for high yields.

To ensure a resilient approach, it is also key to leverage technologies to drive innovation and efficiency, while adopting sustainable agricultural practices that protect the landscape.

The GCC countries have been at the forefront of these efforts, proactively seeking opportunities in key food-producing regions and establishing a strong foundation of food assets capable of withstanding market fluctuations and geopolitical shifts. The region’s financial resources, fiscal stability and investments in agro-tech, innovative farming practices and long-term research and development have been instrumental in addressing food security challenges and laying the groundwork for a sustainable future.

The recently announced GCC strategy for food security demonstrates the region’s commitment and leadership in this area. The strategy outlines a comprehensive framework for enhancing food security through a combination of high tech-enabled domestic production, strategic partnerships and investments in key food-producing regions.

This multi-pronged approach aims to ensure a stable and sustainable supply of food for the region’s growing population while also supporting economic diversification and job creation. As an agro-food company, we are inspired by this visionary approach and remain committed to contributing to these efforts through our investments and initiatives, both on a local and regional level.

Tell us about the financial and operational aspects of Invictus Investment’s acquisition of Merec Industries.

The acquisition of Merec Industries, Mozambique’s largest flour milling company, marks a significant step in our growth strategy. It strengthens our presence in high-potential African markets, opens doors to new strategic partnerships and enhances our operational capabilities across the midstream and downstream segments.

Merec Industries holds a dominant position in Mozambique’s agro-food market and controls over 60 per cent of the sector. The company operates advanced milling facilities with a total production capacity of more than 800,000 MT (metric tonnes) of wheat and corn flour per annum. It also has processing facilities for over 180,000 MT of pasta, biscuits and animal feed per annum, as well as grain silos with a total storage capacity of 145,000 MT.

Mozambique is an attractive market with strong demand for wheat- and corn-based products, driven by urbanisation, population growth and rising incomes. Consumption is expected to grow at a CAGR of 6 per cent between 2022 and 2027, while the pasta market is projected to expand at 9.5 per cent annually, reflecting evolving consumer preferences.

As we integrate Merec Industries into our operations, we plan to roll out an additional processing capacity of 1,000 MT per day and increase our export volumes. This acquisition will also serve as a base for us to access the larger Southern African Development Community (SADC) market.

Financially, we expect our consolidated revenues to increase by over Dhs1bn ($272m) per annum, and our investments and trading activities to grow, with EBITDA projected to more than double in 2025.

This transaction, combined with our earlier acquisition of a 60 per cent stake in Graderco and its subsidiaries from Zalar Holding, will accelerate our growth trajectory and bring us a step closer to our goal of becoming a fully integrated agro-food enterprise in the Middle East and Africa.

Does Invictus Investment have any acquisition plans for 2025, and if so, what is the expected value of the investments?

We are pursuing an ambitious growth strategy to increase the company’s revenue fivefold to  Dhs25bn ($6.8bn) by 2028, using our 2023 performance as a baseline. This strategy encompasses both organic and inorganic growth avenues.

As we look outwards, we are constantly evaluating investment opportunities within the agro-food value chain to expand our business both up and down the vertical to become a fully integrated agro-food enterprise.

The Merec Industries and Graderco acquisitions are prime examples of this strategy in action as they not only strengthen our market position in the region but also provide us with strong local warehousing and distribution capabilities.

Building on this momentum, we will continue to invest in midstream and downstream assets in the value chain in key African markets, targeting the acquisition of majority stakes in ventures valued between $200-300m to broaden our market presence and product portfolio – with plans for two-three acquisitions in the basic foods segment this year.

Our focus will be on strategic opportunities that leverage our existing strengths and create synergies with our current operations.

In which countries does Invictus Investment intend to expand its presence in the future?

Over the past two years, we expanded our operations into several new markets, including Burundi, Cameroon, Ethiopia, Iraq, Ivory Coast, Malawi, Morocco, Mozambique, Rwanda, Tanzania and Turkey. Most recently, we entered Burkina Faso, Jordan, the Netherlands and Senegal, bringing our global reach to a total of 54 markets.

In the near term, we are focusing on expanding our trading presence in North Africa and key coastal markets across the continent. North Africa’s proximity to export markets, established port infrastructure and growing demand for wheat-based products make it a strategic priority for us.

We plan to acquire wheat milling assets in the region to further strengthen our market position and supply chain efficiency.

We also recognise the importance of having a strong presence in coastal markets, which offer advantages such as access to key trade routes, reduced logistics costs and regional distribution opportunities. Expanding in these areas will help us build a more resilient supply chain and bring us closer to our goal of becoming a fully integrated agro-food enterprise.