FORBES: TANZANIAN TYCOON MOHAMMED DEWJI RAISES $260 MILLION FOR BUSINESS EXPANSION

Mo Dewji

Tanzanian business tycoon Mohammed ‘Mo’ Dewji has secured loans amounting to $260 million from a consortium of banks to support his METL conglomerate’s expansion activities across Africa.

Two weeks ago, Star Oils Limited, an energy distribution company owned by Dewji, and a subsidiary of METL Group, received a $60 million syndicated loan from Tanzania’s National Bank of Commerce, Barclays Bank of Mauritius and ABSA.
Star Oils owns and operates gas stations in the East African country, and is currently building a petroleum tank storage facility near the Dar es Salaam Port. When completed, the facility will have a storage capacity of 68 million liters, for the storage of gasoline (petrol), gas oil (diesel) and kerosene.

In an email statement, Dewji said the loan would help Star Oils to “boost its production and distribution capacity to fulfill demand in the East and Southern Africa market.”

In a related development, on Friday, the investment banking arm of South Africa’s FirstRand concluded the arrangement of a $200 million working capital facility for MeTL Group. In a private conservation with this reporter, Dewji said the loan, will enable METL Group ramp up its commodities trade in and out of East Africa and aid the group’s manufacturing concerns.

The $200 million facility, which is syndicated with both local and international financial institutions, is one of the largest loan facilities provided for the trading of commodities in East Africa. The lending institutions that participated in the syndication include Citi Bank, Rabo Bank and Nedbank.

“We want to create 100,000 direct jobs and build a $5 billion revenue business by 2017. That’s our vision, and this new capital injection will facilitate our dream,” Dewji said.

Mohammed Dewji, one of Africa’s wealthiest men, debuted last year on FORBES’ list of Africa’s 50 Richest with a fortune we pegged at $500 million. A graduate of Georgetown University, he joined his father’s trading business in 1999. At the time, it was a successful commodities trading house with a turnover of $26 million. Eager to expand the company’s business beyond trading, Dewji borrowed heavily from his father and acquired two floundering businesses – a soap manufacturing plant and an edible oil refinery. He transformed the businesses into market leaders in Tanzania and subsequently diversified into textiles, agriculture, logistics, financial services, real estate, grain milling, plastics, distribution and mobile telephony. Today, METL is one of the largest family-owned conglomerates in Tanzania with annual revenues of over $1 billion and a presence in 11 countries in Africa.

Forbes

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