MTI Investment SE (MTI) announced that it has entered into a term sheet with AFIC Investment & Consulting Company Ltd. (AFIC) Tanzania to establish a joint venture company ­ TANSWED Agro Limited (TANSWED) in Kahama, Tanzania. TANSWED will operate in the thriving agro-processing industry, which is experiencing rapid growth. Despite being a major rice-growing region, Africa's rice bran industry has not reached its full potential due to inadequate processing facilities.

The demand for rice bran products is expected to grow rapidly in the coming years, driven by consumer demand for natural and healthy food products and the increasing demand for animal feed ingredients. TANSWED will pioneer agricultural automation in the rice bran sieving industry in Tanzania, providing infrastructure for rice bran traders to obtain higher prices for their products in domestic and international markets. MTI's investment of approximately SEK 350,000 will fund the establishment of a modern rice bran processing plant, where raw rice bran will be processed to graded quality, with broken rice separated, and rice husk ground.

Rice grains consist of two protective outer layers: husk and bran. During the milling process, these layers are usually removed. While husk provides little nutritional value, bran is a valuable source of dietary fiber, essential fatty acids, starch, proteins, vitamins, and dietary minerals.

The investment will diversify MTI's industry exposure into the agro-processing sector, strengthening its presence in Tanzania. MTI will own a 49% stake in TANSWED, aligning with Tanzania's National Development Vision 2025 to leverage the country's abundant natural resources, including agriculture, to grow its gross domestic product. The investment is expected to be concluded before 30 March 2023.