MTI Investment is an investment firm founded in 2014 with founding members from the Nordics and East Africa.
We see a large long-term potential in the East African economy due to payoff from new political reforms that tackle corruption, inefficient governments. East Africa is experiencing improved telecommunications, rapid growth of mobile banking, increased demand through a rapid population growth (6% annually), growing exports, better infrastructure, improved tax collection, large gas discoveries, and large and unused resources in relation to agriculture.
Our mission is to help SMEs in East Africa to grow faster and become more profitable. With more than five years of experience in East Africa we have built the relational infrastructure with key stakeholders such as universities, legal advisers, embassies, local investors, international PE-firms and local firms.
We are not limited to any one sector, but pursue investment in firms that have potential for scale economy and development of a strong market position through brand names and distribution capacity.
We invest in SMEs with the following criterias:
- SMEs that can become a national or regional champion (sales USD >10 million)
- Initial investment in SMEs with at least USD 1 million turnover, and with long-term growth prospects of at least 15% growth per year (target growth rate of +30%)
- Invest in local SMEs with operationally active co-owners with long-term commitments
- Choose SMEs with university educated top management competent management team and founders/owners
- Investing with partners in trusted networks
- Focus on firms that benefit from growth in population and a rising living standard
- Focus on firms that impact society positively in line with the global SDGs
- MTI will only invest in firms that are environmentally safe and that practice a high level of ethical standards. We will not engage in production of tobacco or alcohol, or in gambling /casino businesses.
Our investment process rests on three pillars: Trust, University educated and High growth.
MTI’s growth is constrained by the number of people in our organization and by the financial resources available. Therefore we have a strict discipline regarding the evaluation of new opportunities.
In terms of pipeline, there is no shortage of opportunities, and with several years of experience in the market we are approached by many individuals. Key is to filter out the best opportunities coupled with the best talent. From our experience we are now in a position where all of the opportunities come from within our network of investments. This may be in partnership with both an East African entrepreneur or with an international investment company similar to MTI.
Investment offer to the investors
We offer private individuals and institutional investors an opportunity to take part in the value creation among high-growth small and medium-sized firms in Eastern Africa.
Specifically, we offer our investors:
- A business model with low costs, that takes advantage of university-based networks.
- The financial objective of the firm is the maximize value-creating to shareholders through dividend and value appreciation.
- It is the long-term goal of the firm to be listed on the stock market in the European markets.
Investment offer to the companies
We provide our cooperative partners with capital, support in their corporate governance and help to further improve financial reporting.
This is made typically by board membership from one of the MTI investment partners.
Debt financing is offered to companies with existing equity investments because prevailing annual interest rates for loans from commercial banks in Tanzania are 19-25%. This option provides MTI with needed cash flow and serves as a negotiation point with the company for increased ownership.