MTI Investment is an investment firm founded in 2014 with founding members from the Nordics and East Africa.
We aim to develop and harness long-term business potential in East African economies. Recent political reforms tackling government inefficiencies have paved the path for these countries to expand telecommunications, rapidly develop mobile banking, experience high demand from healthy population growth (6% annually), grow exports, create better infrastructure, improve tax collection, discover gas, and strategically utilize agricultural resources.
Our mission is to help SMEs in East Africa to grow faster and become more profitable. With over five years of experience in East Africa, we have built relational infrastructure with key stakeholders, such as universities, legal advisors, embassies, local investors, international PE-firms, and local businesses.
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 criteria:
- SMEs that can become a national or regional champion (sales USD >10 million)
- An initial investment in SMEs with at least USD 1 million turnovers, and with long-term growth prospects of at least 15% growth per year (target growth rate of +30%)
- SMEs with operationally active co-owners with long-term commitments
- SMEs with university-educated top management and founders/owners
We invest with input from trusted partners. Our focus is on firms that can benefit from population growth, will support higher living standards, and ultimately align with the SDGs. We only invest in firms that are environmentally safe and that practice a high level of ethical standards. We will not engage in the production of tobacco or alcohol, or in any gambling /casino businesses.
Our investment process rests on three pillars: Trust, University educated and High growth.
MTI’s growth is dependent on currently available financial resources and team capacity. We therefore have a strict discipline regarding the evaluation of new opportunities.
In terms of pipeline, there is no shortage of opportunities and we have been approached by many individuals since our time of establishment. Thanks to our experience and careful filtering, we are now in a position where our opportunities come from within our network of investments. These may be in partnership with 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.
We offer our investors:
- A business model with low costs that takes advantage of university-based networks.
- The financial objective of maximizing value-creating to shareholders through dividends and value appreciation.
- A medium-term vision to be publicly listed 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.