Massive Development in Micro-Irrigation System: Amethis MENA Fund II To Invest 5-15 Million Euros In Magriser Group
Posted On June 01, 2021
Morocco is one of the countries in the world which is highly affected by water stress; even then, 70% of its water use goes towards the agriculture sector. Thus, there is a dire need for innovation in the country so that crop production is done in a more efficient way that would require less water.
To bring an end to this problem, Amethis MENA Fund II has decided to sign a majority investment agreement in the Magriser group. This is an excellent news for Micro-Irrigation System Market since the group is one of the leading players in the distribution and installation of solar pumping systems and micro-irrigation in Morocco: the partnership is bound to bear fruit. For the first time, Amethis MENA Fund II has ventured towards the SMEs (Small and Medium-Sized Enterprises) in the country, bringing significant development in the sector.
Margriser Group is indulged in the trade of advanced micro-irrigation solutions. The company assists farmers in reducing water input daily while increasing crop productivity at the same time. Moreover, its irrigation system saves 100 Million m3 of water annually, which equals the annual consumption need of 4 Million people of Morocco. Amethis MENA Fund II has the agenda of launching its production unit for micro-irrigation pipes by the end of the year 2021 and has the enormous ambition of expanding its horizons to the Sub-Saharan regions. Thus, Margriser Group would be an excellent start to broaden its roots in the sector.
Magriser was established in 1987 and is known as one of the best for its micro-irrigation techniques. Today, it has a broad range of micro-irrigation equipment such as micro-irrigation pipes, PVC, basins coverings, filtration, and fertigation systems. In addition, to its auxiliary venture of distributing micro-irrigation equipment, the company has further diversified its product portfolio by contributing to solar pumping systems. Also, it has completed it solution offering and proposed the the unique service of consultation and installation of turnkey micro-irrigation systems.
The investment amount on the agreement reached between the two giants, remains undisclosed. However, Ecofin Agency has reported that Amethis Mena Fund II plans to invest around €5-15 Million in high potential sectors. This commitment and increased investment may also lead to the development of the micro-irrigation sector in Morocco.
For the time being, Amethis Mena Fund II is planning its first closing. The fund has already received two investment pledges from EBRD (European Bank for Reconstruction and Development) and EIB (the European Investment Bank). The fund is expected to finance around 15 SMEs in the MENA (the Middle East and North Africa) region. Although, it will primarily focus on Morocco and Egypt while engaging investments in other MENA countries selectively.