Mozambique: Royal Group seizes $60 million of assets from ETG in attempt to monopolise pigeon pea trade to India

Trading conglomerate Royal Group Limitada (RGL) has ramped up its hostilities against international agricultural trader ETG’s Mozambican subsidiary, Export Marketing Company Limitada (EMCL).

Last month, Southern African Herald reported on RGL’s illegal seizure of ETG’s assets and the arrest, without recourse to due process, of an ETG employee based on initiation by RGL. His bail was set for $60 million – the same sum that RGL unsuccessfully sued ETG for in a Nampula court in 2022. The employee has since been released from custody.

It has now emerged that RGL has seized $60 million worth of ETG’s cargo of seeds and grains in the period between 22 December and 8 January, $34 million of which has been moved into RGL’s own warehouses. This includes over $18 million worth of pigeon peas, as well as sesame, ground nut, maize and soya beans.

According to a statement by an EMCL spokesperson, the company has “never witnessed something as malignant and damaging as this” in more than 40 years of operations across Africa and calls for “an immediate cessation in hostilities and for the release of the impounded assets”.

It is understood that RGL is in the process of trying to export these illegally seized goods.

RGL’s exploits in this matter are the latest in a long-running saga concerning the export of Mozambican-grown seeds and grains to India, where pigeon peas in particular are a staple food and in high demand.

And December’s warehouse raid was not the first time RGL has seized ETG’s assets. RGL accused the latter of tipping off the Indian authorities about a shipment of soya beans that was seized by customs amid allegations that RGL misidentified the cargo’s GM status, contravening Indian law.

In Ocober 2022, at RGL’s instigation, Nampula Provincial Tribunal ordered a stop to all ETG’s exports. The following day, the Judicial Court of the Province of Nampula granted RGL an order to seize ETG’s assets – including real estate and ships – and had its bank accounts frozen and balances transferred to the court’s account, leading to a complete suspension of all ETG’s commercial activities. This occurred without a legal hearing. Crucially, RGL failed to provide any evidence of ETG’s guilt.

It is clear through the company’s actions that RGL has in its sights a monopoly of the lucrative trade of pigeon peas and soya beans to India.

ETG has written to President Filipe Nyusi seeking his intervention in the matter. According to the company’s chairman Maheshkumar Patel, RGL has been “misusing state agencies” through its manipulation of the courts against ETG. In his letter, Patel said Nyusi’s “anti-corruption stance” means he cannot be aware of these events, but has appealed to the president to intervene.

ETG is not the only party to suffer as a consequence of RGL’s hostilities. When ETG’s Mozambican assets were seized in October 2022 under a court ruling instigated by RGL, the economy in the north of the country suffered greatly. It put thousands of Mozambican jobs at the port of Nacala at risk and threatened the livelihood of many thousands more farmers who supplied crops to ETG. In his letter to the president, Patel noted the “damage that this can render on Mozambique’s reputation and livelihoods”.

ETG employs over 7,000 employees across 45 countries, who according to the company “contribute every day to achieve our vision and purpose, and live out values of Respect, Integrity, Pursuit of Excellent, Leadership, and Meritocracy”.