Macau company to develop Zambeze region in Mozambique

9 December 2005

Macau, China, 09 Dec – Geocapital, the company headed by Macau casino magnate Stanley Ho, and two Mozambican companies signed an agreement Friday in Macau to set up a joint venture called Zambcorp, to develop the Zambeze Valley.

The agreement, signed by Geocapital, Mozambique’s Sogir – Sociedade de Gestão Integrada de Recursos, and Mozacapital, a financial institution which aims to set up the first investment bank in Mozambique in 2006, was signed in Macau in the presence of the head of the Macau government Edmund Ho.

With the creation of Zambcorp, the new company will be responsible for the, “prospecting, detection and establishment of economic opportunities related to natural resources in the geographic area of the Zambeze river, which includes the Cahora Basas dam,” the statement explaining the agreement reads.

According to the same statement the joint venture follows a memorandum of understanding signed in September by Geocapital and the Office of the Zambeze Development Plan which outlined, “joint action in economic opportunities using natural resources in the area of hydroelectricity and thermal energy, coal, gas, agro-industry, rail transport, ports, iron and non-iron minerals, real estate and tourism.”

The agreement was signed by Stanley Ho, Ambrose So and Jorge Ferro Ribeiro, representing Geocapital, and by Sérgio Vieira, from the Office of the Zambeze Development Plan, representing the two Mozambican companies. It also includes guidelines for identifying Chinese companies with the financial capacity to explore the resources of that region of Mozambique, the statement said.

The Zambeze valley, which is 225,000 kilometers squared, has the most significant water reserves in the southern region of Africa, has the largest hydroelectric potential on the subcontinent and has conditions to deal with the national requirements for production of cereals, textile fibers, vegetable protein, oils, sustainable forests, meat, fish and mineral products, according to the region’s development office.

The Zambeze valley also includes 5.5 million hectares of land that could be used for irrigated agriculture, cattle farming, silviculture, ecotourism and other activities. (macauhub)