India finances cashew factory in Mozambique

27 January 2006

Maputo, Mozambique, 27 Jan – The Indian government is planning to finance a cashew nut processing factory in Mozambique at a total cost of some US$1 million, officials said Wednesday.

The project was launched Wednesday in Maputo with the signing of an agreement between the Mozambican and Indian governments, which forecasts that the industrial unit will be in production sometime in 2006.

The factory is planned to have a production capacity of around 1,500 tons of cashews per year, according to reports in the local press.

Cashews are currently one of Mozambique’s main export products, together with electricity (from the Cahora Bassa Hydroelectric Dam) and natural products such as shrimp, sugar and wood.

Large production infrastructures, such as Cahora Bassa and the Mozal aluminum factory, represent around 70 percent of total exports expected in 2006.

In 2004, Mozambican exports totaled US$1.5 billion, an increase of 44 percent against the previous year.

In 2005, according to International Monetary Fund estimates, exports increased by 4.3 percent year on year. (macauhub)