US business owners propose to build refinery in Nacala, Mozambique

9 April 2007

Maputo, Mozambique, 9 April – A group of US businesspeople has presented a proposal to the Mozambican authorities to build a liquid fuel refinery in the port city of Nacala, in Nampula province, Mozambique, at a total investment of US$1.3 billion.

The proposal was handed in to the Mozambican center for Investment Promotion (CPI), which did not reveal the identity of the potential investors.

The project, which would be the first of its kind in the region, would create at least 400 jobs, and outlines the export of fuel to neighboring Malawi.

The country used to have a refinery in Maputo, which stopped operating many years ago, obliging the country to import processed fuels.

Final approval for the Nacala liquid fuel refinery will be the responsibility of the Council of ministers, as it involves a high level of investment.

The CPI added that it was assessing a project for construction of a second cement factory in Maputo province, a project valued at around US$98 million. NO further details were given.

The current cement factory located in the Matola industrial area, on the outskirts of the Mozambican capital, belongs to Portuguese group Cimpor.

The Mozambican body responsible for promoting investments added that it had 32 proposals for investment in the country, totaling over US$1.4 billion (including the Nacala refinery).

In 2006 the value of projects approved by the CPI totaled over 632.8 million euros, which was a significant increase on the previous year.

The tourism sector was the one to attract the biggest number of investors. (macauhub)