Mozambique: European Commission funds rise in sugar production

4 March 2008

Maputo, Mozambique, 4 March – Mozambique is expected to increase, over the next four years, its sugar production from 240,000 tons a year to 500,000 ton a considerable part of which will be for export to the European Union, according to Mozambican newspaper Notícias.

Mozambique’s agriculture minister, Soares Nhaca and the head of the European Commission delegation in Mozambique, Glauco Calzuola, Monday in Maputo signed a funding deal worth 6 million euros, to be applied to the second phase of the accompanying measures for the sugar sector, for the 2008-2010 period.

The European Commission established a technical and financial assistance program to support the process of adaptation by countries that signed the Sugar Protocol to the new realities of the market due to reforms to the EU’s sugar regime.

The program, which covers a period of eight years, has been in place since 2006 and will run until 2013. Mozambique has already received funding of 560,000 euros from the European Commission, to apply to the first phase of the program.

Clazuola said that as a result of the EU reform, the guaranteed price for refined sugar would be reduced by 36 percent over the next four years.

Despite this reduction, the prices set by the reform will make it possible for the European market to be attractive in relation to the world market, particularly for ACP (Africa, Caribbean and Pacific) countries which, like Mozambique, will continue to benefit form preferential access to the EU market.

“In this respect, it is important to consider that, as of 2009, the European Commission has committed to importing, with quantity restrictions and tax free, the sugar produced by the countries, like Mozambique, that take part in the Everything But Arms (EBA) agreements,” Calzuola said. (macauhub)