Mozambique: Mozambican government calls for increase in sugar production

25 August 2008

Maputo, Mozambique, 25 Aug – Mozambique needs urgently to increase its sugar production in order to meet increasing international demand for the product, the country’s Industry and Trade minister, António Fernando said cited by Mozambican newspaper Notícias.

Without giving figures, Fernando said that demand for Mozambican sugar was greater and that several countries had formally shown interest in in buying the product, such as Egypt, the Seychelles and Indonesia, which according to the minister are interested in buying “enormous” amounts of Mozambican sugar.

“We need more sugar not only to export to the SADC region, wiothin the Free Trade Área, but also to the whole world. Mozambique is receiving ever more proposals to buy sugar, because demand is greater,” said the minister.

According to Fernando, the interest of several countries in Mozambican sugar opens up a “great” opportunity for placing the product on the world market, as well as for growth of the national sugar industry.

Currently the sugar produced in Mozambique is sold to the domestic market and exported to the European Union (EU), as part of the ACP/EU “Everything But Arms” Initiative.

Overall sugar production in Mozambique is likely to reach 500,000 tonnes in 2009 according to projections from the Tongaat-Hulett group which, in partnership with the Government, is carrying out a project to expand its activities in Xinavane, in Maputo province, and Mafambisse, in Sofala.

Expansion of its sugar factories will cost US$177 million, of which US$143.9 million will be invested in the Xinavane factory and the remainder in Mafambisse. The state will contribute US$15 million to this project. (macauhub)