Zambezi Planning Office to receive funding from China’s EXIMBANK for cereal investment in Mozambique

30 July 2009

Maputo, Mozambique, 30 July – The Zambezi Valley Planning and Development Office (GPZ) announced Wednesday that it had obtained US$50 million of credit from China’s EXIMBAMK for agricultural projects in the Zambezi River Valley in Tete, Mozambique, according to today’s Notícias newspaper.

A statement from GPZ said that US$20 million of the Chinese credit would be for importing agricultural equipment such as tractors, rotovators and trucks which would later be sold by SOVALE, a company in which GPZ and SOGIR (a company partly owned by GPZ) hold stakes.

The remaining US$30 million of funding will be for three industrial units located in Tete, Zambezi and Manica, in central Mozambique.

In 2010 in Ulonguè in Tete province, an industrial unit will be set up with capacity for processing 25,000 tons of corn and a wheat production line.

In Zambezi province, in Namcaurra, in 2010 a processing unit will be set up for 25,000 tons of rice and in Manica province in Guro, GPZ will set up a processing unit for 10,000 tons of cotton.

The Mozambican government is building six cereal silos in the city of Tete with capacity for 50,000 tons, and another in Angónia in the same province.

Also according to the region’s agricultural authorities the government will invest a further US$15 million in a cereal processing factory on the outskirts of Tete. (macauhub)