Foreign companies invest US$10 million in forestry projects in Niassa, Mozambique

17 August 2009

Lichinga, Mozambique, 17 Aug – British company New Forestry, Sweden’s Chikwete Forestry and Norway’s Tree Farm have so far invested US$10 million in forestry projects in Mozambique’s Niassa province, a source from the Malonda Foundation told Macauhub in Lichinga.

As part of an initiative promoted by the foundation in partnership with the Niassa provincial government, each one of three projects has a lifetime of 10 to 20 years and average investment is expected to total US$70 million.

The source told Macauhub that since the start of the projects in 2005 na area of slightly more than 15,000 hectares had been planted up and that five nurseries had also been set up with a capacity for over 10 million plants each.

The projects are planting pine and eucalyptus trees, for various uses such as logs, electricity posts, as well as pulp production for the paper industry.

An area of a further 13,000 hectares is due to be planted in 2009/2010.

The Malonda Foundation is an institutions whose mission it is to attract investment from national and foreign bodies with the capital, knowledge and market to invest in Niassa province, encouraging them by providing venture capital and offering key business services that reduce the obstacles to business development and growth of the private sector in the province. (macauhub)