Chinese consortium to invest US$78 million in cement factory in Mozambique

18 May 2010

Maputo, Mozambique, 18 May – A consortium of companies from the Chinese province of Shandong is to invest US$78 million in the construction of a cement factory in the district of Magude, in the north of Maputo province, a source from the Centre for Investment Promotion (CPI) told Macauhub Tuesday.

The laying of the first stone, according to the Macauhub source, will take place in the second half of this year, and funding will be secured from the China Development Bank, the manager of the China-Africa Development Fund.

The future factory is expected to produce 500,000 tonnes of cement per year, the source said.

Another cement factory, with capacity to produce 1.5 million tons of cement per year, is expected to be built in Matutuine district, at an investment of US$80 million.

Speaking recently, a source from the Ministry for Industry and Trade said that negotiations were underway for construction of more cement factories in the country as a way of regulating cement prices.

Cement production in Mozambique currently stands at 1 million tons per year, including 960,000 tons produced by Cimpor Group company Cimentos de Moçambique.

It is estimated that Mozambique’s cement needs currently stand at 1.4 million tons per year. (macauhub)