Brazilian companies gain ground in energy and cement in Mozambique

21 June 2010

Maputo, Mozambique, 21 Jun – Energy distribution and the cement industry are new focuses of investment in Mozambique for Brazilian companies, which have been gaining important positions in mineral resources, agriculture and construction.

The Mozambican and Brazilian ministers of energy finalised a cooperation agreement last week under which Brazil’s Electrobras will conduct a study for construction of a 1,400 km high-tension power line linking Tete province to Maputo.

Total cost of the Centre-South line project, known in Mozambique as the ‘backbone’, is estimated at US$1.4 billion.

The study will also look at ways to prepare power transmission infrastructures in central Mozambique for future hydroelectric use, especially in the Zambeze River valley.

Brazilian press reports indicate that the study should be finished by the first quarter of 2011.

Also last week, Brazil’s Camargo Correa Cimentos acquired 51 percent of Cimentos de Nacala (Cinac), which pertained to the Mozambican group Insitec.

The unit in the port city of Nacala in Nampula province has an installed capacity to produce 350,000 tonnes of cement per year.

Last February Camargo Correa Cimentos purchased a stake in the Portuguese cement producer Cimpor, which currently holds Mozambique’s biggest cement company. They will now be in direct competition.

The enhanced Brazilian presence is also evident in smaller sized companies.

After Brazil’s first business mission to Mozambique in 2009, most of the participating companies entered the market, particularly in the oil and gas, ornamental stone, astronomy, apparel, ironware and construction sectors.

A second mission will take place during this year’s Maputo International Fair (FACIM), which runs from 30 August to 6 September.

Sebrae and the International Business Centre (CIN) plan to hold a meeting this month regarding business opportunities in Mozambique at the Parana State Federation of Industries (FIEP) in the Brazilian city of Curitiba.

In agriculture, the Brazilian Cooperation Agency and the Brazilian Enterprise for Agricultural Research (Embrapa) have signed an agreement envisaging support for Mozambique’s Institute for Agrarian Investigation (IIAM) over a four-year period.

Brazil is also supporting the development of construction technologies in Mozambique by means of an agreement between the two governments.

The bilateral cooperation project involves support for development of a construction costs and indices system, a micro-company incubator and a centre to research unconventional systems for building social housing.

In pharmaceutics, an anti-retroviral plant is being built in Mozambique. The project benefits from financial aid and technology transfer from the Brazilian government and is overseen by Fiocruz, an institution involved in health research and medicine production in Brazil. (macauhub)