Companhia do Buzi, in Mozambique, to be re-launched and start producing sugar again

2 March 2011

Maputo, Mozambique, 2 March – Sugar company Companhia do Buzi in Mozambique’s Sofala province, will start producing sugar again in the first half of 2014, after a 15-year stoppage, the chairman of the company Jorge Petiz said Tuesday in Maputo.

According to the Mozambican press, Petiz said that the project’s business plan, which represents an investment of US$120 million, was being drawn up by Portuguese bank BPI, which would also negotiate and set up the respective financing operation, with the appropriate capital structure, by the end of the year.

The plan includes building the new factory facilities from scratch as the refurbishment of the current facilities would cost a similar amount given that the company will have capacity to produce 150,000 tons of sugar per year based on a sugar cane plantation area of 15,000 hectares.

Work to plant up the cane is currently underway, in an area of 300 hectares, with the aim of expanding that area to 400 hectares during 2011.

The cane that currently leaves the plantation area is supplied to Companhia de Moçambique (Mafambisse), also in Sofala province, and some of that cane is used to manufacture small amounts of ethanol (biofuel) and thus Companhia do Búzi is the only factory producing this type of fuel in Mozambique.

The Buzi sugar factory is one of the six sugar factories that were set up in the country during the colonial period and, once it is re-launched, there will be five sugar factories operating in Mozambique. New investors are still lacking for the Luabo sugar factory in Zambézia province.

Mozambique is currently served by four sugar factories – Maragra and Xinavane, in the south, Mafambisse e Marromeu, in the central region – contributing to average annual production of between 250,000 and 300,000 tons of sugar. (macauhub)