Matola, Mozambique, 25 May – The municipality of Matola has rejected requests to set up five new cement factories with the reasoning that their operation may lead to environmental problems that are difficult to manage given the size of its territory, said the Mayor of Matola.

Cited by Mozambican newspaper Notícias, Arão Nhancale said that the requests had all been within a 90-day period and that they had been re-directed to other areas of Maputo province.

Nhancale also said that, although these requests had been rejected, this was another “sign of the interest that the national and foreign business sector had in investing in the municipal area, whose potential economic growth is favoured by its proximity to the State’s largest financial and non-financial institutions and large companies that supply services.”

According to the Mayor of Matola, his municipal area has 500 businesses from several sectors, namely agri-industry, metal-mechanics, construction materials, the food and drinks industry, chemicals and paints.

According to Nhancale, the industrial sector is dominated by large-scale projects, whose contribution to gross domestic product (GDP) has increased from 10.6 percent in 2000, to 12.7 percent in 2007, which is a reflection of new investments having come in and the refurbishment of industry.

In effect, around 28 percent of the country’s companies are located in the city of Matola, providing employment to 222,000 people, representing 46.8 percent of all of Mozambique’s workers. (macauhub)