Large projects in Mozambique spend US$600,000 on goods and services every year

7 November 2011

Maputo, Mozambique, 7 Nov – Large projects in operation in Mozambique spend an average of US$600 million per year on a variety of goods and services the director of the Office for Economic Areas with Accelerated Development (Gazeda) said in Maputo.

Cited by Mozambican newspaper O País, Danilo Nalá, who was speaking at a conference on business opportunities resulting from the implementation of large projects, held Friday in Maputo, said that Riversdale Mining/Rio Tinto alone set aside 30 percent of its annual budget to hire local goods and services.

The chief executive of Riversdale/Rio Tinto Moçambique, Steve Mallyon, said that the group had hired a number of goods and third party services, but added that there were few Mozambican companies providing services to the mining company and that there were more South African and Zimbabwean companies available.

Small and medium-sized Mozambican companies do not approach the group in the way that companies form neighbouring countries have, added to which many Mozambican companies do not have the capacity to provide quality services that meet the needs of large projects.

Normally, these projects take on goods and services related to engineering and supply of industrial equipment, transport, logistics, security and cleaning and health and the environment, all of which are not usually available from Mozambican companies or which, when available, do not have the required quality. (macauhub)