Brazil and Japan set up investment fund to produce food in Mozambique

6 July 2012

The governments of Brazil, Japan, and Mozambique Thursday in Brasilia signed a cooperation agreement to secure financial resources in order to develop agri-industry in the Nacala Corridor, in Mozambique, the Brazilian press reported.

Presented by the Getúlio Vargas Foundation (FGV), the investment fund known as Fundo Nacala is expected initially to attract investment of US$2 billion to promote technical knowledge exchange between Brazil and Japan for development of agriculture in Mozambique.

The director of FGV Projectos, Cesar Cunha Campos, said that the fund would benefit 10 million Mozambicans by supporting family as well as medium-sized and large agricultural projects and added that the focus was on securing funding from the private sector. Japan is expected to provide US$1 billion and Brazil a similar amount, he said.

The project will be similar to one carried out in Brazil in the 1970s to increase agricultural productivity in the Cerrado area, which is similar in terms of climate and soil to Africa’s savannahs.

The coordinator of FGV Projectos, Cleber Guarany, said that the technology used for the project would be Brazilian and added that the master plan, which would be presented at the start of 2013, would stipulate conditions for use of the funding.

The project is a partnership between FGV and the Brazilian Cooperation Agency (ABC), the Japanese International Cooperation agency (Jica), the Brazilian Agri-Livestock Research Agency (Embrapa), The Ministry for Agriculture, Livestock and Supply (Mapa), The United Nations Food and Agriculture Agency (FAO), The Brazil-Mozambique Chamber of Commerce and Industry, and the Mozambican agriculture Ministry. (macauhub)