The district administrator of Mossurize, in the south of the Mozambican province of Manica, plans to find an investor that will ensure the conclusion of construction of a tea processing factory in Espungabera, which has been at a standstill for months, Mozambican daily newspaper Notícias reported.
Work on the factory began in December 2010 and was due to be finished in March of the following year, but has been at a standstill and there is no sign that it will begin again due to bankruptcy of the company that was carrying out the project.
The work was initially estimated to cost US$1.4 million, which was paid out, but came to a halt when the company was unable to secure additional funding of US$300,000 to finish the job.
“The population is growing tea and has nowhere to sell it and buyers in neighbouring Zimbabwe are not absorbing all the produce,” said the administrator.
The Espungabera factory, which is owned by Moz Tea, a Mozambican and foreign-owned company with investors from Italy, Brazil, Zimbabwe and South Africa and with financial support from the European Community, was intended to absorb local tea production, not only in the Mossurize district, but also from other parts of Manica province.
The factory, which was expected to have an installed capacity to process 800 tons of tea per year, was projected to employ 50 people and buy tea from 780 producers with a joint production area of 150 hectares. (macauhub)