Mozambique’s farmers to produce sugar cane for Tongaat Hulett

10 July 2014

Sugar company Tongaat Hulett Açucareira de Xinavane is preparing a 350-hectare plot of land for sugar cane production by small-scale producers in the Magude district of Mozambique’s Maputo province, Mozambican daily newspaper Notícias reported.

This programme, which is an initiative co-funded by the European Union, includes three stages, the first of which includes clearing the land, opening up roads into the area and preparing the drainage system.

The second stage will involve preparing the land and plating up sugar cane. The third stage includes installing and testing the irrigations system for 530 hectares of land.

Açucareira de Xinavane – the Xinavane Sugar Plant – is controlled by Tongaat Hulett of South Africa, a group that also owns a stake in another Mozambican sugar company Açucareira de Moçambique (Mafambisse).

In 1998 Tongaat Hulett bought a 49 percent stake in Açucareira de Xinavane from the Mozambican state and took control of its management. In 2008 it increased its stake in the company to 88 percent.

Expansion of Açucareira de Xinavane was concluded in 2009/10, which increased its sugar production capacity to over 208,000 tons.

The Mafambisse sugar factory, originally built in 1965 e and refurbished at the end of the 1980s at a cost of around US$50 million, is close to the banks of the Púnguè River, in the Dondo district of Sofala province.

In 1996 Tongaat Hulett started managing Mafambisse, in 1998 it bought a 75 percent stake previously owned by the Mozambican state and in 2008 it increased that stake to 85 percent.

Production capacity at the Mafambisse factory is around 92,000 tons, which gives Tongaat Hulett a total installed capacity in Mozambique of around 300,000 tons of sugar per year. (macauhub/MZ)