European Union funds sugar production in Mozambique

14 August 2015

A project funded by the European Development Fund will support approximately 300 sugarcane producers in Mozambique organised into five associations to increase their income through guaranteed product placement, according to the Mozambican press.

The project, formally known as the Small Scale Farmers Development Project will also make it possible for the Xinavane sugar factory to reach full capacity supplied by sugarcane produced by the members of those associations.

Mozambican news agency AIM reported that this project had a donation of 1.5 million euros from the European Union through the European Development Fund, in addition to a loan in the equivalent to 2.3 million euros granted by Banco ABC, to be paid with the proceeds of sugarcane sales to Tongaat Hullet.

The Xinavane sugar factory has so far planted 3,500 hectares of sugarcane and is supplied by 3,200 producers organised in 20 associations, and 60 farmers who also joined the scheme on an individual basis.

The sugar industry in Mozambique produced 422,600 tons of sugar in the 2014/15 campaign, an 11 percent increase over the previous year, with 141,400 tons placed on the domestic market and the remaining amount was exported. (macauhub/MZ)