| Johannesburg - Sugar production in Mozambique received a major boost on
Friday with a US$12 million loan by the Development Bank of Southern
Africa to rehabilitate the country's biggest sugar mill.
Bank officials said they expected production at the Marromeu mill and
cane fields to reach full capacity of 100 000 tonnes by 2003 from the
current 30 000 tonnes, by which time the sugar complex should be fully
restored.
Production at Marromeu, near the port city of Beira, was substantially
damaged during the country's 16-year old civil war and was only revived in
1998 by majority Mauritian-owned sugar producer Companhia de Sena SARL.
"The funding will be utilised for the rehabilitation of an
existing sugar mill, associated infrastructure and the replanting of an
area of 10 728 hectares of sugar cane," said the bank in a statement.
Friday's agreement was signed with Companhia, which comprises a
consortium of Mauritian sugar companies and the Mozambican government with
75:25 percent equity shareholding respectively.
Officials had no figures for Mozambique's sugar production but said
they hoped the Marromeu unit would export at least 30% of total production
by 2003, targeting the European Union.
Sugar consumption in Mozambique is an average 469 000 tonnes according
to official estimates, from a total of four mills.
"For sure this is going to boost the economy. Mozambique is among
the lowest cost producers," Leon Cornelius, in charge of private
sector investments at the bank said. |