The Mozambican government plan to set up an Industrial Free Zone in the Revobue region of the western province of Tete, as part of a strategy to establish industrial development poles.
A decree on the new free zone was passed on Tuesday at the weekly session of the Council of Ministers (Cabinet).
The government spokesperson, Deputy Health Minister Mouzinho Saide, told reporters that the purpose of an industrial free zone is to attract “structuring investments”, increase and diversify the country’s exports, promote technological development, and create jobs.
“The development of projects in the extractive and mining industry in Tete has created the conditions for setting up poles of industrial development”, claimed Saide. He said the new free zone would lie between the districts of Chiuta and Moatize.
The anchor project will be an iron and steel factory, in which an estimated 770 million US dollars will be invested. He did not reveal where this money would come from other than that it is from private sources.
Tete has two of the crucial components for making steel – deposits of iron ore, and of high grade coking coal. Coal mining in the province is currently in crisis due to the collapse of coal prices on the international market.
The Council of Ministers also extended for a further 25 years the contract for joint management of the Gorongosa National Park, one of the jewels in Mozambique’s wild life crown, by the government and the Carr Foundation of the United States.
Saide said the contract will allow the government and the foundation set up by US philanthropist Gregory Carr to accompany the growth of the Gorongosa ecosystem and of tourist undertakings in the park.