africa Agriculture Economy Farming Mozambique Natural Resources

Mozambique cotton firm eyes $2m refinery

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Mozambique’s Niassa Cotton Company (SAN) is proposing to invest $2 million in the construction of a vegetable oil refinery in the northern city of Cuamba hoping to use cotton, soja and sunflower seeds as its raw material to produce cooking oil.

The SAN general manager, Manuel Delgado has been quoted by private station, STV on Monday as saying the move is part of a bid to cut vegetable oil imports.

He said the initiative will also provide a guaranteed market for farmers growing the crops in Niassa province and elsewhere in northern Mozambique.

According to the official, there are guarantees of sufficient raw material to supply the refinery as the cotton seeds will come from SAN’s own ginning mill in Cuamba, while soja and sunflower can be purchased not only in Cuamba district, but also from farmers in the neighboring provinces of Nampula and Zambezia.

“We took the decision to advance with the production of vegetable oil, because there’s a guaranteed market domestically, particularly in the northern provinces, and perhaps, in the future, in neighbouring countries as well”, said Delgado.

Cuamba’s road and rail links to the port of Nacala give it good logistical conditions for the establishment of new industries.

Delgado said that SAN has identified a company to supply the industrial equipment needed to set up the refinery, and it could be asked to start installing the equipment in July or August.

Source: Journal du Cameroun

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