Tongaat Hulett, the majority shareholder of the Mafambisse sugar factory, one of the oldest factories in the sector in Mozambique, located in the central province of Sofala, plans to invest approximately 500 million rand on relaunching production not only in Mafambisse but also in Xinavane, in the south of the country, said the director-general of the South African group in Mozambique.
Tendai Masawi on Tuesday presented a report on the activities of Açucareira de Xinavane, as part of a visit that the Confederation of Economic Associations (CTA) held at the unit to find about its activities and also COVID-19 prevention measures.
The decision on the new investment was taken after a period of uncertainty for the two factories in Mozambique, especially the Mafambisse unit, as a result of alleged mismanagement that drove the company to near bankruptcy, putting the jobs of more than 3,500 workers at risk.
“We will not close the sugar factories of Mafambisse or Xinavane. The units will continue to produce. Tongaat Hullet took the decision not to close the sugar factories,” said the director-general, quoted by the AIM news agency.
Masawi promised the president of the CTA, Agostinho Vuma, that the two units will resume production on 7 April, with a forecast of 213,000 tonnes of sugar, of which 60,000 tonnes will be refined sugar for national and international industry.
The Mafambisse unit, which was at most at risk of closing, is 85% owned by Tongaat Hulett and 15% by the Mozambican state, through the National Institute of State Asset Management.