The authorities on Hainan island,in southern China, have announced the sale of a plot of land in an industrial park to set up a project to process cashew nuts from Mozambique.
In a statement, the leadership of the municipality of Haikou, the capital of the island province, said that the project by China’s Tiley Real Estate has the cooperation of the government of Mozambique to ensure the supply of cashew nuts.
The statement also noted that the project included “in-depth processing” of cashew nuts, including the production of extracts that can be used in the food industry and for cosmetics.
The Mozambique cashew nut project is due to take shape on one of the first three plots of land in the Meilan area of Haikou sold as part of the first phase of an industrial park dedicated to processing agricultural products.
The authorities in the Hainan capital said that the three projects represented a total investment of 850 million yuan (€111.6 million) by Tiley Real Estate, which is based in Shenzhen, near Hong Kong, in southern China.
The statement said that, once they are fully operational, the three projects could achieve annual revenues of 1.1 billion yuan (€144.3 million) and boost Haikou’s tax revenues by over 11 million yuan (€1.4 million).
China in September eliminated customs duties for 8,786 types of products imported from 16 developing countries, including Mozambique, that account for 98% of products imported from those countries.
Mozambique’s deputy minister of agriculture and rural development, Olegário dos Anjos Banze, said in July 2021 that Mozambique aimed to expand agricultural trade with China. He was speaking during a meeting with China’s permanent representative to the United Nations Food and Agriculture Organisation (FAO), Guang Defu.
The Chinese official invited Mozambique to market products such as cashew nuts, sisal and beans in the Chinese market.