US$2 million vegetable oil refinery

The Niassa Cotton Company (SAN) is proposing to invest 120 million meticais (about two million US dollars) in establishing a vegetable oil refinery in the northern Mozambican city of Cuamba, according to a report in Monday’s issue of the Maputo daily “Noticias”.The planned refinery will use cotton, soja and sunflower seeds as its raw material to produce cooking oil, which will replace imported oil. It will also provide a guaranteed market for farmers growing these crops in Niassa province and elsewhere in northern Mozambique.The general manager of SAN, Manuel Delgado, said there are guarantees of sufficient raw material to supply the refinery. The cotton seeds will come from SAN’s own ginning mill in Cuamba, while Delgado was confident that soja and sunflower can be purchased not only in Cuamba district, but also from farmers in the neighbouring 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.