GOVERNMENT AUTHORISES FORESTRY MEGA-PROJECT

The Mozambican government has authorised the implementation of a forestry project in the central province of Zambezia budgeted at 101.4 million US dollars.The project, “Tectona Forest of Zambezia” will occupy an area of 19,540 hectares covering the districts of Gurue, Namarroi, Milange and Morrumbala.The project was approved by the Council of Ministers (Cabinet) at its meeting on Thursday in Maputo.According to the government spokesperson, Deputy Justice Minister Alberto Nkutumula, the project will reforest the area, manage the resources, and process and sell the teak (Tectona grandis). He pointed out that the project will also deal in the sale of the native species messassa (Brachystegia spiciformis).The project is backed by Swedish, Norwegian and North American investors who own 90 per cent of the company. Ten per cent of the company is owned by the Diocese of Niassa.Of the total amount to be invested, 71 million dollars will be spent on the plantation, 20.3 million dollars on the wood processing facilities and 10.1 million dollars on infrastructure.The investment will take place over a 12 year period, with spending in the first decade concentrated on planting trees. Marketing is expected to only begin after 12 years.It is planned that 70 per cent of the processed wood will be exported. It is forecast that annual revenue after 20 years will be 50 million dollars, rising to 112 million dollars after 35 years.The project will create 1,105 direct jobs, of which only five will be filled by foreigners. On top of this, three thousand seasonal jobs will be created.Other benefits include the building of social infrastructure such as boreholes, health posts, schools, improved access roads, support for the agricultural sector, and housing for workers.The Council of Ministers also approved a new regulation on the employment of foreign citizens in the petroleum and mining sectors, and ratified a credit agreement with the Export-Import Bank of India.The 13 million dollar loan from the Exim Bank will be used for financing the construction of a solar panel factory at the industrial park at Beluluane in Maputo province. The loan is based on concessional terms with repayments to be spread over 20 years with a five year grace period.