Agriculture accounts for about 35% of the GDP, 40% of exports and 75% of the work force in Mozambique. Cashew is an important cash crop, and the country is the biggest producer of coconuts and their derivatives in Africa. CPI, Mozambique’s investment promotion agency, is marketing several agro-processing projects.
Investment opportunities
1. Production of activated carbon from coconut shell
Description: Activated carbon from coconut shell is ideal as a catalyst carrier. Applications include de-colouring for granular and liquid sugar, extracting gold, silver recovery, water purification, and in pharmaceuticals and petrochemicals.
Cost of investment: US$ 45,000
The proposed location for the factory is in Zambezia and Inhambane provinces, where coconut production is high. The venture is expected to create employment and income in these provinces. Potential investors will require 4,800 tonnes of raw material, though production averages 32,000 tonnes per year.
Target market: International
Internal rate of return: Up to 115%
2. Production of desiccated coconut
Proposed locations for the dessicated coconut plant are in Zambezia and Inhambane. The planned plants will
process desiccated coconut powder which is obtained by drying ground or shredded coconut kernel after the removal of brown testa. The product is widely used as a substitute to raw grated coconut.
Cost of investment: US$77,000
Internal rate of return: up to 57%
Target market: South Africa
Direct employment: 135
Availability of raw materials in the provinces: 47,000 tons per year
3. Production of brandy from cashew apple
Description: There is an opportunity to establish a profitable business involving the distillation and mixture of cashew apple brandy, a product that could find a niche in the domestic and regional market. Mozambique produces large quantities of cashew nut. Each nut is connected to the lower part of the cashew apple, a succulent fruit with a fibrous pulp containing 8% of fermentable sugars. Thousands of tonnes
of cashew apples rot every year, except fro a small amount used at the household level to make a sweet or fermented drink. This presents an opportunity for processing cashew apples to make brandy.
Project location: Nampula, Cabo, Delgado, Gaza, inhambane or Zambezia. These areas are major producers of cashews, with Nampula on the lead followed by inhambane.
Estimated cost of investment: US$77,000
Rate of return: Up to 51%
Target market
Local – The size of the internal market for the consumption of alcoholic beverages is considerable.
Regional market - As a member of the Southern African Development Community (SADC), and centrally located between Southern and Eastern Africa, Mozambique has access to a market of approximately 150 million people.
Raw
material to the tune of 57,000 tonnes is available in the province. Potential investors can couple this project with a cashew nut processing unit.
For more information on these projects contact the CPI.
Key contact: Mussa Usman
Deputy Director, CPI
Email: musman@cpi.co.mz
