Mozambique creates its first Special Economic Zone for Agribusiness

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Mozambique creates its first Special Economic Zone for Agribusiness

3:57 CAT | 27 Jan 2021

Photo: Ministério da Agricultura e Desenvolvimento Rural

The Council of Ministers yesterday approved the creation of the first agro-industrial special economic zone, aiming to start a process of transformation and development of existing sector potential in the country.

The Limpopo Agribusiness Special Economic Zone (SEZ), created within the scope of the SUSTENTA programme, has as its general objective “to provide incentives for the transformation of the region’s agro-ecological potential and the viability of existing infrastructural investment, for the maximisation of economic efficiency and social welfare”.

The Limpopo SEZ covers an area of 7,297 square kilometres [more than 729 thousand hectares] and comprises six districts potentially served by the Chókwè and Lower Limpopo irrigation systems, namely Chókwè, Xai-Xai, Limpopo, Chongoene, Guija and Chibuto [Gaza province], Deputy Minister of State Administration and Public Service, Inocêncio Impissa, said in his capacity as spokesperson for the Council of Ministers session.

The initiative is expected to attract investment in the agribusiness sector, create jobs in Mozambique, promote and include small producers in the commercial value chain through links with large investors, increase in the contribution of agribusiness to national production and add value to agrarian products.

Among the portfolio of projects planned for this area is the expansion and modernisation of irrigation infrastructures from 17,000 to 32,000 hectares, an increase in the rice production area from 17,000 to 41,500 hectares and the creation of dairy factories.

Also read: Mozambique to establish Agricultural Special Economic Zone in the Limpopo Valley