Mozambique: STEMA to rehabilitate grain handling equipment – AIM

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Mozambique: STEMA to rehabilitate grain handling equipment – AIM

4:17 CAT | 10 May 2022

Photo: Noticias

The Matola Grain Silos and Terminal Company (STEMA), in Maputo province, hopes to invest about 14 million dollars in rehabilitating its equipment so that it can increase its grain handling capacity.

“To achieve this goal, we shall resort to the banks and to our partners”, said the STEMA chairperson, Arlindo Chilundo, at a press conference on Monday, shortly after a visit to the company’s premises by the Plan and Budget Commission (CPO) of the Mozambican parliament, the Assembly of the Republic.

He lamented STEMA’s indebtedness to Mozambican banks, but insisted that the debt is sustainable and the company is managing to pay it.

“Right now, we are operating 27 silos”, said Chilundo. “They have a total capacity of 45,000 tonnes, or 1,700 tonnes per silo”.

He added that STEMA still has enough space to meet the demand for grain imports from all the milling companies in southern Mozambique. “We’ve been working with all the importers”, he said. “STEMA does not buy the products directly. It just manages the bulk grain unloaded from the ships, which is later picked up by the buyers”.

He warned that the price of wheat will continue to rise on the international market because of Russia’s war against Ukraine (between them, the two countries used to account for about 40 per cent of all wheat exports). One shipload of wheat arrived last week, and two other ships are due to arrive before the end of May.

“Channelling this wheat to the market will depend on the flexibility of the milling companies in replenishing their stocks as quickly as possible, so that the price of bread does not rise too much”, he said.

The wheat arriving in Mozambique this month was harvested before the Russian invasion of Ukraine, but Chilundo said the price was already oscillating since the demand for wheat was outstripping the supply.

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The full impact of the Ukraine war would not be felt until next year. Chiludo said that because of the war, which has led to the closure of Ukraine’s Black Sea ports, Ukraine’s wheat exports will decline, while international sanctions will limit how much Russia can put on the world market.

The chairperson of the CPO, Antonio Niquice, urged STEMA to modernise its facilities to meet the challenges of the logistics of the grain market, and ensure that its business plan meets regional needs.

Because of its strategic location in the port of Maputo, STEMA not only serves the Mozambican market, but supports the transit of grain imported by neighbouring countries such as South Africa, Zimbabwe and Eswatini.