Mozambique: Special economic zone for agriculture set up – AIM report

Login

Register

http://www.clubofmozambique.com/

Mozambique: Special economic zone for agriculture set up – AIM report

5:43 CAT | 27 Jan 2021

Photo: O País

The Mozambican government announced on Tuesday the creation of the country’s first special economic zone for agribusiness.

The “Limpopo agribusiness special economic zone” is located in the Limpopo Development Corridor in the southern province of Gaza.

Speaking to reporters at the end of the weekly meeting of the Council of Ministers (Cabinet), the government spokesperson, Inocencio Impissa, the Deputy Minister of State Administration, said the purpose of the special zone is to make incentives available “to transform the agro-ecological potential of the region, to make viable the investments in infrastructures, maximizing economic efficiency and social well-being”.

He added that the special zone is being set up under the government’s flagship agricultural development programnme, “Sustenta”. It will cover 7,297 square kilometres in the districts of Chokwe, Chibuto, Xai-Xai, Limpopo, Chonguene and Guija. The area concerned is all under the influence of the Chokwe and Lower Limpopo irrigation schemes.

The Chokwe irrigation scheme is the largest in Mozambique, but has never lived up to the government’s hopes that it would become the country’s granary.

Currently, these irrigation schemes, in theory, cover 17,000 hectares. Under the “Special Zone” the irrigated area will be expanded to 32,000 hectares, and the irrigation infrastructures will be modernized.

Other ambitious projects envisaged include expanding the area under rice cultivation from 17,000 to 41,500 hectares, and setting up dairy produce factories.

The government hopes that the tax incentives under the Special Zone will attract investment to Limpopo Valley agribusiness. Small producers are to be inserted into the commercial value chain through linkages with large scale investors, and the contribution of agribusiness to the Gross Domestic Product should greatly increase.

Source: AIM