15 October 2009
Maputo — An unspecified number of investors have submitted applications to the government's Investment Promotion Centre (CPI) to build cement factories in Mozambique.
The National Director of Industry, Fernando Santos, cited in Thursday's issue of the Maputo daily "Noticias", said that one of the proposals was submitted by Indian investors, who are planning to install two factories , one in Salamanga, in Maputo province, and the second in the northern port of Nacala.
Another group of business people, whom Santos did not name, expressed interest in building a factory in Magude, also in Maputo, while a third has a cement project for the southern province of Inhambane.
Santos said that these proposals are very important, since they will increase the country's production capacity, at a time when demand for cement has been growing - so much so, that there is now an acute shortage of cement in southern Mozambique.
He noted, however, that before any application is approved, the relevant authorities must make sure that the applicants have met a number of key requirements, including ascertaining that there is enough raw material in the area where the factory is to be established, and that there will be no unacceptable damage to the environment.
Some of the applicants who expressed interest in new cement industries have already started researching and prospecting in the areas they have selected to assess the levels of availability of resources, and also the degree of the environmental impact that the factory will cause. After completing this exercise, they will submit to the government a report on the results.
The major cement producer in the country is Cimentos de Mocambique (CM), which is largely owned by the Portuguese cement giant, Cimpor. CM is planning to expand its production capacity in its three factories.
The largest of these factories, in the southern city of Matola, can produce 600,000 tonnes of cement a year. The other two, in Dondo, in the central province of Sofala, and in Nacala, are much smaller, and can produce 240,000 tonnes and 120,000 tonnes a year respectively.
The shortage in southern Mozambique has led to a price hike from an average of 230 meticais (8.4 US dollars) to 330 meticais per 50 kilo sack. No such speculation is reported from the centre and north of the country. According to "Noticias", cement is still available in Beira for 245 meticais a sack.
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