Mozambique: Stema to Increase Grain Handling Capacity

(File photo).

The Matola Grain Silos and Terminal Company (STEMA), in Maputo province, plans to invest US$14 million in rehabilitating its equipment to 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 9 May, 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.

According to Chilundo, "right now, we are operating 27 silos with a total capacity of 45,000 tonnes". He added that STEMA still has enough space to meet the demand for grain imports for all milling companies in southern Mozambique. He explained that "STEMA does not buy the products directly. It just manages the bulk grain unloaded from the ships".

He warned that the price of wheat will continue to rise on the international market due to the conflict between Russia and Ukraine (the two countries used to account for about 40 per cent of all wheat exports).

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

The full impact of the war would not be felt until next year. Chilundo said that because of the war, which has led to the closure of Ukraine's Black Sea ports, 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.

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