Maputo — A "special economic zone" for agricultural investment may soon be created over an area of 100,000 hectares in the central provinces of Manica and Sofala, according to Agriculture Minister Helder Muteia, cited in Tuesday's issue of the Maputo daily "Noticias".

Muteia said this "special" zone would provide fiscal incentives for Mozambican and Mauritian investors.

He was speaking after a visit to Mauritius, where he signed a memorandum of understanding with the Mauritian authorities on agriculture, food technology and natural resources.

This envisages partnerships between Mozambican and Mauritian concerns in such areas as sugar, forestry, biotechnology, fruit and vegetable production and agro-industry.

The two governments agreed to promote institutional cooperation in the agriculture sector, develop joint research and training programmes, and promote joint ventures for the production of export crops in Mozambique.

A Mauritian consortium is already the major shareholder in the Sena company, which has rehabilitated the Marromeu sugar mill on the south bank of the Zambezi.

Muteia hoped that Mauritian businesses would also be interested in reviving the paralysed sugar factory at Buzi, just south of Beira. He said that a Mauritian delegation will visit Mozambique in August to assess the viability of rehabilitating the Buzi company.

The Mauritian company concerned, Muteia added, is interested in producing not only sugar, but also rice, cotton, vegetables and alcohol.