The Brazilian senate has approved the partnership with Mozambique for the production of bio-fuels, which could make the African country an important producer, and just as in Angola, Brazilian business people are already on site preparing investments.
For the executive director of the Brazilian Cane Sugar Industry Union (Unica), Eduardo Leão de Sousa, the agreement between Brazil and Mozambique “could be one of the most successful agreements of its kind, given the geographical and cultural affinities between the two countries.”
The memorandum of understanding, signed by the two governments in 2007, was finally approved by the Senate on 12 May.
Part of the Brazilian strategy for the international promotion of the use of bio-fuels based on its technologies, the document envisages technical and business missions, manpower training and partnerships with third countries and international bodies interested in supporting projects to set up bio-fuels in Mozambique.
However, according to Unica, even before the document’s approval, Brazilian business people were already in the country evaluating investment conditions for cultivation and refining.
World leader in ethanol production from cane sugar, Brazil has promised to help with Mozambican production, important for reducing the bill for importing fuel and also to increase export potential.
Mozambique could export ethanol to Europe without the duty imposed on Brazil: if its producers are installed in and sell from Mozambique, they could reach the European market and also the Asian market with very competitive prices
Also, Mozambique has three ports from which its production could be exported, a strategic geographical location, as well as 30 million hectares of fertile arable land.
Unica stressed that the African country “is on the same latitude as the most competitive Brazilian plantation areas” and the three regions chosen by the Mozambican government for ethanol production, “all have a climate similar to Brazil’s.”
The National Biofuel Policy and Strategy, recently approved by Maputo, is aiming at the production of Biofuel from cane sugar and sorghum, to produce ethanol and jatropha and coconut to produce biodiesel.
Angola has a pioneering role in Brazilian intervention to stimulate biofuel production in Portuguese-speaking African countries.
In partnership with private Angolan group Damer and state-owned oil company Sonangol, Brazilian company Odebrecht has a stake in Biocom (Angolan Bioenergy Company), which will invest in planting sugar cane and the building of a factory to produce sugar, ethanol and bioelectricity in Malanje province.
Investments of US$258 million are expected as well as the occupation of 30,000 hectares of agricultural land by 2012.
At the same time, the entire structure of Angolan farming research, a sector in which the country is recognized to have great potential, is currently being re-evaluated with the support of The Brazilian Agricultural Research Corporation (EMBRAPA)
Another player in this sector and in these countries is Stanley Ho’s and Ferro Ribeiro’s Geocapital, the holding company for investments in Portuguese-speaking countries.
According to the holding company, the plan for plantations in Angola, Mozambiqu