China Eximbank provides $50 million loan for Zambezi Valley Agricultural Processing Plant Project

On February 23, 2009, China Eximbank and the Government of Mozambique signed a $50 million loan agreement for the Zambezi Valley Agricultural Processing Plant Project. The terms of this loan are unknown. $30 million of the loan proceeds were used to build a cotton processing plant in Guro district within Manica Province, a rice processing factory in Namacurra district within Zambezia Province, and a maize (cornmeal) processing factory in the town of Ulonguè within Angónia district and Tete Province. $20 million of the loan proceeds were designated for the acquisition of Chinese agricultural equipment and machinery, including tractors, rotovators and trucks. This equipment was subsequently sold by SOVALE, a company in which the Zambezi Valley Planning and Development Office (GPZ) and SOGIR (a company partly owned by GPZ) hold equity stakes. The ultimate objective of this project was to improve agricultural production by local farmers. China CAMC Engineering Co., Ltd. and Beijing Urban Construction Group Co., Ltd. were the contractors responsible for implementation. A groundbreaking ceremony for this project was held on November 10, 2010. This project was eventually completed, but its precise completion date is unknown.

Additional details

The Chinese project title is 莫桑比克农业加工项目 or 莫桑比克赞比西河谷农业机械及农产品加工成套设备出口项目.

Number of official sources

7

Number of unofficial sources

9