CDB loans to China-Africa Cotton Mozambique Limited for Subué Cotton Processing Plant Project (Linked to #65901)

In 2013, China Development Bank provided a loan to China-Africa Cotton Mozambique Limited (中非棉业莫桑比克有限公司) — a project company and special purpose vehicle — for the Subué Cotton Processing Plant Project. The face value of the loan and the borrowing terms are unknown. This project involved construction of a cotton processing plant (ginnery) in Subué posto (locality) within Sofala Province. Upon completion, it was expected that the plant would have the capacity to process 30,000 tons of raw cotton and 3,000 liters of cooking oil each year. A foundation-laying ceremony for the plant took place in May 2013. China-Africa Cotton Mozambique Limited, which is also known as CACM, is now one of the three largest cutting planting and processing enterprises in Mozambique. It provides approximately 1,000 jobs each year and supports as many as 50,000 households involved in cotton cultivate activities. According to the CDB in 2018, since 2011, CDB has provided 9 cotton purchase loans to China Africa Cotton Development Co., Ltd. for a total of $125 million, which is mainly used to import cotton lint from Malawi, Mozambique, Zambia, and Zimbabwe, Mali, and Mauritius as part of a The Cotton Planting and Purchasing Project, the largest agriculture investment project in Africa (#65901). This project is likely funded under one of these 9 cotton purchase loans.

Additional details

1. The Portuguese project title is construção de fábrica de processamento de algodão em Subué. 2. According to the China-Africa Cotton Mozambique Limited website, the Chinese Government and China Development Bank have allocated $8 million to its cotton processing plant.

Number of official sources

5

Number of total sources

12