Mozambican sugar estate officially inaugurated

The R1 billion Marromeu Sugar complex in Mozambique’s Zambezi Valley is to be officially inaugurated by Mozambican President Joaquim Chissano today.

The project, part of the Mozambican government’s privatisation plans, was financed by a group of banks including Standard Corporate and Merchant Bank (SCMB), the Mauritius Commercial Bank, the Development Bank of South Africa and the Industrial Development Corporation (IDC). A consortium of Mozambican banks, led by Banco Standard Totta de Mocambique, was also involved.

Also present at the inauguration will be the Deputy Prime Minister and Minister of Finance of Mauritius, Paul Raymond Berenger.

The sugar estate is owned by a consortium of Mauritian companies that have long-standing experience in the sugar industry and have also contributed largely to the development of the Mauritian economy. Together, they control five of the 11 sugar factories operating in Mauritius and produce about 40% of that country’s sugar output.

The Mozambican government, which has a 25% stake in Marromeu, awarded the contract to the consortium in August 1998 as part of its privatisation plans and the opening up of the economy to international markets. The Marromeu sugar mill and cane fields had been severely damaged in Mozambique’s civil war.

"This project represents the most important economic development in the region. It has helped create some 5 000 jobs in a part of Mozambique that is considered one of the poorest," says Greg Ansermino, SCMB Director Project Finance.

The project has marked a major achievement for the Standard Bank Group's global project finance business, with Standard Bank London acting as advisors to the Mauritian consortium, SCMB acting as lead debt arranger and Banco Standard Totta de Mozambique as the co-ordinator of the Mozambican banks.

Ansermino says the project involves the rehabilitation, operation and management of the Marromeu sugar mill and associated infrastructure, as well as the farming of 10 270 hectares with sugar cane. The rehabilitated mill will produce in excess of 100 000 tons of sugar annually.

"Marromeu is well positioned to capture the majority of sugar sales in the northern region of Mozambique, where 70% of production will be sold. The balance of production will be split between exports under the Unites States quota scheme and exports onto the open world market," says Ansermino.

For more information contact:
Greg Ansermino (011) 636 1004
Greg Fyfe (011) 636 1820