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Mozambique
The Project Areas / The New Forests Company
In Mozambique, The New Forests Company has partnered up with a local non-governmental agency called the Malonda Foundation and has begun operations on its first plantation in Niassa province, in the northwest of the country.hi
The company, which has signed a deal with the Malonda Foundation for 100,000 acres, planted its first 185 acres in 2007 and plans to plant an additional 12,000 acres in 2008 and 2009.
Niassa Province remains one of the few places in Africa capable of providing sufficient land to develop a major export orientated forestry industry in excess of 500,000ha. The province is abundant in large tracts of fertile land with deep soils and annual rainfall in excess of 1000-1200mm. The provincial capital, Lichinga, is located strategically at the end of a 600km railway line originating in Nacala, the deepest natural port on the East African seaboard.
NFC expects that over the coming years, a number of international forestry companies will develop large scale plantations in Niassa for both sawn timber, chips and pulp and that together the various companies will collaborate in a forestry association to upgrade the railway and develop the Port as an export terminal.
From Nacala Port, the Niassa forestry industry will be able to export a number of processed and semi-processed wood products including sawn timber and wood chips to the expanding and dynamic markets of South Africa, Japan, China, India and Europe. Sailing times to Asian markets will be 12-18 days, giving Mozambique a clear comparative advantage in freight differentials and logistics compared to supplier and shippers in West Africa and Latin America.
In particular, Mozambique’s geographical proximity to the growing South African economy presents considerable market opportunities especially for sawn timber.
The company plans a business strategy based on the export of sawn timber to both regional and international market where demand and prices for sawn timber are rising rapidly.
Mozambique is a country of 20 million people with a land area of 800,000 sq kms. Following a devastating civil war which was brought to an end 15 years ago, Mozambique has become one of Africa’s most successful models of post-conflict resolution and development and has held three peaceful, albeit imperfect, multiparty elections according to Economist Intelligence Unit.
Market-based economy reforms, under the guidance of the World Bank and International Monetary Fund, and supported generously by international donors, are helping to transform the economy. Economic growth was almost 8 per cent in 2006 and is set to continue at 6.5-7.5 per cent through to 2014.
Languages: Portuguese
President: Armando Guebuza
Area: 801,590 km2
Population in 2007: 21,397,000
Currency: Mozambican Metical (Mtn)
