May 25, 2012
Mozambique's cotton firm ships 200 tonnes cotton to South Africa
The cotton ginning factory in Nhancutse, Gaza, in Mozambique's southern province, has transported 200 tonnes of processed cotton to South Africa since it began operations in 2011.
The director of Companhia AgrÃcola do Fomento do Algodao (CAFA), Manuel Barbosa, made this announcement on Monday (May 21) during a visit to the factory by Mozambican President Armando Guebuza.
Three million US dollars has been invested in the factory, which has the capacity to process 40,000 tonnes of cotton annually. CAFA is also producing cotton seed, and has so far exported 300 tonnes to South Africa.
"We are a new company, and we have started promoting cotton production in the districts of Guija and Chibuto. We also own a farm in the Lower Limpopo and in the short term we expect to produce between 1,000 and 1,500 tonnes", said Barbosa.
However, Barbosa lamented that CAFA is facing logistical problems because most of the areas where cotton is grown are located more than 50 kilometres from the factory, with poor access roads, particularly during the rainy season.
Barbosa said that exports are due to resume later this year to South Africa and Portugal, but that the international financial crisis has affected the price of cotton.
CAFA is a partnership with the major shareholder being the Portuguese company "Crispim e Abreu Lda". The company employs 40 permanent workers and 200 seasonal workers.
