Vitagrain submits proposal to develop 10,000 ha farm in Mozambique
August 13, 2009
PORT LOUIS, MAURITIUS On Thursday 13 August 2009, Dr. the Hon. Arvin Boolell, Minister of Foreign Affairs, Regional Integration and International Trade, chaired a brainstorming session of the issue of Food Security and cross-border agricultural investments in Mozambique.
The Regional Integration Division of the Ministry of Foreign Affairs, Regional Integration and International Trade has been the assigned role of facilitator and coordinator as regards all activities and projects in the Region.
According to Minister Boolell, cross border initiative in the field of food security is crucial for Mauritius. The Government has earmarked a sum of Rs 1 billion through the creation of the Food Security Fund in the 2008/9 budget. This fund was created with the intention to encourage farmers and crop producers to increase food production.
The Minister of Foreign Affairs, Regional Integration and International Trade, has used all its diplomatic weight to acquire prime land with good and appropriate logistics in Mozambique. Over and above the 5000 hectares earmarked for Mauritius on the Central Province, Mozambique has been willing to offer to Mauritius 10,000 more hectares in the district of Marracuene, some 70 kilometers from the city of Maputo, are now available. This land is on the priority list for rice cultivation according to the Mozambican Ministry of Agriculture. Again, not too far from Maputo, a further 5000 hectares has been negotiated.
“The deal we are talking about sounds terrific, both in theory and practice. In theory, we can secure reliable supply of food, mitigate price shocks and reduce speculative commodity trade. In practice, it allows our investors to look beyond frontiers. This is not the time for us to put our proposed mega project on the blackburner. We need to become alert and take a more serious and responsible attitude”, stated Arvin Boolell.
The 10,000 hectares at Marracuene are now subject to a rapid submission of a rice project, and this will be followed by the signing of a long-term lease. It is proposed that the Government of Mauritius takes ownership of the lease and then sub-lease it to a consortium or investors or to lead investors on terms which satisfy both the interests of the investors and the nation in its search for some level of food security.
“I want the project we are going to develop together to be a show case, demonstrate our entrepreneurship skill, our effort to address the food security and our responsibility vis-à-vis our friendly neighbouring countries. We should not be seen as colonisers. We need to bear in mind that any success gained in this project would be a stepping-stone towards similar ventures in other parts of Africa. The doors are open for more investors to join the two lead investors, Vita Grain Ltd of Singapore and the Ning Group in Swaziland. The doors are equally open to new projects on other land to be made available”, Minister Boolell highlighted.
Already, two lead investors have come forward and have shown substantial interest in a rice project covering the 10,000 hectares. The first one is Vita Grain Ltd, a Singaporean company registered in Mauritius already at project stage of developing hybrid rice varieties in Mauritius. It has already submitted its project proposal of $43.5m on the Mozambican rice venture. This project includes milling of the rice. The second one is Mr Gaetan Ning of the Ning Group based in Swaziland and is on successful business in cattle-rearing, vegetables growing and fast-food chains. He is visiting the 10,000 hectares shortly.
Dr Abel Chaudhury, a high-profile rice scientist working both for Vita Grain Ltd and for the Food Security Development Centre having MSIRI & FARC as partners, has proposed a scientific tour at the end of September 2009 on the Mozambican land. In collaboration with the Mozambican Ministry of Agriculture, he will develop pilot plots with some 50 rice varieties. In his view, the outcome of this experiment would provide more reliable answers to the soil/climate suitability.