Mozambique Issues $10m Tender to Build Grain Silos

Mozambique said on Saturday that it has issued a U$10 million international tender to build silos with a handling capacity of 60,000 tonnes of food stuffs, a top official said here. The Trade and Industry minister, Antonio Fernando told APA in an exclusive interview that the plan is aimed at storing food produced across the country and cut imports.

“We are inviting everybody, including foreign companies to come and build several silos in Mozambique.

“Our plan is to collect and store more food (and) cut imports because of soaring food prices on the international market. We also want to control the price of food produced locally”, he said.

Last month, the government unveiled a Food Production Action Plan and presented it to the private sector as part of a drive to encourage private investment in the various areas covered.

“We will be spending US$10 million in the first phase, which is not even enough for our desired plans to respond to the food crises, more tenders will be issued”, Fernando said.

This year, Mozambique faces a shortfall of 1.25 million tonnes of cereals and has planned to import fertilizer and improved seeds, develop its irrigation system and boosting its agro-industry.

The country spends over US$500 million a year on grain and cereal imports which normally total around 500,000 tonnes, mostly of wheat and rice which are not produced locally, unlike maize.

Fernando said the construction of silos in the northern provinces of Niassa and Nampula, and in Zambezia and Manica in the center of the country, is to establish appropriate conditions for storing grain in those provinces with the greatest production capacity, while setting up a secure and permanent market that will stimulate increased production and productivity.

”The silos are also supposed to stabilize grain prices on the domestic market and to minimize the impact of the international food crises”, he said.

The government said on Thursday that it would increase its 2009 annual state budget by 5 percent from this year’s US$3.8 billion to boost agricultural production and infrastructure development.

Source African Press Agency

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