limpopo corridor spatial development promoting agro-industrial processing

248 Pages·2008·1.59 MB·English

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ETC International´Study together with the SEED

STUDY TEAM

António da Silva Francisco
Marco Machado
José Castro
Filomena dos Anjos
Jacinto Mutemba
António André

October 2002
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CCOONNTTEENNTTSS

CONTENTS .............................................................. III
LIST OF TABLES ...................................................... VII
LIST OF GRAPHS ................................................... VIII
LIST OF MAPS .......................................................... IX
EXECUTIVE SUMMARY .............................................. XI
VISION AND DIAGNOSIS .................................................................... xi
ESTRATEGY: SUMMARY OF THE VIABILITY OF THE THREE
ANCHOR PROJECTS ............................................................ xii
PART I. VISION ......................................................... 1
1 INTRODUCTION: Principles, Objectives e Methodology .................... 1
1.1 What does this study offer .......................................................................... 1
1.2 SOME PRINCIPLES UNDERLYING THE STUDY .............................................................. 3
1.3 OBJECTIVES AND MAIN RESULTS OF THE STUDY...................................................... 6
1.4 Methodology ............................................................................................. 7
2 LIMPOPO VALLEY: Area, Population and Economy ............................ 9
2.1 THE LIMPOPO CORRIDOR – the geographical DEFINITION AND SCOPE ............ 9
2.2 BROAD AND NARROW definitionS of the limpopo corridor ............................... 9
2.3 Unprecedented future opportunities for the Limpopo Corridor? ....................... 12
22..44 geral constraints on investment in the Limpopo Corridor .................................. 14
PART II. DIAGNOSIS ............................................... 21
3 HYDRO-AGRICULTURAL INFRASTRUCTURES .................................... 22
3.1 Hydro-agricultural infrastructures along the Limpopo Valley ............................. 23
3.2 Current situation of the irrigated perimeters in the Limpopo Valley .................... 23
3.3 The most common types of irrigation ........................................................... 23
3.4 Potential for irrigation development in the Limpopo Valley ............................... 24
3.5 Prospects for the development of irrigation .................................................... 25
4 AGRICULTURAL SECTOR ................................................................. 26

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4.1 Agricultural production .............................................................................. 27
4.2 Production sytems .................................................................................... 29
4.3 Agricultural potential of the area ................................................................ 30
4.4 The Irrigated Areas ................................................................................... 30
4.5 Potential for rice production: main production systems ................................. 32
4.6 Potential for tomato production ................................................................... 38
4.7 Investments needed to make tomato production viable ................................... 40
4.8 Coastal area ....................................................................................... 41
4.9 Coconut palms and copra: potential production ...................................... 41
5 LIVESTOCK SECTOR ........................................................................ 44
5.1 Potential for livestock production .......................................................... 44
5.2 Current production and products........................................................... 45
5.3 Evolution of numbers of animals - cattle ................................................ 45
5.4 Projection (forecast for the next 10 years) ............................................. 46
5.5 Small ruminants (sheep and goats) ....................................................... 46
5.6 Pigs ..................................................................................................4 6
5.7 Livestock production ........................................................................... 47
5.8 Livestock policy and strategy................................................................ 48
6 SECTOR AGRO-INDUSTRIAL ........................................................... 51
6.1 conceptual approach .................................................................................5 1
6.2 Methodology for the approach used in the study ..................................... 52
6.3 Territory covered by the study ............................................................. 53
6.4 Crops studied .....................................................................................5 4
6.5 Potential of the agro-industrial processing sector .................................... 55
6.6 Constraints on the agro-industrial processing sector ............................... 57
6.7 Implications for the selected projects .................................................... 58
PART III. STRATEGY ............................................... 62
7 Public Investment to improve the conditions for private
investment ........................................................................ 63
8 Anchor projects identified and developed ...................................... 65
8.1 Anchor projects identified .................................................................... 65
8.2 Anchor projects developed ................................................................... 66
8.3 Main results of the 3 pre-viability studies ............................................... 66
9 PRE-VIABILITY ASSESSMENTS FOR THREE PROJECTS .................... 67
9.1 PROJECT 1: Recovery of the Conhane rice processing factory ................... 67

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9.2 PROJECT 2: Chilembene processing factory -Tomatoes, tinned vegetables
and fruit juice concentrates .................................................................. 72
9.3 PROJECT 3: Construction of a coconut products factory in
Inhambane/Maxixe. ............................................................................ 77
10 BIBLIOGRAPHY ............................................................................ 82
APPENCIES .............................................................. 86
Appendix 1: Terms of Reference
Appendix 2: Pre-viability Study for the Conhane Rice Factory
Appendix 3: Pre-viability Study for the Chilembene Tomato
Factory
Appendix 4: Pre-viability Study for the Coconut Products Factory
in Inhambane/Maxixe

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LLiisstt ooff TTaabblleess
Table SUMEXC Summary table of the viability indicators of the three
anchor projects ..................................................................... xii
Table 1.1 Estimate of the surface area and population of the Limpopo
Corridor, 1997-2002 ............................................................. 10
Table 1.2: The Index of Economic Freedom, Mozambique 1995-2002 ............. 17
Table 1.3: Business people: What do they want to see solved, and what
do they demand of the Government and of the CTA? ................. 18

Table 2.1 - Irrigable area by basin .............................................................. 24
Table 2.2: Development Potential in the Limpopo Valley ................................ 25
Table 2.3: Use of the area by type of crop ................................................... 27
Table 2.4: Crop areas in Gaza as a percentage of the country ....................... 28
Table 2.5: Number of fruit trees and production, 2000 .................................. 29
Table 2.6: Differing Productive Regions. Area occupied and potential
area (in hectares) ................................................................. 30
Table 2.7: Investment needed to prepare and operate 1,000 hectares
of rice .................................................................................. 35
Table 2.8: Machinery: the costs per hour of the machinery are the same
as the Technological charter, plus 20-25% for
replacement ......................................................................... 36
Table 2.9: Inputs ...................................................................................... 36
Table 2.10: labour .................................................................................... 36
Table 2.11: Transport ................................................................................ 36
Table 2.12: Family Sector: Initial Investment ............................................... 37
Table 2.13: Operation: the costs per H/M are the same as the current
ones plus 20-25% for replacement .......................................... 37
Table 2.14: Inputs .................................................................................... 38
Table 2.15: Minimum areas doer rice ......................................................... 38
Table 2.16: Operation per hectare .............................................................. 40
Table 2.17: Inputs per ha .......................................................................... 40
Table 2.18: Potential production of Copra .................................................... 42
Table 2.19: Place of occupation of the land .................................................. 43
Table 2.20: Rhythm of plant production ....................................................... 43
Table 2.21: Number of each species (Gaza), 2000 ........................................ 44
Table 2.22: Evolution of numbers of pigs ..................................................... 46
Table 2.23: Places visited for the agro-processing industry ............................ 54

Table 3.1: Anchor projects identified ........................................................... 65

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Table 3.2: Anchor projects developed ......................................................... 66
Table 3.3: PROJECT 1 - Recovery of the Conhane rice processing factory
(short presentation) .............................................................. 78
Table 3.4: Costs and Benefits for Conhane rice processing factory .................. 69
Table 3.5: Rice sale price, August 2002 ....................................................... 70
Table 3.6: Paddy rice – Estimated price paid to the farmer ............................ 70
Table 3.7: Summary of pre-viability indicators for Project 1 - Conhane
rice processing factory ........................................................... 71
Table 3.8: PROJECT 2 - Chilembene processing factory (short
presentation) ....................................................................... 72
Table 3.9: Costs and Benefits for Chilembene Processing Factory ................... 74
Table 3.10: Tomato Sales Prices, August 2002 ............................................ 75
Table 3.11: Summary of pre-viability indicators for Project 2 –
Chilembene tomato processing factory .................................... 75
Table 3.12: PROJECT 3 – Construction of a coconut products factory in
Inhambane/Maxixe (short presentation) .................................. 77
Table 2.13: Costs and Benefits for Coconut Products Factory in
Inhambane .......................................................................... 78
Table 3.14: Coconut derivatives sales prices, August 2002 ........................... 79
Table 3.15: Summary of pre-viability indicators for Project 3 –
Integrated coconut derivatives processing factory in
Inhambane .......................................................................... 80

LLiisstt ooff GGrraapphhss

Graph 1.1 Gross domestic product, Mozambique 1996-2000 .......................... 11
Graph 1.2 Weight of the Limpopo Valley in the National Economy
compared with Maputo City and the Southern Region ............... 11
Graph 1.3. Weight of the GDP of the Limpopo Corridor in the Economy
of the Southern Region, Mozambique 1996-2000 ...................... 11
Graph 1.4 Limpopo Corridor, 1996-2000 ..................................................... 12
Graph 1.5 Structure of the GDP of the southern region, with and
without Maputo city, by economic activity, Annual
average between 1996 and 2000 ............................................ 13
Graph 1.6 Evolution of some indicators on investment, and on food and
non-food production: Mozambique versus Sub-Saharan
Africa, 1975-1999 ................................................................. 15
Graph 1.7 African countries ranked according to the improvement index
(1996/1999) of the Africa Competitiveness Report,
2000/2001 ........................................................................... 16
Graph 1.8 Economic Freedom and per Capita Income, 1999 .......................... 19
Graph 1.9 Projection of Property Rights and per Capita Income, 1999 ............. 20

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Graph 2.1 Rainfall versus Coastal Distance................................................... 26
Graph 2.2 Distribution of Cultivated Area by size of farms .............................. 27
Graph 2.3 Area Used by Type of Crop .......................................................... 28
Graph 2.4 Evolution of Number of Cattle, 1980-2001 .................................... 45
Graph 2.5 Evolution of Number of Goats and Sheep, 1995-2001 ..................... 46
Graph 2.6 Percentage Contributed to Meat by Species .................................. 47
Graph 2.7 Evolution of Beef Production, 1992-2001 ..................................... 48
Graph 2.8 Rice production in the Limpopo valley ........................................... 58
Graph 2.9 RICE: dehusking capacities ......................................................... 59

LLiisstt ooff MMaappss

Map 1.1 Location of Limpopo Cooridor in the Map of Mozambique .................. 1
Map 1.2 Area covered by the Limpopo Corridor ............................................ 10
Map 2.1 Southern provinces of Mozambique ................................................. 26
Map 2.2 Gaza Province .............................................................................. 45

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