Some 362 Mozambican farmers and sugar producers organized into five associations will benefit from a $4.3 million funding by the European Union and the Botswana-based ABC Bank under a project to support the development of small-scale producers in Xinavane, in Maputo province, APA has learnt.
According to state-controlled weekly Sunday paper, Domingo, the project, launched in Xinavane on Thursday, also involves the South African company, Tongaat-Hulett, the majority shareholder in the Xinavane sugar company.
The farmers will grow sugar cane on 520 hectares.
A further 30 hectares is set aside for cultivating food crops.
The EU is providing a subvention of â‚¬1.54 million, while the ABC Bank is providing farmers with a loan of â‚¬2.37 million.
The farmers will repay the loan out of the sales of their sugar cane to Tongaat-Hulett.
(Source – http://www.blackseagrain.net/novosti/eu-bankrolls-mozambique-sugar-producers)