The government of the southern Mozambican province of Inhambane on Thursday signed a memorandum of understanding with the Indian company Aar Ess Exim Pvt Ltd, for the building of a cement factory in the locality of Pambara.
The factory, budgeted at more than 65 million US dollars, would be able to produce 1,000 tonnes a day, and would employ around 250 workers.
Construction is scheduled to begin next year, and the factory should start operating by late 2009.
That, however, depends on the viability studies.
According to the managing director of Aar Ess Exim, Rajendra Mishra, Indian technicians will shortly be visiting Inhambane to carry out the economic viability study.
Nonetheless, Mishra pointed out that the raw material (limestone) exists in abundance in Inhambane, and he was confident that there is a guaranteed market for the cement.
Speaking at the signing ceremony, the provincial governor, Francisco Itai Meque, said that the cement factory is part of a package of Indian investment in the province. He said that Aar Ess Exim had decided to come to the province following negotiations that the local authorities had undertaken to seek solutions for the problems holding up Inhambane's development.
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"We are convinced that the Indians will indeed build the factory", said Itai Meque. "We shall negotiate other projects, because our interest is to remove Inhambane from the list of the poorest provinces in the country".
He also took the opportunity to announce the arrival of a group of Chinese businessmen in the province who will work in the provincial capital, Inhambane city, and the neighbouring town of Maxixe, to identify a site for building a footwear factory.
Aar Ess Exim describes itself as "a multifaceted, professionally managed project engineering company, comprising of highly qualified engineers, technocrats and accomplished professionals, having extensive experience and expertise in executing overseas turnkey industrial projects of a diverse nature, from concept to commissioning".