OWN CORRESPONDENT and AFP, Maputo | Tuesday 6.00pm
MOZAMBIQUE said on Tuesday that South Africa is pulling out of a joint an agricultural resettlement scheme undertaken by the two countries.
Camal Meraji, spokesman for the Mosagrius Development Corp. (SDM), said the South African Chamber for Agricultural Development in Africa (Sacada) is relinquishing its 50% stake in SDM [dubbed Masagrius].
Mosagrius was set up by the Mozambican state in 1995 and awarded a 50-year renewable concession over 220000 hectares of arable land in Mozambique’s fertile northern Niassa province. Only 24 commercial farmers, 14 from South Africa and ten Mozambicans, moved onto the project.
The farmers were granted land of up to 1000ha and were supposed to receive financial, managerial and technical support from Sacada. Since receiving initial loans of up to R50000 each, the farmers have been unable to secure further funds, sources close to the project said.
The Mozambican government has repeatedly accused Sacada of a lack of commitment to the programme. Meraji said Mosagrius is examining three proposals from local and international investors to replace Sacada, with a final decision expected to be taken at an extraordinary shareholders’ meeting by the end of the week.
Earlier in the year Mozambique’s deputy agriculture minister, Helder Muteia, said that the government had approached Banco Comercial de Moambique for a loan after realising that Sacada was not a “serious partner”.