The national cashew nut processing industry is recovering from the negative impacts of the drop in almond prices in the international market and from Covid-19 over the past three years.

This improvement is the result of efforts aimed at increasing production and productivity, seen as essential for the sustainability and revitalization of this sector.

This information was shared by the Deputy Minister of Agriculture and Rural Development, Olegário Banze, during the first almond committee session held in Maputo.

“The national processing industry, with a capacity of 110,000 tons, has been rebuilding and returning to previous growth levels after the setbacks of the last three years,” stated Banze.

Recently, producers and companies in the cashew nut value chain approved new purchase prices for almonds from producers.

In a meeting held in Maputo, producers advocated for a price of 40 meticais per kilogram, opposed to the 30 meticais proposed by the Cashew Industry Association (AICAJU).

Through discussions and consultations, stakeholders in the cashew nut industry established 37 meticais per kilogram as the ideal cost for both parties, respecting the efforts of producers and the sustainability of the companies that purchase the product.

How is the industry in the country?

The cashew nut processing industry is one of the sectors that faced significant constraints due to industrial decline in the country. Apart from the factories that were involved in rubber processing, battery production, and footwear manufacturing, some of these almond processing plants also suffered.

In the city of Xai-Xai, for example, until the mid-2000s, the MOCITA cashew nut processing factory operated in the capital of Gaza province. The factory used to receive over 40,000 tons of almonds.

However, it has been more than 15 years since the factory last operated. The government is now trying to revitalize the national industry, and there is an ongoing study aimed at assessing the industrial situation in the country.

In this process, nearly 8,000 industrial companies from across the country are being covered by the initiative called “General Mapping of the Manufacturing Industry,” which has been developed by the Ministry of Industry and Commerce since July of last year.

Tirupati, one of the few graphite producers outside of China, highlights the growing global dependence on China for essential minerals in the energy transition, such as flake graphite, crucial for lithium-ion batteries.

The company foresees an imbalance between graphite demand and supply by 2025, with continuous demand outpacing production growth, especially as the automotive industry ramps up electric vehicle production.

This scenario, combined with export restrictions from China, could have a positive impact on graphite prices, which have been declining since the beginning of the year.

Tirupati currently extracts natural graphite from its mines in Madagascar, with plans to expand its production.

The company aspires to become a major global supplier, aiming to meet approximately 8% of global demand by 2030, from its projects in Madagascar and those under development in Mozambique.

The situation in China plays a crucial role in Tirupati’s strategy. Announced export restrictions on graphite and their impact on electric vehicle battery supply chains could significantly influence the company’s development.

Mozambique and Madagascar, as major graphite producers outside of China, currently represent approximately 15% of global production.

The Mozambican government received reaffirmations of financing for the Liquefied Natural Gas (LNG) projects in the Rovuma Basin yesterday, with the resumption of TotalEnergies being almost certain by the end of the year.

This perspective was emphasized by the Minister of Economy and Finance, Max Tonela, in a meeting with the main creditors of the Rovuma gas projects.

“TotalEnergies is making diligent efforts to restart its project before the end of the year, which implies the disbursement of project financing funds,” Tonela said in that statement.

Tonela presented an “overview and some of the latest insights into the Mozambican economy,” highlighting the adverse context of climate disasters, the pandemic, terrorism, and the unfavorable global financial scenario of recent years.

“Despite the many challenges over the past two years, the country has been recovering its economic growth. Last year, the World Bank and the African Development Bank resumed their support for the State Budget,” he said.

According to Carta de Moçambique, Tonela emphasized the ongoing implementation of measures to improve public debt management, which “are resulting in better fiscal sustainability and efforts to improve the country’s credit rating.”

Between gas and energy transition

Then, the official spoke specifically about gas and energy transition, emphasizing that “the start of natural gas exports from the Coral Sul floating platform last year marked the beginning of a new era in the sector, and with the imminent creation of a sovereign fund to invest these revenues.”

In this domain, Max Tonela expressed confidence that Mozambique will be able to contribute to this transition while meeting global energy needs for socio-economic growth in a sustainable manner.

TotalEnergies is responsible for 25 percent of the Natural Gas Project (LNG) in Area 1 of the Rovuma Basin, Cabo Delgado province. This is the largest percentage of ownership in this venture, making the French oil company the main player in the operations.