Maragra Sugar Company set to resume operations ahead of agricultural campaign

MOZAMBIQUE- Maragra Sugar Company, situated in the southern Mozambican district of Manhiça, is on track to resume its operations before the start of the next agricultural campaign, according to the Minister of Industry and Trade, Silvino Moreno.

Minister Moreno revealed that efforts are underway to revive the Maragra Sugar Company, with a strong belief that it will be fully operational by the next agricultural season.

Speaking at the Ministry’s Coordinating Council meeting, he outlined the government’s commitment to facilitating the company’s recovery without negatively impacting its workforce or the national economy.

“We are working diligently to restore the company, and I am optimistic about its progress. We anticipate that it will be back in action by the next season,” Minister Moreno stated.

The Mozambican government has also shown a keen interest in the swift revival of the sugar company, recognizing its significant contributions to the local economy.

To expedite the process, Minister Moreno emphasized the government’s intention to support the transfer or sale of the company to new investors. He indicated that the transition of ownership is already in motion.

“We have information that a new company will soon take over Maragra’s operations. Our role as the government is to ensure a smooth transfer process, ensuring that all relevant regulations are adhered to,” Minister Moreno asserted.

The temporary halt in Maragra Sugar Company’s operations has had a significant impact on employment, affecting approximately 5,000 permanent and seasonal workers.

The government has promised to remain committed in safeguarding the company’s interests throughout this transition period.

Earlier this year, the company faced a severe setback when it suffered losses of US$56 million dollars, due to flooding.To rebuild and recover from the damage, the company requires an estimated US$100 million.

However, the government’s support, combined with the involvement of new investors, has offered a glimmer of hope for Maragra Sugar Company’s resurgence.

Minister Moreno acknowledged that the financial burden on the company is substantial, and the road to recovery will require substantial investment.

Nonetheless, with renewed investor interest and government backing, the prospect of returning to full-scale sugar production appears promising.

Maragra Sugar Company has long been a key player in Mozambique’s agricultural landscape, contributing significantly to the nation’s sugar industry and providing valuable employment opportunities.

As the efforts to revitalize Maragra Sugar Company continue, all stakeholders are hopeful that this iconic institution will soon resume its vital role in Mozambique’s agricultural sector, benefiting both the local community and the national economy.

For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.