Summary of Proposed Investment
Project Number
7008
Company Name
Industrias de Caju Mocita, SARL
Date SPI Disclosed
Apr 16, 1996
Country
Mozambique
Industry
Agribusiness and Forestry
Status
Completed
Sector
Other Food
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : May 24, 1996
Signed : Nov 4, 1996
Invested : Dec 30, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Mozambique-MOCITA |
| Region | Sub-Saharan Africa |
| Sector |
Projected Board DateMay 16, 1996
Company NameIndustrias de Caju Mocita
Technical Partner and/or Major Shareholders
The major shareholder of MOCITA is Anglo American Corporation, a South African mining finance house with widely dispersed ownership. It will contribute 75% of the equity of MOCITA. Its wholly-owned subsidiary, Anglo American Farms Limited (AMFARMS), will have primary oversight and management responsibilities for the project.
Project Cost Including proposed IFC investment
US$10.6 million, of which IFC will provide loan of US$3.0 million for its own account.
Location of project and Description of site
The Company is located in Xai Xai, which is some 220 km. northeast of Maputo (the capital of Mozambique). The factory site is 4 km from the town center.
Description of Company and Purpose of Project (include IFC role\development impact)
MOCITA was established in 1966 to process cashewnut into kernels for bulk export. It operated profitably for 15 years and its production reached a peak of 18,000 tpa. It stopped normal operations in 1981 as a result of civil war in the country and was taken over by the Government until 1994 when it was returned to the owners. The proposed project will rehabilitate the factory, install a new processing line, and establish a nursery to distribute 100,000 cashew trees per annum to farmers. IFC has worked closely with the sponsors for two years, beginning with the funding of the feasibility study by the Italian Trust Fund. IFC assisted with restructructing the project concept to include proper arrangement for procuring the cashewnut and broadening the product mix to include branded consumer items - all of which will ensure that the project can operate effectively without protection. The development impact of the project includes supporting 2,000 farmers who will be induced to reactivate their cashew farms so as to supply cashew to the project, creating 700 jobs in the factory, and generating export earnings of US$11 million per year. In addition, the project will pay export parity price for its cashew, which will increase producers’ (mostly smallholder farmers’) income and contribute toward poverty alleviation. The project will also assist the tree planting program that will ensure the long-term survival of the cashew sector.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental and occupational health and safety issues associated with this project include site location, air emissions, liquid effluent treatment, solid waste management, fire prevention and emergency control. The site has in the past been used for cashew nut processing and there are no environmentally sensitive areas in the vicinity. Air emissions will mainly be from the factory boiler units. These high efficiency units will utilize cashew nut shell liquid (CSNL) extracted from the cashew nuts during the processing. Concentrations of SO2 and particulate matter in the flue gas will be negligible. All other parameters will comply with local requirements and World Bank guidelines. Wash water from the facility will be used to irrigate gardens and sports fields. Sewage water will be treated in a septic tank system designed for more than 200% overload. Solid wastes will consist of peels and nut rejects. MOCITA is seeking to enter into agreement with a nearby ceramics factory to sell these wastes for use as a fuel. Fire prevention will be included in the factory design and an emergency response plan will be developed and implemented before commissioning of the factory. IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by MOCITA and by conducting periodic supervision.
The is from the Public Information Center.
| Date SPI sent to PIC | April 16, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
