A new cashew nut processing factory has started operating in the district of Palma, Cabo Delgado province, northern Mozambique, reports the Mozambican Information Agency.

The factory comes into operation thanks to improved security conditions after the region faced terrorist attacks since the end of 2017.

According to the publication, the factory, the result of an investment of around 30 million meticais, has the potential to employ 100 people and the capacity to produce 1,500 tons of cashew nuts a year.

It was inaugurated this week by the governor of Cabo Delgado, Valige Tauabo, and is the only infrastructure in operation in the entire northern region of the province.

"This will create a market for the province's biggest cashew nut producers, namely the districts of Nangade, Mueda, Mocímboa da Praia, Muidumbe and Palma," said Tauabo, quoted in the publication.

The governor also said that "this factory reflects the investment we are making to materialize economic diversification".

The inauguration of the development comes at a time of year when preparations are underway for the 2024-2025 cashew nut marketing campaign, which is due to be launched this October in Cabo Delgado.

The governor said that the aim is to cement industrialization based on local raw materials, and a mark of confidence in the new phase of stabilization in the region.

According to the governor, the inauguration of the factory represents a mark of confidence in the new phase of stabilization and development for Palma, in particular, and Cabo Delgado, in general.

Tauabo classified the factory as an isolated case of a development hub, and "leaves no doubt that Palma is once again open and safe for investment".

The investment belongs to "The Sunshine Approach Foundation", an organization whose aim is to make a difference to the poor by implementing projects that impact the lives of underprivileged populations.