The government will use the vast network of domestic producers to expand the cultivation of oilseeds and their derivatives, with a view to generating an annual turnover of up to two billion US dollars over the next three years.
In Mozambique, the market for cooking oil and its derivatives is about $500 million, and the respective value chain currently represents an annual turnover of about $900 million.
Oilseed production is done with the minimum use of production technologies, involving about 750,000 families.
Currently, according to the newspaper Notícias, the country produces about 400,000 tons of various oilseeds, with emphasis on sesame, peanuts, soybeans, cotton, copra, and sunflower.
In the 2021 season, oilseed production grew by 26 percent, with sunflower, cotton, soybeans, and sesame taking pride of place.
Still, the country annually imports about $250 million worth of cooking oils and their derivatives, a figure that represents about 25 percent of domestic agricultural imports.
On Monday, the Ministry of Agriculture and Rural Development (MADER) and the Italian oil company ENI signed a partnership agreement in Maputo, which essentially aims to develop joint initiatives for agricultural production in the country.
Speaking on the occasion, the Minister of Agriculture and Rural Development, Celso Correia, noted that neighboring countries import about 1.5 billion dollars worth of cooking oils and their derivatives annually, which represents a market opportunity at Mozambique's doorstep.
"The promotion and production of oilseeds in Mozambique is the alternative for the reversal of the agricultural trade balance and foreign exchange by replacing imports of vegetable oil and its derivatives," said Celso Correia.
He said that the by-products of the oil industry, bagasse in particular, is crucial to the development and growth of the livestock sector."
He added that the national production of oilseeds has the potential to sustain about 15 million Mozambicans, through the integration of three million households in the production chains.
Hence, the transformation of this sector in Mozambique lacks minimum investments in quality seeds and other production inputs, extension services with integral assistance to families, and market guarantees.
For his part, ENI's general manager Giorgio Vicini said that, based on the agreement, the two parties will identify potential sites and crops suitable for the production of oilseeds and vegetable oils, with a focus on areas considered uncompetitive for producing food.