International Projects.

Projects Developed in Mozambique

FISH CULTURE IMPLEMENTATION PROGRAM IN ANGOCHE, NAMPULA PROVINCE – MOZAMBIQUE

I – General Project Information

1.1 Program Title

Implementation Program of program in implementation of a fish farm in ANGOCHE, NAMPULA PROVINCE – MOZAMBIQUE, COMPRISING A TILAPIA PRODUCTION UNIT AND A FISH PROCESSING UNIT.

1.2 SOURCES OF RESOURCES

The total investment budget of the Program corresponds to U$ 9,995,621.08 (nine million nine hundred and ninety-five thousand, six hundred and twenty-one US dollars), as shown in the table below (Table I).

TOTAL BUDGET AND FINANCING PLAN – TABLE I US$

TOTAL INVESTMENT OF U$ 9,995,621.08

BEING: Fish Production Unit U$ 4,240,104.31
Fish Processing Unit U$ 5,755,516.77

1.3 FINANCING AGENCY

Investment Bank of Mozambique

IMPORTER

SCGlobal Lda, located in Angoche in the Province of Nampula – Mozambique.

EXPORTER

JM Comércio e Serviços Ltda.

1.6.CURRENCY IN WHICH IT IS INTENDED TO CONTRACT FINANCING

United States Dollar (US$).

1.7 EXECUTION TERM

The Project will be developed in 60 months (5 years).

1.8 DEADLINE FOR IMPLEMENTATION AND START OF PRODUCTION

Implementation in 12 months (1 year).

BRIEF HISTORY ABOUT MOZAMBIQUE

Mozambique, officially the Republic of Mozambique, is a country located in southeastern Africa, bordered by the Indian Ocean to the east and bordered by Tanzania to the north; Malawi and Zambia to the northwest; Zimbabwe to the west and Swaziland and South Africa to the southwest. The capital and largest city in the country is Maputo (called Lourenço Marques during Portuguese rule).

After more than four centuries of Portuguese rule, Mozambique became independent in 1975, becoming the People’s Republic of Mozambique shortly thereafter. After just two years of independence, the country plunged into an intense and protracted civil war that lasted from 1977 to 1992. In 1994, the country held its first multiparty elections and has remained a relatively stable presidential republic ever since.

Mozambique is endowed with rich and extensive natural resources. The country’s economy is mainly based on agriculture, but the industrial sector, mainly in the manufacture of food, beverages, chemicals, aluminum and petroleum, is growing. The country’s tourism sector is also growing.

South Africa is Mozambique’s main trading partner and the main source of foreign direct investment. Portugal, Brazil, Spain and Belgium are also among the country’s most important economic partners. Since 2001, the average annual economic growth rate of Mozambican GDP has been one of the highest in the world. However, Mozambique’s GDP per capita, human development index (HDI), income inequality and life expectancy rates are still among the worst on the planet.

The only official language in Mozambique is Portuguese, which is mainly spoken as a second language by about half of the population. Among the most common native languages are Macua, Tsonga and Sena. The population of about 24 million people is predominantly composed of Bantu peoples. The most popular religion in Mozambique is Christianity, but there is a significant presence of followers of Islam. The country is a member of the African Union, the British Commonwealth, the Community of Portuguese-Speaking Countries (CPLP), the Latin Union, the Organization of the Islamic Conference, the Community for the Development of Southern Africa and the International Organization of the Francophonie.

With 801 With 537 square kilometers of land area, Mozambique is the 34th largest country in the world by land area, being comparable in size to Turkey. Mozambique is located on the southeastern coast of Africa. It borders Swaziland to the south; with South Africa to the southwest; with Zimbabwe to the west; with Zambia and Malawi to the northwest; with Tanzania to the north and the Indian Ocean to the east.

Mozambique is located on the eastern coast of southern Africa, bordered on the north by Tanzania, on the northwest by Zambia and Malawi, on the west by Swaziland and Zimbabwe, on the south and west by South Africa and on the east by the Mozambique Channel.

To the north of the Zambezi River, the territory is dominated by a large plateau, with a small coastal plain bordered by coral reefs and, in the interior, bordered by mountain massifs belonging to the Great Rift Valley system. To the south it is characterized by a wide coastal alluvial plain, covered by savannas and cut by the valleys of several rivers, among which the Limpopo River stands out.

CLIMATE

The country’s climate is humid and tropical, influenced by the Indian monsoon regime and the warm current of the Mozambique channel, with dry seasons from June to September. Average temperatures in Maputo vary between 13-24 °C in July at 22-31 °C in February.

The rainy season occurs between October and April. The average precipitation in the mountains exceeds 2000 mm the humidity The relative rate is high, between 70 and 80%, although the daily values oscillate between 10 and 90%. Average temperatures range from 20 °C in the South and 26 °C in the north, with the highest values during the rainy season.

DEMOGRAPHY

The provinces of Zambézia and Nampula are the most populous in the country and concentrate around 45% of the Mozambican population. The Macua are the dominant group in the northern part of the country, the Sena and Shona (mainly Ndau) are prominent in the Zambezi valley, and the Tsonga are predominant in southern Mozambique. Other groups include Makondes, WaYaos, Swahili, Tongas, Chope, and Unguis. (including Zulus). Bantu peoples comprise 97.8% of the population, while the rest include White Africans (largely of Portuguese descent), Euro-Africans (Mestizos of Bantu and Portuguese peoples) and Indians. About 45,000 people of Indian descent reside in Mozambique.

During the Portuguese colonial rule, a large minority of people of Portuguese descent lived permanently in almost all regions of the country 24 and Mozambicans with Portuguese blood, at the time of the country’s independence, were around 360 thousand people. Many of them left the region after Mozambican independence in 1975. There are various estimates for the size of the Chinese community in Mozambique, seven thousand to twelve thousand people.

ECONOMY

The official currency is the metical, which replaced the old currency at a rate of one thousand to one. The old metical was withdrawn from circulation by the Bank of Mozambique until the end of 2012. The US dollar, the South African rand and, recently, the euro are also currencies widely accepted and used in commercial transactions in the country. The legal minimum wage is around $60 a month.

Mozambique is a member of the Southern African Development Community (SADC). The SADC free trade protocol aims to make the southern African region more competitive by eliminating tariffs and other trade barriers. In 2007, the World Bank spoke of Mozambique’s “inflated pace of economic growth” and a joint government and international donor study in the same stated that “Mozambique is generally regarded as a success story in humanitarian aid”. Also in 2007, the International Monetary Fund (IMF) said that “Mozambique is a success story in sub-Saharan Africa.” However, despite this apparent success, both the World Bank and UNICEF have used the word “paradox” to describe the increase in chronic child malnutrition in the face of the growth of Mozambican GDP. Between 1994 and 2006, the average GDP growth was approximately 8% per year, however, the country remains one of the poorest and most underdeveloped in the world. In a 2006 survey, three-quarters of Mozambicans said that in the past five years their economic situation had remained the same or had gotten worse.

The resettlement of refugees from the civil war and successful economic reforms have led to a high growth rate: the country has enjoyed a remarkable economic recovery, reaching an average annual GDP growth rate of 8% between 1996 and 2006 and between 6 % and 7% in the period between 2006 and 2011. The devastating floods of early 2000 slowed economic growth to 2.1%, but a complete recovery was achieved in 2001, with growth of 14.8%. Rapid expansion in the future depended on several large foreign investment projects, the pursuit of economic reforms and the revitalization of the tourism, agriculture and transport sectors. In 2013, around 80% of the country’s inhabitants were employed in the agricultural sector, most of them engaged in small-scale subsistence agriculture, which still suffers from inadequate infrastructure, commercial networks and investment levels. Despite this, in 2012, more than 90% of the arable land in Mozambique was still unexploited. In 2013, a BBC article reported that, since 2009, Portuguese people have been returning to Mozambique because of the growth of the local economy and the bad economic situation in Portugal, due to the Eurozone public debt crisis.

FISHING AND DERIVATIVES

The Mozambican coastline is among the richest in fish on the African continent. Given the abundance of its hydrographic resources, fishing is practiced in almost the entire extension of the territory, constituting a complementary activity to agriculture.

However, the development of freshwater fisheries is lacking, mainly because they have enough potential to leverage the country’s economy.

III. JUSTIFICATIONS AND PRESENTATION OF THE PROPOSAL

3.1 DESCRIPTION OF THE PROBLEM SITUATION

3.1.1 GENERAL CHARACTERISTICS OF NAMPULA PROVINCE

The province of Nampula, in the northern region of Mozambique, Its capital is the city of Nampula, located around 2150 km north of the city of Maputo, the country’s capital. With an area of 79 010 km², this province is divided into more districts, 18, and has, since 2008, 6 municipalities: Angoche, Ilha de Moçambique, Monapo, Nacala Porto, Nampula and Ribaué.

In 2007, this was the province with the most population, with a total of 3 985 613 residents. In terms of population density, the value of 50.44 inhabitants per km² was only exceeded by the province of Maputo. Between 1997 and 2007, the population grew by more than 25%, being the only Mozambican province that recorded an increase of more than one million inhabitants.

geography

Located in the northeast of Mozambique, the province of Nampula is bordered to the north, across the Lúrio River, with the provinces of Cabo Delgado and Niassa. To the southwest it is separated by the river Ligonha from Zambézia, meeting the Indian Ocean to the east.

Economy

Its economy is essentially linked to the production of cashew nuts, cotton, tobacco, precious stones and other minerals.

3.1.2 RAPID URBANIZATION AND ITS EFFECTS

The accelerated process of urbanization that Mozambique has gone through in recent years stems from the damage caused by the war combined with two main factors, lack of security in the countryside and the search for work with opportunities concentrated in the cities. Inducing migration of a large population from rural areas to urban areas is what transformed Mozambique, in a short period of time, into an urban country.

Agribusiness could not be left out, as the Government has been looking for ways to encourage the population to produce. This is one of the Government’s main challenges, to make the Country able to produce again.

As a direct consequence of this process, the emergence, or aggravation, of the socio-environmental and economic problems that characterize cities is registered. The speed with which the country’s urbanization took place became inversely proportional to the capacity of the State to provide basic infrastructure and urban social services. As a result, there is a collapse in urban facilities and the precariousness of living conditions in urban areas, both in large cities and in smaller centers, represented by the formation of increasingly distant and marginalized peripheries, increased violence, poor infrastructure -structure, overload on community equipment, precariousness in public transport systems and environmental degradation, either by the occupation of areas unsuitable for housing and of great ecological value such as mangroves, river banks, hillsides and valley bottoms, or by pollution of the air and water through garbage and effluents of domestic and industrial origin.

Thus, the accelerated growth of the urban population directly impacts the demand for housing. Given the historical incapacity of the Public Power to meet or encourage the fulfillment of this demand on an adequate basis, irregular and disorderly occupation of urban space is registered, notably by the most disadvantaged strata of the population. The combination of precarious housing, built in inappropriate areas and the lack of environmental sanitation infrastructure defines the contours of the known scenario: the release of untreated sewage in the open, on the streets or slopes, uncontrolled waste disposal, clandestine connections to water and energy networks, felling of trees and elimination of smaller vegetation, all of this having as a final product unrest and discomfort for the population, diseases generated or transmitted by insects and rodents, bad odors and above all risk of loss of property and even human lives resulting from floods and inundations and movements of soil and rocks.

3.1.3 GENERAL CHARACTERISTICS OF ANGOCHE MUNICIPALITY OF NAMPULA PROVINCE

Angoche is the city and municipality of Nampula, an important point of contact with the island of Mozambique, and which for many years was a fundamental post in the coastal trade of the country.

Until 1976, Angoche was called António Enes, in honor of a Portuguese journalist, then governor of the region. Angoche became a municipality in 1998.

Founded by a Muslim sultan, Angoche was a point of resistance to the conquest by the Portuguese.

Despite being replaced by Quelimane as the main entry point into the country, Angoche maintained its status as a major trading post.

Today, the municipality is a quiet coastal area with few visible memories of its past. In 2007 it was estimated that the population of Angoche was 82,388 people.

More than 1200 state-owned companies (mostly small) were privatized in the country. Preparations for privatization and/or liberalization of the sector are underway for the remaining state-owned companies, such as those in the telecommunications, energy, ports and railways sectors.

The government often selects a strategic foreign investor when it wants to privatize a state-owned company. In addition, customs duties have been reduced and customs management has been simplified and reformed.

The government introduced a value-added tax in 1999 as part of its efforts to increase domestic revenues. In 2012, large reserves of natural gas were discovered in Mozambique, revenues that could dramatically change the country’s economy.

4. PROGRAM DESCRIPTION

The Program comprises the implementation of a Tilapia Production Unit in a fish farming enterprise, in an intensive breeding system, and a Fish Processing Unit, on the property of the company SCGlobal Lda, located on Lake Namaue in the municipality of Angoche, Province of Nampula – Mozambique.

From this moment on, we will describe the Program in two Projects:

1. TILAPIA PRODUCTION UNIT (PROJECT I);
2. FISH PROCESSING UNIT (PROJECT II)
4.1 TILAPIA PRODUCTION UNIT

4.1.1 DEVELOPMENT OBJECTIVE

This project aims to propose the fish farming activity, in an economically viable and ecologically correct way, respecting the support capacity of the local environment, giving sustainability to the system to be implemented.

4.1.2 PRELIMINARY GOALS

The main preliminary goals of the Project are:

Food production.

Improvement in the socioeconomic condition of the local population.

Creation of direct and indirect jobs.

Investor profitability.

4.1.3 PROJECT STRUCTURE (ACTION FOR IMPLEMENTATION OF THE PROPOSAL).

In order to fulfill its objectives and goals, the Project is structured in Goods and Services in Brazil and abroad, divided into Stages A, B and C, with a total duration of 60 months, as shown in the attached schedule. The steps are distributed as follows:

stage A

Export of Goods (Machinery and Equipment, Operational Utensils, Installation Utensils, Materials for Operational Use) and Project Development Services carried out both in Brazil and Mozambique, as well as the construction of buildings in the Project’s area of situation.

Stage b

Start of exports of Goods (Inputs – Fingerlings and Feed), Technical Assistance for monitoring and Operational Costing.

stage c

Continuity of exports of Goods (Inputs – Fingerlings and Feed), Technical Assistance for monitoring, Operational Costing and Productivity Revenue.

4.1.4 FUNDAMENTALS AND JUSTIFICATION OF THE PROJECT

The need to achieve sustainable development has led all nations to seek a balance between growth and protection of natural resources. In this context, water proves to be a vital element as it is a finite resource with an irregular distribution on the planet (SCARE, 2003).

It is estimated that, currently, the total amount of water on the planet is 1,386 million km3, where 97.5% of this total form the oceans (Figure below). The remaining 2.5% are fresh water, 68.9% of this value corresponds to frozen water in the polar ice caps and on the top of the highest mountains on earth, 29.9% constitutes groundwater, 0.9% corresponds to groundwater. of swamps and the waters present in rivers and lakes add up to only 0.3% of this value (REBOUÇAS, 2002).

aquaculture it is an old practice, but despite this, it has only experienced a significant increase in the last 30 years, becoming, at the turn of the millennium, the fastest growing agricultural activity in the world. The biggest growth in aquaculture is verified in Asia and South America, in an explosion that could be compared to that of the poultry and swine culture from the middle of the 20th century (ZIMMERMANN, 2001). According to FAO (2007), aquaculture production world, including algae, exceeded 59 million tons in 2004 and, in monetary value, reached US$ 70 billion..

Fish farming involves a new concept, that of an indirect control activity. The amount of farmed fish that one imagines to have, is not likely to be proven, except at the time of fishing. The fish is practically not observed to grow, but the well-being of the fish is monitored, through the control of water quality (color, smell, pH, dissolved oxygen and ammonia levels), food acceptance, behavior of the shoal, among other parameters. This is very different from other crops, such as livestock, for example, in which you can show it at any time, see it eat, grow, maintaining direct contact with the animal.

The objective of fish farming is to use management techniques that aim to obtain the largest number of individuals for a given space and maximize the growth of these individuals in the shortest possible time interval (GARUTTI, 2003).

Most freshwater fish farming continues to be developed on small rural properties, which still have them as a complementary activity. On the other hand, the lack of technical and commercial vision on the part of most producers is an evident fact. Few make production cost control spreadsheets and, at most, “scribble” a notebook with a record of input purchases and sales (BORGUETTI; OSTRENSKY; BORGUETTI, 2003).

Facing fish farming as a business activity, which demands input and generates waste, becomes essential to improve the efficiency of this production process.

Investments in aquaculture in Mozambique, in addition to being a great and profitable option, also meets the interests of the Mozambican government.

4.1.5 PROJECT AREAS (16o 09′ 16” S / 39o 59′ 50” / altitude 20m)

Lake Namaue, located in the municipality of Angoche, has an area of approximately 50 ha well served by waters suitable for the practice of aquaculture (figures 1 and 2), however the productive area of the project includes only approximately 9 thousand m³ and its fenced area with all the equipment provided for in its implementation, it has 37.50 ha, as we can see in the situation plan.

4.1.6 IMPLEMENTATION IN THE PROJECT AREA

Fieldwork will be carried out with a focus on terrain topography, soil composition, water availability and quality.

Samples will be collected constantly at specific points for the evaluation of the physical and chemical parameters of the water. For field data collection, we will basically use the following equipment:

  • Vehicle.
  • Field worksheet.
  • Digital camera.
  • Gauge of hydrogenic potential (pH) in the field.
  • Multiparameter probe for field evaluation of the main physical-chemical variables related to the quality of water intended for fish farming.
  • GPS.

4.1.7 situational diagnosis

At this point, we evaluate and adapt the access roads to the site, aiming to guarantee good traffic conditions, without compromising the acquisition of inputs and the flow of production, since, in the development of aquaculture cultivation, access of large vehicles is necessary and generally with heavy load.

The water that will supply the tanks meets the requirements for the cultivation of the chosen species. For a better control of the variables that can influence the productivity, a new evaluation of the water quality will be carried out “in loco” with the aid of a multiparameter probe, comparing the values obtained with the ideals for the practice of the activity of raising fish in captivity, as seen in Table 1.

The location selected for the implantation of the crop was determined, respecting the relief and the characteristics of the soil and water present in a strategic location to optimize the management and logistics adopted.

4.1.7 Implantation of cultivation

Based on the above and the desired production level, we will use 400 net tanks (3.0 x 3.0 x 2.5 mt) and 100 fingerling pockets, as illustrated in the Figures below, totaling a production area of approximately 9,000 m³ . The cultivation park will be built in accordance with standard technical recommendations and current legislation for environmental licensing. It is also noteworthy that the producer is aware that the proposed changes in the environment should be the minimum necessary, aiming at achieving environmental balance and thereby ensuring the sustainability of the enterprise.

4.1.8 Proposed Species

The species proposed for fattening in fish farming is the Nile tilapia, Oreochomis niloticus, Thai-chitralada lineage (Figure below), also known as Thai Tilapia. This lineage has been standing out on the world stage, being pointed out as the one with the best zootechnical performance.

Tilapia is a species native to Africa and in a short time it became one of the main fish species produced by fish farming in Mozambique. Tilapia are appreciated for the quality of their meat and for their rusticity.

Tilapia are the second most produced group of fish in the world, second only to carp. Most of the tilapia farming in the world uses single-sex populations, achieved by the sex reversal method. This method consists of the application, via feed, of the masculinizing hormone 17α-Methyltestosterone, still in the larval period.

The use of male species can be explained by the fact that males present a faster growth, since females, due to their precocious sexual maturation, divert much of their energy to reproduction. On the other hand, the producer, when acquiring reversed tilapia, obtains a more homogeneous batch, facilitating the control of the population and the quality of the water. In case of escape, the presence of only male individuals makes it difficult for this species to reproduce in the natural environment, given the ability to perpetuate the tilapia.

4.1.9 FOOD MANAGEMENT

The tank-net system favors productivity, but the results are not by chance. We are aware of the importance of each factor related to production. Food has a guaranteed place in this relationship, with emphasis on the quality of the rations. “In net cages, the fish do not have access to the environment and the feed is the only food source. For this reason, the food must be of excellent quality, with the proper balance of nutrients necessary for the development of the fish”. This is also an ecological issue, as balanced rations not only guarantee productivity but also avoid impacts on the environment. “Using balanced rations reduces environmental pollution and reduces the risk of a system collapse.”

mong the ingredients of rations for creation in cages, vitamins deserve special attention. “They are the elements that fish need most when they are not in their natural environment. Therefore, the rations must have satisfactory levels of vitamins”.

Another key nutrient is protein. The protein level of rations for breeding in cages should be between 32% and 36%. “Higher protein feeds are more expensive, but this cost is justified.

It is worth remembering that food expenses in this system are between 50% and 70% of the total production costs. “Because it is the most economically important factor, it is essential to invest in the correct diet, because the answer will come in productivity and, consequently, in profitability”.

4.1.10 Feeding

Feeding absorbs most of the resources applied to fish farming, so it is necessary to develop a feeding plan that ensures development at the lowest possible cost. Feeding must offer support to exploit all the growth potential that the species presents, in addition to improving the quality of the meat and obtaining a healthier and more resistant fish.

The ration must be elaborated according to the nutritional requirement, among the species, or even, adapting to the growth of the fish. Adjustments in the grain size of the rations are necessary so that a correspondence between the size of the fish and the particle occurs. Feeds for larvae are crumbled, have a higher concentration of crude protein in their composition. As the feed granulometry increases, its crude protein concentration decreases.

Feed supply must always be assisted, which allows the technician to have direct contact with the fish, a very important activity to highlight possible problems and better evaluate the squad. The rations must be stored in a shed, protected from humidity and solar radiation, stacked on wooden pallets.

The number of times the fish is fed varies according to temperature, species, stage of development and water quality. In winter, feed should be provided on the hottest days and times, observing any leftovers to adjust the amount of feed provided. During this period the fish ingest a smaller amount of food. Normally, in the first stages of life, food must be provided several times a day.

The amount and type of feed to be supplied are calculated according to the average weight of the fish, obtained from biometrics (Table on the next page).

Biometrics is the management that aims to obtain the average weight of the fish and biomass stored in the ponds, in order to calculate the feed and monitor the development of the animals. Biometrics must be done with the aid of a caster, a bucket and a scale. The procedure must be carried out with the fish fasting and from the average weight obtained, an adjustment in the amount of feed provided must be carried out, as indicated in the table above.

4.1.11 Population

Preparation of net tanks – Frying pocket

Once the net tanks are properly assembled and inspected, the breeding pockets are installed to receive the fry. The pockets are a kind of bags with a small mesh, so that the fry do not escape from the net tanks (Figure below) and as the fish grow they are transferred to other tanks without pockets.

The fingerlings or juveniles are transported in bags with water and oxygen. Upon arriving at the place of settlement, the fry should not be released immediately, some preliminary measures must be taken.

For acclimatization, the plastic bags must be placed in the water of the pond for a period of 20 to 30 minutes, aiming at the thermal balance between the water inside and outside the bag.

Afterwards, the water must be slowly mixed with that of the tank, thus avoiding pH shock, only after these precautions should the fish be slowly released.

4.1.12 Spending

With the harvesting, the cultivation ends and the commercialization phase of the production begins. It won’t do any good to take good care of the herd throughout the cultivation and lose fish at the end, due to a bad harvest.

Before harvesting, the fish are sampled and evaluated, and it is important to determine their health status, average weight and number of fish. Fish undergo a fasting period of approximately 24 hours in order to empty their digestive tract.

Fishing is carried out with the aid of rafts with winches, one edge of the net tank is attached to the raft and the other is hoisted until it is easy to remove the fish from the tank. The harvest will be carried out when the lot reaches commercial weight, in this case 700 to 800 gr.

Fish can be marketed live or “in natura”, transport is the last, but not least, stage in marketing. Many factors can interfere and compromise the success of the transport and some care is necessary to not compromise the quality of the fish to be delivered. Among these, the water quality conditions, the nutritional management imposed, the health status and the handling of the animals during transport stand out.

4.1.13 Need for investment and resources

4.1.13.1 Implementation

The calculated investment costs for the implementation of the cultivation park and the start of production will be US$ 4,058,491.13 (four million, fifty-eight thousand, four hundred and ninety-one US dollars).

4.1.13.3 PHYSICAL-FINANCIAL SCHEDULE
4.1.13.4 EXECUTION TERM

The Project will be developed in 60 months (5 years).

4.1.13.5 DEADLINE FOR IMPLEMENTATION AND START OF PRODUCTION

Implementation in 12 months (1 year).

If you are interested in obtaining the complete Project and its calculation memories, contact our consultants.

CONTACT US!

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