Companhia de Sena SARL

A new MIGA-guaranteed project is expected to help rehabilitate and partially privatize Mozambique's largest sugar estate, creating thousands of jobs and generating significant economic and social benefits in the country's Marromeu region. MIGA is extending $65 million in investment insurance to the "Sena Group" (a consortium of Mauritian companies) and to the Industrial Development Corp. of South Africa Ltd., covering their equity investments, management and technical assistance contract, and loan for the project.

The project entails the 75 percent privatization, rehabilitation, and management of the former Sena Sugar Estate, which was severely damaged during Mozambique's prolonged civil war. Combined with infrastructure improvements, the change should lead to the production of 100,000-125,000 tons of raw and refined sugar a year, helping the country raise its production capacity to about a third of pre-war levels. The investment, located on the Zambezi River, will involve the development and farming of 11,000 hectares of cane fields.

The project will be the largest economic development undertaking and main employer in northern Mozambique, which has attracted little FDI. Companhia de Sena SARL will be the country's leading sugar producer, selling about 70 percent of its sugar domestically and 30 percent abroad. An estimated 80,000-100,000 tons a year of imported sugar could be substituted by this project, thereby guaranteeing a reliable domestic supply. Transportation (road and water) infrastructure will be built. Other developmental benefits include the establishment of potable water points, the electrification of the Marromeu village, and the upgrading of a local school and hospital. MIGA is guaranteeing fees paid by the project enterprise for technical assistance to management and transfer of technology services.

Note: Contract with Sena Development Ltd. was cancelled.