Mozambique: Finnish Paper Companies Mills Reaffirm Interest in Mozambique

Agencia de Informacao de Mocambique (Maputo)

The two major Finnish paper companies, Stora Enzo, and UPM, reaffirmed on Thursday their interest in investing in the forestry sector in Mozambique, during a meeting with Mozambican President Armando Guebuza, on the final day of his working visit to Finland.

According to Guebuza, these companies are now awaiting the completion of feasibility studies, and then they will raise finance to start work in the field.

The studies are to determine the exact quantity of timber the companies will need to produce paper, which will dictate the amount of land needed to plant the trees. The studies will also determine how much investment is needed.

The timber produced in Mozambique will supply the two Finnish paper mills, described as the world leaders in this industry, and eventually also supply a factory to be installed in the northern Mozambican province of Niassa.

"There is a willingness on the part of these companies to invest in Mozambique and there is a similar interest on our part", Guebuza told reporters. But he warned that interest dose not always translate into investment.

"I cannot guarantee that they will effectively invest in Mozambique", he warned "I cannot say that much, because the feasibility studies must first be finalised and funds must be raised, and we are currently working on that".

Guebuza said the government is very interested in seeing Stora Enzo and UPM established operations in Mozambique, because it wants to diversify cooperation with Finland into the private sector, attracting companies that will create more jobs, new services and pay taxes.

On Wednesday, Guebuza met with Finnish business people and invited them to invest in Mozambique, explaining that the country has a great potential in the sectors of tourism, agriculture, forestry, and telecommunications.