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Sweetening the deal

A new owner brings reprieve for Mozambique's sugar sector, but climate change could bring less tractable problems

Today’s front pages in Maputo. Photo credit: Faizal Chauque / Zitamar News

Good afternoon. Mozambique’s sugar sector could be thrown a lifeline with the sale of Tongaat Hulett’s plantations in the country to Tanzania’s Kagera Sugar — widely seen as a success story since it was privatised and sold to the local conglomerate Super Group in 2001.

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So the signs are good, but challenges remain. Kagera is buying Tongaat’s plantations not only in Mozambique but also Botswana, Zimbabwe, and South Africa; the company has made no public pronouncement regarding its plans as yet, but it seems reasonable to expect that it will focus investment on those areas of the business which are most profitable. Mozambique’s plantations will therefore have to compete for the attention of the new owners.

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