African Sugar
Recent limited reforms to the EU's complicated sugar market, will make it easier for poor country producers to sell us sugar. Here is one example.
Tongaat-Hulett group to expand sugar production in Mozambique for the EU market.
Mozambique is a country of 20 million people, and a GDP per head of $1.500. It is one of Africa's relative success stories, with a rapidly growing economy. Investments like these are essential for it to continue on that trajectory. So why are these investments being made?
The Company will use this base to expand low cost sugar production at our two factories from 115 000 tons in 2005 to over 270 000 tons at the time when the EU markets open up to LDC sugar producers.The impact of this on the economy is important.
The two expansions will have a positive socio-economic impact on the region with the creation of 6,638 and 2,145 (total 8,783) new jobs in Xinavane and Mafambisse (the two factories) respectively.9,000 jobs from one company's investment is certainly not to be sneezed at. If we were to abandon or protectionist ways, stories like this would no longer be remarkable.
1 comment:
Excellent post, serf.
I guess the bureaucrats don't like the idea to lose control and that's what will happen when the free market reigns.
To first destroy an African industry and then to send aid is in the interest of the bureaucracy but neither in the interest of the taxpayer nor in the interest of the African people who are often better off if they are allowed to earn their income themselves.
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