In exchange for the construction of new dams and roads, Mozambique has granted China favourable land leases to run mega-farms and cattle ranches, the Macau Hub reports.
According to Loro Horta, a researcher at Nanyang University in
Singapore, China's interest in Mozambique began in 2006, when Beijing
granted the African country a USD2 bn loan to build a dam. Since then,
China has signaled interest in leasing land for food production, especially rice.
"China has been requesting large land leases to establish Chinese-run
mega-farms and cattle ranches," Horta was quoted by the Macau Hub. In
return, China will finance three more dams and build new roads. "This
investment in infrastructure is clearly designed to maximise production
and facilitate the rapid export of foodstuffs to China, while at the
same time giving lucrative contracts to Chinese companies," Horta said.
Official statistics show that the Chinese government is investing
USD800m in Mozambique's agriculture, aiming at increasing rice
production from 100,000 tonnes to 500,000 tonnes a year by 2013. Consumption of rice in China has doubled since 1985, to 50 kilos per person and year.
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